***Guest Appearance

Credits to:

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

"Famous Interview with Joe Dimino Featuring Nationally Renowned Real Estate Investor Jay Conner"

https://www.youtube.com/watch?v=oSz4f4Zdjfc 

The real estate industry is known for its cyclical nature, but few periods have been as tumultuous and instructive as the COVID-19 pandemic. Jay Conner, an experienced real estate investor and private money specialist, recently shed light on how he navigated these challenges and adapted his business to thrive in a changing economic landscape. In this engaging episode of "Raising Private Money," where Jay joined Joe Dimino on his Famous Interview With Joe Dimino podcast, Jay opens up about his journey, revealing key strategies and personal philosophies that have shaped his success.

The COVID-19 Impact: More Cash Chasing Fewer Deals

The COVID-19 pandemic revolutionized many sectors, and real estate was no exception. During this period, Jay Conner observed a staggering shift in available cash for investments, jumping from $18 trillion to $31 trillion. Investors sought safer harbors for their funds amid the pandemic's economic uncertainties, with real estate offering reliable returns. Interestingly, Jay faced the unique challenge of having more money available than deals to fund, a problem many would envy but which required strategic maneuvering to harness effectively.

Explaining Real Estate to a Child: The Simple and The Complex

When explaining his job to a group of third graders, Jay likened himself to an HGTV flipper. By simplifying it to helping private lenders make high returns safely, assisting sellers in distress, and coordinating with contractors for rehabs, he made the complex nature of his work understandable. His description as a "real" flipper, unlike the scripted versions on TV, beautifully encapsulates his multi-faceted role in real estate.

The Foundation: Early Influences and Career Beginnings

Jay’s journey into real estate is deeply rooted in familial influence. Growing up in North Carolina, he learned the ropes from his father, Wallace Conner, who was a significant figure in the manufactured homes industry. Jay's early exposure to business, communication, and leadership came through summer jobs at his father's company, which indelibly shaped his career ethos. His father’s management style, famously known as the "3 D’s: dictate, delegate, and disappear," also fostered an early understanding of efficient business operation.

Inspirations and Heroes: The Mentors Who Shaped Jay

Behind every successful individual are influences that light the path. For Jay Conner, figures like Zig Ziglar, Dale Carnegie, and Og Mandino played instrumental roles. Training tapes from Zig Ziglar instilled a servant-based approach to business, emphasizing the importance of helping others to achieve one’s own success. Books like Dale Carnegie’s "How to Win Friends and Influence People" and Og Mandino’s "University of Success" further enriched his mindset and approach to real estate and business.

Triumph Over Adversity: The 2009 Financial Crisis

One of Jay’s most defining experiences came during the 2009 financial crisis, which abruptly severed his lines of credit at local banks. Faced with this challenge, he pivoted to private money, a form of financing he had not previously explored. With guidance from a friend, he learned about private money and self-directed IRAs. Embracing a teaching approach, he began to educate others about private money while effectively solving his own financing issues. This pivot allowed him to attract $2,150,000 in private money in less than 90

***Guest Appearance

Credits to:

https://www.youtube.com/@jmmbmedia  

"The Untold Secrets of Private Lending Prosperity"

https://www.youtube.com/watch?v=cw5txrXj6Vs 

In a recent episode of the Raising Private Money podcast, Jay Conner and Ida Crawford dive into the fascinating world of private money for real estate investments. The conversation unpacks the journey of Jay Conner, who successfully transitioned from traditional bank financing to the more flexible and profitable method of using private money, especially after the financial crisis of 2008.

The Transition from Traditional Bank Financing to Private Money

Initially, Jay Conner and his wife relied heavily on bank financing to fund their real estate ventures from 2003 to 2009. However, like many investors during the financial crisis, they faced a significant hurdle when banks tightened their loaning capabilities. Jay recounts the arduous moments when traditional financial institutions cut them off, compelling him to seek alternative funding options. This pivotal moment led him to discover private money, marking a transformation in his approach to real estate investing.

The Power of Private Money

Jay Conner's introduction to private money came through a fellow investor who enlightened him about using self-directed IRAs. Within a strikingly short period of 90 days, Conner managed to raise over $2 million in private funding. This shift not only revitalized his business but also allowed him to set rules that worked in his favor.

Control and Benefits

One of the most significant advantages of private money is control. Unlike bank loans, where terms and conditions are strictly set by financial institutions, private money allows investors to negotiate favorable terms, making the deals more profitable and less stressful. Furthermore, private money is not limited by the same stringent guidelines that banks enforce, resulting in virtually unlimited funds and no constraints on the number of lenders or the amount they can contribute.

