***Guest Appearance

Credits to:

https://www.youtube.com/@michelleperkins-limitfreel2446 

"Episode 169: Unlocking Wealth: The Power of Raising Private Money"

https://www.youtube.com/watch?v=gf8y37moYos  

 When it comes to real estate investing, funding is often the biggest hurdle. Most new and seasoned investors alike have stories of navigating the strict requirements of banks, gathering painful piles of paperwork, and still facing rejection or unexpected closures of credit lines. But what if there was a way to access money for your real estate deals without begging banks, risking your assets, or making desperate pitches?

Private Money: An Alternative Path

On a recent episode of the “Raising Private Money” podcast, Michelle Perkins sat down with real estate investor Jay Conner, who shared his journey from being “owned by the bank” to raising millions in private funding. When Jay started in real estate back in 2003, he was convinced that banks were the only way to finance investments. He soon found out how vulnerable he was when his trusted banker shut down his credit line overnight, leaving him scrambling to fund two projects.

Jay’s turning point came when he discovered the concept of “private money,” which involves borrowing directly from individuals—not institutions—who are seeking higher, safer returns for their investment capital or retirement funds. With clear enthusiasm, Jay described private money as “where an individual just like you or me can take their investment capital, loan the money … and repay them high rates of return safely and securely.”

Changing Your Money Mindset

Both Michelle and Jay agreed that the journey to financial freedom in real estate begins in the mind. Jay is a big believer that “until you own the real estate between your ears, it’s going to be hard to own real estate” in any other sense. Many people are constrained by their beliefs about money and investing, sometimes without even realizing it. If the traditional banking system has left you wary or you feel unqualified to approach “sophisticated” lenders, you’re not alone.

Jay emphasized that private lenders are everyday people: retired teachers, former police officers, small business owners, and even teenagers who inherited funds. Most of his 47 private lenders had never heard of private real estate loans or self-directed IRAs until he put on his “teacher hat” and explained the opportunity.

How to Attract Private Money

One of the biggest misconceptions Jay highlighted is that raising private money requires you to be a slick salesperson. Desperation has a “smell,” and people are naturally repelled by it. Jay’s approach is radically different: lead with value, teach others about the opportunity, and avoid traditional selling.

He shared his exact script for working with new lenders: after teaching the basics and identifying someone interested, he simply informs them when a deal is ready to be funded. “I have great news for you. I can now put your money to work. I have a house under contract …” and then provides the details. There’s no high-pressure pitch or fearful plea—just a professional, service-oriented process.

The Win-Win of Private Lending

What’s in it for the lenders? Many people are frustrated with the paltry returns from savings accounts and the volatility of the stock market. Private lending lets them earn competitive, even “insane,” rates of return in a secured way, often backed by real estate. The investor, meanwhile, gets flexibility, speed, and the ability to control deal terms. It’s a win-win.

Start Your Journey

Jay is passionate about sharing this knowledge, offering his book “Where to Get the Money Now” as a guide for those ready to step off the c

***Guest Appearance

Credits to:

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

"It's All About the Private Real Estate MONEY - Jay Conner shares on the GetOnCode show"

https://www.youtube.com/watch?v=eyPBbR6KMuM 

 What do you do when your bank unexpectedly closes the door on your real estate deals? For Jay Conner, it was the catalyst for not only building a multi-million dollar business, but also a movement in financial empowerment. 

In a recent conversation with Seko Varner for the Get On Code podcast—an empowerment platform centered on Black empowerment and wealth—Jay delivered a masterclass on raising private money and the mindset needed to succeed in real estate investing.

From Bank Roadblocks to Opportunity

Jay’s journey began in 2003 with a humble start in eastern North Carolina. For six years, he and his wife Carol Joy relied on traditional banks to fund their house flips. Then, in January 2009, disaster struck: “We’re not loaning money to real estate investors anymore,” Jay’s banker, Steve, told him amid the global financial crisis.

Staring down the loss of his funding, Jay asked the pivotal question that changed everything: “Who do you know that can help you with your problem?” This led him to Jeff Blankenship, who introduced him to the world of private money, where individuals, not banks, finance deals. This lesson underscores Jay’s core advice: when you’re stuck, ask better questions and seek connections—your network is everything.

