July 21, 2025 • 35 mins
Podcasters Row interviews Jay Conner, host of the "Raising Private Money" podcast and an expert in private money lending for real estate. We discussed the benefits of private money over institutional lending, emphasizing the importance of securing private loans with the property.
Jay Conner also outlined risks for both real estate investors and private lenders, detailing mitigation strategies such as using a mathematical formula for offers and ensuring proper loan collateralization. The conversation touched upon self-directed IRAs as a funding source, Jay Conner's servant leadership philosophy, and the advantages of podcasting for networking and discovering opportunities.
Jay offered a free autographed copy of their book, "Where to Get the Money Now," and two tickets to his private money conference.
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Jay Conner also outlined risks for both real estate investors and private lenders, detailing mitigation strategies such as using a mathematical formula for offers and ensuring proper loan collateralization. The conversation touched upon self-directed IRAs as a funding source, Jay Conner's servant leadership philosophy, and the advantages of podcasting for networking and discovering opportunities.
Jay offered a free autographed copy of their book, "Where to Get the Money Now," and two tickets to his private money conference.
Contact KOP for professional podcast production, imaging, and web design services at http://www.kingofpodcasts.com
Support KOP by subscribing to his YouTube channel and search for King Of Podcasts
Follow KOP on Twitter or X and TikTok @kingofpodcastsListen to KOP’s other programs, Depraved and Debaucherous, the Wrestling is Real Wrestling Podcast and The Broadcasters Podcast.
Buy KOP a Coffee https://buymeacoffee.com/kingofpodcasts
Drop KOP a PayPal https://www.paypal.com/donate?hosted_button_id=3TAB983ZQPNVL
Drop KOP a CashApp https://cash.app/$kingofallpodcasts
Become a supporter of this podcast: https://www.spreaker.com/podcast/podcasters-row-hosted-by-kingofpodcasts--5922450/support.
Contact KOP for professional podcast production, imaging, and web design services at http://www.kingofpodcasts.com
Support KOP by subscribing to his YouTube channel and search for King Of Podcasts
Follow KOP on X and TikTok @kingofpodcasts (F Meta!)
Listen to KOP’s other programs, Podcasters Row… and the Wrestling is Real Wrestling Podcast and The Broadcasters Podcast.
Buy KOP a Coffee https://buymeacoffee.com/kingofpodcasts
Drop KOP a PayPal https://www.paypal.com/donate?hosted_button_id=3TAB983ZQPNVL
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Podcasting since two thousand and five. This is the King
of Podcasts Radio network, kingo Podcasts dot com.
Speaker 2 (00:07):
Two words private money. Welcome back to podcasters, Rowe King
of Podcasts here with your website is Kingopodcasts dot com.
Thank you for joining me with the program and again
as we give you along in our series of talking
(00:29):
to great podcasters out here, learning and expanding the spectrum
of what kind of podcasts are out there and learn
more about what they're all doing and how they all
make it work. So one of our previous guests on
the program was Patrick Franci. He hosts the Everyday Millionaire
podcast and Mindset Matters, two different shows. Mindset Matters he
does with his wife, and they were he was having
(00:51):
the nice enough to good introduce us and referred to
another guest to our program and then we go do
that introduction right now. So he is widely recognized the
private Mine Me authority, a season real estate investor, coach, entrepreneur,
carving in each and teaching how others how to fund
deals without rolling on traditional banks, personal credit or hard
money lenders. And there's more I'm gonna say to it,
(01:12):
but we'll get on to what I'm here with the
host of Raising Private Money, j Connor.
Speaker 1 (01:17):
Jay thinks you're being with me.
Speaker 3 (01:19):
George my lance, thank you so much for inviting me
to come along and talk about my favorite subject that
I'm so passionate about, not being private money, because private
money is the one strategy that's had more of an
impact on my real estate investing business than anything else
since I started all the way back in two thousand
(01:40):
and three.
Speaker 1 (01:41):
I'm excited to be here, George, Thank you much. Jay.
Speaker 2 (01:44):
I got to ask this question, and this is not
to be a dis or anything like that, but do
you ever get confused with Dave Ramsey because everybody wants
to gohead and say, oh, here's a money guy talking
with the draw there, that's him right there. Is it
is anything that you ever get that kind of distinction.
Speaker 1 (01:57):
No, I don't.
Speaker 3 (01:58):
I don't think I've ever been compared to Dave Ramsey,
at least if I have, I don't recall.
Speaker 2 (02:04):
Well, it's not as if well, there's one thing for
certain people that have you know, a certain platform, but
only only so much time to go and give. It's
there's something when you're doing it on podcasts and you
want to have the time to go and talk more
about you know, just not just taking a little snippets
here and there and kind of just taking what in
between long commercial breaks and trying to go and get
(02:25):
something from whatever feedback you see on a radio show.
It's like, let's just say like this. There are shows
on radio that almost treat themselves like barter programs, like
they're kind of paid programs, and there's only so much
information to give. But with you, I know that you
really want to go ahead and give details about what
(02:45):
is initially a system blueprint on be able to go
ahead and get private money. So now for your own background,
you're closing an average of three real estate deals per month,
you have an average profit of seventy eight thousand dollars
per transaction, and you've over eight million dollars in private
money and the point here against in two thousand and three.
So that's with your system. But the thing is is
(03:07):
that you're giving us time to go and really learn
the system and understand what you're doing in this podcast,
so current actionable strategies, not outdated theories, and your offering resources,
and you have a book that you know you're was
telling maybe just before we got on that you'd like
to go and offer the listeners called where to get
the Money Now to empower fill investors and the core
missions to ensure that lack of funding never prevents an
(03:28):
investor from seizing a profitable opportunity.
Speaker 1 (03:31):
So we'll bring up the book later on the program.
But Jay, what is it.
Speaker 2 (03:35):
About being able to get this kind of money? Because
we know that are people out there get rich quick.
Stocks are not going to help them out. They want
to try to flip houses. There's a lot of different
ways that people want to find a way to go
ahead and get ahead. But you know they don't want
to go to the route of just trying to go
ahead and save over thirty years to retirement to get
(03:55):
to a million dollars and have a nest egg. People
want to go and get there fast. So what are
you telling the folks on your program?
Speaker 3 (04:04):
So first of all, let me talk about the distinction
between private money funding and say institutional money. In my
first six years, George, that I was investing in real
estate and my focus is single family houses. Now you
can use private money for any kind of real estate, land,
self storage, commercial apartments. My focus is single family houses
(04:28):
and the way I do it. The Security Exchange Commission
is never involved because I'm not raising money for a fund.
Everything we do is what's.
Speaker 1 (04:37):
Called one offs. Well in the world is a one off.
I onan office.
Speaker 3 (04:40):
You've got a single family house property, and then you
have a private lender or maybe a couple of private
lenders that are funding that deal. So the distinction is
that private money or private lending, the investor.
Speaker 1 (04:56):
Or the lender is a human being just like you
and me.
Speaker 3 (04:59):
Right, I got forty seven of those people right now
that are investing in our deals, learning us money on
deals private lenders. So we're not talking banks, We're not
talking institutions. And here's another really really important distinction, and
that is I'm not talking hard money. So a hard
money lender is institutional money. Typically, a hard money lender
(05:22):
goes out and raises money from private lenders, from private investors,
human beings that invest in their fund, and then the
hard money lender turns around raises the interest rate from
what they're paying the private lender investor, They charge points
origination in phys etc. Well, the reason it's so important
to make that distinction between hard money and private money
(05:45):
is because a lot of hard money lenders out there
these days call themselves private lenders, and they're really not
private lenders. They are an institution. By the way, I'm
not pooh pooing hard money lenders. I say, have any
relationships in places you can. But I got twenty reasons
why I love private money as opposed to institutional money.
Speaker 1 (06:09):
The interest rate is much less, there's no points.