Quick Closings

Another notable benefit is the ability to close deals rapidly. Jay shared that his fastest closing, an oceanfront condominium, happened in a mere five days. This agility provides a competitive edge in the real estate market, enabling investors to capitalize on opportunities swiftly.

No Personal Investment Required

Using private money also often means that investors can secure additional funds at closing, which aids in improving cash flow without necessitating personal investment. This aspect liberates investors from the constraints of their financial standings, allowing them to pursue high-yield projects confidently.

Building Relationships and Educating Future Lenders

Jay Conner's success with private money didn't come from merely asking for investments; it thrived on building relationships and educating potential lenders. By focusing on a servant leadership approach, Jay was able to demystify private lending.

Educative Approach

Instead of directly soliciting funds, Jay educates individuals on the lucrative opportunities available through private lending. For instance, he uses a 16-minute audio introduction available on YouTube to outline private money's benefits without divulging sensitive details. This approach reduces the fear of rejection and attracts genuine interest from potential lenders.

Leveraging Personal Connections

It’s noteworthy that Jay’s private lender network, which includes everyday people like retired school teachers and church acquaintances, was built entirely through word-of-mouth. In one recount, Jay shares how an 89-year-old friend, initially wary of private investments, was convinced, resulting in a significant

***Guest Appearance

Credits to:

https://www.youtube.com/@ROIClear 

"Jay Conner: Teaching & Leading with a Servant's Heart"

https://www.youtube.com/watch?v=kqCmL7b5mYE&t=46s 

Introduction: Reimagining Real Estate Financing

In the latest episode of the Real Estate Investing podcast, we delve into an enlightening discussion on private money and private lending with Jay Conner, affectionately known as the “private money authority.” Having embarked on his real estate journey in 2003 alongside his wife, Carol Joy in Eastern North Carolina, Jay has amassed invaluable experience and developed a unique approach to real estate financing — one that eschews traditional banks and lenders in favor of private money. Here's how Jay's innovative strategies can revolutionize your approach to real estate investment.

The Genesis: Jay Conner's Real Estate Journey

Jay Conner's foray into real estate investment began in 2003. Like many new investors, Jay initially relied on local banks for funding his deals. However, the global financial crisis in January 2009 marked a pivotal turning point. When his bank line of credit was abruptly closed, Jay faced a financial dilemma that could have derailed his investment ventures.

Instead of succumbing to financial pressure, Jay asked himself a crucial question: "Who do I know that can help?" This quest led him to discover the world of private money and self-directed IRAs, thanks to Jeff Blankenship, who had also been affected by bank funding cuts. This newfound knowledge fueled Jay's development of a comprehensive private lending program.

The Approach: Educating with a Servant's Heart

One of Jay Conner's core strategies is educating potential lenders without directly soliciting funds. This creates a trusting environment where investors feel comfortable and informed. Jay, positioning himself as a “private money teacher,” shares his extensive knowledge of private lending, emphasizing the safety and profitability of such investments.

Jay’s method revolves around hosting educational sessions where he teaches individuals about private lending. For example, Jay often organizes luncheons and community presentations, sharing insights about earning tax-free and tax-deferred returns through self-directed IRAs. By leading with a servant’s heart and focusing on education, Jay removes the pressure and desperation often associated with funding requests. This strategy fosters organic interest and investment, underlining the notion that people lend to those they trust and respect.

The Mechanics: Engaging Private Lenders

Jay Conner’s private lenders fall into three categories: personal network contacts, expanded warm market contacts, and existing private lenders. By leveraging these connections, Jay has engaged 47 private lenders who invest anywhere from $30,000 to over a million dollars each.

A practical example of Jay’s method involves using PowerPoint presentations during luncheons to educate attendees on private lending opportunities. This includes an emphasis on self-directed IRAs’ advantages, such as tax benefits. Attendees are provided with interest forms to express their willingness to participate, eliminating the need for hard selling.

Follow-up calls are crucial in Jay's approach, focusing on gathering feedback rather than persuasively asking for investments. This subtle, respectful method often leads attendees to express their interest in investing voluntarily, underscoring the effectiveness of Jay’s educational focus.

