Table of Contents - Get the Money Chasing You with Jay Conner
Dave Debeau [00:00:09] Hey, everyone, this is David Debeau with another episode of the Property Profits Real Estate podcast and today, all the way from beautiful North Carolina. Our guest is Jay Conner. How are you doing today?
Jay Conner [00:00:21] Hello, Dave. I'm doing fantastic in my Linzess. Just excited to be here on your show all the way from North Carolina up to Canada and across the world.
Dave Debeau [00:00:32] That's how it works with these podcasts, my friend. It's it's awesome. It's awesome, the technology. So Jay is a very experienced real estate entrepreneur. And couple of really interesting things about Jake. First thing is, he's doing his deals in a very, very small area as population wise. I mean, we're talking a little bit off camera, and the town you live in is, I believe, four thousand people. And the area you're doing mostly deals in, there's a grand total of about forty thousand people, is that correct?
Jay Conner [00:01:02] That's right. Yeah. We're in a small area. So I say our total target market is forty thousand. Our focus is single family houses, even though we've done commercial deals as well. But we've been investing since two thousand three and single family houses. We flip most of them and our average profit is sixty seven thousand dollars this year when we do two to three deals a month. But that math sort of seems to work out.
Dave Debeau [00:01:30] That works out really well. And and the other thing that I'm really excited to speak to you about here is our shared mutual interests, and that is all about raising capital know not hard money, capital, not from the bank, so to speak, but raising capital for mom and pop real estate investors. You really dialed that in for yourself and you've been teaching people about that. So I think that's what we're probably going to focus our conversation mostly on today. So why don't you tell us what got you into the real estate investing in the first place back in 2003? Three. What were you doing before? What caused the transition?
Jay Conner [00:02:06] Yeah, so I was raised, Dave, in the what we call down here in the south, the mobile home business used to be called the trailer business. And then we got all fancy in the 80s and called it the manufactured housing business. So, you know, it's pre-built homes, it's affordable housing. And so I was raised in that. Actually, my father, Wallace Conner, was the largest retailer. His company, Koner Corporation, was the largest retailer of manufacture homes in the nation up until about the eighties. And so about twenty two. Twenty three when I started here in this single family investing business, the by and large, ninety five percent of the consumer finance and funding for the product for the consumer was taken away. Our industry manufactured housing fell out of grace from Wall Street and they didn't like it anymore. And so, you know, people aren't walking around with twenty or thirty thousand dollars in their pocket for a single white or a double wide. And so I knew if I ever got out of the manufacturing housing business, I wanted to get into single family houses because back in nineteen ninety three, good, very good friends of mine and my wife's Carol Joy, we their names are Craig and Cam. They were wanting to get their first home and didn't have money for a down payment. Anyway, Craig's father in law came up to North Carolina from Florida. They did the sweat equity and flip that thing and pocketed thirty thousand dollars in less than 90 days. I know. And I was sweating to make three thousand dollars on a single wide mobile home. I knew if I ever got out of the mobile home business, I wanted to get into single family. So we bought our first house. That's a story in and of itself. We invested in our first single family house prior to me knowing anything about private money all the way back to October two thousand three.
Dave Debeau [00:04:01] Very nice. All right, well, let's talk a little bit about the whole transition into private money. How and why did that come about for you?
Jay Conner [00:04:09] I'll tell you, Dave, I backed into it. And this whole world of private money and private lending was one of the biggest blessings in disguise that I have ever experienced in my business career. And, you know, as I look back over the years, Dave, you can probably relate to this. My biggest my times where I grew the most and the quickest was down in the valley when times were tough. And so here's how I got into private money from 2003 until 2009, investing in these single family houses and flipping them. I was reliant on the local banks and I had fantastic relationships in place. And in fact, that very first house I did, I just walked into the bank and I said, I want an unsecured line of credit for two hundred and fifty thousand dollars. And they said, OK, well, back then, if you could fog a mirror with your breath, you could get unsecured lines of credit. Well, anyway, so Dave, I had done a bunch of deals from 2003 to 2009. And in January 2009, I called up my banker whose name was Steve. Operative word being was. I called him up and I had this conversation. I don't know how many times I told Steve I had two deals under contract. Both of these properties or houses represented over one hundred thousand dollars in profit. And I told them when I wanted to close where they were located and the funding that was required for these two deals. Well, Steve went quiet on me on the other end of the phone, which is never a good sign when your banker or your significant other goes quiet. And he cleared his throat and he says, I'm sorry, Jay, but the bank has collapsed your line of credit. Wow. I never heard of a line of credit bank collapsed, but I knew it didn't sound good. I said, What do you mean? Well, I found out on that phone call right there and then that I was cut off. And so I called up my buddy Jeff in Greensboro, North Carolina. Right after hanging up the phone. I said, Jeff, the bank just cut me off. He said, welcome to the club. They just cut me off last week, too. I said, What are you going to do? He says, Jay, I've learned about private money. I said, well, it's private money. I don't know what private money or private lending was. All I knew was traditional bank loans up until this conversation, January 2009. So I learned about private money and private lending and what that's all about. And I'm not talking hard money. And in less than 90 days, Dave, I was blessed to be able to raise two million, one hundred and fifty thousand dollars in new funding for my deals. And you know what? It was a blessing in disguise. I only had a million dollar line of credit at the local bank, and when they cut me off, more than doubled my line and less than 90 days. And thanks to that challenging experience, I have not missed out on a deal since January 2009 for not having the money.