Speaker 3 (06:12):
I always bring home a big check when I buy
a property. I'm always able to borrow more than I
need to purchase it. And so you know, traditionally you
got to take a down payment to the bank or
a hard money lender. There's never any down payments in
this world. And we, I mean, the question is who
wants to get paid to buy houses?
Speaker 1 (06:32):
We always bring home a big check.
Speaker 3 (06:34):
So we're doing business with individuals that are either most
of the time investing money with us from either their
investment capital liquid investment capital, and or their retirement funds.
So there's this thing called self directed iras, and I
self toated. The IRA is approved by the IRS to wear.
(06:57):
An individual that has retirement funds can move those funds
over from wherever they are into stock market in a
four oh one K or whatever.
Speaker 1 (07:06):
Tax free, no penalty whatever, no.
Speaker 3 (07:09):
Tax effect, and then use retirement funds to invest with us.
So you know, the first six years that I was
investing in single family houses here in eastern North Carolina,
all I knew to do, George, was go to the
Logo bank, get on my hands and knees and say
please fund my deal, and had to provide financial statements
(07:30):
and the banker made me pull up my skirt to
show my personal assets and they.
Speaker 2 (07:35):
Pulled trying to get the loan and trying to get
the funding, only.
Speaker 1 (07:38):
To be rejected.
Speaker 2 (07:39):
It's to think it's not worth it going through the time.
I want to ask you real quickly, when it comes
to the real estate that you're actually buying and investing
and selling back, what would you see about those that
might not want to have land or property or lots
that have not been built versus having those that are built.
Because I know, with my family, you know, we've done
(08:01):
the investment in lots in areas that we know of
communities that are going to get built up pretty quickly,
and it's done good here and there. But that's the
point is like right now, Okay, for instance, we have
lots of Okalla and we know this being o'call. Florida
is getting built all of the place. There's so many
new communities coming up. There's that part of we have
(08:22):
lots that are now increasing in price, but it's like
sat on it for a while, put our own money
into it, and we're waiting for it to go and
come back to at the point it hadn't made it
to a certain point where we're gonna make a profit
on it. We're just trying to get to even now,
but it's eventually gonna get the profit. What about that
idea of built versus non built lots, land or property?
Speaker 1 (08:45):
Great question, George.
Speaker 3 (08:47):
So when a private lender is loaning money on a
vacant lot, here's what it comes down to. How much
are you going to loan as a private lender on
that lot? So we don't borrow unsecured money. We always
collateralize the promisory note with In North Carolina it's a
(09:09):
deed of trust. Most states call it a mortgage. So
we give our private lenders the same protection as the
local bank would get. We actually the name the private
lender is the mortgage g on the insurance policy. So
there's ever a claim on that house that's already there.
Then the check is made payable to the private lender
(09:30):
as well. But back to your question, So it depends
on the exit strategy. So I got a lot of
real estate investor friends that are flipping land. They'll buy
the land, they'll flip the land, and so that's a
pretty easy answer there. Yes, bar our private money secured
by that lot. However, the different scenario is what you
(09:54):
just talked about. You're going to buy the land and
your intention is to build on it and improve on it.
Speaker 1 (10:00):
So as a private lender, if the private lender.
Speaker 3 (10:03):
Is loaning money on that lot, they're going to get
the collateral, right, They'll get the collateral, they'll get the
morgage of the need of trust secure in their note. However,
if they're loaning money for the build for the vertical
in addition to what the value of the land is,
(10:24):
then you got this thing. It's a five letter word
that starts with a T called trust. So that private
lender is trusting the borrower, the real estate investor, to
improve that lot up to even more value than what
they would be loaning. You see, I don't borrow more
than seventy five percent of the after repaired value of
(10:48):
a property. Now I'll buy it at fifty percent of
the after prepaired value. For example, let's say I'm looking
at a single family house. I'm gonna use small numbers
because it's easy to understand. Let's say the after payered
value is two hundred thousand dollars on this single family house.
And when my definition.
Speaker 2 (11:08):
I tell you that compared to what we've gotten over
here in Florida. I'm in West Palm's, Florida, and the
houses are easy going over half a million dollars.
Speaker 3 (11:15):
Oh yeah, absolutely, And so in this example, I'll borrow
up to seventy five percent of the after paired value.
Put you to be one hundred and fifty thousand. Now,
I'm going to buy that house all day long if
it needs renovation for one hundred thousand or maybe even less.
Speaker 1 (11:31):
So my private lender.
Speaker 3 (11:33):
Is counting on me to improve that property, which I
have over five hundred times. Now, over five hundred of
these houses I've done. But when you're looking at land,
the trust meter is like straight up there between the
private lender and the borrower. Because if the real estate
(11:55):
investor does not perform, private lenders hung out to dry
if they don't improve that land. So it really comes
down to what's that relationship look like between the private
lender and the real estate entrepreneur.
Speaker 2 (12:12):
One the other is always thought about if I had
the money is there's a common practice obviously with let's
say in foreign countries, say if you're from Brazil or
from Latin America, South America or something like that, and
there are banks that they have within their countries that
it's just not worth putting the money in. Rather go
go to another country and invest in property and just
(12:33):
hold on to that and don't put the money in
the bank. Just put it in a property. See what
happens with it. Phil For instance, here in West Palm Beach,
where I'm at downtown West Palm Beach, they're building rough
shot over here, Ken Griffin, Jeff Grease, Steve and Ross.
All these billionaires just building condos that are like twenty
stories high all.
Speaker 1 (12:51):
Over the place.
Speaker 2 (12:52):
Like oh, of course West Palm Beach, for Ottato, Miami
is doing all that. I don't expect any of those,
all those condos and all those buildings to be fully
occot There must be people right now that are probably
going ahead and buying apartments or condos from there to
hold because they just want to put their money in
that because they know the resale value on that is
(13:12):
going to be good and if they get the right price,
they can make more money on their investment.
Speaker 1 (13:16):
What about that part of.
Speaker 2 (13:19):
The idea of why your system would be good because
people just want to not put their money in the bank.
You have so much to put in you knowing Palm
Beach as well, the island over here. You know you
got billions of dollars you're going to buy a property
because you're rather going to buy a property than put
it into some bank they're going to take and shave
off a certain amount off the top.
Speaker 3 (13:40):
Well, we know history proves it. The longer you own
real estate, the longer you own a piece of real estate,
the more money you're gonna make.
Speaker 1 (13:50):
Now, is real estate cyclical?
Speaker 3 (13:53):
Absolutely, I've already lived through five cycles myself. So if
you're going to buy and old, you definitely want to
have a strategy that you're.
Speaker 1 (14:03):
Gonna buy and hold for the long term.
Speaker 3 (14:06):
I mean, look what happened at values the properties in
two thousand.
Speaker 1 (14:10):
And seven and eight and nine.
Speaker 3 (14:12):
Conversely, look at what's happened to value property since COVID
came along. I mean, crazy exponential, you know growth. So again,
if you're gonna hang on to properties, it's definitely gonna
want it to be a long term play because I
mean there's nothing else over the long term that has
(14:33):
created wealth for people more than real estate.
Speaker 2 (14:38):
Talking about the risk for those people, Okay, you mentioned
two thousand and two thousand and eight, the subprime mortgages
were being sent out for all these people that thought, oh,
we're gonna go ahead flip the house. We got the
low mortgage payments on the first year, but then it
skyrockets a balloons second and third year, and they all thought, oh,
we're gonna get this flipped to one year, and then
they hold their hand and they're drowning in debt, and
(15:00):
you know a lot of houses and foreclosure, we still
got them all over the place. Now, what kind of
fortitude do you really need to have financially for your
for anybody to really be into this to go ahead
and go gather private money, because you've got to use
some of your own money to get into this.
Speaker 1 (15:17):
Actually you don't have to use any of your own money.