Private Money: It’s About Mindset

Jay is adamant that getting private money is first about owning “the real estate between your ears.” That is, changing your mindset from asking for money to teaching and serving others. Instead of desperately chasing investors, Jay suggests putting on your “teacher’s hat”—educating your connections about how they can get high returns through safe, secured investments in real estate.

Most of Jay’s 47 private lenders had never heard of private money or self-directed IRAs—tools that enable individuals to use retirement funds to invest in real estate deals, earning returns tax-deferred or even tax-free. By sharing knowledge and structure—not just asking for cash—he transformed relationships and built trust.

The Magic Script and Secret Sauce

One of the most actionable parts of Jay's conversation with Seko was his script for approaching potential private lenders:

“I have great news for you. I can now put your money to work. I’ve got a house under contract; the funding matches what you have available, and closing is next week. You’ll need to wire funds to my attorney’s trust account, and I’ll send over the details.”

Notice what’s missing? There’s no pressure, no desperate pitch. Lenders are brought in before a deal exists, educated on the process, and their comfort and trust are prioritized. “Desperation stinks,” Jay quips, emphasizing that deals go smoother—and faster—when you lead with value.

Growing Your Network for Capital

Jay identifies three sources for private money: your warm market (people you know), your expanded warm market (business networking, such as BNI), and existing private lenders. But he encourages starting with those you know, especially retirees who may have unused funds and are tired of volatile, low-yield investments. He even shared his favorite openers—sometimes just “I need your help”—to spark curiosity and find partners, not just financiers.

It’s a Win-Win

Jay’s approach goes beyond transactions—it’s about changing lives. He shared heartfelt testimonials from investors whose retirements were transformed by safe, solid returns. His message is clear: real estate investing with private money isn’t just about personal gain. It’s a ripple effect, empowe

***Guest Appearance

Credits to:

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

"How To Raise Money For Real Estate WITHOUT Ever Asking For It!"

https://www.youtube.com/watch?v=05rF8IgJZWY 

 When it comes to building wealth through real estate, one of the biggest barriers for both new and seasoned investors is finding the funds to close deals. Traditional financing can be limiting, cumbersome, and unreliable, especially in volatile economic times. That’s why the insights shared by Jay Conner, a veteran real estate investor and private money expert, on the Inspire to Invest podcast are invaluable.

Jay’s story is both cautionary and inspiring, highlighting not just how to overcome financial roadblocks but how to future-proof your business for long-term success.

From Bank Crisis to Private Money Breakthrough

Jay Conner began his real estate career in 2003, working alongside his wife in Morehead City, North Carolina—a small market of just 40,000 people. For their first six years, the couple relied exclusively on bank loans to fund their deals, which worked—until it didn’t.

Everything changed in January 2009. The global financial crisis struck, and Jay received a call from his banker: his line of credit was gone overnight.

Suddenly, with deals under contract and no access to bank lending, Jay faced the very real prospect of business collapse. But rather than giving up, he asked himself a critical question: “Who do you know that can help you with your problem?”

That question led him to a conversation with a fellow investor, who introduced Jay to the concept of private money—borrowing from individuals instead of institutions. In less than 90 days, Jay raised over $2 million in private funds, completely transforming his business.

Demystifying Private Lending

Private money isn’t about slick pitches or high-pressure sales. Jay’s approach is rooted in education and integrity. He puts on his “teacher hat” and explains to prospective private lenders exactly how private loans work:

• Funds are secured by real estate: Each lender receives a promissory note and is listed on the mortgage or deed of trust, protecting their interest.
• Positions and loan-to-value are carefully managed: Jay never borrows more than 75% of a property’s after-repair value, ensuring a conservative margin of safety.
• Clear, fair terms: Private lenders receive a straightforward interest rate (for example, 8% in Jay’s case) without junk fees or hidden costs.
• Transparency and verification: Every deal is closed with an attorney or title company. Lenders are advised to verify that their mortgage is recorded and to review all documents before sending funds.

This approach not only safeguards the lender but also builds Jay’s reputation as a trustworthy operator, critical in a relationship-based business.

Red Flags and Lessons Learned

Jay is candid about the risks and common mistakes in the world of private lending, especially those that have plagued both Canadian and U.S. real estate markets. He cautions against deals where loans aren’t properly collateralized or registered, and warns lenders to “trust but verify.”

