Jay Conner

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  • Andrew Campbell and Multifamily Investments

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    Today, Jay Conner interviews Andrew Campbell about multifamily investments.

    Real Estate Builds Wealth better than any other investment vehicle. No other investment class has 4 ways to provide returns that real estate provides including: Cash Flow, Appreciation, Amortization, Depreciation. Focusing on Value Add & Infill Locations Minimizes Operational Risk.

    This is a strategy that uses both Macro & Micro Economic factors provides our operating team with strong upside potential. The U.S has already become a nation of renters.

    Home affordability, economic uncertainty and a shift in the mentality of the American Dream has made renting, not owning, the new normal. Texas is better-positioned to capitalize on population and job growth than any other state.

    A business-friendly environment, strong employment opportunity and family affordability have made Texas the best place to live in America right now.

    Tune in to the discussion today to learn more about this with Jay Conner and Andrew Campbell.

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

    Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

    #RealEstate #PrivateMoney #FlipYourHouse

    ———————————————————

    Jay Conner (00:01):
    Well, Hello there and welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host also known as the Private Money Authority. And if you’re brand new to the show, a special welcome to you here on the show, we talk about all things relating to real estate investing, how to find deals, how to fund deals, how to sell deals quickly, how to automate your business. So you’re running it and it’s not running you. And if you’ve been tuning into the show, my land, since we launched in June, 2018, we’re blowing right on through 300,000 downloads. We appreciate all of our subscribers. So if you’re tuning in on iTunes or Google play, or one of those type formats, we really appreciate if you will subscribe and rate and review us and give us five stars. And also if you’re new to this show the reason I’m called The Private Money Authority is because back from 2003 to 2009, I relied on local banks to fund our deals.

    Jay Conner (01:11):
    And I got cut off like the rest of the world in 2009, I was introduced to this wonderful world of private money to where you actually do business with individuals. And so I’ve got right now about 50 different private lenders investing in our deals. And I also coach and train and educate other real estate investors on how to get funding for your deals without relying on banks and mortgage companies and et cetera. So if you’d like to learn all about that, and how you can get plugged into the money and get plugged into funding, I’ve got a free trial for you to come join my membership, where I actually do live training twice a month, and you get all kinds of content and training inside the membership. It’s called The Private Money Academy and for you to come check it out for free for 30 days, get on over to www.JayConner.com/trial.

    Jay Conner (02:11):
    Glad to have you in there. Now, another thing about the show is that I’ve had just some amazing experts and guests join me here on the show and today is no exception. My guest today is a native Austinite in case you don’t know what an Austinite is that someone from Austin, Texas, and he’s a real estate entrepreneur and he broke into real estate investing first back in 2009 as a passive investor. Well, in 2012, he transitioned into active investing and management as a personal portfolio that grew to 76 units across Austin and the San Antonio areas. Well, he earned his stripes if you will, building and managing his personal portfolio before moving into much larger multifamily buildings and deals. Well, the name of his company is Wild Horn Capital. Well at Wild Horn Capital, he’s focused on acquisitions, finding deals and maintaining investor relations.

    Jay Conner (03:19):
    Also leveraging his marketing background to build long term relationships. Well today, his company Wild Horn Capital controls over $200 million in it’s portfolio. And they have over 1700 units in Texas. Well, my guest’s background is in market research and brand strategy, and he’s spending time in both advertising agencies and emerging technology consultants where he was most recently a partner and an award winning app developer. That’s pretty interesting right there. In addition to that, he received a BS in advertising from the university of Texas at Austin, and he has his MBA from Baylor University. With that! well, welcome to the show, Mr. Andrew Campbell. Hello Andrew.

    Andrew Campbell (04:12):
    Hey Jay, how are you?

    Jay Conner (04:13):
    I am doing fantastic! So you grew up in Austin, Texas, right?

    Andrew Campbell (04:19):
    Yes Sir.

    Jay Conner (04:20):
    Excellent. Well, my wife Carol Joy, she’s from Wichita Falls, Texas. And so we got a little bit in common right there. So you actually started in real estate back in what year?

    Andrew Campbell (04:33):
    Kind of 08, 09 kind of move back to Austin around then right as the world was ending and thought it was a good time to jump in.

    Jay Conner (04:42):
    Wow! Well, I tell you that reminds me of what I just shared. I mean not, from 2003 to 2009, I was relying on local banks for my single family house business and wow! With no notice I mean, I got like cut off with no notice, but you know what, for me, Andrew, it was a big blessing in disguise cause I learned about private money very quickly. And actually within 12 months of being cut off from my funding, our business actually tripled because I had access to the funding. So I was able to do, you know, so many more deals. So with you coming in back in 2008, 2009, what was your first year or two like?

    Andrew Campbell (05:25):
    Well, I was probably you know one of the guys you might have been borrowing money from then. I think the first the first few years kind of based in passive investments or I was not real active, you know, kind of barrow lending money and admit it and as a passive investor in some ground up deals in Austin, some infill condo developments and kind of you know, got to see the business happen, got to see things be built, got to see returns come in and, and I think caught the bug a little bit. And really it was started looking for creating a little bit more longterm, passive cash-flows which led me into more on the active side, you know, buying duplexes, fourplexes, and ultimately kind of graduating and now we’re buying, you know, call it 200, 300 unit apartment complexes.

    Jay Conner (06:07):
    I got you. So you and your company is totally focused right now on multifamily units, right?

    Andrew Campbell (06:17):
    Right, yes Sir yeah. Austin and San Antonio, our focus is really kind of class B, B plus assets that have some sort of value add component but you know, good assets and good location. And the business plan is to hold them for five to seven years and you know, make everybody real nice return and just fortunate to be from a market that’s growing as fast as Austin’s growing.