Speaker 3 (15:20):
I've got in my community of real estate investors, my
high end Mastermind Group and my Platinum coaching clients, a
lot of them starting out. It's all funded with private money, right,
so they're not have Now do you do you need
some money for marketing?
Speaker 1 (15:37):
Absolutely?
Speaker 3 (15:39):
Absolutely, But I mean as far as money and you know,
and operating overhead, of course, but I'm talking about as
far as money for the properties themselves. Private lending does
all that funding the purchase up front, the renovation up front,
and if you're buying it right, you can pull some
equity out as well.
Speaker 1 (15:58):
Right.
Speaker 3 (15:58):
But back to your question, what are the risk involved?
In fact, let me answer that question both ways. What's
the risk involved for the real estate investor. What's the
risk involved for the private lender, Because no matter what.
Speaker 1 (16:13):
You do, there's risk.
Speaker 3 (16:15):
You get in that car and get out on the road,
you just risking your life right there, right, So it's
risking everything we do. So let me start with the
real estate investor. I can tell you so, I do
a lot of flips. I do a lot of renovations
and rehabbing. And the most common mistake that I see
(16:37):
real estate investors making, particularly newer real estate investors, is
they pay too much for the house to begin with.
I mean, look, HGTV has made a lot of people
go broke because HGTV. The only thing about reality TV
(16:58):
is that there's nothing.
Speaker 2 (16:59):
Real, no, no, no, right, And there's so much is
being put into like the dellusion of like what you
can build of a house and what you could do
with it. I don't understand the thought process. And also
it's just that people are getting themselves into houses with
no money, with no collateral whatsoever. They might get the loan,
but they really can't afford it.
Speaker 1 (17:20):
Yeah, so they pay too much for the house. You see.
Speaker 3 (17:24):
The secret sauce really is not in estimating renovations and
repairs to the t. I mean, I've rehabbed every five
hundred houses. Not one of them have ever come in
on budget exactly. Murphy lives in every house, and sometimes
Murphy's cousins and aunts and uncles show up as well.
And if you don't know who Murphy is, I'm talking
(17:46):
about the guy that creates chaos of the fictitional character
that like you know, oh we had a foundation problem.
Speaker 1 (17:52):
Don't even know that.
Speaker 3 (17:53):
So it's really not an estim I mean, my repairs
on houses are either third fifty thousand or sixty thousand,
and that's as close as I need to get, and
you need to get the secret to success is buying
the house, right, You got to know you formula. I mean,
here's another mistake, George, that I see new real estate
(18:15):
investors make. They let their emotions get involved as to
what the maximum.
Speaker 1 (18:22):
Offers should be on a property. And so here's a
writer downer. The math makes the decision.
Speaker 3 (18:30):
It's black and white. That's all there is to it.
So what's my formula. Well, the formula I use for
the most that I will pay on a house is
I take the after repaired value, which, by the way,
my definition of after repaired value is the home is
absolutely beautiful, looks new, smells new ready for Southern Living
(18:51):
magazine pictures. That's the definition of after repaired value. So
I take the after paired value, which I get that
from my realtor, by the way, and I multiply that
time seventy percent. If the after payer value is less
than three hundred in your area, all of them are
over three hundred, So I take the after payer value
multiply times eighty percent. So that accounts from my car
(19:14):
and cost and my profit.
Speaker 1 (19:16):
And then I.
Speaker 3 (19:16):
Subtract from that estimated repairs that equals what we call
maximum ALAIBA offer. And then on houses with an afterpayer
value over three hundred thousand, I subtract an additional twenty
thousand dollars for the unexpected And that's even after getting
a home inspection. So you know exactly what you're dealing with.
(19:38):
So let the math do the decision. The risk for
the real estate investor is paying too much and not
being trained, educated, or working with somebody starting now that
know's what they're doing. For goodness sakes, don't make the
stupid mistake that I made all the way back in
two thousand and three when I started this business by myself,
(20:03):
I was relying on my past experience in the manufactured
housing or mobile home business down there in Florida.
Speaker 1 (20:09):
You know all about mobile homings, yea, and that was
my previous experience.
Speaker 3 (20:14):
Well, don't rely on previous experience, you know, get with somebody.
Speaker 1 (20:19):
That's what we're doing.
Speaker 3 (20:19):
So that's the primary risk to the real estate investor. Now,
what's the primary risk for the private lender that's.
Speaker 1 (20:28):
Loaning the money. Well, let me give you the list.
Speaker 3 (20:31):
Here's the checklist for a new private lender that's never
done it before. Number one, do not loan money unsecured,
period hands down, do not take a promisory note. And
you know that's all there is to it. You want
that promisory note collateralized by the property that you're loaning
(20:52):
money on. Number two, how well do you know the borrower?
For goodness sakes, how do you know the estate investor?
Is this a person of integrity? Is this a person
that does what they say they will do? And is
this a person that knows what they're doing right right now?
(21:12):
So how will do you know the operator?
Speaker 1 (21:15):
Next point?
Speaker 3 (21:17):
Conservative loan to value. I already said it. As the borrower,
I don't borrow more than seventy five percent of the
after repaired value. So on that little two hundred thousand
dollars house, I'm not going to borrow more than one
hundred and fifty thousand dollars of that after repaired value.
Another checklist for you, as the private lender. Require the
(21:40):
borrower the real estate investor, to name you as the
mortgage g on the insurance policy. So if there's any
claims against the insurance policy, the insurance company is going
to make the check payable to you the lender, the
mortgage g and to the real estate investor that owns
the property.
Speaker 1 (22:00):
Gives you another layer of protection.
Speaker 3 (22:02):
Next point, required to be named as the lender on
the title insurance policy and cases any title issues down
the road. Another requirement, for goodness sakes, do not wire
money to dover ever, ever, ever, ever, ever, never. Why
(22:23):
did I say never wire money directly to the borrower?
For goodness sakes, You wire your money, maybe it's coming
from investment capital retirement funds. You wire your money as
the lender directly to the closing agent, either the title
company or the real estate attorney, whoever's closing deals in
(22:44):
your local area. And that money's not going to be
dispersed until closing happens. It's on public record and everybody
is protected.
Speaker 2 (22:55):
I want to fall back up on what you think
about with self trick iris. You mentioned that really early on.
So self directed IRA retirement accounts for funding and somebody's
retirement put into it, take it out of some kind
of institutional fund. I know for me, I have an
investment in what is an ATF for precious metals and
on the S and P. Five hundred it's done pretty good.
Speaker 1 (23:17):
So far.
Speaker 2 (23:18):
You know, had it for about what eighteen years now,
and as you know, it turned around pretty good. It's
about forty percent yield so far since the beginning. So
I mean, I didn't put what twenty five dollars into it,
and now it's grown into you know, five figures. I'm
pretty happy about that. But I mean, how often have
you had people that have been willing to go ahead
(23:38):
and consider lending for real estate and had those IRA
holders make the conversion to put that money into property.
Tell me about that, what you've been able to tell
people to kind of convince them, to persuade them that
this is a good of course of strategy.
Speaker 3 (23:53):
Sure, so I've got forty seven private lenders right now. Now,
if you're if you've never raised capital, you don't need
forty seven private lenders right start out with one or two.
My very first one was two hundred and fifty thousand dollars,
which quickly became five hundred thousand.
Speaker 1 (24:09):
And so I've got that.
Speaker 3 (24:11):
So the reason I bring that up is that over
half over fifty percent of my private lenders are using
their retirement funds. They're using the retirement funds to invest
in our deals.
Speaker 1 (24:26):
So why do they like to do that. Well, they
like to do.
Speaker 3 (24:30):
It because all the returns, all the interests that I
am paying my private lenders that are using their retirement
funds now in a self directed IRA company that I
recommend they use. I've been using the same rep for
eight years now to get my deals funded. Is all
the interest that they earn is either tax deferred or
(24:53):
tax free, depending on the type of retirement account that
they have. Secondly, they love it because it's a way
for them to get involved in real estate and they
don't have to do anything like they don't have to
find deals. I mean, for goodness sakes, I use seven
different vendors just for Google paper leads of motivated sellers.