Single Family vs. Commercial Real Estate Funding

Private money’s application varies based on the type of real estate deal. For single-family homes, Jay explains that funding often involves individual promissory

***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

Welcome to this week's episode, where we dive into the world of creative financing in real estate with Chris Prefontaine. Chris is a seasoned real estate investor and coach who has trademarked the innovative "3-Payday System." This model transforms conventional real estate transactions into avenues for multiple streams of income, all without the hassle of traditional bank financing.

The 3-Payday System: A Game Changer

The 3-Payday System, trademarked by Chris Prefontaine, is a unique approach to real estate investing that has revolutionized the field. By leveraging owner financing, lease purchases, and subject-to-deals, investors can generate substantial and reliable income streams. Prefontaine’s method ensures that you're leveraging creative financing without risking personal credit or hefty bank loans.

Payday 1: Upfront Deposit

The first payday comes from obtaining an upfront deposit from buyers who are prepared to purchase but cannot qualify for a traditional mortgage. These "deserved buyers" bring cash to the table, providing the initial influx of funds.

Payday 2: Monthly Cash Flow

The second payday is the steady monthly cash flow generated from the difference between your payment to the seller and what you charge the tenant-buyer. This ongoing income stream ensures consistent revenue throughout the term of the deal.

Payday 3: Future Profit

The final payday occurs at the end of the term, with benefits seen from principal paydown and property appreciation. This crucial component makes the 3-Payday System exceptionally lucrative over time.

Effective Marketing for Motivated Sellers

One of the most significant challenges in real estate is finding motivated sellers. Prefontaine uses a combination of expired listings and targeted marketing strategies to find leads.

Utilizing Expired Listings

Non-licensed investors can access expired listings through services like My Plus Leads. These leads are thoroughly vetted by trained virtual assistants (VAs), ensuring that only the most promising prospects move forward.

Direct Outreach and Problem-Solving

Prefontaine's VAs focus on direct outreach to these expired listings, asking key questions to gauge the seller's motivation. They ask where the seller was planning to go had the property sold and what the repercussions are if it doesn’t sell again. This strategy uncovers the seller's real motivation and allows the investor to present viable solutions, such as lease purchases or owner financing.

Financing Strategies: Versatility in Action

One of the remarkable aspects of Prefontaine’s system is its versatility. Whether it's owner financing, lease purchasing, or subject-to deals, his approach adapts to various scenarios, including commercial properties.

Owner Financing

Approximately 99% of Prefontaine’s deals involve owner financing with sellers who owe nothing on their properties. These transactions offer lucrative principal-only monthly payments, ensuring significant equity build-up over time.

Lease Purchases

Lease purchase deals make it easy for new investors to step into the market with minimal upfront costs. These agreements allow control over a property for as little as $10, providing ample opportunities for profit through structured agreements.

Subject-To Deals

In subject-to deals, the mortgage remains in the seller’s name while the buyer makes the payments. This method is particularly beneficial for sellers needing financial relief, especially those going through life changes like divorce or dealing with the aftermath of COVID-19.

Success Stories and Practical Implementation

Chris Prefontaine emphasizes the importance of practical experience and highlights some of his most successful deals to illustrate how the system works.

Commercial Proper

***Guest Appearance

Credits to:

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

"Finding Investment Capital in Private Money with Jay Conner"

https://www.youtube.com/watch?v=MV3Ed6buyfI&t=26s  

In a recent Raising Private Money podcast episode, Jay Conner joins Jonathan Hayek, a former teacher turned commercial real estate investor, they share invaluable insights about private money lending. Their discussion shed light on practical strategies, community involvement, and building trust-based relationships to secure private money for real estate deals.

Emphasizing Simplicity and Flexibility

No-Penalty Approach: A Win-Win Situation

Jay Conner highlighted the simplicity and flexibility of his private money program. Unlike traditional banking systems, his approach eliminates penalties for early repayments by lenders. Over the years, he has had only two small notes called due early due to medical emergencies. This flexibility benefits lenders who prefer to keep their money generating returns rather than having it returned prematurely. Jonathan Hayek concurred, noting that his lenders also favor keeping their money invested for continued financial benefits.

Securing Loans: Importance of Legal Documents

Promissory Notes, Trust Deeds, and Mortgages

A pivotal aspect of securitizing loans involves proper documentation. Jay explained the roles of promissory notes, deeds of trust, and mortgages in protecting both lenders and borrowers. Promissory notes capture all loan specifics, such as borrower details, loan amounts, interest rates, and payment schedules. Deeds of trust or mortgages grant lenders the authority to foreclose if borrowers default. Adding further layers of security, Jay emphasized adding lenders on insurance and title policies. These additional protections ensure that both parties' interests are safeguarded, making the investment process transparent and trustworthy.

