When it comes to real estate investing, one question consistently stands out: how do some investors manage to raise millions in private money while others struggle to secure even a single dollar? The answer goes far beyond spreadsheets and pitch decks. It’s rooted in trust, alignment, and the mindset that attracts capital.

On the latest episode of Raising Private Money, Jay Conner hosts Dave Lundgren, an accomplished real estate investor and educator with over $20 million raised in private capital. Together, they dive deep into syndications, bond equity alternatives, and how real financial independence is achieved—without relying on hype or shortcuts.

Understanding Private Money, Syndication, and Bond Equity Alternatives

The world of real estate funding is vast. Traditional private money involves relational, one-on-one transactions—often with local connections, where trust and personal alignment play key roles. Syndications, on the other hand, include pooling capital from multiple investors into a more formal legal structure, often for larger commercial and multifamily projects. This setup typically uses general partners to steer the deal, while limited partners contribute funds in exchange for a share of the returns.

Enter the bond equity alternative, a lesser-known but potentially game-changing approach. For large-scale projects, generally $50 million and above, a Wall Street-level bond company might underwrite and finance 100% of the project’s cost. This can mean fewer compliance headaches and a simplified capital stack, as all the money comes from one entity rather than dozens of private investors. While this opportunity isn’t fit for every deal—due diligence can be significant, with requirements like shovel-ready projects and a five-year maximum term—for the right situation, it flips the conventional syndication model and allows sponsors to retain more equity.

Matching Investments to Individual Needs

Dave Lundgren emphasizes that there is no one-size-fits-all solution when it comes to real estate investments. The right solution depends on each investor’s unique circumstances—where they are in their career, their risk tolerance, and their financial objectives. A personal, diagnostic approach ensures that the investment matches the investor’s goals, whether they’re seeking aggressive growth or steady, secure returns.

Servant leadership is vital. Instead of pushing everyone into a single deal type, asking about their interests and objectives builds trust. Investors feel valued when their specific needs are considered, which not only helps to attract capital but also creates long-term partnerships.

Boosting Builder Profits and Avoiding Common Mistakes

Innovation is another major theme in Dave Lundgren's approach. One way builders can dramatically increase profits is through steel framing, which has proven to be cheaper, stronger, and more efficient than traditional materials. This method can reduce build times, lower insurance costs, and minimize waste—doubling margins in some cases. For affordable housing, these advantages are particularly critical.

However, mistakes can occur when builders are not careful with their underwriting. Assuming the market will always rise or relying on historically low interest rates without a backup plan leads to risk. Having multiple exit strategies and being conservative with projections positions builders to withstand market shifts.

Building Authority and Passion for Financial Independence

What drives Dave Lundgren is not just the pursuit of wealth, but a commitment to helping others achieve spiritual and financial sovereignty. His experience as an Army chaplain and work through men’s retreats underlines the importance of personal growth alongside financial empowerment. For him, real estate stands out as an asset class that offers control, multiple returns, and flexibility—benefits that supp

***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

For aspiring real estate investors, finding the right deal and the right funding is often the biggest barrier. Many are stuck chasing retail sellers, negotiating steep down payments with banks, or trying to compete with overcrowded “no money down” strategies that rarely deliver. However, Matthew Porcaro offers an alternative path that’s quietly transforming the way new investors break into the market and generate both equity and cash flow from their very first deal.

Matthew's journey started with frustration, spending four years attempting traditional investment methods, only to hit roadblocks at every turn. He eventually discovered a government-backed renovation loan – the FHA 203k – which became the game changer for him and many he has since coached.

The FHA 203k loan is a powerful tool designed to help homebuyers not only purchase a property with a low down payment, but also fund the renovation necessary to increase its value. Unlike conventional mortgages, this program allows buyers to put down only 3.5%, making it attainable for those without deep pockets. Beyond the purchase price, the loan also covers renovation costs, closing costs, and even the first year of mortgage payments, alleviating the financial strain while the property is being transformed.

Matthew's first experience with the 203k loan involved purchasing a distressed two-family property. With just $9,500 out of pocket, he was able to renovate both units using the bank’s money. The key strategy here was house hacking – living in one unit while renting out the other. The rental income from his tenant nearly offset his entire mortgage payment, resulting in positive cash flow each month. After the renovations and eight months of work, the property’s value soared, securing over $130,000 in equity for Matthew. This equity became the springboard for future investments, proof that a smart approach to renovation funding can accelerate a real estate portfolio quickly.

What makes the 203k loan even more attractive is its flexibility. Investors can buy up to four-unit properties using this method, applying the same low down payment. In states facing housing shortages, recent adaptations now allow buyers to convert single-family homes to include accessory units (like mother-in-law suites) and count that future rental income towards their loan approval. This creative approach expands opportunities, even for those in expensive markets like New York.

For many, the confidence to pursue a deal comes from mindset. Matthew’s upbringing was blue-collar, with little exposure to investing or creative financing. Breaking through early limiting beliefs about money was an ongoing process, but it allowed him to realize that opportunity isn’t just reserved for the wealthy or experienced. He built credibility for future deals through his success on the first one and was then able to raise over $500,000 in private money, mainly by simply sharing his story and offering others the chance to participate.

A crucial aspect for those considering the 203k way is the importance of working with specialists. Not all lenders have experience with renovation loans, so partnering with experts who understand the nuances is essential. The process involves a consultant who helps outline the scope of work and connects buyers with contractors and appraisers to ensure the highest after-repair value is achieved – sometimes allowing you to borrow up to 110% of the finished value.

Matthew emphasizes careful stewardship of borrowed funds and treating every transaction as a win-win. By focusing on the right structure, leveraging government programs, and maintaining a supportive mindset, even first-time investors can create massive equity and recurring cash flow, setting themselves up for long-term success.

The 203k way is not just about acquiring a property. It’s about launching a strategy that transforms your financial trajectory. For those tired of hitting wal