(25:18):
And so I do direct mail campaigns. I do outbound calling.
I do, I say I my team we do. We
do outbound texting. We direct mail every person that's in
pre foreclosure. I've been doing that since two thousand and four,
leading with a servant's heart, helping those people get out
(25:40):
of distress and putting money in their pocket, help them
get back on their feet. But a private lender don't
have to do any of that. A private lender is
totally passive.
Speaker 1 (25:51):
All they do is sit back and watch their account grow.
That's it.
Speaker 2 (25:57):
One I thing I gotta mention, Well, the we you
present yourself and obvious even for a podcast, you just
you give me a pastor vibe anyway, because you really
are like you're you're on the pulpit right now. I
can see a big thick Bible in your hand right now.
Speaker 1 (26:09):
Just kind of like going along.
Speaker 2 (26:11):
I don't want to see Jimmy Swagger or all Roberts,
but I was old.
Speaker 1 (26:13):
Thank you very much, thank you very much.
Speaker 3 (26:16):
Well, it's because you may, George, we just dated ourselves
when you said those two names.
Speaker 2 (26:21):
I'm sure I can see Robert Schuler if you want
to go that, right, I mean as far as you want.
Speaker 1 (26:25):
Uh.
Speaker 2 (26:26):
Well, I'll say this too, that you talking about your
Christian grounding and the fact that you know it's what
it's a personal foundation for you to manifest your day
to day operations. So talk to me about that part
of why it's important to that you want to put
that up front and forward for people to know that.
Speaker 1 (26:45):
Yeah.
Speaker 3 (26:46):
Well, one reason that I very quickly and unashamedly profess
my Christianity and a follower of Christ is because, first
of all, whether you are or you aren't, or whatever
you are, or maybe you're or maybe you're nothing. I
really believe, George, and I and you probably do too.
Speaker 1 (27:08):
The people that really enjoy life, are happy, are truly
joyous and successful. Is they are?
Speaker 3 (27:17):
They are authentic? Right, they take their filter off. We
all walk around with filters on. We all got our
filter on. Take your filter off and let people know
what are your core values? Who are you?
Speaker 1 (27:31):
What do you stand for? Right?
Speaker 3 (27:34):
And what that does is that I mean regardless, no
judgment here, I mean no matter what you are. When
you are authentic and you really let people know where
you're coming from, what that does is it attracts more
people in your life that are like you, and it
actually repels other people from you that are not like you.
Speaker 1 (27:59):
And that's that's beautiful.
Speaker 3 (28:01):
I mean, George, I don't know who came up with
this phrase or saying that opposite's a tract. That's the
most stupid thing I ever heard in my life. I
want to be around people that are like me, you know,
the same cravall as. And so when you attract people
into your life and you share with them what you
(28:21):
are really all about, then y'all gonna be speaking the
same language, right, Yeah, I mean you're gonna.
Speaker 1 (28:27):
Be coming from the same point. And so I share
that to be authentic.
Speaker 3 (28:33):
And it also is just explains why everything that Carol Joy,
my wife and I do, and our business and our
personal life, it's all everything. It's all about leading with
a servant's heart. And you know, this world ain't about me.
This world is not about me. This world is about
everybody else. And so how do we lead with everything
(28:56):
we do in our business as a servant's heart. Well,
for example, I mentioned a moment ago, we direct mail
every person family that's facing foreclosure. And you know what, George,
almost every one of those people that respond to our
letters will sell to us for what they owe, right.
Speaker 1 (29:15):
They'll sell to us for what they owe. But you
know what, George, we don't buy.
Speaker 3 (29:20):
The properties for what they owe. For goodness sakes, here's
my question. If I'm averaging, which I am, the intro
I can need to update my intro. My average profits
now are actually eighty six thousand dollars in the past
twelve months. Well, and I don't say that to brag.
I said that to make a point. If I'm averaging
eighty six thousand dollars of a deal. For goodness sakes,
(29:42):
can I not put three or four thousand dollars in
the pocket of the seller of those people that are
facing foreclosure? Absolutely right, sure, I mean make it a
win win law of reciprocity. I mean, you know, wins
out every time. So that's one way we serve. How
do we You know, serving with a servant's heart. Leading
(30:05):
with a servants heart applies to private money.
Speaker 1 (30:08):
You know, I didn't get this, George, I did not
get this.
Speaker 3 (30:12):
Understand this when I started out, when I started out
raising capital, I didn't realize until I got into it
that the private lenders, by the way, these private lenders
are not some kind of family offices I'm talking about.
These private lenders are everyday people that you go to
church with, that you play golf with, that you go
(30:36):
drink Starbucks coffee with, either every day run of the
mill people. I didn't realize that they need us as
much as we need them. And you know where else
are they gonna get?
Speaker 1 (30:50):
Like I've been paying eight.
Speaker 3 (30:52):
Percent ever since two thousand and nine is when I
started in this private money world. And George, my wife
and I we have gotten I don't know how many
handwritten notes over the years from our private lenders thanking
us for changing their retirement years.
Speaker 2 (31:11):
So it's win win for everybody. So you have a
system in place, you want to go and let people
know about that for yourself if you want to. You
have the freedom to work less than ten hours per
week in real estate investing by leveraging the power of automation.
So that's what you're doing right now. That's the system
that you have for folks to learn about right now.
You promote it specifically through the podcast with Raising Private
(31:33):
Money with Ja Connor j J y c O n
n e R. And you also have the prominent money
authority on LinkedIn, among other things, but also the website
j C n n e r dot com. So take
a moment to go and talk folks about the system,
how the podcast compliments that and tell us more about
(31:57):
what people need to do if they're interested in learning.
Speaker 3 (32:01):
Sure, so my podcast. I'm all excited, George. Now I
heard you say you've been podcasting for twenty years right
August will be twenty years and I've been thirty plus
years in media altogether.
Speaker 1 (32:13):
That is amazing.
Speaker 3 (32:14):
George, So I'm now in my eighth year of podcasts
and we've got almost eight hundred episodes so far, but
you win the prize. I've never talked to anybody. I've
been a guest on over eight hundred podcasts, and I've
never talked to anybody who's been podcasting for twenty years.
So you deserve to have the name of your show
(32:36):
King of Podcasts for sure. But yeah, the podcast my podcast,
as you said, the title is Raising Private Money with
Jay Connor, and.
Speaker 1 (32:47):
I have two shows a week.
Speaker 3 (32:48):
We release them on all the podcast platforms early Monday
mornings and early Thursday mornings, and I'm always interviewing other
real estate investors that have raised money, and so I
interview them, how do they have they gone about raising
private money, what's their favorite ways to raise it and etc.
What's their system of raising private money? And so I
(33:12):
have two different audiences that tune in on my show.
One audience are real estate investors that want to learn
how to raise capital. The other percentage of my audience
are actually individuals that want to be private lenders and
invest and do you know this passive investing? So yeah,
come check me out. Raising Private Money with Jay Connor.
(33:33):
And then in addition to that, George, I would love
as a gift to give your audience my book.
Speaker 1 (33:40):
This is not an e book.
Speaker 3 (33:42):
I mean the postal service is actually still in business,
believe it or not. And so the name of this
book is where to Get the Money Now subtitle how
and Where to get all the money you'd ever want
for your real estate deals without relying on institutional or
hard money lenders. I'll autograph it, I'll ship it out
(34:02):
three day express and you can pick up the book
at www dot j Connor ja y co n n
e r dot com Forward slash Book again, that's J Connor,
jay co n n e r dot com Forward slash Book.
And as an additional, Oh and just cover shipping, just
(34:25):
cover shipping. And in addition to that, I'm going to
include two tickets with the book to my upcoming Private
Money conference, Private Money Conference. That's a three thousand dollars gift.
