Funding Equals Freedom: The Art of Attracting Private Money for Real Estate

***Guest Appearance

Credits to:

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

“Jay Conner on The Secrets to Locating Private Money for Real Estate Deals”

https://www.youtube.com/watch?v=t5FUJjGuXfg&t=65s     

If you’re a real estate investor searching for ways to scale your portfolio, few topics are as crucial as raising private money. In a candid conversation on the Raising Private Money podcast, Jay Conner sits down with Josh Cantwell to share the precise strategies that have helped him raise millions — without ever asking for money outright. Here are the game-changing insights from their exchange and how you can leverage them for your own investing business.

The Power of a Servant’s Heart in Real Estate

From the outset, Jay Conner sets the tone: his mission is not about taking advantage of distressed sellers, but serving them. He stresses that 2022 (and beyond) presents a unique window to help homeowners facing foreclosure—especially those who haven’t been able to recover post-COVID. Jay Conner and his team focus on identifying and assisting these property owners before their homes hit foreclosure sales or bank repossession, creating win-win solutions along the way.

The real backbone of Jay Conner’s approach? Integrity and empathy. By leading with a servant’s heart, he cultivates trust, which proves invaluable both in deal-making and in private capital conversations.

Where to Find Private Money: The Three Pillars

One of the fundamentals of Jay Conner’s success is knowing where to look for private money. He distills his sources into three main categories:

1. Your Warm Market: These are people you already know—family, friends, colleagues, and acquaintances across social groups, church, LinkedIn, and Facebook (the genuine connections, not just casual “friends”). Jay Conner challenges the myth that everyone’s personal network is “broke,” insisting that there are untapped connections in almost every investor’s world.
2. Expanded Warm Market: If your immediate circle seems tapped out, expand it. This means immersing yourself in local organizations like the Rotary Club, volunteering, and building authentic relationships in your community. The more you give, the more your network—and potential investor base—grows.
3. Existing Private Lenders: These are individuals already loaning money to real estate investors. Jay Conner suggests leveraging public records (to find those who’ve secured loans with a mortgage or deed of trust), specialized data feeds (which aggregate nationwide lender info), and networking events hosted by self-directed IRA companies. Notably, he reveals that over 70% of self-directed IRA account holders are open to lending on real estate deals.

The Five-Step Method: Raising Private Funds—Without Asking

The real secret sauce in Jay Conner’s system is his five-step process for attracting private capital—without ever having to ask for it directly.

1. Make Your List: Identify the top 50 people in your network who might have capital or retirement funds.
2. Open a Casual Conversation: Use either a direct method (“Do you have investment capital or retirement funds not giving you a high rate of return safely and securely?”) or an indirect method (“Would you spread the word that I have this investment opportunity?”). This non-salesy approach gets prospects naturally interested.
3. Let the Tools Do the Work: Jay Conner leverages a pre-recorded 16-minute audio called “Stress Free Investing” to explain private lending basics to prospects, making the process scalable.
4. One-on-One Appointment: Present your exact investment progr