Jay encourages would-be lenders to always confirm the position of their lien, to never wire money without reviewing documentation, and to be wary of scammers demanding upfront “application fees.” His advice, simply put: if it sounds too good to be true, it probably is.

Scaling with Systems—and Service

One of the most impressive aspects of Jay’s story is how he leveraged private money to scale his operations. With reliable access to funds, he was able to triple his business during the recession, cherry-picking the best foreclosure opportunities while others s

***Guest Appearance

Credits to:

https://www.youtube.com/@KeshavKolur-CliveCapital

"EP. 32 - Fire Your Banker Alternatives to Bank Funds and Hard Money with Jay Conner"

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

 If you’re a real estate investor—whether just starting out or already seasoned—chances are you’ve wrestled with raising capital. Traditional bank loans and hard money lenders might seem like your primary options, but as Jay Conner shares in his recent conversation with Keshav Kolur and John Lai, there’s a powerful alternative many overlook: private money.

In this candid and insightful episode, Jay draws from over 23 years of real estate investing experience, breaking down exactly how he’s leveraged private money to transform his business.

What Is Private Money—and Why Does It Matter?

First things first, Jay clarifies: private money means raising funds directly from individuals (private lenders), not banks or hard money lenders. These lenders are real people—perhaps folks from your network—who are willing and able to loan money from their capital or retirement funds in exchange for an attractive, secured return.

Jay started his journey relying on local banks, only to have his “funding rug pulled out” during the 2009 financial crisis. That abrupt shift forced him to get creative. That’s when he discovered that teaching people about private money—and offering them a safe, secure way to invest—could open doors not just for him, but for the lenders as well.

He emphasizes, “I’ve never missed out on a deal for not having the money,” and has built relationships with 47 private lenders, raising millions without ever begging, selling, or convincing anyone. The key? Education.

Three Keys to Finding Private Lenders

According to Jay, there are three categories where you can source private lenders:

1. Your Warm Market: These are people you already know—friends, family, colleagues, folks at your church or local Rotary club, even your golf buddies.
2. Your Expanded Network: Go where money-minded people congregate. Jay highlights organizations like Business Networking International (BNI) for the rapid expansion of your connections and credibility.
3. Existing Private Lenders: These are individuals already lending money to real estate investors. While you can comb public records or lean on software solutions for contact info, networking events (especially at self-directed IRA custodians) are goldmines.

How the Process Works

Instead of racing to find funds when a deal appears, Jay builds relationships ahead of time. Private lenders don’t hand him checks directly—instead, their funds are wired to a closing attorney or title company, and each transaction is secured by a mortgage or deed of trust, protecting the lender.

Transparency and structure are crucial. Every deal is “one off,” and the lender’s investment is tied to a specific property. The typical return? Jay pays 8% interest, with no points or equity sharing, making it extremely appealing compared to traditional savings vehicles, even in times of rising rates.

Best Practices and Pitfalls

Jay’s philosophy is clear: “The money comes first.” Don’t fall for the myth that “if you find the deal, the money will show up.” Instead, secure your capital ahead of time so you can act confidently when opportunities arise.

He urges investors to build credibility and relationships. A “credibility kit” isn’t a substitute for integrity and real results. Your network—as Jay puts it—is directly linked to your net worth.

For private lenders, due diligence is important, but Jay’s approach is to work with people he knows, trusts, and has educated on the process. He also points out that most of his lenders had neve

***Guest Appearance

Credits to:

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

"174: Private Lending Truths Exposed!!!"

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

Navigating the world of real estate investing today is no easy feat, especially with bank lending restrictions, rising interest rates, and a fiercely competitive housing market. Yet, for seasoned investor Jay Conner, these challenges are nothing new—in fact, they were the very catalyst that led him to discover the game-changer in his business: private money.

Jay recently sat down with Chad Sutton on the Real Estate Runway podcast to share the hard-won wisdom he’s gained in over two decades of investing, flipping more than 500 homes, and weathering multiple economic cycles. For anyone hoping to level up their real estate game—whether you’re wanting to raise capital or are curious about lending your money to others—Jay’s experience provides a roadmap both practical and inspiring.