Two tickets will be included with the book as well.
Speaker 1 (34:42):
There you go. Oh.
Speaker 2 (34:43):
Also, the podcast, you can also find it on YouTube.
Very important to make that point. That's thinction there, because
YouTube is getting is almost end all be all right
now for podcast out there it's very important.
Speaker 1 (34:54):
Jay.
Speaker 2 (34:54):
I really appreciate you taking time out again and talk
to us about all this. And you know, there was
a show I actually got the Who's Back in two
thousand and five through what twenty eleven or something like
that called Domain Masters. You know, I was always kind
of amazed on people that want to listen to podcasts
where they just talk about money. So those domains that
are being sold for millions of dollars, always sold this
for two million dollars, just for one million, this and that.
People love to hear about that stuff and they want
(35:16):
to go and hear that idea even just to get
the fever of saying I could do this. So that's
where hopefully people want to go ahead and listen to
Jay after this interview and learn more, find out by
the system, see how far you want to go? Jay
Connor again from the Raising Private Money podcast, Thanks for
being awesome. We really appreciate it. Thank you, George, all right,
thank you so much. God blessed the listeners. We appreciate
(35:37):
you listening to. Another podcaster is Trow and we will
talk to you next time
Podcasting since two thousand and five. This is the King
of Podcasts Radio network, kingo Podcasts dot com.
Speaker 2 (00:07):
Two words private money. Welcome back to podcasters, Rowe King
of Podcasts here with your website is Kingopodcasts dot com.
Thank you for joining me with the program and again
as we give you along in our series of talking
(00:29):
to great podcasters out here, learning and expanding the spectrum
of what kind of podcasts are out there and learn
more about what they're all doing and how they all
make it work. So one of our previous guests on
the program was Patrick Franci. He hosts the Everyday Millionaire
podcast and Mindset Matters, two different shows. Mindset Matters he
does with his wife, and they were he was having
(00:51):
the nice enough to good introduce us and referred to
another guest to our program and then we go do
that introduction right now. So he is widely recognized the
private Mine Me authority, a season real estate investor, coach, entrepreneur,
carving in each and teaching how others how to fund
deals without rolling on traditional banks, personal credit or hard
money lenders. And there's more I'm gonna say to it,
(01:12):
but we'll get on to what I'm here with the
host of Raising Private Money, j Connor.
Speaker 1 (01:17):
Jay thinks you're being with me.
Speaker 3 (01:19):
George my lance, thank you so much for inviting me
to come along and talk about my favorite subject that
I'm so passionate about, not being private money, because private
money is the one strategy that's had more of an
impact on my real estate investing business than anything else
since I started all the way back in two thousand
(01:40):
and three.
Speaker 1 (01:41):
I'm excited to be here, George, Thank you much. Jay.
Speaker 2 (01:44):
I got to ask this question, and this is not
to be a dis or anything like that, but do
you ever get confused with Dave Ramsey because everybody wants
to gohead and say, oh, here's a money guy talking
with the draw there, that's him right there. Is it
is anything that you ever get that kind of distinction.
Speaker 1 (01:57):
No, I don't.
Speaker 3 (01:58):
I don't think I've ever been compared to Dave Ramsey,
at least if I have, I don't recall.
Speaker 2 (02:04):
Well, it's not as if well, there's one thing for
certain people that have you know, a certain platform, but
only only so much time to go and give. It's
there's something when you're doing it on podcasts and you
want to have the time to go and talk more
about you know, just not just taking a little snippets
here and there and kind of just taking what in
between long commercial breaks and trying to go and get
(02:25):
something from whatever feedback you see on a radio show.
It's like, let's just say like this. There are shows
on radio that almost treat themselves like barter programs, like
they're kind of paid programs, and there's only so much
information to give. But with you, I know that you
really want to go ahead and give details about what
(02:45):
is initially a system blueprint on be able to go
ahead and get private money. So now for your own background,
you're closing an average of three real estate deals per month,
you have an average profit of seventy eight thousand dollars
per transaction, and you've over eight million dollars in private
money and the point here against in two thousand and three.
So that's with your system. But the thing is is
(03:07):
that you're giving us time to go and really learn
the system and understand what you're doing in this podcast,
so current actionable strategies, not outdated theories, and your offering resources,
and you have a book that you know you're was
telling maybe just before we got on that you'd like
to go and offer the listeners called where to get
the Money Now to empower fill investors and the core
missions to ensure that lack of funding never prevents an
(03:28):
investor from seizing a profitable opportunity.
Speaker 1 (03:31):
So we'll bring up the book later on the program.
But Jay, what is it.
Speaker 2 (03:35):
About being able to get this kind of money? Because
we know that are people out there get rich quick.
Stocks are not going to help them out. They want
to try to flip houses. There's a lot of different
ways that people want to find a way to go
ahead and get ahead. But you know they don't want
to go to the route of just trying to go
ahead and save over thirty years to retirement to get
(03:55):
to a million dollars and have a nest egg. People
want to go and get there fast. So what are
you telling the folks on your program?
Speaker 3 (04:04):
So first of all, let me talk about the distinction
between private money funding and say institutional money. In my
first six years, George, that I was investing in real
estate and my focus is single family houses. Now you
can use private money for any kind of real estate, land,
self storage, commercial apartments. My focus is single family houses
(04:28):
and the way I do it. The Security Exchange Commission
is never involved because I'm not raising money for a fund.
Everything we do is what's.
Speaker 1 (04:37):
Called one offs. Well in the world is a one off.
I onan office.
Speaker 3 (04:40):
You've got a single family house property, and then you
have a private lender or maybe a couple of private
lenders that are funding that deal. So the distinction is
that private money or private lending, the investor.
Speaker 1 (04:56):
Or the lender is a human being just like you
and me.
Speaker 3 (04:59):
Right, I got forty seven of those people right now
that are investing in our deals, learning us money on
deals private lenders. So we're not talking banks, We're not
talking institutions. And here's another really really important distinction, and
that is I'm not talking hard money. So a hard
money lender is institutional money. Typically, a hard money lender
(05:22):
goes out and raises money from private lenders, from private investors,
human beings that invest in their fund, and then the
hard money lender turns around raises the interest rate from
what they're paying the private lender investor, They charge points
origination in phys etc. Well, the reason it's so important
to make that distinction between hard money and private money
(05:45):
is because a lot of hard money lenders out there
these days call themselves private lenders, and they're really not
private lenders. They are an institution. By the way, I'm
not pooh pooing hard money lenders. I say, have any
relationships in places you can. But I got twenty reasons
why I love private money as opposed to institutional money.
Speaker 1 (06:09):
The interest rate is much less, there's no points.
Speaker 3 (06:12):
I always bring home a big check when I buy
a property. I'm always able to borrow more than I
need to purchase it. And so you know, traditionally you
got to take a down payment to the bank or
a hard money lender. There's never any down payments in
this world. And we, I mean, the question is who
wants to get paid to buy houses?
Speaker 1 (06:32):
We always bring home a big check.
Speaker 3 (06:34):
So we're doing business with individuals that are either most
of the time investing money with us from either their
investment capital liquid investment capital, and or their retirement funds.
So there's this thing called self directed iras, and I
self toated. The IRA is approved by the IRS to wear.
(06:57):
An individual that has retirement funds can move those funds
over from wherever they are into stock market in a
four oh one K or whatever.
Speaker 1 (07:06):
Tax free, no penalty whatever, no.
Speaker 3 (07:09):
Tax effect, and then use retirement funds to invest with us.
So you know, the first six years that I was
investing in single family houses here in eastern North Carolina,
all I knew to do, George, was go to the
Logo bank, get on my hands and knees and say
please fund my deal, and had to provide financial statements
(07:30):
and the banker made me pull up my skirt to
show my personal assets and they.
Speaker 2 (07:35):
Pulled trying to get the loan and trying to get
the funding, only.
