Private Money vs Hard Money with Jay Conner

Josh (00:00:00) - All right. We got seven minutes on the clock. What is your name? And tell us about your deal.

Jay (00:00:06) - You got it. Josh, my name is Jay Connor, and I'm with an ER. Not a or Jay Cohen and er. And what's my deal? Well, I'm located here in eastern North Carolina, and my wife, Carol Joy and I started investing in single family houses primarily. We've done commercial deals, shopping centers, condos, but primarily single family houses in 2003. So we've been doing it all this years. And I tell you, here's the deal, Josh, the first six years we were investing in single family houses, I relied on local banks. That's all I knew to do to fund my real estate deals. Well, I remember it like it was yesterday, January 2009. Josh, I called up my banker. I'd had this conversation with him many, many, many times. I told him about two houses I had under contract to buy. They represented over $100,000 in profit.

Jay (00:00:59) - And I learned, Josh on that phone call that my line of credit had been shut down with no notice. And so I hung up the phone. I said, oh, my lands, what am I going to do? I have no way to fund my deals. So I called a good friend of mine in Greensboro, North Carolina, and I said, how are you funding your deals? And he says, have you heard of private money? I said, no, he says, have you heard about self-directed IRAs? I said, no, and so I studied private money. And we're not talking hard money. We're not talking about any kind of institutional money. We're talking about getting money from private lenders, individuals to invest in our deals. And you know what, Josh? I was able to attract without ever asking anybody for money. I was able to attract $2,150,000 in new funding from ideals without asking anybody for money. How did I do it? I put on my teacher hat and I started teaching people what private money is, how they can earn high rates of return safely and securely.

Jay (00:01:58) - And you know what, Josh? The money started chasing me without me ever having to ask for money. Today my wife and I've got 47 private lenders that are funding our deals. And you know what, Josh? Since that moment in time in 2009, I've never missed out on a real estate deal for not having the funding. And now I'm sharing it with people like yourself who want to learn about private money and have all the money they ever need to invest in their real estate deals.

Josh (00:02:27) - Yeah. What's the difference between private money and hard money?

Jay (00:02:31) - Big difference. So hard money is normally a broker of money. They go out and raise private money for their fund, and then they turn around and loan it out to real estate investors and charge origination fees and points and charge a higher interest rate. A private lender where we're borrowing money directly from the source, directly from the individuals. And so another big difference in this world of private money, we make the rules, you know, the old traditional way of borrowing monies.

Jay (00:02:59) - You go to the bank, you get on your hands and knees or to the hard money lender and you say, please fund my deal. But in this world, we're not asking for a mortgage. We're offering a mortgage.

Josh (00:03:10) - Hmhm so you go to private.

Josh (00:03:11) - Individuals, uh, do these individuals, you know, what kind of, um, what kind of process is there to get that money from private individuals? Do they have to go become SEC compliant? Do they need to go out and set up a new organization? Like, what does that even look like to become a private lender?

Jay (00:03:28) - Yeah. So private lenders are ordinary people just like you and me. So these private lenders, you know, not one of these 47 private lenders that we have ever heard of, private money or private lending, they've never heard of self-directed IRAs and how they can use their retirement funds to invest in our real estate deals. So these are people primarily that I work with that are in my what I call my warm market.

Jay (00:03:52) - There are people that I go to church with at the Rotary Club, at Business Networking International. You know, who do you play golf with? Who do you play poker with? You know, who do you hang around? But, you know, there's some people out there that I'm sure that are listening to Josh. They don't have a large network. So there's three categories of where you find private lenders, people in your own network. Right. Then I have what I call the expanded market. So how can you grow your network very, very quickly to find a potential private lenders? And then there are existing private lenders, like individuals that are already loaning money out to real estate investors. Well, how do you find them? Well, there's two easy places. Number one, did you know that in self-directed IRA companies, over 70% of their account holders are wanting to loan money out on real estate? They want to be passive investors. Well guess what? I know one self-directed IRA company that has a once a month zoom free meeting for real estate investors and their account holders to network.

Jay (00:04:53) - Another place is I've got a private lender data feed software that we update from public records every month, and we get every private. Loan closing contact information. And so those are the three categories on where you find these people your warm market, your expanded warm market and existing private lenders. All right.

Josh (00:05:13) - So I'm a I'm a real estate investor and I'm good at putting the hands on, you know, fixing tenants and toilets and all that kind of stuff. And I'm looking for some money which came first, the deal or the money. Like what should I do? Because a lot of times when I'm working with an investor, they go or with a real estate person, they go, ah, I need access to money. So when I get a deal, I do that. So which comes first in your opinion?

Jay (00:05:33) - Let me tell you something, Josh. I know from experience that desperation. Here's a writer downer. Desperation has got a smell to it. And the worst time that you can be looking to raise money is when you need it for a deal, right? So what comes first? The money comes first.

Jay (00:05:52) - You know, there are gurus out there, Josh, that are all the time saying, oh, just get the deal under contract. The money will show up. I want to throw up. Where's the money going to show up right out of clouds. So focus on getting your money lined up first for your real estate deals. There's always going to be deals, but think how much more confident, how many more offers you're going to make when you've got the private money ready to go.

Josh (00:06:14) - Yeah, when you have money in the pocket, the deal seems better. Anyways. On the other end.

Jay (00:06:19) - Absolutely, Jay.

Josh (00:06:21) - For for people who want to learn more about this. And I heard you got a free book to give away. Where could people go to get your book to learn more about private money?

Jay (00:06:30) - Absolutely. Josh. So here's the book. This is not an e-book. You can't download it. We believe it or not, Josh, the Postal Service is still in business, so I'll autograph this book for you that are listening here to the show.

Jay (00:06:42) - It's called Where to Get the Money Now subtitle how and where to get the money for your Real Estate Deals. Without relying on traditional or hard money lenders. You can pick it up for free. Just cover shipping at Jay Conner, Jay Cohen and air com forward slash book. That's Jay conner.com/book.

Josh (00:07:04) - Cool guys all in under seven minutes. Uh we talked about the deal. If you have a deal that you'd like to talk about head on over to the deal scout.com. Always reach out to our guests, get their free book, learn about private money, and I hope you guys have a awesome freaking day. See you on the next one.