Scaling Real Estate with Private Money: Jay Conner’s Automation and Mindset Tips

***Guest Appearance

Credits to:

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

"How To Raise Money For Real Estate WITHOUT Ever Asking For It!"

https://www.youtube.com/watch?v=05rF8IgJZWY 

 When it comes to building wealth through real estate, one of the biggest barriers for both new and seasoned investors is finding the funds to close deals. Traditional financing can be limiting, cumbersome, and unreliable, especially in volatile economic times. That’s why the insights shared by Jay Conner, a veteran real estate investor and private money expert, on the Inspire to Invest podcast are invaluable.

Jay’s story is both cautionary and inspiring, highlighting not just how to overcome financial roadblocks but how to future-proof your business for long-term success.

From Bank Crisis to Private Money Breakthrough

Jay Conner began his real estate career in 2003, working alongside his wife in Morehead City, North Carolina—a small market of just 40,000 people. For their first six years, the couple relied exclusively on bank loans to fund their deals, which worked—until it didn’t.

Everything changed in January 2009. The global financial crisis struck, and Jay received a call from his banker: his line of credit was gone overnight.

Suddenly, with deals under contract and no access to bank lending, Jay faced the very real prospect of business collapse. But rather than giving up, he asked himself a critical question: “Who do you know that can help you with your problem?”

That question led him to a conversation with a fellow investor, who introduced Jay to the concept of private money—borrowing from individuals instead of institutions. In less than 90 days, Jay raised over $2 million in private funds, completely transforming his business.

Demystifying Private Lending

Private money isn’t about slick pitches or high-pressure sales. Jay’s approach is rooted in education and integrity. He puts on his “teacher hat” and explains to prospective private lenders exactly how private loans work:

• Funds are secured by real estate: Each lender receives a promissory note and is listed on the mortgage or deed of trust, protecting their interest.
• Positions and loan-to-value are carefully managed: Jay never borrows more than 75% of a property’s after-repair value, ensuring a conservative margin of safety.
• Clear, fair terms: Private lenders receive a straightforward interest rate (for example, 8% in Jay’s case) without junk fees or hidden costs.
• Transparency and verification: Every deal is closed with an attorney or title company. Lenders are advised to verify that their mortgage is recorded and to review all documents before sending funds.

This approach not only safeguards the lender but also builds Jay’s reputation as a trustworthy operator, critical in a relationship-based business.

Red Flags and Lessons Learned

Jay is candid about the risks and common mistakes in the world of private lending, especially those that have plagued both Canadian and U.S. real estate markets. He cautions against deals where loans aren’t properly collateralized or registered, and warns lenders to “trust but verify.”

Jay encourages would-be lenders to always confirm the position of their lien, to never wire money without reviewing documentation, and to be wary of scammers demanding upfront “application fees.” His advice, simply put: if it sounds too good to be true, it probably is.

Scaling with Systems—and Service

One of the most impressive aspects of Jay’s story is how he leveraged private money to scale his operations. With reliable access to funds, he was able to triple his business during the recession, cherry-picking the best foreclosure opportunities while others s