When it comes to building lasting wealth, many entrepreneurs believe the solution lies purely in mathematical prowess or uncovering the perfect investment strategy. However, according to Mark Murphy, CEO of Northeast Sequoia Private Client Group and a renowned financial advisor, the most significant hurdles to wealth creation are less about income and more about emotional decision-making and the mindset behind each financial move.

On the "Raising Private Money" podcast with Jay Conner, Mark offers a comprehensive look into why most entrepreneurs struggle to create multi-generational wealth. Surprisingly, it isn’t an income problem—it’s a problem rooted in how decisions are made and how money is managed. Entrepreneurs and investors often earn substantial incomes, but many fail to keep, protect, and grow that wealth into a lasting legacy.

A critical concept Mark emphasizes is “emotional fitness.” This refers to the ability to make rational, well-considered financial decisions rather than impulsive or emotionally driven ones. Emotional fitness extends beyond personal spending habits to deeply influence investing and wealth-building choices. Mark believes that while most financial advisors focus solely on numbers, ignoring the emotional side of money leads to mistakes that sabotage long-term growth.

Emotions can cloud judgment, causing people to justify risky investments or impulsive purchases as sound decisions. Cultivating emotional fitness requires conscious effort—evaluating investments based on logic and reliable criteria rather than chasing the thrill or fearing loss. For those raising capital or seeking investors, this mindset is crucial because it signals trustworthiness and professionalism. Responsible capital raisers not only protect investor funds but also align their own investment alongside their clients, building trust and mutual commitment.

Mark distinguishes between two main investment categories: 'paychecks' and 'playchecks.' Paychecks are assets designed to generate reliable income flows, such as rental properties or dividend-paying investments. These vehicles form the backbone of multi-generational wealth and financial independence. Playchecks, on the other hand, are assets or funds meant for riskier ventures, spending, or charitable giving—essentially capital free from the obligation of supporting family or lifestyle needs. By balancing both types, individuals can enjoy financial freedom while pursuing growth opportunities.

At the core of Mark Murphy’s advice is the principle that people should carefully evaluate both investment partners and opportunities. Investors are not just putting money into projects; they are investing in people. Those raising money should demonstrate skin in the game, showcase a strong track record, and communicate how they protect and prioritize investor capital. When a sponsor personally invests significant funds into a deal alongside outside investors, it cultivates confidence and credibility.

Mark Murphy also stresses the importance of understanding investment risks. For experienced and high-net-worth investors, it’s important to consider questions like: "Can I afford to lose this investment without negatively impacting my lifestyle?" and "If a deal takes longer than expected, am I comfortable with the increased timeline?" The most successful investors approach every opportunity with these hard questions to safeguard their overall wealth and keep their long-term goals intact.

Building relationships that last through multiple deals is not simply a matter of offering high returns. It’s about delivering consistently, maintaining open lines of communication, and sometimes even having the discipline to return capital instead of funneling it into subpar investments. Savvy capital raisers avoid the trap of chasing deals for the sake of deploying funds; instead, they patiently wait for superior opportunities and act with integrity.

For thos

The world of real estate investing continues to evolve, especially when it comes to capital raising and private money. Industry veterans like Merriah Harkins are at the forefront of these changes, demonstrating that successful wealth generation is not just about finding the right deals but strategically building trust and strong capital relationships.

In a recent conversation hosted by Jay Conner on "Raising Private Money," Merriah Harkins, a senior sales executive at Lukrom, shared her experience and perspective acquired over two decades in the field.

Navigating an Evolving Investment Landscape

When Merriah Harkins began her career, the investment environment was less cluttered. Investors had fewer choices, which made decision-making more straightforward. Fast forward to today, and the private money landscape has transformed dramatically. Investors now encounter a plethora of options, which can make due diligence daunting and diversification essential.

