Inside a $100K Flip: Combining Private Money and Subject-To in a Hot Market

#realestate #privatemoney #jayconner

In the ever-evolving landscape of real estate investing, one lesson remains constant: funding is king. If you’ve ever missed out on a deal because you didn’t have the money, you’re not alone. But what if you could put yourself in the driver’s seat—never reliant on banks, never missing opportunities, and walking away from the closing table with tens of thousands in profit, without sinking your own money into the deal? That’s exactly what Jay Conner and his team recently accomplished, using a shrewd application of Private Money and creative deal structuring.

The Deal Breakdown: Motivation Meets Opportunity
Crystal Baker shared a powerful case study: a property at 230 South Palmyra. The seller found Crystal’s company, CGN Homebuyers, thanks to their A+ Better Business Bureau rating—a crucial reminder that reputation builds trust. The initial call was handled by their AI assistant, Bailey, who scheduled a same-day call with the admin, demonstrating the importance of “speed to appointment”—never missing a motivated seller’s inquiry.

Why was this seller so motivated? Life had thrown him curveballs: plans gone sideways, a failed renovation, and an urgent need to relocate out of state. While the seller initially asked $205,000, there was an existing mortgage of $167,000 at a stellar 3.5% interest rate, with monthly payments of $1,289. After some negotiating—helped by the seller’s need to move quickly—the final purchase price was brought down to $173,000, just high enough to give the seller what he needed to move on with his life.

Subject-To Financing: Crystal acquired the house “subject to” the existing mortgage. The title transferred, but the mortgage remained in the seller’s name, with Crystal agreeing to make the payments. No qualms about credit checks, no bank approvals. This alone put her in a position of control.

Private Money for the Win: To cover renovations ($52,800 after a change order), closing costs, and to give the seller his $6,000, Crystal arranged $80,000 in Private Money, at 10% interest, paid quarterly. (Notably, her private lender is in second position—on top of the existing mortgage.) After closing expenses, Crystal walked away from the table with $71,549 in cash—before she even started renovations.

After all costs and payouts, the projected net profit is $103,750—nearly double what most dream of on a single flip, all while using none of her own money.

Systematize for Speed: AI and CRM allowed Crystal’s team to respond immediately—a real competitive edge.

The Power of Asking: Instead of making a firm offer, Crystal asked the sellers what they needed. That opened the door to the best deal for both parties.

Stacked Creative Financing: Combining “subject to” and Private Money made an all-cash solution possible, while also ensuring a zero out-of-pocket purchase.

Profit Isn’t Just on the Sale: Receiving cash at closing by borrowing for both purchase and renovation means investors don’t have to “wait” for the flip to get paid.

Timestamps:
00:00 Getting serious about business funding
03:29 Unlocking private real estate funding
07:47 Using Private Money for deals
12:00 Discussing investment risk preferences
17:17 Connecting via AI scheduler
18:11 Handling calls with AI assistant Bailey
22:09 The seller's story and urgency
25:33 Negotiating renovation costs
27:36 Buying a house subject to a note
32:55 Securing escrow overages profit
37:05 Negotiation strategies and tactics
39:31 Raising Private Money for real estate
41:37 Announcing the Private Money Conference

Private Money Academy Conference:
https://www.ThePrivateMoneyConference.com

Free Report:
https://www.jayconner.com/MoneyReport

Join the Private Money Academy:
https://www.JayConner.com/trial/

Have you read Jay’s new book, Where to Get the Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book

What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast

Jay Conner is a proven leader in real estate investing. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $86,000 per deal.

https://youtu.be/rmkaLcYIdMY

#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner

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