What is Private Money? Private money refers to funds loaned by individuals (not banks or institutional lenders), usually to finance real estate deals. As Jay Conner explains, private money isn't hard money—it's often “lazy money” sitting idle in savings accounts or retirement funds earning unimpressive returns. When you borrow private money, you're not filling out endless applications. Instead, you're offering people an opportunity: a secure, asset-backed way for them to grow their wealth while you grow yours.
Where Do You Find Private Lenders? According to Jay Conner, there are three primary sources for private lenders:
Your Current Network: Those already in your sphere—friends, family, colleagues, people in your cell phone contacts. Often, you’re sitting on more than $1M in potential capital and don’t even know it.
Your Professional and Service Networks: Your CPA, attorney, or local business owners—these “gatekeepers of money” can become lenders themselves or refer you to others.
Existing Private Lenders: Those already lending to real estate investors, though Jay Conner prefers teaching the opportunity to newcomers for more favorable terms.
Expanding your network is as easy as getting active in organizations like Business Networking International (BNI), where relationships and referrals can snowball into millions in funding.
Structuring the Deal: Terms that Work for Everyone Transparency and security are essential. Jay Conner typically pays an 8% annual interest rate, which is appealing when compared to low-yield bank accounts or CDs. Terms are set based on the use of funds—two years if coming from liquid capital, five years from retirement accounts. Payment frequency is tailored to the lender’s needs: elderly lenders may prefer monthly interest payments as supplemental income, while others opt for interest to accrue and pay out at sale.
A feature that sets Conner’s approach apart: for investment capital (not retirement funds), he offers a 90-day call option, giving lenders flexibility if emergencies arise.
Lessons from the Trenches: Education Matters If there’s one piece of advice Jay Conner would give his younger self, it’s this: don’t invest alone. Mentor support and ongoing education shorten learning curves, minimize mistakes, and accelerate success.
Books like Jack Canfield’s “The Success Principles” or Conner’s own “Where to Get the Money Now” provide the foundational wisdom investors need.
The Future: Marrying Tech and People Skills As AI transforms business, it’s making investor workflows even more efficient. Speed-to-lead becomes instant with automated agents, helping investors connect with motivated sellers faster and never miss a deal.
Timestamps: 00:00 Discovering Private Money for Real Estate 05:59 Discovering the global financial crisis 07:45 Discovering private money lending 11:01 Securing private money for real estate 15:15 Identifying your private lenders 20:04 Investment duration options explained 21:59 Managing Loan Payments and Cash Flow 27:24 Investing locally in real estate 28:58 Interruption vs search marketing 33:02 Regretting not selling property 35:04 Using AI for speed to lead
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
Jay Conner is a proven leader in real estate investing. Without using his own money or credit, Jay uses creative methods to buy and sell properties, averaging $86,000 in profit per deal.