For those seeking passive opportunities in real estate, the proliferation of funds and firms means greater risk and reward. Merriah Harkins emphasizes the importance of finding trustworthy companies and spreading investments across different products and asset classes to mitigate potential losses and maximize gains.

Lukrom’s Approach in the Marketplace

Lukrom, based in Phoenix, specializes in private credit funds and lends to real estate investors and businesses aiming to acquire, improve, or develop properties. The company’s niche is short-term loans, ranging from six to twelve months, primarily for residential improvement or quick acquisitions with a goal of resale or refinancing. For real estate investors, this means fast access to capital without the delays common with traditional banks.

On the fund side, Merriah Harkins leads the effort in raising capital for Lukrom. The firm accepts accredited investors from across the nation—those meeting specified income or net-worth thresholds. These investors receive monthly cash flow payouts between 8 and 9 percent, a structure designed to provide both consistent returns and strong protections, such as first lien positions on underlying properties.

The Shift from Marketing to Relationship Building

Lukrom initially sourced capital through friends, family, and social media outreach, but found this approach unsustainable for long-term growth. Upon joining, Merriah Harkins redirected efforts toward building relationships with broker-dealers, registered investment advisors, and family offices. The strategy focuses not on pitching or hyping the investment, but on education, extensive due diligence, and integrity.

For high-net-worth and institutional investors looking to diversify their portfolios, Merriah Harkins stresses the importance of understanding a fund’s track record, the sponsor’s experience, and the structural protections in place. Lukrom, for instance, is structured conservatively, targeting high-growth markets and maintaining strict loan-to-value ratios. The executive and advisory team also invests in the fund, placing their capital at risk ahead of clients—a powerful gesture of confidence and alignment.

Mitigating Risks in Private Investments

Every investment carries risk. Merriah Harkins encourages investors to carefully consider liquidity constraints, the sponsor’s history, and the ability of the fund to fully deploy capital. Lukrom’s practice of thoroughly vetting borrowers and maintaining diversity in loans helps protect against concentration risk and defaults. Short-term, first-position loans in high-growth markets tend to be more resilient, reducing investors’ exposure to downturns.

A Blueprint for Investors and Advisors

For those considering real estate funds or seeking private money for projects, Merriah Harkins advises prioritizing education and clarity. If sponsors aren’t willing to spend ti

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

“#62 Mastering the Art of Raising Private Money with Jay Conner”

https://www.youtube.com/watch?v=wT7aLflhpVg&t=2s

The journey of a real estate investor is filled with challenges and opportunities, but one challenge consistently stands out: securing funding. In a recent episode of Scalable Real Estate Investing, expert investor Jay Conner shared his story and insights on how private money can transform the trajectory of a real estate business. Partnering with host Mason Klement, they peeled back the layers of what it really takes to raise and leverage private capital.

The Shift from Traditional Lending to Private Money

Funding real estate deals with bank loans is a common starting point, but it can be a risky bottleneck. Many investors, including Jay Conner, have learned the hard way that banks can pull lines of credit suddenly, putting deals and profits in jeopardy. This kind of wake-up call can turn a problem into a golden opportunity—if investors are willing to explore alternatives.

After experiencing this himself, Jay Conner pivoted to private money, assembling a network of individuals willing to lend directly on his deals. Unlike hard money lenders—who often broker funds and charge points—private money involves direct relationships with individuals. The process is not about pitching deals but educating potential lenders about the advantages and mechanics of private lending.

Building Relationships and Teaching the Private Lending Program

Success with private money isn’t about desperately searching for cash once a deal is in hand. Instead, Jay Conner recommends that investors make “the money comes first” their mantra. By having funds lined up and “pledged” before making offers, investors gain confidence and negotiating power. This approach fosters a mindset of opportunity rather than urgency.

The foundation of raising private money is relationship-based. Investors should start by reaching out to their warm market—friends, colleagues, and acquaintances. These are people who know, like, and trust them, making the transition from conversation to funding more natural. The strategy includes teaching these contacts the private lending program, covering the basics: the interest rate offered, the length of the loan, how the lender is protected, and other pertinent details.