The Wake-Up Call That Changed Everything

Jay’s journey into private money began with a problem: after years of funding deals through a traditional bank line of credit, his banker cut him off without warning. Two pending deals worth over $100,000 in profit were suddenly at risk of collapse. Like many, Jay initially saw this as a disaster. But a phone call to a fellow investor opened his eyes to a new world. “Have you ever heard of private money?” his friend asked.

The concept was foreign at first. But quickly, Jay dove into learning about private lenders—individuals who invest their capital into real estate deals for a fixed return, often secured by a mortgage or deed of trust. Within 90 days, Jay successfully attracted over $2.1 million in private funding, and he’s never missed out on a deal due to a lack of capital.

Why Private Money Works—For Both Sides

One of the biggest benefits Jay points to with private money is control. As a borrower, you make the rules: you offer the interest rate, set the terms, and negotiate the structure. Since 2009, Jay has paid the same 8% rate to his lenders, regardless of market swings. “We dictate the market,” Jay says. “We’re not at its mercy.”

Private lending also appeals to those tired of stock market volatility and low bank returns. Jay’s program offers better yields, with the safety of backing loans with real estate and naming lenders on both the insurance and title policies. It’s not an unsecured loan—a key point for risk-averse investors.

How to Find Your Private Lenders

Jay breaks down three primary sources for private lenders:

1. Your Warm Market: Start with people you already have a relationship with—friends, family, acquaintances, social networks, club members, and more. Retirees are especially good prospects, as they often have idle funds or IRAs seeking higher returns.
2. Expanded Warm Market: Grow your network quickly by joining local community groups like Rotary or Business Network International (BNI). “There’s a direct correlation between your network and your net worth,” Jay notes.
3. Existing Private Lenders: Seek out individuals already funding real estate deals. County records and self-directed IRA companies can be rich sources—over 70% of people with a self-directed IRA want to loan money on real estate, according to Jay.

Protecting Lenders—and Your Reputation

For those considering becoming private lenders, Jay’s top advice is simple: Invest in the operator, not just the deal. Know the real estate investor’s track record, ensure your loan is secured by a deed of trust or mortgage, and have every term in writing. Never wire money directly to the investor—always use a closing agent or attorney to protect both parties.

Building a Business That La

***Guest Appearance

Credits to:

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

"Unveiling the Secrets of Real Estate Success with Jay Conner"

https://www.youtube.com/watch?v=AjPO4l7hsNg

Are you tired of jumping through hoops with banks, tedious paperwork, and red tape when funding your real estate deals? If so, you’re not alone. In a recent episode of the Raising Private Money podcast, together with Cody Adent, Jay Conner, widely known as “The Private Money Authority,” shared his transformative journey and actionable tips on leveraging private money to fuel real estate success.

From Banking Setbacks to Private Money Triumph

Jay Conner’s path to mastering private money began in 2009, amid the chaos of the global financial crisis. Despite a stellar credit score and a long-standing relationship with his banker, Jay suddenly found his line of credit revoked; banks simply weren't loaning to real estate investors anymore. Stuck, but determined, he turned to private money: deals funded by regular individuals, using their investment or retirement funds to back real estate.

The result? Jay’s business tripled within a year. Today, he oversees more than 2,000 investors he’s coached and manages over $8 million in private funds, regularly averaging profits of $78,000 per deal—without a dollar of his own money in play.

What is Private Money, and Why Does It Matter?

Unlike hard money or traditional bank loans, private money comes from individuals, not institutions. Jay explains that this direct lender relationship allows you to “make the rules.” There’s no need to beg for funds or suffer harsh lending standards and rates. Instead, you negotiate mutually beneficial agreements, and your deals close in days, not weeks.

Crucially, Jay points out, private money thrives regardless of interest rate fluctuations or market instability. While the Federal Reserve hiked rates 11 times in 22 months, what Jay pays his private lenders holds steady, because the deal terms are set within his program, not by institutional whims.

How Does It Work? Bringing Home “Three Big Checks”

Jay’s system ensures he never uses his funds and always brings home a check at closing. By borrowing up to 75% of a property’s after-repair value (ARV), he can not only cover the purchase and rehab but often takes home a surplus to manage carrying costs.

