The Three Keys to Successfully Raise Capital for Real Estate Deals with Jay Conner

***Guest Appearance

Credits to:

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

“PFREI Series Episode 141: Jay Conner”

https://www.youtube.com/watch?v=LZG3uHXDWtI&t=1s 

Raising private money is a powerful lever in real estate investing, but many investors—especially those just starting—find themselves facing significant roadblocks. In the latest Raising Private Money episode, Jay Conner and Fuquan Bilal discuss not only the critical importance of private money in deal-making but also the mindset shifts, practical steps, and relationship-building essential for success.

The Mindset Shift: Teaching, Not Begging

A central theme from Jay Conner is the need for a fundamental mindset change when approaching private lenders. The traditional approach to raising capital often feels like chasing, persuading, or even begging, which instills fear of rejection and desperation. Instead, Jay Conner encourages investors to become educators. By teaching rather than selling, you build trust and reduce anxiety—both for yourself and potential lenders.

This teaching approach involves explaining what private money is, how it operates, and the security that comes with investing in property-backed loans. It’s crucial to outline the program, the interest rates, terms, and how investors are protected. When investors understand the process, they become confident participants rather than skeptical bystanders.

Building Relationships and Networks

Relationships are at the heart of raising private money. Jay Conner's career was transformed when his access to traditional bank financing suddenly dried up. Forced to find alternatives, he leveraged his personal and professional networks—reaching out to contacts from the church, the Rotary Club, and business groups—to introduce them to the private lending model. His approach resulted in raising over $2 million in just three months and ultimately increased his business's profitability.

What stands out is how Jay Conner is not dependent on lenders who already understand private lending. He positions himself as a trusted advisor, cultivating long-term trust and transparency. As a result, his private lenders often refer new prospects, and his capital pool continues to grow—even when market conditions shift.

Overcoming Common Challenges

New investors often struggle with three main challenges: the wrong mindset, fear of rejection, and lack of confidence. Jay Conner emphasizes the importance of owning the "real estate between your ears" before expecting to own real estate out in the market. Investors must approach conversations with confidence, conviction, and a servant’s heart.

Confidence comes from mastering the private lending program; knowing how it works inside and out ensures conversations are natural and engaging. For those who worry about having no deals or experience, Jay Conner points out that lenders are secured by the property. With proper guidance, a new investor can safely structure their deals, and the lender's risk is mitigated.

A useful tip for conversational starters is the "Did you know?" question. Sparking curiosity can lead to discussions about the benefits of self-directed IRAs and how private investors can earn significant returns, sometimes even tax-free.

Navigating Market Headwinds

The episode touches on how market fluctuations—such as rising interest rates, changing investor sentiment, and increased volatility—have impacted private lending. For Jay Conner, the foundational relationship and education-based model has shielded him from market slowdowns. His lenders, having confidence in the security and returns of real estate-backed deals, remain engaged even during