Jay Conner advocates never directly asking for money. Instead, the focus should be on informing and educating. By outlining how the process works and the security involved, potential lenders often end up eager to participate, excited by the opportunity for higher, safer returns that traditional investments fail to offer.

Structuring the Deals for Safety and Simplicity

A major selling point for private lenders is security. Lenders receive a promissory note collateralized by the property—usually in the form of a deed of trust or mortgage. They’re also named on the insurance policy and title, protecting their interests comprehensively. Importantly, funds are always wired to a closing agent, never directly to the investor, ensuring transparency and safety.

In structuring these deals, Jay Conner uses a conservative approach, never borrowing more than 75% of the property’s after-repair value. This provides a significant equity cushion, protecting lenders if market volatility impacts resale prices. These practices, combined with the option of interest-only or deferred payments, result in win-win scenarios for both the investor and their lenders.

Finding More Private Lenders and Scaling Up

Beyond personal contacts, investors can expand their networks through organizations l

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

“Secrets Of Rich: Use Other People's Money | Jay Conner.”

https://www.youtube.com/watch?v=WnXWripgNVM&t=91s

For many real estate investors, accessing capital is the key to taking advantage of opportunities and scaling up their portfolios. But while traditional banks and mortgage companies have long dictated the rules of borrowing, a different path exists for those ready to take control: private money lending. This approach offers an investor-centric alternative that can create bigger profits and enable greater agility in today’s competitive real estate environment.

Private money, as explained by Jay Conner on a recent guest episode with Matt McKeever, is all about borrowing directly from individuals—often referred to as “mom and pop” or “relationship money.” Unlike institutional hard money lenders or banks, private lenders are everyday people, sometimes even within your existing network. The difference? Instead of jumping through endless hoops and paying high fees, private money lending lets you set the terms and structure deals for mutual benefit.

Jay Conner’s personal real estate journey showcases the potency of private capital. Starting in a small community, he and his wife transitioned to using private funds after getting cut off from banks in 2009. Within 90 days, he raised over $2 million from private sources—leading to a tripling of his business within the first year. Since making the shift, he’s not missed out on a single deal due to a lack of funding.

The advantages of private money go far beyond just providing cash. Unlike equity partnerships or traditional JVs, which may require sharing profits and decision-making, private lending is structured as debt. This means you keep full ownership and control while offering the lender a secure, collateralized investment. For those worried about credit checks or borrowing limits, private money is a game-changer—you can borrow as much as you can manage, from as many lenders as you connect with, across the country or even internationally.

One of the most compelling features: the ability to borrow more than just the purchase price. It’s common practice to roll rehab funds and even equity into the loan, which provides flexibility and improves cash flow for the investor. Many deals can be funded with no out-of-pocket money, allowing you to be paid at closing and cover renovations without dipping into personal reserves.

While hard money lenders have become a mainstay for some, their terms can be punishing—often charging double-digit interest and expensive points, with strict timeframes for payback. Private money typically comes with much friendlier rates and terms, minimal fees, and no extension penalties. Most importantly, the process is relationship-driven, allowing you to create win-win solutions and close deals quickly—sometimes within just a week.

The next logical question is: Why would someone want to lend privately? The answer lies in the security, return, and certainty that the investor’s offer provides. Typical alternatives for savers—like certificates of deposit—offer paltry yields, while the stock market’s volatility sends many seeking more predictable opportunities. Private lending offers borrowers high, reliable returns, secured by a physical asset with a conservative loan-to-value ratio. These features make the offering attractive to those with idle cash or retirement funds.

Building your private lender network may seem daunting, but your warm market—existing contacts, friends, club members, or professional acquaintances—is filled with potential candidates or referrals. Rather than pitching or beggin

If you’re seeking inspiration for your own real estate investing journey, look no further than the story of William Palmer. Featured on Raising Private Money with Jay Conner, William’s path demonstrates that you don’t need a privileged background or years of industry connections to achieve success in real estate investing. His story sheds light on the practical challenges new investors face, and more importantly, on the mindset shifts and relationship-building strategies that can propel you forward.