Here’s how the "three big checks" come in on a typical deal:

1. At Purchase: When using private money, Jay structures the loan so it covers the purchase price, rehab costs, and extra buffer, meaning he collects a check at the closing table.
2. Option Fees or Rent-to-Own: If selling on a lease-purchase, he collects a large, non-refundable option fee from tenants aiming to buy.
3. At Sale: When the property is sold or flips, he receives another large check, pocketing the difference after paying the private lender their flat annual interest (often 8%).

Building Win-Win Relationships

Over half of Jay’s private lenders invest through self-directed IRAs, earning steady, often tax-deferred or tax-free returns entirely collateralized by real estate. Jay is clear: these “sleep-at-night” deals are hands-off for the investor, no joint ventures or profit splits. The lenders earn more than a traditional CD or high-yield savings account and retain security by being listed on the deed or promissory note.

Scaling Without Limits

Today, Jay manages 47 private lenders, often with more money queued up than he has deals available—a “good problem” by any investor’s standard. Relationships are key, and personal referrals have fueled much of his lender network. For new investors, Jay insists the beauty of private money is that credit scores are irrelevant; it’s about the value and saf

***Guest Appearance

Credits to:

https://www.youtube.com/@howtoscalecommercialreales334 

"How to Get Money for Real Estate Deals Without Relying on Traditional Money Lenders"

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

If you’re a real estate investor, few things matter more than having access to funding on your terms. While hard money loans or bank financing can work, they’re often inflexible or disappear just when you need them most. This is the exact challenge that propelled Jay Conner into becoming a passionate advocate for private money lending. His insights not only reveal how to raise and leverage private capital but also why building the right team and systems is essential for growing your investment business.

The Turning Point: From Institutional Reliance to Private Money

Jay’s journey started in the family mobile home business, but took off when he transitioned to single-family and commercial real estate. Like many investors, Jay initially relied on banks and institutional lenders to fund his deals. That changed dramatically in 2009, when his bank suddenly revoked his line of credit, with no warning. Deals in the pipeline were now at risk, and Jay needed a solution. Enter private money.

Within 90 days, Jay raised over $2.1 million from private individuals. The key was leveraging his contacts and offering them a safe, high-return investment opportunity secured by real estate. Importantly, private lenders hold a promissory note and are named on the deed of trust or mortgage, granting them protection typically enjoyed by banks.

This isn’t joint venturing or selling equity. Instead, it’s about structuring deals so that the private lender acts exactly like the bank, and the investor, like Jay’s company, owns the property.

Demystifying Private Money: Education Over Persuasion

One of Jay’s most powerful points is the difference in mindset when raising private money. Too often, new investors feel like they’re begging or imposing when asking for funds. Jay flips this script entirely.

“I’ve never asked anyone for money,” he says. “Instead, I simply teach people about the opportunity.”

He holds private lender luncheons, presents the investment structure, explains the safety and returns, and lets the program speak for itself. By operating as an educator—rather than a salesperson—Jay not only makes the process more comfortable, but also attracts motivated, informed lenders. This partnership mentality means that when it’s time to fund a deal, Jay simply calls to let the ready lender know their money can be put to work. There’s no awkward “pitch”—just the progress of a win-win relationship.

Systems and Team: The Engine Behind the Deals

Raising capital is only one part of the scaling equation. Jay emphasizes the importance of great team members: a trusted real estate attorney, reliable realtors, acquisitionists, project managers, and a personal assistant. These specialists ensure that transactions run smoothly, repairs are managed efficiently, and leads are always coming in. Jay’s commitment to delegating and systemizing allowed him to scale back his workload to under 10 hours a week, focusing solely on high-value decisions and strategy.

This didn’t happen overnight. Jay learned—often the hard way—that doing everything himself was not sustainable. By joining mastermind groups with other active investors, he gained critical advice and support. These peer groups, he asserts, have been instrumental in propelling his business forward.

Mindset: The Most Profitable Asset

Ultimately, Jay’s success comes down to mindset. Private money is about offering, not asking. It's about educating your network, structuring attractive, secure deals, and having confidence in the value you

When it comes to building wealth, most people think about grinding away at their day jobs, stashing cash in retirement accounts, and hoping the stock market smiles kindly on their investments. But what if there was a smarter, more strategic way to make your money work for you, so effortlessly, it feels almost unfair? 

On a recent episode of Raising Private Money with Jay Conner, private money expert Rich Lennon shared his journey and the powerful lessons he’s learned about growing wealth as both a real estate investor and private money lender. If you’re looking to make your money work smarter, not harder, here are the key takeaways from Rich’s fascinating approach.