Speaker 1 (07:38):
To be rejected.
Speaker 2 (07:39):
It's to think it's not worth it going through the time.
I want to ask you real quickly, when it comes
to the real estate that you're actually buying and investing
and selling back, what would you see about those that
might not want to have land or property or lots
that have not been built versus having those that are built.
Because I know, with my family, you know, we've done
(08:01):
the investment in lots in areas that we know of
communities that are going to get built up pretty quickly,
and it's done good here and there. But that's the
point is like right now, Okay, for instance, we have
lots of Okalla and we know this being o'call. Florida
is getting built all of the place. There's so many
new communities coming up. There's that part of we have
(08:22):
lots that are now increasing in price, but it's like
sat on it for a while, put our own money
into it, and we're waiting for it to go and
come back to at the point it hadn't made it
to a certain point where we're gonna make a profit
on it. We're just trying to get to even now,
but it's eventually gonna get the profit. What about that
idea of built versus non built lots, land or property?
Speaker 1 (08:45):
Great question, George.
Speaker 3 (08:47):
So when a private lender is loaning money on a
vacant lot, here's what it comes down to. How much
are you going to loan as a private lender on
that lot? So we don't borrow unsecured money. We always
collateralize the promisory note with In North Carolina it's a
(09:09):
deed of trust. Most states call it a mortgage. So
we give our private lenders the same protection as the
local bank would get. We actually the name the private
lender is the mortgage g on the insurance policy. So
there's ever a claim on that house that's already there.
Then the check is made payable to the private lender
(09:30):
as well. But back to your question, So it depends
on the exit strategy. So I got a lot of
real estate investor friends that are flipping land. They'll buy
the land, they'll flip the land, and so that's a
pretty easy answer there. Yes, bar our private money secured
by that lot. However, the different scenario is what you
(09:54):
just talked about. You're going to buy the land and
your intention is to build on it and improve on it.
Speaker 1 (10:00):
So as a private lender, if the private lender.
Speaker 3 (10:03):
Is loaning money on that lot, they're going to get
the collateral, right, They'll get the collateral, they'll get the
morgage of the need of trust secure in their note. However,
if they're loaning money for the build for the vertical
in addition to what the value of the land is,
(10:24):
then you got this thing. It's a five letter word
that starts with a T called trust. So that private
lender is trusting the borrower, the real estate investor, to
improve that lot up to even more value than what
they would be loaning. You see, I don't borrow more
than seventy five percent of the after repaired value of
(10:48):
a property. Now I'll buy it at fifty percent of
the after prepaired value. For example, let's say I'm looking
at a single family house. I'm gonna use small numbers
because it's easy to understand. Let's say the after payered
value is two hundred thousand dollars on this single family house.
And when my definition.
Speaker 2 (11:08):
I tell you that compared to what we've gotten over
here in Florida. I'm in West Palm's, Florida, and the
houses are easy going over half a million dollars.
Speaker 3 (11:15):
Oh yeah, absolutely, And so in this example, I'll borrow
up to seventy five percent of the after paired value.
Put you to be one hundred and fifty thousand. Now,
I'm going to buy that house all day long if
it needs renovation for one hundred thousand or maybe even less.
Speaker 1 (11:31):
So my private lender.
Speaker 3 (11:33):
Is counting on me to improve that property, which I
have over five hundred times. Now, over five hundred of
these houses I've done. But when you're looking at land,
the trust meter is like straight up there between the
private lender and the borrower. Because if the real estate
(11:55):
investor does not perform, private lenders hung out to dry
if they don't improve that land. So it really comes
down to what's that relationship look like between the private
lender and the real estate entrepreneur.
Speaker 2 (12:12):
One the other is always thought about if I had
the money is there's a common practice obviously with let's
say in foreign countries, say if you're from Brazil or
from Latin America, South America or something like that, and
there are banks that they have within their countries that
it's just not worth putting the money in. Rather go
go to another country and invest in property and just
(12:33):
hold on to that and don't put the money in
the bank. Just put it in a property. See what
happens with it. Phil For instance, here in West Palm Beach,
where I'm at downtown West Palm Beach, they're building rough
shot over here, Ken Griffin, Jeff Grease, Steve and Ross.
All these billionaires just building condos that are like twenty
stories high all.
Speaker 1 (12:51):
Over the place.
Speaker 2 (12:52):
Like oh, of course West Palm Beach, for Ottato, Miami
is doing all that. I don't expect any of those,
all those condos and all those buildings to be fully
occot There must be people right now that are probably
going ahead and buying apartments or condos from there to
hold because they just want to put their money in
that because they know the resale value on that is
(13:12):
going to be good and if they get the right price,
they can make more money on their investment.
Speaker 1 (13:16):
What about that part of.
Speaker 2 (13:19):
The idea of why your system would be good because
people just want to not put their money in the bank.
You have so much to put in you knowing Palm
Beach as well, the island over here. You know you
got billions of dollars you're going to buy a property
because you're rather going to buy a property than put
it into some bank they're going to take and shave
off a certain amount off the top.
Speaker 3 (13:40):
Well, we know history proves it. The longer you own
real estate, the longer you own a piece of real estate,
the more money you're gonna make.
Speaker 1 (13:50):
Now, is real estate cyclical?
Speaker 3 (13:53):
Absolutely, I've already lived through five cycles myself. So if
you're going to buy and old, you definitely want to
have a strategy that you're.
Speaker 1 (14:03):
Gonna buy and hold for the long term.
Speaker 3 (14:06):
I mean, look what happened at values the properties in
two thousand.
Speaker 1 (14:10):
And seven and eight and nine.
Speaker 3 (14:12):
Conversely, look at what's happened to value property since COVID
came along. I mean, crazy exponential, you know growth. So again,
if you're gonna hang on to properties, it's definitely gonna
want it to be a long term play because I
mean there's nothing else over the long term that has
(14:33):
created wealth for people more than real estate.
Speaker 2 (14:38):
Talking about the risk for those people, Okay, you mentioned
two thousand and two thousand and eight, the subprime mortgages
were being sent out for all these people that thought, oh,
we're gonna go ahead flip the house. We got the
low mortgage payments on the first year, but then it
skyrockets a balloons second and third year, and they all thought, oh,
we're gonna get this flipped to one year, and then
they hold their hand and they're drowning in debt, and
(15:00):
you know a lot of houses and foreclosure, we still
got them all over the place. Now, what kind of
fortitude do you really need to have financially for your
for anybody to really be into this to go ahead
and go gather private money, because you've got to use
some of your own money to get into this.
Speaker 1 (15:17):
Actually you don't have to use any of your own money.
Speaker 3 (15:20):
I've got in my community of real estate investors, my
high end Mastermind Group and my Platinum coaching clients, a
lot of them starting out. It's all funded with private money, right,
so they're not have Now do you do you need
some money for marketing?
Speaker 1 (15:37):
Absolutely?
Speaker 3 (15:39):
Absolutely, But I mean as far as money and you know,
and operating overhead, of course, but I'm talking about as
far as money for the properties themselves. Private lending does
all that funding the purchase up front, the renovation up front,
and if you're buying it right, you can pull some
equity out as well.
Speaker 1 (15:58):
Right.
Speaker 3 (15:58):
But back to your question, what are the risk involved?
In fact, let me answer that question both ways. What's
the risk involved for the real estate investor. What's the
risk involved for the private lender, Because no matter what.
Speaker 1 (16:13):
You do, there's risk.
Speaker 3 (16:15):
You get in that car and get out on the road,
you just risking your life right there, right, So it's
risking everything we do. So let me start with the
real estate investor. I can tell you so, I do
a lot of flips. I do a lot of renovations
and rehabbing. And the most common mistake that I see
(16:37):
real estate investors making, particularly newer real estate investors, is
they pay too much for the house to begin with.
I mean, look, HGTV has made a lot of people
go broke because HGTV. The only thing about reality TV
(16:58):
is that there's nothing.