William started in the United States Marines and later transitioned into law enforcement. Like many, he found his world shifted dramatically during the pandemic, which brought his law enforcement career to a standstill. It was during this period that he first discovered real estate by listening to podcasts—a testament to the power of learning and adapting, even in uncertain times.

His entry into real estate was far from glamorous: he purchased his first out-of-state property sight unseen, using his own saved capital. However, very quickly, he recognized the limitations of relying solely on personal finances. He didn't want to wait years to scale his business one small deal at a time. Enter private money: a critical concept he picked up through a coaching program. This approach would end up transforming his trajectory.

For new investors, raising private money often feels daunting—especially when you don’t yet have a significant track record. William’s confidence grew out of necessity; he quickly ran out of his own funds after his first investment. But rather than let that become a roadblock, he leveraged his network. The key was simply asking people he already knew if they could introduce him to anyone open to lending on real estate. He emphasizes that protecting the privacy of potential investors is critical; instead of soliciting funds directly, he began with relationship-building.

One of William’s first significant breakthroughs came over a simple cup of coffee, when a referral from his network offered to lend him $250,000 after a straightforward conversation. Notably, William did not have a specific deal on the table during this discussion. He focused on building the relationship, sharing his process, and demonstrating the reliability and values that he—and his family—were known for locally. His approach was never about pitching a deal or pleading for funds. Instead, it was about teaching, sharing, and creating trust.

Jay Conner highlights a similar approach in his own lending experiences: never lead with the deal, always lead with education and transparency. This method not only builds credibility but ensures that potential investors feel comfortable and informed rather than pressured. By educating rather than selling, both William and Jay have been able to cultivate pools of private lenders who trust them, time and again.

Beyond single-family rentals, William expanded into mobile home parks, recognizing their unique stability, especially during economic downturns. These parks tend to be resistant to recessions, often increasing in occupancy and rent even when other real estate assets struggle. There are a variety of income streams—from just owning the land to providing additional amenities like laundromats and storage.

However, it’s important for new investors to properly understand how banks evaluate these parks—usually based on lot rent, not the combined rent of the lot and trailers—along with regional regulations and depreciation schedules. William’s own mobile home park journey saw him using private money to acquire an underperforming asset, then increasing rents and refinancing to maximize returns.

One recurring theme in William’s story is the importance of mindset. Many prospective investors are held back by fear or feelings of inadequacy. William encourages pushing past these initial doubts—through education, mentorship, and simply by leaping. Joining real estate

When it comes to achieving true financial freedom, there’s a vast difference between chasing hype and building a repeatable, trustworthy system. On a recent episode of “Raising Private Money,” Jay Conner sits down with Lane Kawaoka—an engineer turned real estate powerhouse—who has raised over $200 million in private capital and owns more than 10,000 units. Lane’s journey isn’t just impressive in numbers; it’s a how-to guide for investors ready to scale thoughtfully, avoid rookie pitfalls, and reach financial independence.

From Corporate Engineer to Real Estate Leader

Lane Kawaoka’s introduction to real estate investing wasn’t marked by overnight success. Instead, it grew from years of disciplined learning, starting with investing in single-family homes as early as 2009. Eventually, he transitioned from his high-paying engineering job to focus full-time on real estate, not because it was easy, but because he saw the power of repeatable systems. As Lane began raising private money, he relied on building strong relationships, first with friends and family, then expanding outward, always putting trust and alignment at the forefront.

Breaking the Million-Dollar Ceiling

Many new investors gather their first million through hustle—buying rentals, flipping properties, and leveraging local relationships for their first private loans. But what gets someone to one million often won’t get them to ten million and beyond. Lane’s “Wealth Elevator” framework breaks down the journey into distinct floors.