The Shift from Busy Investor to Effortless Lender

Rich’s story is one that many investors dream about. After spending years as a full-time real estate investor—flipping four to five homes a month—he decided to pivot in early 2020, right as the pandemic hit. He’d reached his financial "magic number,” felt burned out by the daily grind, and recognized that lending money to other investors was not only less stressful but also more profitable and less time-consuming.

Today, Rich manages over $8 million in private loans and works less than five hours a week. The secret? He stopped being the one swinging hammers and started being the one providing the capital—the backbone of every successful real estate deal.

Why Private Lending Makes Sense

Private lending is all about putting your money to work for you. Instead of seeking out, purchasing, renovating, and selling properties yourself, you provide the funding for other experienced investors to do the heavy lifting. Rich’s lending model allows him to earn double-digit returns while enjoying a much lighter workload. Just three hours of due diligence per deal—mostly underwriting the property and paperwork—yields returns that rival or exceed what he made flipping properties himself.

How Rich Minimizes Risk

A key pillar of Rich’s strategy is underwriting based on the asset, not the borrower. He relies on rigorous, asset-based criteria, typically lending no more than 70% of a property’s After Repair Value (ARV) minus repairs. This conservative approach protects him if a borrower defaults, since the underlying real estate is usually worth more than the amount loaned.

Rich has also embraced technology by leveraging Artificial Intelligence (including ChatGPT) to analyze comps and value properties. According to him, AI is now just as accurate as human analysis for determining ARVs, which speeds up his process and further reduces his risk of error.

Unlocking Massive Returns with Private Money

One of the most remarkable aspects of Rich’s model is how he combines his capital with what he calls “lazy money”—funds from passive investors looking for solid, predictable returns. Here’s how it works: if a borrower needs $200,000, Rich might put up $100,000 while another investor provides the other $100,000. He then lends out the total at 20% interest to a flipper. He pays his partner a flat 10% return, keeping the remainder for himself. The result? His money often earns a 30% annual return, while his partners enjoy passive income with little involvement or worry.

The Power (and Simplicity) of Self-Directed IRAs

Rich also teaches investors how to supercharge their retirement savings using self-directed IRAs. By flipping or funding real estate deals within a tax-advantaged account, investors can grow their portfolios exponentially faster than traditional stock market investments allow. While there are rules to follow, the key advantage is that all profits compound tax-free, allowing even small accounts to snowball rapidly over time.

Final Thoughts: Action Drives Wealth

The ultimate message from Rich Lennon is simple but powerful: take massive action and let your money move. Whether you’re tired of riding th

If you want to level up your real estate business and build lasting wealth, then learning how to creatively leverage private money is a game-changer. In a recent episode of “Raising Private Money,” Jay Conner sat down with Derek Dombeck, an expert with decades of experience in private lending, creative deal structuring, and wealth-building through real estate. Together, they unpacked practical strategies and mindset shifts that have helped Derek successfully structure thousands of deals while helping investors and sellers alike.

Below, we’ll break down the top insights and actionable lessons from their conversation.

Creative Deal Structuring: More Than Just Financing

Derek emphasizes that creative deal structuring isn’t just about finding different ways to fund a property; it's about using every tool at your disposal to solve people’s problems.

For instance, many think that approaches like “subject to” (taking over a property’s existing financing) or seller financing are inherently creative. For Derek, those are just the basics. True creativity comes from recognizing the unique needs of the seller, the condition of the property, or the investor's goals, and then combining multiple strategies for a win-win outcome.

Real-World Example

Derek shares a deal where he purchased a property with existing bank debt (“subject to”), arranged for the seller to carry a second mortgage (sometimes at 0% interest), and leveraged private money in a third mortgage position to fund renovations. Each participant was protected and incentivized: the seller got steady principal paydowns, the private lender earned double-digit returns (including a share of profits through a “participating note”), and Derek maximized his leverage without overexposing anyone.

The Power of Participating Notes

A major gem from Derek’s toolbox is the “participating note.” Unlike traditional notes that just collect interest, participating notes allow private lenders to receive a share of the profits when a flip is complete or the property sells.