Identifying Suitable Borrowers

Understanding Who Should and Should Not Borrow

Jonathan Hayek queried Jay about scenarios where private money lending might not be appropriate. Jay addressed the question thoughtfully. Not every individual or situation aligns with private money lending. Traditional banking or hard money loans might be more suitable for some. Jay cautioned against borrowing private money without a thorough understanding of real estate. Investors must comprehend property valuation, management, and rehabbing, making decisions based strictly on mathematics rather than emotions.

Building Thriving Networks

Leveraging Business Networking International (BNI)

One of the keys to Jay’s success in securing private money has been his involvement with Business Networking International (BNI). BNI’s structure allows only one representative per profession in each chapter, fostering trust and encouraging referrals. By joining BNI as a real estate investor, Jay unlocked the potential of a robust network quickly, securing millions in private money.

Community Involvement: A Trust Booster

Principle of "Givers Gain"

Jay and Jonathan underscored the importance of community involvement in gaining trust and attracting private money. Engaging with local organizations like the Chamber of Commerce, Rotary Club, church groups, and Real Estate Investing Associations (REIAs) not only builds visibility but also trust. The principle of "givers gain" is central; by serving and giving to the community, individuals earn trust, making it easier to forge investment relationships. Jay’s active volunteering and consistent networking have established him as a reliable and giving individual, hence attracting significant private investments.

Consistency in Lending Terms<

***Guest Appearance

Credits to:

https://www.youtube.com/@FromAdversity2AbundancePodcast 

"Desperation Has a Smell: The Psychology of Raising Private Money with Jay Conner"

https://www.youtube.com/watch?v=s3AcMDgutqM 

In this episode of Raising Private Money with Jay Conner, Jay reflects on the challenges and pivotal moments that have shaped his real estate journey. From navigating a banking crisis to leveraging private money, Jay's story is rich with practical advice and inspiration for real estate entrepreneurs.

The Crisis That Sparked Change

In 2009, Jay Conner, a seasoned real estate investor in North Carolina, was blindsided by an unexpected setback. After placing nonrefundable earnest money on several properties, his bank abruptly closed his line of credit without notice. Puzzled and concerned, Jay approached his banker, only to discover that the global financial crisis had severely impacted credit lines. This moment of adversity led Jay to ask a crucial question: "Who can help me with this problem?"

Discovering Private Money

With guidance from his friend Jeff Blankenship, Jay explored the realm of private money and private lending. Jeff introduced him to the concept of using self-directed IRAs for private lending, which allows individuals to lend money while enjoying potential tax advantages. Motivated, Jay educated himself and his network about these new funding avenues, emphasizing the benefits they offered.

Jay adopted an educational approach rather than a direct ask for money. He taught his network how they could earn high returns safely and securely by participating in his lending program. Jay's program featured attractive terms, such as an 8% simple interest rate and a 90-day call option, designed to appeal to potential private lenders.

Shift in Mindset: Control and Confidence

Entering the world of private money marked a significant shift in Jay's perspective. Unlike traditional bank loans, where the banks set all the terms, private money allowed Jay to dictate the conditions. This newfound control provided him with the confidence to proceed, knowing that he could secure and use $8.5 million in private money without directly asking anyone for it.

Ethical Practices in Real Estate

Ethics play a pivotal role in Jay's business practices. He critiques certain controversial methods in real estate, such as securing large nonrefundable deposits from tenants in rent-to-own agreements without assisting them in obtaining a mortgage. Knowing that less than 5% of these tenants end up owning the homes, Jay advocates for helping tenants improve their credit and working closely with credit repair companies to increase their chances of homeownership.

Securing Trust: The Wayne Story

In an illustrative anecdote, Jay recounted how he secured his first private money commitment. During a Wednesday night Bible study, he approached a well-connected community member named Wayne, asking for his help rather than money. Jay outlined his business model and the high returns he was generating, sparking Wayne's interest. Wayne initially committed $250,000, which later grew to $500,000.

Strategic Lead Generation

Given today's market conditions, where inventory in the MLS is low, Jay highlights the importance of direct-to-seller channels. Through Google leads, direct mail, outbound calling, and Facebook ads, Jay sustains a steady pipeline of seller leads, allowing his business to adapt to the evolving real estate landscape.

