When most people think about real estate investing, the first images that come to mind are often an endless stack of contracts, house tours, negotiations, and the hunt for the best properties. But beneath the surface of this transactional world lies a powerful truth: real estate is still very much a people business. This principle is at the heart of the podcast episode.

The episode features Jarrod Frankum, an investor, realtor, and founder of a family-run real estate business, as he sits down with Jay Conner to break down the real journey behind private money, deal-making, and why relationships are the ultimate currency for success.

The Unexpected Path to Private Money

One of the most compelling aspects of Jarrod Frankum’s story is how his path into private money wasn’t something he planned. He didn’t approach investing with a wealthy background, a trove of connections, or a pile of capital. Instead, his journey began with sharing excitement about his business with people he already knew—without any intention of pitching for funds. What happened next signaled a core reality for real estate entrepreneurs: often, genuine enthusiasm and consistent action attract others who want to participate.

By being open about his goals, Jarrod Frankum found himself approached by someone willing to partner and supply the capital he needed for his very first deal. Later opportunities arose through a mixture of referrals and organic connections at investor meetups. The lesson is clear—building trust and communicating authentically about what you are doing can be a magnet in itself. Importantly, many of his early deals were funded by those who believed in him, not just the numbers.

Referrals and Reputation: The Real Deal-Makers

Throughout the episode, Jarrod Frankum repeatedly emphasizes that referrals have played a pivotal role in sourcing private lenders. Instead of chasing every dollar, he focused on being active, visible, and reliable in local investor networks and professional circles. Delivering on promises, managing deals well, and communicating clearly with partners generated a network effect; each successful transaction made the next connection easier.

Jay Conner reinforces this pattern with his own experience, having also raised capital through personal contacts, specifically through shared communities like churches. Being known as someone who does what they say and values transparency becomes much more important over time than any marketing gimmick or pitch. Deals come and go, but reputation endures and pays dividends as word spreads organically among peers.

Transparency: The Ultimate Safeguard

Mistakes in the private lending world can be costly, and Jarrod Frankum notes that the biggest he’s observed among peers is masking risks or being less than forthright with partners. Huge issues arise when people use new funds to patch over old mistakes or don’t present a realistic picture of the numbers. Instead, Jarrod Frankum’s approach is to front-load honesty: he shares comps, renovation budgets, and even points out risks with each deal. Trust is built on full disclosure, and if potential partners walk away, that’s better than jeopardizing anyone’s capital. In his view, always being upfront ensures that only the right kind of people, with the right expectations, get involved.

Preparation Beats Panic

A recurring theme is the importance of finding money before stumbling into desperate need. Too often, novice investors are told to get a deal under contract and assume the money will follow. The reality is that having funding lined up enables investors to act quickly and confidently. This confidence, in turn, makes it easier to secure more deals, grow the business, and help more people.

Getting Started: Mindset and Intentional Action

For those just starting out, Jarrod Frankum stresses the importance of understanding both what you'

***Guest Appearance

Credits to:

https://www.youtube.com/watch?v=Xdxd-H6gMPI

“How to Raise Private Money for Real Estate Without Banks - EP 22”

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

The world of real estate is often synonymous with big banks, endless paperwork, and the looming fear of being denied essential funding at the last minute. But what if the traditional approach to financing a property acquisition wasn’t the only— or best—way? On a recent episode of the Raising Private Money podcast, Jay Conner broke down his journey from relying on banks to pioneering the use of private money for real estate deals, opening new doors for investors everywhere.

The Frustration with Traditional Funding

Jay’s real estate story began by following the tried-and-true path of working with local banks and mortgage companies. For six years, this was his only option. But things quickly changed during the financial crisis in 2009, when his line of credit suddenly evaporated without warning. This unexpected hurdle forced Jay to rethink his entire funding strategy. Instead of panicking, he chose to seek out solutions and new connections, leading him to the concept of private money lending.

The Shift to Private Money

The turning point came from a conversation with a seasoned friend who introduced him to the world of private lending and self-directed IRAs. The idea was simple: individuals, not institutions, could become lenders by using their investment capital or retirement funds. The process could be tax-advantaged and offer investors a higher return on their money than what they’d get sitting in a traditional bank account.