This approach has several benefits:

• Aligns interests. Lenders are invested in the success of the project.
• Boosts returns. Lenders can potentially earn more than a flat interest rate.
• Eases cash flow. With interest accruing and some payments deferred until exit, it helps investors better manage project costs during rehab.

The paperwork is straightforward: terms detailing profit splits and payout triggers are included in the promissory note—not buried in side agreements—ensuring transparency for all parties.

Multiple Offers: Meeting Sellers Where They’re At

Derek’s approach to negotiations is all about options. Rather than pushing a single offer, he sits with sellers and outlines a menu:

• All-cash, quick-close offers.
• Seller finance with interest at a higher purchase price.
• Full-price (or higher) offers with 0% interest, paid out over time.
• Lease options or creative “installment” arrangements.

This empowers sellers to choose what best meets their specific needs. In practice, many sellers are drawn to the financial advantages of terms deals—often netting more money over time, especially if they can take 0% interest and avoid a big tax hit.

Equity Cushion and Risk Management

No matter how creative the structure, Derek never skips prudent risk analysis. He focuses on maintaining a healthy equity cushion—typically borrowing no more than 65% of after-repair value for flips, and up to 80% for longer-term rentals. This ensures there’s enough margin for error, market shifts, or unexpected expenses, keeping both lenders and the project secure.

Building Relationships & Educating Private Lenders

At the core of Derek’s strategy is education and open communication with private lenders. Explaining unique deal structures, being t

***Guest Appearance

Credits to:

https://www.youtube.com/@therealestatejam6159 

"Episode 207: How to Raise Private Money w/ Jay Conner"

https://www.youtube.com/watch?v=QE1NqIsAgpY 

If you’ve ever wondered how seasoned real estate investors scale their businesses, survive economic downturns, or manage to snap up deals other investors miss out on, the answer is often simpler (and more within your grasp) than you might think: private money. 

In this episode of the Raising Private Money podcast, Jay Conner, the Private Money Authority, recently joined JD and Melissa invited and shared his journey and blueprint for raising and leveraging private funds for real estate investing.

The Journey from Traditional Lending to Private Money

Jay’s story began just like many aspiring investors: relying on traditional banks to fund his real estate deals. For the first six years, banks defined all the rules—from interest rates to the types of projects they could undertake. However, everything changed in January 2009, when Jay’s banker abruptly shut down his line of credit in the midst of a global financial crisis. With deals under contract and profits on the line, Jay faced a challenge: how can you continue investing without the backing of traditional lenders?

The turning point came when Jay reached out to a friend who introduced him to the concept of private money—raising capital directly from individuals who are looking for secured, high-return investments, often leveraging self-directed IRAs. Within just 90 days, Jay raised over $2 million, tripling his business and freeing himself from the constraints of traditional financing forever.

The Mindset Shift: From Begging for Money to Offering Opportunity

One of Jay’s core messages is the importance of approaching private money with the right mindset. “You’re not asking for money or begging for favors. You’re providing an opportunity for people to put their money to work, with great returns and security.” In the podcast, Jay explains that desperation has a smell. Instead of asking for a favor, you educate potential private lenders about your program, show them how it benefits them, and let them make the choice. This “teacher hat” approach shifts the conversation from a sales pitch to a value proposition.

Jay outlines a simple “great news” script: when you have a deal and a lender ready, you simply inform them you can now put their money to work, outline the property and terms, and provide wiring instructions. The key is separation—teach the private lending program first, get them interested, and only later present the specific deal. This builds anticipation and trust, ensuring both parties are aligned.

Who Can Be a Private Lender?

A common misconception among new investors is that you need wealthy, well-connected friends or family. Jay disagrees: your future lenders are everywhere—your social circles, business groups, and even acquaintances of acquaintances. He encourages investors to make a list of everyone they know, and then expand through business networking organizations such as BNI (Business Networking International) or real estate meetup groups. Additionally, existing private lenders (who often frequent self-directed IRA companies’ networking events) are looking for new investment opportunities.

Securing Win-Win Deals

Trust and security are the bedrock of private money. Jay emphasizes the importance of always securing your loans with real estate (never unsecured), naming lenders on insurance and title policies, and never borrowing more than 75% of the after-repaired value (ARV). If something goes wrong, the lender’s money is protected by the property’s value, not just the borrower’s promise.

Communication and integrity are vital.