The first floor involves building a solid base through savings and owning rentals. The second floor ushers in accredited investor status, where access to more lucrative, risk-managed deals becomes possible. The third floor is where investors with $3–4 million net worth begin to focus on preservation, shifting from aggressive growth to capital protection and diversification into vehicles like T-bills, life insurance, and private money lending.

Those in this second-floor space—the million to multi-million range—still need to take calculated risks. Simplistic “set it and forget it” strategies no longer suffice. Instead, these investors must evaluate deals with a discerning eye, balancing risk and reward as they work towards their ultimate financial freedom.

Systematic Decision-Making and Honest Conversations

Unlike many in the industry who pitch investments by inflating numbers and projecting excessive optimism, Lane prefers a system-driven, data-first approach. When considering a deal, he and his team start by examining raw financials—rent rolls, profit and loss statements, and cap rates—without manipulation. They look for conservative assumptions, such as cautious reversion cap rates and realistic rent escalators, instead of painting a rosy picture.

Importantly, Lane prioritizes transparency. He discusses not just why an investment could succeed, but openly points out possible risk factors. This willingness to “test the deal before looking at the answers” builds authenticity and long-term trust with investors. He draws a clear line: if a prospective investor requires constant reassurance or isn’t comfortable with the possibility of loss, private placements in real estate may not be the right fit.

Alignment Over Aggressive Pitching

The essence of Lane’s capital raising philosophy is simple: alignment. He treats raising money as a process of mutual fit, not of one-way persuasion. Potential investors are encouraged to think carefully about whether their personal goals, timelines, and risk tolerance align with the realities of multifamily deals, private lending, or syndications. Lane’s team offers open communication and a clear-eyed view of both the protections and limitations of their investments. Rather than pushing for a sale, they aim for every investor to go in “eyes wide open,” knowing both the upside and the possible storms ahead.

In today's fast-paced real estate market, the key to scaling your investment business often comes down to leveraging the right tools and adopting a mindset for growth. On the episode “Taking Your Business To The Next Level Through Automation,” listeners are treated to a wealth of practical strategies, courtesy of Daniel Martinez, a seasoned real estate entrepreneur who’s participated in transactions exceeding $19 million.

Daniel Martinez’s journey is a masterclass in using curiosity and grit to forge ahead in a challenging industry. Far from inheriting a ready-made portfolio or a family network of connections, Daniel Martinez built his business from the ground up, focusing on creative finance, private money, and tackling the messy deals many investors avoid. His ability to solve title issues, handle liens, and deal with heirs and complex transactions has set him apart. But what really stands out is his commitment to systematizing and automating his business processes, enabling him not only to close deals efficiently but also to scale sustainably.

Central to Daniel’s approach is the use of technology, particularly automation. By implementing customized CRM platforms like Nytfire and integrating AI tools such as Originate AI, he has streamlined underwriting, lead management, and deal analysis. Automation in these areas liberates investors from being tied up in repetitive administrative tasks. Instead, automation pivots their energy toward building relationships, finding deals, and raising capital—the activities that truly move the needle.

One clear takeaway for entrepreneurs is the importance of talking about what you do. Daniel Martinez highlights that if you’re not vocal about your investing activities, opportunities will pass you by. Private lenders and partners can only discover and trust you if they’re aware of your work and your approach. Consistent networking and sharing your business journey publicly—whether through social media, podcasting, or direct conversation—creates an ecosystem where trust and accessibility flourish.

The episode also sheds light on the reality that there’s often more money available than deals. Many would-be investors have capital but lack the time or inclination to pursue opportunities directly. A strategic investor, therefore, focuses on building relationships with these capital sources in tandem with sourcing deals. For Daniel Martinez, raising private money was never about having a deal first; it was about having open-ended conversations that built trust over time. Automation supports this by making it easier to provide information, track communications, and stay organized as your pool of potential partners grows.