By attending a real estate investing conference to learn more, Jay immediately adopted the role of a teacher. Rather than just searching for lenders, he educated his own professional and social circles about how private lending works. This strategy was so effective that he raised over $2 million in private funds within his first 90 days.

How Private Money Works in Jay’s Model

Jay’s strategy focuses on single-family homes, although he notes private money can be used for larger projects as well. The key difference with his method is the “one-off” model—rather than pooling funds into a single pot, each property is funded by specific private lenders, secured by asset-backed debt.

Private lenders in Jay’s model are protected in the same ways banks are. They receive promissory notes, mortgages, or deeds of trust, are listed as mortgagees on insurance policies, and are named in title policies as additional insured parties. If the borrower defaults, the lender’s recourse is foreclosure on a property whose loan never exceeds 75% of its after-repaired value, giving the lender significant security and potential upside.

The simplicity is part of the appeal: real estate investors pay private lenders like they would a bank—through mortgage payments or, in the case of property flips, accrued interest paid out at closing. Lenders don’t speculate on property appreciation; instead, they receive steady interest—often more than what’s available via other low-risk investments.

Sourcing Private Lenders

Finding private lenders involves targeting three key groups: your own network of connections, an expanded market as your business grows, and existing private lenders in the space. Jay emphasizes that his early successes all came from his immediate network—demonstrating the power of simply sharing the opportunity without attaching it to a specific deal.

Importantly, Jay isn’t pitching properties. He teaches potential lenders about his underwriting criteria and the maxim

***Guest Appearance

Credits to:

https://www.youtube.com/watch?v=-oigky-lKyo&t=3s

“How Jay Conner Raised $2,150,000 Without Banks (Private Money Secrets) | Ep 54”

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

Navigating the world of real estate investment often feels like a delicate balancing act between finding the right deals and securing funding. For many investors, the challenge isn’t just identifying promising properties—it’s having reliable sources of capital to act quickly when opportunities arise. In a recent episode of the Bigger Life podcast, industry veteran Jay Conner shared the game-changing strategies he uses to consistently fund his projects and keep his business growing, even in challenging markets.

At the heart of Jay’s approach is private money lending, a strategy he credits as having the single greatest impact on his success. The power of private money is in its flexibility and accessibility. Unlike traditional bank loans or hard money lenders—which are often restrictive and laden with fees—private money allows investors to deal directly with individuals who have idle capital. These individuals, often referred to as private lenders, benefit from higher returns on their funds, while investors like Jay gain access to capital that isn’t limited by credit scores or the bureaucratic limitations of financial institutions.

Private money is distinct from the more common syndication or hard money models. While syndications pool many investors into a fund and require compliance with SEC regulations, Jay’s approach is more personal and approachable. It's built around one-on-one relationships where each loan is secured by a specific asset, such as a single-family home or small multi-unit property. This asset-backed debt provides security for lenders while simplifying the process for borrowers.

One major advantage of private money is the speed and freedom it provides. Jay’s business model is flexible enough to close deals in as little as seven days, an edge that has helped him win opportunities others might miss. Since shifting his acquisition strategy, Jay now sources nearly all his deals off-market, drawing motivated sellers through targeted Google and Facebook ads, as well as carefully crafted direct mail campaigns. Having capital ready to deploy means he can give sellers the fast closings they often desire, making his offers more attractive.

Jay emphasizes the importance of getting the money lined up before hunting for deals. He educates potential lenders—often people who have never heard of private lending—by hosting luncheons and workshops. By adopting a teacher’s mindset and focusing on adding value, Jay builds trust and creates genuine win-win scenarios. Many of his lenders are sourced from his personal and professional networks, but he also expands his pool through local networking groups and self-directed IRA events, where individuals are already seeking ways to deploy their retirement funds for better returns.

Automation and leveraging a skilled team are key components in scaling his business without being overwhelmed. Jay’s organization is lean but operates efficiently thanks to a combination of talented staff and technology. A dedicated acquisitionist qualifies leads, supported by a CRM that integrates every touchpoint, while an AI assistant screens and schedules calls with sellers. A project manager and bookkeeper round out the core team, leaving Jay free to focus on high-level decisions and the aspects of the business he loves.

The impact of this system speaks volumes: Jay operates with a small core team, relies on streamlined automation, and typically spends le