Speaker 2 (16:59):
Real, no, no, no, right, And there's so much is
being put into like the dellusion of like what you
can build of a house and what you could do
with it. I don't understand the thought process. And also
it's just that people are getting themselves into houses with
no money, with no collateral whatsoever. They might get the loan,
but they really can't afford it.
Speaker 1 (17:20):
Yeah, so they pay too much for the house. You see.
Speaker 3 (17:24):
The secret sauce really is not in estimating renovations and
repairs to the t. I mean, I've rehabbed every five
hundred houses. Not one of them have ever come in
on budget exactly. Murphy lives in every house, and sometimes
Murphy's cousins and aunts and uncles show up as well.
And if you don't know who Murphy is, I'm talking
(17:46):
about the guy that creates chaos of the fictitional character
that like you know, oh we had a foundation problem.
Speaker 1 (17:52):
Don't even know that.
Speaker 3 (17:53):
So it's really not an estim I mean, my repairs
on houses are either third fifty thousand or sixty thousand,
and that's as close as I need to get, and
you need to get the secret to success is buying
the house, right, You got to know you formula. I mean,
here's another mistake, George, that I see new real estate
(18:15):
investors make. They let their emotions get involved as to
what the maximum.
Speaker 1 (18:22):
Offers should be on a property. And so here's a
writer downer. The math makes the decision.
Speaker 3 (18:30):
It's black and white. That's all there is to it.
So what's my formula. Well, the formula I use for
the most that I will pay on a house is
I take the after repaired value, which, by the way,
my definition of after repaired value is the home is
absolutely beautiful, looks new, smells new ready for Southern Living
(18:51):
magazine pictures. That's the definition of after repaired value. So
I take the after paired value, which I get that
from my realtor, by the way, and I multiply that
time seventy percent. If the after payer value is less
than three hundred in your area, all of them are
over three hundred, So I take the after payer value
multiply times eighty percent. So that accounts from my car
(19:14):
and cost and my profit.
Speaker 1 (19:16):
And then I.
Speaker 3 (19:16):
Subtract from that estimated repairs that equals what we call
maximum ALAIBA offer. And then on houses with an afterpayer
value over three hundred thousand, I subtract an additional twenty
thousand dollars for the unexpected And that's even after getting
a home inspection. So you know exactly what you're dealing with.
(19:38):
So let the math do the decision. The risk for
the real estate investor is paying too much and not
being trained, educated, or working with somebody starting now that
know's what they're doing. For goodness sakes, don't make the
stupid mistake that I made all the way back in
two thousand and three when I started this business by myself,
(20:03):
I was relying on my past experience in the manufactured
housing or mobile home business down there in Florida.
Speaker 1 (20:09):
You know all about mobile homings, yea, and that was
my previous experience.
Speaker 3 (20:14):
Well, don't rely on previous experience, you know, get with somebody.
Speaker 1 (20:19):
That's what we're doing.
Speaker 3 (20:19):
So that's the primary risk to the real estate investor. Now,
what's the primary risk for the private lender that's.
Speaker 1 (20:28):
Loaning the money. Well, let me give you the list.
Speaker 3 (20:31):
Here's the checklist for a new private lender that's never
done it before. Number one, do not loan money unsecured,
period hands down, do not take a promisory note. And
you know that's all there is to it. You want
that promisory note collateralized by the property that you're loaning
(20:52):
money on. Number two, how well do you know the borrower?
For goodness sakes, how do you know the estate investor?
Is this a person of integrity? Is this a person
that does what they say they will do? And is
this a person that knows what they're doing right right now?
(21:12):
So how will do you know the operator?
Speaker 1 (21:15):
Next point?
Speaker 3 (21:17):
Conservative loan to value. I already said it. As the borrower,
I don't borrow more than seventy five percent of the
after repaired value. So on that little two hundred thousand
dollars house, I'm not going to borrow more than one
hundred and fifty thousand dollars of that after repaired value.
Another checklist for you, as the private lender. Require the
(21:40):
borrower the real estate investor, to name you as the
mortgage g on the insurance policy. So if there's any
claims against the insurance policy, the insurance company is going
to make the check payable to you the lender, the
mortgage g and to the real estate investor that owns
the property.
Speaker 1 (22:00):
Gives you another layer of protection.
Speaker 3 (22:02):
Next point, required to be named as the lender on
the title insurance policy and cases any title issues down
the road. Another requirement, for goodness sakes, do not wire
money to dover ever, ever, ever, ever, ever, never. Why
(22:23):
did I say never wire money directly to the borrower?
For goodness sakes, You wire your money, maybe it's coming
from investment capital retirement funds. You wire your money as
the lender directly to the closing agent, either the title
company or the real estate attorney, whoever's closing deals in
(22:44):
your local area. And that money's not going to be
dispersed until closing happens. It's on public record and everybody
is protected.
Speaker 2 (22:55):
I want to fall back up on what you think
about with self trick iris. You mentioned that really early on.
So self directed IRA retirement accounts for funding and somebody's
retirement put into it, take it out of some kind
of institutional fund. I know for me, I have an
investment in what is an ATF for precious metals and
on the S and P. Five hundred it's done pretty good.
Speaker 1 (23:17):
So far.
Speaker 2 (23:18):
You know, had it for about what eighteen years now,
and as you know, it turned around pretty good. It's
about forty percent yield so far since the beginning. So
I mean, I didn't put what twenty five dollars into it,
and now it's grown into you know, five figures. I'm
pretty happy about that. But I mean, how often have
you had people that have been willing to go ahead
(23:38):
and consider lending for real estate and had those IRA
holders make the conversion to put that money into property.
Tell me about that, what you've been able to tell
people to kind of convince them, to persuade them that
this is a good of course of strategy.
Speaker 3 (23:53):
Sure, so I've got forty seven private lenders right now. Now,
if you're if you've never raised capital, you don't need
forty seven private lenders right start out with one or two.
My very first one was two hundred and fifty thousand dollars,
which quickly became five hundred thousand.
Speaker 1 (24:09):
And so I've got that.
Speaker 3 (24:11):
So the reason I bring that up is that over
half over fifty percent of my private lenders are using
their retirement funds. They're using the retirement funds to invest
in our deals.
Speaker 1 (24:26):
So why do they like to do that. Well, they
like to do.
Speaker 3 (24:30):
It because all the returns, all the interests that I
am paying my private lenders that are using their retirement
funds now in a self directed IRA company that I
recommend they use. I've been using the same rep for
eight years now to get my deals funded. Is all
the interest that they earn is either tax deferred or
(24:53):
tax free, depending on the type of retirement account that
they have. Secondly, they love it because it's a way
for them to get involved in real estate and they
don't have to do anything like they don't have to
find deals. I mean, for goodness sakes, I use seven
different vendors just for Google paper leads of motivated sellers.
(25:18):
And so I do direct mail campaigns. I do outbound calling.
I do, I say I my team we do. We
do outbound texting. We direct mail every person that's in
pre foreclosure. I've been doing that since two thousand and four,
leading with a servant's heart, helping those people get out
(25:40):
of distress and putting money in their pocket, help them
get back on their feet. But a private lender don't
have to do any of that. A private lender is
totally passive.
Speaker 1 (25:51):
All they do is sit back and watch their account grow.
That's it.
Speaker 2 (25:57):
One I thing I gotta mention, Well, the we you
present yourself and obvious even for a podcast, you just
you give me a pastor vibe anyway, because you really
are like you're you're on the pulpit right now. I
can see a big thick Bible in your hand right now.
Speaker 1 (26:09):
Just kind of like going along.
Speaker 2 (26:11):
I don't want to see Jimmy Swagger or all Roberts,
but I was old.
Speaker 1 (26:13):
Thank you very much, thank you very much.
Speaker 3 (26:16):
Well, it's because you may, George, we just dated ourselves
when you said those two names.