Dave Debeau [00:07:19] Beautiful. It's a great story. Now, before we started recording, we were chatting a little bit about this. We're talking about your philosophy when it comes to finding investors or what I call attracting investors and raising capital. And you're all about getting the money to chase you. So let's talk a little bit about that philosophy and what the how you came across that. It sounds like you clued into that fairly early, but was there ever a time where you were chasing after the money and what caused you to make that switch?
Jay Conner [00:07:49] You know, it goes back to the very first conversation I had with a potential private lender, an individual. And we had known each other for years. We went to church together. So we had a relationship. And I knew he was loaded with money. I mean, he was plugged into the community. He's deceased now, but his wife is still a very, very active private lender with me. And so I put my program together. That's sort of step number one, knowing what you're going to offer your potential private lenders to do business with you. I call it the program. What's the program on interest rate are you going to offer how can they get their money back in case of an emergency? What's the term, you know, the framework of the program that you're going to offer? And so this conversation went through my mind as to how I was going to approach him. And, you know, honestly, I was intimidated. I mean, I've been around business for decades. But, you know, I've learned that successful people learn how to become comfortable with doing the uncomfortable. And so this was a very uncomfortable thing for me. I never talked to anybody about my private lending program. I just been cut off from the banks and I said to myself, I said, you know what, Jay? I'm not going to walk up to this gentleman and tell him what my program is and ask him if he might be interested in let's have a little bit more of a conversation. I'm not doing that. All I did is I set an appointment with him and I said, I want to tell you about this program I've got. And, you know, everybody in this community, you're plugged in. People respect you. And when you run across someone that's not happy with their rates of return. Now, this was back in 2009. You can only get like three percent and a certificate of deposit down here in the US today, it's zero point seven four percent and a certificate of deposit. Anyway, to myself, I said, I want to use the indirect approach. I'm just going to say to this gentleman, I've got a program that's playing right to return astronomically high, much higher than you can get through any traditional resources. And when you run across one of your connections that's not happy with their rates of return in the stock market or certificate deposit, would you just refer them to me? Because I'd love to tell them about the program. Well, guess what, he looked at me and he says, one, our brother, Jay, what you got in mind? And I said, Well, it depends on the deal, you know, and, you know, it sort of depends on, you know, what kind of profit I'm making, et cetera. And I said, are you saying you might be interested? He said, well, me and my wife would only get like two and a half, three percent certificates of deposit. I said, Really? I said, well, I've just put my program together. What sounds high to you? He says, well, I don't know, maybe five or six percent. And to shorten up that conversation that lasted about 30 minutes, I looked at him and I said, well, I can't pay you five or six percent, but I can pay eight percent. And he said, put me down for two hundred and fifty thousand dollars. So so my very first private lender conversation was just asking them to pass the word on it to help me get the word out. And then so they're raising their hands saying, well, tell me more about that. So that's how it started.
Dave Debeau [00:11:21] Beautiful. Now, we were also talking before we pressed record here that, you know, that's your philosophy. Get the money chase and you go after it indirectly. Also, you try, but you're it sounds like you're a master when it comes to networking and also getting in front of of groups of people and kind of just explaining what things are all about. Let's start with the networking question, because it sounds like you got an interesting answer to the old, hey, what do you do? A question. So let's pretend we just Betsen and we're doing the normal thing. And I say, gee, what do you do?
Jay Conner [00:11:54] Hey, Dave, it's great to meet you. Well, I teach private lenders how to make a lot of money. So when I give that answer and you and I have never met before, I mean, it's it's short. What do you do?
Dave Debeau [00:12:08] You know, what's a private lender?
Jay Conner [00:12:11] Yeah. So here's the deal. I look at somebody and what do you do? I teach private lenders how to make a lot of money, and then I do something that's very hard for me to do. I shut up. Shut up. I mean, because here's the deal. First of all, they have no idea what you just said. They don't have a clue
Dave Debeau [00:12:32] what you heard. A lot of
Jay Conner [00:12:34] money. They heard exactly. They heard a lot of money. Second thing they heard, at least subconsciously, was I teach, I teach. And the third thing they heard, they don't even know what they heard. The third thing that I heard was I teach private lenders and so I just shut up. And I mean, it's look like, listen, Dave's audience, you got to play with this. You got to play with it because it will amaze you the responses you get. Here's the responses you'll get. One response says you won't get any response. They just keep talking because half the people could care less what you do and all they want to talk about is what they do. So when you answer the question, I teach private lenders how to make a lot of money and then they start regurgitating that all over. You are what they do. You know that you have somebody not interested in you to start with. Number two response you get is this, what do you say?
