In the world of real estate investing, one of the biggest obstacles isn’t always finding the perfect deal—it’s securing the funding to make those deals happen. Traditional advice often tells ambitious investors, especially those just starting, something along the lines of: “Just put a deal under contract, and the money will show up,” or “Money finds good deals.” But as this podcast episode featuring Jay Conner and Stephen Lee-Thomas dives into, there’s a smarter, less stressful approach: lead with education, not persuasion, and let Private Money come to you.
Why Private Money Rocks the Real Estate World For years, Jay Conner and his wife Carol Joy financed their real estate transactions the conventional way: via unsecured lines of credit at local banks. This worked until 2009, when a sudden call from their banker closed that door overnight due to the global financial crisis. Like so many investors, Jay Conner found himself suddenly shut off from the traditional funding sources he depended on.
Out of necessity, he asked himself a critical question: “Who, not how, can help me?” That pivotal moment led him to discover the world of Private Money—a method of raising funds directly from individuals looking for higher, safer returns on their capital or retirement accounts, rather than from institutional lenders.
Suddenly, a problem became an opportunity. And over the next several years, Jay Conner and Carol Joy attracted funding from 47 ordinary people, none of whom had ever heard of private lending or self-directed IRAs before.
Education Over Sales: The Indirect Approach What’s the secret to Jay Conner’s Private Money success? It’s not about pushing, selling, or convincing. Instead, he wears what he calls the “Private Money Teacher” hat—educating those in his network about how private lending works and the safe, attractive returns they can achieve. He never asks for money directly. He simply shares the opportunity and lets interest develop naturally.
One of his most powerful tactics is the “indirect method.” Here’s how it works: Jay Conner asks influential friends if they know anyone dissatisfied with their current returns at the bank or losing money in the stock market. By leading with a genuine request for help rather than a sales pitch, curiosity and interest are piqued. It’s a low-pressure approach that often turns his contacts into eager investors themselves.
Private Money: Comes from individuals, usually from their own savings or retirement accounts, looking for better yields. The terms are flexible, the rates are typically lower, and you—yes, you—set the terms. No applications, no credit checks, no expensive fees. And if you’re educating rather than selling, you become a trusted resource.
Hard Money: Usually comes from brokers or lenders operating funds pooled from multiple investors. Interest rates are higher, terms are strict, and a slew of fees and underwriting comes with the territory. They make the rules—you play by them.
Timestamps: 00:00 Discovering private lending opportunities 04:55 Facing a credit line closure 07:52 Discovering Private Money real estate 13:04 Attracting Private Money lenders 15:48 Leveraging local connections for referrals 19:36 Timing for raising capital 23:31 Building investor relationships 26:29 Successful real estate money raising 28:35 Explaining hard money lending 33:02 Shifting mindset for raising funds 33:55 Gaining confidence through education
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 maximizes creative methods to buy and sell properties with profits averaging $86,000 per deal.