Speaker 2 (26:21):
I'm sure I can see Robert Schuler if you want
to go that, right, I mean as far as you want.
Speaker 1 (26:25):
Uh.
Speaker 2 (26:26):
Well, I'll say this too, that you talking about your
Christian grounding and the fact that you know it's what
it's a personal foundation for you to manifest your day
to day operations. So talk to me about that part
of why it's important to that you want to put
that up front and forward for people to know that.
Speaker 1 (26:45):
Yeah.
Speaker 3 (26:46):
Well, one reason that I very quickly and unashamedly profess
my Christianity and a follower of Christ is because, first
of all, whether you are or you aren't, or whatever
you are, or maybe you're or maybe you're nothing. I
really believe, George, and I and you probably do too.
Speaker 1 (27:08):
The people that really enjoy life, are happy, are truly
joyous and successful. Is they are?
Speaker 3 (27:17):
They are authentic? Right, they take their filter off. We
all walk around with filters on. We all got our
filter on. Take your filter off and let people know
what are your core values? Who are you?
Speaker 1 (27:31):
What do you stand for? Right?
Speaker 3 (27:34):
And what that does is that I mean regardless, no
judgment here, I mean no matter what you are. When
you are authentic and you really let people know where
you're coming from, what that does is it attracts more
people in your life that are like you, and it
actually repels other people from you that are not like you.
Speaker 1 (27:59):
And that's that's beautiful.
Speaker 3 (28:01):
I mean, George, I don't know who came up with
this phrase or saying that opposite's a tract. That's the
most stupid thing I ever heard in my life. I
want to be around people that are like me, you know,
the same cravall as. And so when you attract people
into your life and you share with them what you
(28:21):
are really all about, then y'all gonna be speaking the
same language, right, Yeah, I mean you're gonna.
Speaker 1 (28:27):
Be coming from the same point. And so I share
that to be authentic.
Speaker 3 (28:33):
And it also is just explains why everything that Carol Joy,
my wife and I do, and our business and our
personal life, it's all everything. It's all about leading with
a servant's heart. And you know, this world ain't about me.
This world is not about me. This world is about
everybody else. And so how do we lead with everything
(28:56):
we do in our business as a servant's heart. Well,
for example, I mentioned a moment ago, we direct mail
every person family that's facing foreclosure. And you know what, George,
almost every one of those people that respond to our
letters will sell to us for what they owe, right.
Speaker 1 (29:15):
They'll sell to us for what they owe. But you
know what, George, we don't buy.
Speaker 3 (29:20):
The properties for what they owe. For goodness sakes, here's
my question. If I'm averaging, which I am, the intro
I can need to update my intro. My average profits
now are actually eighty six thousand dollars in the past
twelve months. Well, and I don't say that to brag.
I said that to make a point. If I'm averaging
eighty six thousand dollars of a deal. For goodness sakes,
(29:42):
can I not put three or four thousand dollars in
the pocket of the seller of those people that are
facing foreclosure? Absolutely right, sure, I mean make it a
win win law of reciprocity. I mean, you know, wins
out every time. So that's one way we serve. How
do we You know, serving with a servant's heart. Leading
(30:05):
with a servants heart applies to private money.
Speaker 1 (30:08):
You know, I didn't get this, George, I did not
get this.
Speaker 3 (30:12):
Understand this when I started out, when I started out
raising capital, I didn't realize until I got into it
that the private lenders, by the way, these private lenders
are not some kind of family offices I'm talking about.
These private lenders are everyday people that you go to
church with, that you play golf with, that you go
(30:36):
drink Starbucks coffee with, either every day run of the
mill people. I didn't realize that they need us as
much as we need them. And you know where else
are they gonna get?
Speaker 1 (30:50):
Like I've been paying eight.
Speaker 3 (30:52):
Percent ever since two thousand and nine is when I
started in this private money world. And George, my wife
and I we have gotten I don't know how many
handwritten notes over the years from our private lenders thanking
us for changing their retirement years.
Speaker 2 (31:11):
So it's win win for everybody. So you have a
system in place, you want to go and let people
know about that for yourself if you want to. You
have the freedom to work less than ten hours per
week in real estate investing by leveraging the power of automation.
So that's what you're doing right now. That's the system
that you have for folks to learn about right now.
You promote it specifically through the podcast with Raising Private
(31:33):
Money with Ja Connor j J y c O n
n e R. And you also have the prominent money
authority on LinkedIn, among other things, but also the website
j C n n e r dot com. So take
a moment to go and talk folks about the system,
how the podcast compliments that and tell us more about
(31:57):
what people need to do if they're interested in learning.
Speaker 3 (32:01):
Sure, so my podcast. I'm all excited, George. Now I
heard you say you've been podcasting for twenty years right
August will be twenty years and I've been thirty plus
years in media altogether.
Speaker 1 (32:13):
That is amazing.
Speaker 3 (32:14):
George, So I'm now in my eighth year of podcasts
and we've got almost eight hundred episodes so far, but
you win the prize. I've never talked to anybody. I've
been a guest on over eight hundred podcasts, and I've
never talked to anybody who's been podcasting for twenty years.
So you deserve to have the name of your show
(32:36):
King of Podcasts for sure. But yeah, the podcast my podcast,
as you said, the title is Raising Private Money with
Jay Connor, and.
Speaker 1 (32:47):
I have two shows a week.
Speaker 3 (32:48):
We release them on all the podcast platforms early Monday
mornings and early Thursday mornings, and I'm always interviewing other
real estate investors that have raised money, and so I
interview them, how do they have they gone about raising
private money, what's their favorite ways to raise it and etc.
What's their system of raising private money? And so I
(33:12):
have two different audiences that tune in on my show.
One audience are real estate investors that want to learn
how to raise capital. The other percentage of my audience
are actually individuals that want to be private lenders and
invest and do you know this passive investing? So yeah,
come check me out. Raising Private Money with Jay Connor.
(33:33):
And then in addition to that, George, I would love
as a gift to give your audience my book.
Speaker 1 (33:40):
This is not an e book.
Speaker 3 (33:42):
I mean the postal service is actually still in business,
believe it or not. And so the name of this
book is where to Get the Money Now subtitle how
and Where to get all the money you'd ever want
for your real estate deals without relying on institutional or
hard money lenders. I'll autograph it, I'll ship it out
(34:02):
three day express and you can pick up the book
at www dot j Connor ja y co n n
e r dot com Forward slash Book again, that's J Connor,
jay co n n e r dot com Forward slash Book.
And as an additional, Oh and just cover shipping, just
(34:25):
cover shipping. And in addition to that, I'm going to
include two tickets with the book to my upcoming Private
Money conference, Private Money Conference. That's a three thousand dollars gift.
Two tickets will be included with the book as well.
Speaker 1 (34:42):
There you go. Oh.
Speaker 2 (34:43):
Also, the podcast, you can also find it on YouTube.
Very important to make that point. That's thinction there, because
YouTube is getting is almost end all be all right
now for podcast out there it's very important.
Speaker 1 (34:54):
Jay.
Speaker 2 (34:54):
I really appreciate you taking time out again and talk
to us about all this. And you know, there was
a show I actually got the Who's Back in two
thousand and five through what twenty eleven or something like
that called Domain Masters. You know, I was always kind
of amazed on people that want to listen to podcasts
where they just talk about money. So those domains that
are being sold for millions of dollars, always sold this
for two million dollars, just for one million, this and that.
People love to hear about that stuff and they want
(35:16):
to go and hear that idea even just to get
the fever of saying I could do this. So that's
where hopefully people want to go ahead and listen to
Jay after this interview and learn more, find out by
the system, see how far you want to go? Jay
Connor again from the Raising Private Money podcast, Thanks for
being awesome. We really appreciate it. Thank you, George, all right,
thank you so much. God blessed the listeners. We appreciate
(35:37):
you listening to. Another podcaster is Trow and we will
talk to you next time
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