Adapting and Thriving

Jay reflected on a notable case study involving the acquisition of an oceanfront condominium. He purchased the property for $425,000, completed minimal renovations costing $11,000, and sold it within fi

In a recent episode of the Raising Private Money podcast with Jay Conner, guest Keshav Kolur shared his invaluable expertise on the intricate landscape of investments. This blog post delves into some key takeaways from their conversation, offering practical advice on smart investment strategies.

Investment Advice from Keshav Kolur

Don't Invest More Than You Can Afford to Lose

One of the fundamental pieces of advice from Keshav Kolur is to only invest what you can afford to lose. This principle might seem straightforward, but it’s often overlooked by enthusiastic investors. Maintaining a reserve for unforeseen expenses is crucial in preventing financial distress in the face of market volatility.

Diversification is Key

Kolur emphasizes diversification across various asset classes and real estate markets. By spreading investments, the risk is mitigated. For example, rather than placing all funds in one sector, it is wiser to allocate capital into different sectors like apartments, industrial warehouses, private lending, and even oil and gas. This strategy provides a buffer against downturns in any single market.

Understanding Current Market Trends

Tech Stocks' Influence on the Stock Market

Tech stocks, often referred to as the "big seven," are becoming increasingly influential in driving the growth of the stock market. This concentration can be both an opportunity and a risk, highlighting the importance of balancing portfolios.

Real Estate Market Dynamics

Currently, the real estate market is experiencing certain stress points, such as foreclosures due to loan payment failures and an increased supply. Despite the rising interest rates, housing prices have remained steady. This paradoxical scenario suggests an underlying demand that savvy investors can capitalize on.

Keshav Kolur’s Company: Clive Capital

Personalized and Transparent Investing

Keshav Kolur founded Clive Capital with the vision of providing personalized investment opportunities that ensure higher returns and tax benefits. By investing directly into LLCs, investors benefit from direct tax deductions and expenses, creating a more profitable and transparent relationship compared to traditional corporate investments.

Higher Projected Returns and Lower Overheads

Clive Capital’s streamlined operations mean less overhead, promising higher returns on investment. Clients enjoy direct engagement with managers, receiving regular updates on performance, and fostering trust and transparency.

Keshav Kolur's Journey and Clive Capital's Mission

From Engineering to Real Estate Investing

In just a few years, Kolur transitioned from a mechanical engineer to a significant player in real estate, catalyzed by influential readings such as "Rich Dad Poor Dad." His journey underscores the importance of education and adaptability in investment ventures.

Building a Diversified Portfolio

Established in January 2022, Clive Capital focuses on helping investors achieve financial freedom through diversification. Managing over 1,000 apartments and developing more than 500 single-family homes, their commitment to building generational wealth is evident.

Raising Private Money: Strategies and Best Practices

Leveraging Personal Networks

Kolur’s method of raising private money highlights the power of personal networks. By tapping into connections within his tech industry network, along with friends and family, he underscores the value of mutual success and trust in investment partnerships.

Initial Conversations with Potential Investors

In his approach, Kolur conducts 30-minute introductory calls to understand potential investors' backgrounds, experiences, and financial goals. This personalized assessment ensures that the inv

*** Guest Appearance

Credits to:

https://www.youtube.com/@Keystone.Private.Capital 

"Revolutionize Your Investing: Jay Conner on Leveraging Private Money in Real Estate"

https://www.youtube.com/watch?v=ivHYcpky90Y

In an enlightening episode of the Raising Private Money podcast, Jay Conner, a seasoned real estate investor, joined Angel Gonzalez on Taking the Leap Into Commercial Real Estate Podcast and shared his transformative journey from relying on traditional banking systems to embracing private money lending. This shift not only revolutionized his investment strategies but also paved the way for a more lucrative and less stressful approach to real estate investing.

Jay Conner's Background and Early Journey

Jay Conner embarked on his real estate investment journey in 2003, focusing primarily on single-family houses in a small market in Eastern North Carolina. With approximately 40,000 people in his market, Jay successfully made an average profit of $82,000 on 2-3 deals every month. Initially, he relied heavily on local banks for funding, which was a conventional approach but came with its own set of limitations. 

The Turning Point in 2009

January 2009 marked a significant turning point for Jay. The global financial crisis prompted his primary banking partner, BB&T, to close his line of credit. This unforeseen setback could have been catastrophic. However, it led Jay to discover an alternative financing strategy through private money lending, introduced to him by his friend Jeff Blankenship. This discovery was a game-changer.