Mindset emerges as another crucial element. The transition from believing you can’t raise private money to understanding you are a trustworthy steward of capital isn’t overnight. It’s a blend of honesty about your experience level, a willingness to learn from others—especially lenders who might have significant expertise—and the drive to keep improving. Early-stage investors are encouraged to start with simple transactions and work their way up, gradually building a track record they can leverage.

When it comes to educating private lenders about complex or creative deals, clarity is non-negotiable. Daniel Martinez advises simplifying deal presentations so partners can easily digest the risks and rewards. Automation tools help by generating clear, consistent summaries and analyses for each deal, supporting better communication and confidence all around.

Perhaps most inspiring is Daniel Martinez’s use of podcasting and content creation not merely as marketing but as credibility builders. Being visible, consistently present, and Googleable helps attract partners who are already halfway sold by the time they reach out.

For real estate investors seeking to elevate their business, embracing automation isn’t just about saving time—it’s abou

In the ever-evolving world of home services and small businesses, generating a steady stream of high-quality leads is key to scaling, maximizing revenue, and ultimately creating a sellable business asset. This challenge, however, trips up countless business owners, leaving them at the mercy of inconsistent work schedules and unpredictable growth.

The insights shared by Phil Risher, founder of Phlash Consulting, on the "Raising Private Money" podcast reveal the exact systems that have helped companies consistently fill their pipelines, triple profits, and achieve premium buyout multiples.

Phil Risher’s journey from paying off $30,000 in student loans and saving $60,000 by age 25, to leading a local duct cleaning company through explosive growth, and finally building a seven-figure digital marketing agency, provides invaluable lessons for service-based businesses.

His expertise has been acknowledged by outlets like Forbes, CNBC, and Business Insider, making his findings particularly noteworthy for anyone looking to scale their company.

At the heart of Phil’s approach is understanding that success is rarely tied to having the best product or the most talented team. It hinges on establishing robust systems for visibility, conversion, and follow-up.

Phil emphasizes that the most important growth levers for any home service company are: bringing in new customers, converting leads into paying clients, and retargeting past clients to maximize lifetime value. These three pillars are foundational for creating a business that is not only profitable but attractive to potential buyers and investors.

To start, getting new customers in the door is all about visibility. Most home service businesses rely heavily on Google searches, but being present in multiple search areas and advertising platforms is crucial. Many companies make the mistake of blindly spending money on digital ads without understanding their true return on investment.

Phil points out that without tracking the effectiveness of ad spend, businesses can throw away thousands each month, praying for leads rather than strategically cultivating them.

The second growth lever is conversion. Generating leads is just the beginning; converting those leads into actual sales requires a thoughtful and systematic approach. Phil’s team establishes lead nurture sequences that combine instant text and email follow-ups, turning cold website inquiries into engaged, warm prospects.

Automations like requesting a photo of the project or issue can immediately move the conversation forward and prompt action from the prospect, increasing booking rates dramatically. Data from Phil’s work suggests that setting up automated nurture sequences can boost booking rates from an industry average of 42% up to 62%, all without increasing spend on ads.

Retargeting is the third essential pillar and often the most overlooked. Businesses already possess a goldmine in their existing client database. These customers know, like, and trust the brand, making them ideal candidates for repeat business. Phil’s two-step email playbook involves monthly email newsletters tied to a seasonal content calendar, followed up by targeted offers to those who engage.

Coupled with occasional text message marketing, these tactics keep a business front-of-mind and drive extra revenue with minimal extra cost. In one case, a client implementing these strategies saw an additional $257,000 in revenue over a year, solely from email retargeting.

Beyond lead generation and conversion, Phil Risher highlights the importance of tracking key metrics: booking rate, close rate, average ticket size, and customer acquisition cost. For businesses aiming to double their sales, focusing on month-over-month improvements in these four areas provides clarity and direction. Phil recommends picking one metric each month to optimize, ensuring consistent