Dave Debeau [00:13:35] And it starts a conversation.
Jay Conner [00:13:37] And that's the whole point. Exactly. The point is to start the conversation. I mean, isn't I mean, you know, you and I were talking off camera before we started dating. I mean, you know, people ask you, what do you do? Because they just can't think of anything else to ask. But they ask you, what do you do? And I mean, I'm interested in what other people do. But, you know, I mean, most of the time we answer that question in the most boring way that could be answered. Yeah. What do you do? I'm a real estate investor. The other person is thinking to themselves, who cares? Or what's in it for me. Right. Or, you know, I'm an attorney. I'm you know, I'm a copywriter. I'm a plumber. I'm an electrician. I'm a whatever. I'm a doctor, you know? And it's like I answer the question in a way that could be beneficial to the person asking the question and. Beneficial to you?
Dave Debeau [00:14:28] Yeah, I love it, I love it. Now, the other question I've got for you, because you sound you've got like you've got it dialed in for also we talking about you educate people, just like you said there. I teach people and you educate people and that's how you attract potential investors to you. So a question I've got for you is, what's one of your ways of getting in front of groups like the Rotaries or the BND or wherever it is that you get out and do your your song and dance about real estate investing?
Jay Conner [00:14:57] How do you get those
Dave Debeau [00:14:58] gigs and what do you kind of talk about when it's to the general public that doesn't have any clue about real
Jay Conner [00:15:03] estate? Yeah. So how do you get in front of all those groups is by becoming a servant first. Become a servant first. So become I mean, this is not a and Dave, I'm not telling you a thing in the world you don't know. But for the sake of the audience, perhaps, you know, this is not an overnight get rich quick scheme. All right. This is a long term play. This is a get involved and serve. And here's what I mean by that. Get involved in your local community, get involved in the Rotary Clubs or civic organizations. Get involved in, you know, the Chamber of Commerce. I mean, the Business Networking International has. Oh, my word, Ivan. Maged. Ah, that started that organization. That networking group has just attracted millions of dollars to me. And so, yes, you can call it the organizers of these groups are always looking for speakers, you know, you call it the education director of the local business groups, but you're not going to come in there and speak to them. I mean, you've got to become a member and active. But like the civic groups, they're always looking for presentations. I'll tell you, another big group, a big group that's looking for presentations are your realtors and your realtors know a lot of people and realty groups or realty companies. A lot of them, most of them have monthly meetings. But what's really curious, when you come in and do a presentation of self directed IRAs and how you can earn unlimited money per year, either tax deferred or tax free, I mean, that's a very, very hot topic. So if you're calling them up and you're offering a twenty minute talk, the title of the talk would be so important, such as how to use your retirement funds or how to use your retirement funds to invest in real estate tax free and penalty free with no limits on your income per year. Some kind of catchy title. But back to what I said a second ago. I get involved in these local groups, offer to serve, offer to volunteer. And when you get plugged in with the organizers that run these groups, you just start asking, what are the groups would be interested in hearing about how they can, you know, earn a lot of money in their retirement accounts, tax free. And then you give your educational talk on how you use self directed IRAs for raising private capital and et cetera. You know, as we said when we were talking off Camera Day today, I have yet to ask anybody for money to fund my deals. I don't ask. I'm an educator. I put the program out there. I've got a 16 minute audio that I've had recorded back in two thousand nine. I've now personalized it for over two thousand of my students across Canada and the US. And the six minute audio gives an overview of what private lending is all about. But it doesn't try to sell your potential private lenders on what private money is. It simply raises awareness and it leads to the one on one. The purpose of that 60 minute audio to potential private lenders is to get their great glands swelling up in their neck. So where they can't wait to hear what your program is, the audio raises questions such as What happens if I die? How are you protected? How can you get your money back in case of an emergency and etc.. So again, it's all about education. We convert that audio to an MP three, we email it out to our lawyers we posted on Facebook. And all that leads to the one on one. So it's all about being an educator and putting the information out there. And that's how you get the money to chase you.
Dave Debeau [00:18:47] Beautiful, beautiful stuff. And I mean, I love the short format of this podcast, but there are times where I just like to keep going. So hopefully sometime in the future, not too distant, we can revisit this topic because you are just a wealth of knowledge, my friend. Thank you very, very much. And if people want to find out more about you, Jay, and get in contact with you,
Jay Conner [00:19:08] what should they do? Yeah, so I've got a free online class. It's own demand that goes over the five steps of how to get this money chasing you. You simply go to w w W Jakon or J.Y. C o in an E r. I'm one of those, not a J.Y. CEO in an E.R. dot com forward slash money podcast. Beautiful. Jay, thank
Dave Debeau [00:19:36] you very much for your time on the call. Today has been a lot of fun and keep on doing what you're doing because it's great stuff.
Jay Conner [00:19:42] Thank you so much, Dave.
Dave Debeau [00:19:44] All right, everybody, take care and we'll talk to you on the next episode. Bye bye. Well, thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review. He very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.