Understanding Private Money

Private money involves individuals using their investment capital or retirement funds to finance real estate deals. Unlike hard money, which is institutional and comes with stringent conditions, private money is more flexible and borrower-friendly. Jay emphasizes that private money lending allows borrowers to set the terms and conditions, making it a more appealing and less cumbersome option compared to traditional financial institutions.

Strategies for Attracting Private Money

Jay's strategy for attracting private money was rooted in education rather than solicitation. He invested time in educating his community about private money and the benefits of self-directed IRAs. By leading with a servant's heart and offering valuable knowledge rather than directly asking for money, Jay successfully attracted $2,150,000 in the first 90 days. Today, he manages $8,500,000 in private funds from 47 lenders.

The Importance of Having Funds Ready

One critical lesson Jay imparted was the importance of having funds lined up before securing deals. Contrary to the advice of some "gurus" who suggest finding a deal first and expecting the money to follow, Conner advocates for securing the money upfront. This allows for confident and swift offers, giving investors an edge in competitive markets.

Case Study: Quick Flip Success

In a riveting case study, Jay shared an experience where he initially accepted an offer too hastily. Subsequently, he received a better all-cash offer of $628,000 with no contingencies and a quick closing date for a property he bought for $425,000. This deal underscores the flexibility and speed that private money lending affords, enabling investors to capitalize on lucrative opportunities without the delays typical of institutional funding.

Launch of the 7 Day Private Money Challenge

To help others achieve similar success, Jay launched the "7 Day Private Money Challenge." This initiative includes seven days of video training on raising private money, released daily. The challenge aims to empower participan

In the latest episode of the Raising Private Money podcast, Jay Conner interviews real estate veteran Chris Prefontaine. With over 30 years of experience and having raised over $5 million in private money, Chris shares invaluable insights into successfully navigating the challenging landscape of real estate. The conversation revolves around creative financing techniques, the 3 payday system, and the intricacies of structuring and selling properties. This blog post delves deeper into these topics to provide actionable tips for both novice and seasoned investors.

The Birth of Creative Financing After 2008

Chris Prefontaine initially started his career in single-family real estate. However, the 2008 financial crash prompted a shift in his approach. Moving away from traditional financing involving banks and heavy cash investments, Chris adopted a strategy that combined private money with creative financing techniques. These include owner financing, lease purchase, and "subject to" deals. This pivot allowed him to maximize his real estate deals while minimizing personal financial risk.

Attracting Private Money

Chris first tapped into the private money market by approaching professionals he trusted—his attorney and accountant. By demonstrating the advantages of earning a 7 to 8% return on investment through his 3 payday model, he gained their confidence and subsequent referrals. Trust plays a crucial role in this process; as Jay Conner points out, investors are ultimately investing in the individual, not just the opportunity.

Understanding the 3 Payday System

One of Chris's hallmark strategies is the 3 payday system, designed to create continuous income streams. This method ensures profits at different stages of the deal: principal payments, cash flow, and markup when selling on terms.

Breakdown of the 3 Paydays

1. Day 1: Upfront Payment
   - Earned at the outset of the deal, often during acquisition.
2. Continuing Cash Flow
   - Monthly income generated from lease payments or seller financing arrangements.
3. Final Lump Sum
   - Realized at the end of the term, either through selling the property or final payment from the buyer.

This approach contrasts sharply with traditional real estate models such as wholesaling and flipping, which are mostly transactional and offer income only upon the sale of each property.

Buying Real Estate on Terms

Chris emphasizes three primary rules when buying and selling real estate on terms: avoiding banks, requiring little to no money down, and creating 3 paydays.

Types of Creative Financing

1. Owner Financing
   - The seller acts as the bank, accepting monthly payments directly toward the principal.
2. Subject To Existing Loan
   - Acquiring a property subject to its existing mortgage while maintaining the original loan terms.
3. Lease Purchase
   - Lease agreements that provide the option to purchase at a future date, are often facilitated with little initial investment.

Benefits for Sellers

Sellers may agree to these creative terms for various reasons. Some are looking to solve financial problems or achieve goals that the conventional market cannot fulfill. For example, sellers with free and clear properties may be willing to accept monthly payments in return for a higher total payout over time.

Marketing and Selling Properties

Rather than relying on traditional multiple listing services (MLS), Chris uses a specialized company called Prosperity for marketing real estate deals. By focusing on direct referrals and automated processes, he can negotiate favorable terms with sellers and ensure a higher rate of return.

Identifying Ideal Prospects

One effective strategy for finding properties ideal for terms is targeting expired MLS listings. Approximately one-third of these listings are