Private Money and Funding Deals With Private Investing w/Jay Conner

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Episode Description

Welcome to the Freedom Point Real Estate podcast! Today’s guest Jay Conner joins Jeremy Dyer to share his expert advice on raising private money and more!

Jay Conner has been buying and selling houses since 2003 in a town of only 40,000 people with profits now averaging $78,000 per deal. He has rehabbed over 475 houses and been involved in over $118 million in transactions. Jay has completely automated his annual 7-figure income business to where he works in his buying and selling house business less than 10 hours per week. His passion is motivating and teaching other real estate investors how to raise private money without ever asking for money. As a result, Jay has consulted one on one with over 2,000 real estate investors. When he lost his lines of credit at the bank in 2009, Jay raised $2,150,000 in less than 90 days in private money when cut off from the banks. Jay is also a commercial developer of shopping centers and condominium communities. He is a national speaker on the topics of private money, foreclosures, COVID, automation of your business, and personal development. In addition, Jay is a 2 time national best selling author and a past president of Business Networking International. He and his wife, Carol Joy, reside in Morehead City, NC.

CONNECT WITH JAY CONNER!

Website: https://www.jayconner.com/

Podcast: https://www.jayconner.com/podcast/

LinkedIn: https://www.linkedin.com/company/jay-conner-private-money-authority-real-estate-investing/

Facebook: https://www.facebook.com/jay.conner.marketing

CONNECT WITH JEREMY DYER!

Website: https://startingpointcapital.com/

Instagram: https://www.instagram.com/startingpointcapital/

LinkedIn: https://www.linkedin.com/in/jeremydyer

Facebook: https://www.facebook.com/startingpointcapital

Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12

Summary

Tip #1: Recognize the Power of Private Money

"I was able to attract $2,150,000 in new funding, private lending money that I didn't have before the problem came along."

Jay Connor's real estate journey began with a pivotal moment during the 2008 financial crisis when traditional funding sources dried up. Facing adversity, he turned to private lending, attracting over $8.5 million in new funding without ever asking for it directly. He emphasizes the transformative impact of private money on his investment career.

Tip #2: Establish a Solid Private Money Program

"I wasn't pitching any deals; you know, desperation's got a smell to it... if you're not asking anybody for anything, you're simply sharing with them."

Jay outlines the components of his private money program, emphasizing the importance of offering, not asking for funding. By putting on his "teacher hat," he educates potential lenders on the benefits of private lending, creating win-win opportunities for both parties.

Tip #3: Understand the Investor's Role

"They're loaning money; they're not investing in a fund or stock... they're acting in the same capacity as a bank."

In Jay's model, private lenders act as banks, loaning funds secured by real estate assets. He ensures their protection through conservative loan-to-value ratios, collateralization, and insurance. This approach provides flexibility and security for investors, offering them a passive income stream.

Tip #4: Explore Exit Strategies

"If there's a major rehab involved... we're going to flip that property... if it's not a major rehab, then we may sell that home on a rent-to-own basis."

Depending on market conditions and property specifics, Jay employs various exit strategies. Properties with major renovations may be flipped for quick profits, while others are leased with an option to purchase, providing a steady income stream. Flexibility in exit strategies ensures adaptability to market dynamics.

Tip #5: Embrace Small Market Advantage

"I'd much rather be a big old fish in a teeny tiny little pond than a teeny tiny fish in a huge pond."

Operating in a smaller market like Morehead City, Jay highlights the advantages of being a big fish in a small pond. With fewer competitors, he dominates the market through diverse marketing channels and personalized service, facilitating consistent deal flow.

Tip #6: Prioritize Personal Growth

"You're really not going to have an easy time being successful at real estate investing until you own the real estate that is between your ears."

Jay emphasizes the importance of mindset and continuous learning for success in real estate investing. He recommends Og Mandino's "University of Success" for mindset refinement and Bob Burg's "The Go-Giver" for a focus on service-oriented entrepreneurship.

Tip #7: Lead with Service, Not Just Profit

"Don't lead with money being your motivation... lead with service, lead with having a servant's heart, making a difference."

Highlighting the importance of genuine service, Jay advises against pursuing opportunities solely for monetary gain. Instead, he advocates leading with a servant's heart, prioritizing integrity, and creating win-win scenarios.

Tip #8: Leverage Education and Networking

"Real estate investing is 100% a team sport... you've got to be willing to connect with other people."

Encouraging investors to expand their knowledge and network, Jay underscores the value of continuous learning and collaboration. He recommends connecting with experienced investors, attending live events, and exploring diverse resources to accelerate growth.

Tip #9: Choose Your Path Wisely

"If you want to sit back... and let the checks come in the mail... be totally passive... if you like an adventure and you want to make even more money, then come over to my side of the table."

Jay advises investors to align their investment approach with their goals and risk tolerance. While passive investing offers ease and steady returns, active involvement can provide higher profits but requires hands-on management and risk acceptance.

Tip #10: Focus on Impact and Growth

"Nothing else gives me more joy and gives me more happiness than making an impact in somebody else's life."

As Jay looks to the future, his main focus lies in expanding his coaching program and mastermind group, aiming to empower and mentor aspiring real estate investors. He emphasizes the joy of making a positive impact and giving back to the community.