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JC 028: How to Make Private Money Work for You with Jay Conner

October 18th, 2017 | no comments

All You Need to Know About Private Money

How to Make Private Money Work for You with Jay ConnerJay Conner has been in the real estate industry for over 14 years and is known as an expert in private money lending. He has over $52 million worth of real estate transactions under his belt and runs a fully automated business, allowing him to manage his company working not more than ten hours a week, earning no less than a seven figure income.

Jay’s road to becoming a private lending expert started when the bank cut him off during the crash of 2008. Desperate to salvage deals, he was forced to learn how to raise private funds less than two weeks after being cut off. He did his research and was able to create a system that combined the best aspects of all that he learned. His ordeal became a blessing in disguise in the end, as his system was able to raise over $2 million in less than 90 days in private funds, stating the first person he approached handed over $250,000 in private money. It blew him away to realize that his system worked the way it did and raising private money wasn’t entirely complicated as he imagined.

Needless to say, his private funding accomplishment has only helped his career reach new heights and to this day, Jay credits the banker who cut him off.

Hard Money versus Private Money

Hard money

  • Hard money lenders are mostly brokers.
  • They go out and raise money from individuals.
  • Average interest rate on hard money is 14%
  • Origination fee is 4 points.
  • They won’t advance more than 80% of the purchase price.
  • They will check your credit.

Private money

  • A private money lender is an individual that loans money out from their investment capital or retirement account.
  • Interest rate is 8%, no points, no renewal fees.
  • 100% of the purchase is advanced when you buy,
  • you can get 125% of the after repair value when you buy.
  • They won’t check your credit.

Five Key Points:

  1. The number one thing that keeps real estate investors from moving forward is not having the funding for the deals.
  2. Private money puts you in control.
  3. The most dangerous number in any business is one: having eggs only in one basket.
  4. Only 13% of for sale by owners will sell in some creative way, the other 87% just want all the money.
  5. The great thing about private money is you can use it for commercial investments too.

Favorite books:

Pro tip:

  • Do not run a to-do list. Successes are scheduled, so schedule what you want to get done.

Reach Out to Jay Conner:

Free Gifts:

Thank you Jay for taking the time to share your expertise on private money with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

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© John Carney 2017

 

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