    Jay Conner (06:42):
    Well now, just to make sure our audience understands what is a, B, B plus project or property?

    Andrew Campbell (06:48):
    So, you know, most properties, is kind of a subjective, you know, but ABC properties, maybe a D people might have D properties, which I certainly recommend steering clear of, you know, A-class is going to be typically brand new, highly amenitized, you know, might be downtown B class a little bit older, you know, I’d probably say stuff built in the eighties you know, or nineties, early two thousands, even it’s somewhat based on the asset type and somewhat based on the location.

    Andrew Campbell (07:17):
    You know, but I think for us B, B plus, you know, that’s a good grade in school and that’s a good grade in the real estate world, it’s, we’re not trying to get top of the market rents, but we’re also, you know, we’ve got a good professional base of renters, young professionals, teachers nurses, that sort of thing that are, you know, good, good quality folks and looking for, you know, rental property, but you know, kind sort of middle of the market.

    Jay Conner (07:42):
    What would you classify or list are the benefits and investing in multifamily versus single family houses?

    Andrew Campbell (07:51):
    I think efficiency you know, as I started out kind of with some duplexes and fourplexes, you realize the more sort of shared units you have say under one roof you just it’s more efficient. So if your roof goes out on a single family, you know, you’re out $20,000 on an eight unit building, you know, it’s the same $20,000 to replace that roof or to replace that concrete you know parking lot or whatever the system might be. So I think that’s a big one, I also think as you get into larger,

    Jay Conner (08:23):
    So, Scott I’ma need for you to come to the forefront and save the day for a moment because I just lost connection. And I think you all can hear me. I’m gonna sign out and sign right back in. So pick it up, Scott, I’ll be right back.

    Scott Paton (08:39):
    I don’t know if we lost him or not, but continue on Andrew cause you’re live for us.

    Andrew Campbell (08:45):
    Okay. yeah, so, you know, I think they’re just more efficient and, you know, as I saw you get better, I guess better management, as well as something I saw that you can afford and a property is big enough to support onsite management. You get a better quality of manager. You’ve got, you know, one, two, three, four people whose full time job is to oversee and over that, that asset. And also just logistically of us as the asset manager, having one place to go where you’ve got a collection of you know 250 units, I think it’s a little bit more efficient than you know, kind of if you had 250 single family homes, you’re trying to drive around and keep tabs on it’s just a little bit more difficult.

    Jay Conner (09:26):
    Alright, I’m back with you Andrew, Sorry I got bumped up there for a quick second. So you were talking about efficiency and you know you got one roof and you know, it was $20,000 and you know, you got eight units versus, you know versus one unit. So, let’s talk about acquisitions cause you focus a lot on acquisitions in the company, right?

    Andrew Campbell (09:45):
    Yep.

    Jay Conner (09:46):
    Yeah, So how about help us out and understand, what’s your criteria when you’re looking for a deal? What is it that determines what a deal is? And I know that’s a Multifaceted answer to that question, but at least give us the 30,000 foot view on what’s your criteria on whether to buy or not to buy and what are you looking for?

    Andrew Campbell (10:10):
    Yeah, I think the first thing for us is it’s gotta have some sort of value add component. You know, whether that’s an interior renovation play or it’s a land entitlement, but something that you we’re buying an existing asset and there’s a path, a very feasible path forward to increase the value of that asset. And then we’re going to look at location, you know, so we want to be in good locations. We want to be you know, where we don’t want to bet that the city is gonna make a left turn. This is going to be in a good area. You know we’re pretty strict about our rule of being kind of class B neighborhoods. And I think the final thing is just looking at what those investor returns ultimately become. You know, I think our job is very much to sort of pair you know, good interesting real estate plays with investors.

    Andrew Campbell (10:54):
    And it’s gotta be something that we feel like is a good risk adjusted return that’s also competitive and that you’re gonna feel good about, you know, take into your friends and family your investor base. It says, Hey, this is a play that’s gonna double your money in five years or seven years or whatever that business plan is. So it varies a little bit into your point it’s very multifaceted, but it starts with having a good asset with good bones and then a business plan we believe in, and then, you know, is it, do we think it’ll make money?

    Jay Conner (11:24):
    So when it comes to funding these deals obviously your company raises private capital for some of the funding. Do you use some institutional funding? Do you have some owners that will actually sell to you on terms or is it all the above?

    Andrew Campbell (11:45):
    It’s all been kind of private individuals is where we get our funding. We don’t have any bunch of institutional partners. It’s been just relationships and folks that we know and folks that have heard about us that we’ve gotten to know, you know, based on our focal geographic focus, kind of our track record and, you just a lot of recommendations. So it’s, you know, putting those together and really focused on just helping people understand. I think there’s other alternatives out there to investing and you don’t have to you know, you can have a small piece of a large deal and if you like real estate, but you want to be passive that’s kind of been who our investor base is.

    Jay Conner (12:26):
    Alright, So I know it varies, you know, what year are you in? It varies on the project, but what’s a ballpark type of return that your investors can receive these days.

    Andrew Campbell (12:41):
    So we’re kind of on a typically thinking about things on a five or seven year horizon. You know, so again, that it taken advantage of where we’re located in Austin and how much the city’s growing. You know, we’re not looking to do something in 18 months or two years. So on a five to seven year horizon, typically looking for something that’s going to get you sort of a two X or a one eight X multiple on a five year investment. You know, it’s gonna have some cash on cash. I think that’s the advantage of buying an existing asset as we know kind of going in what that’s gonna look like, in Austin right now it’s been really competitive, you know that may be 4% in year one. But you’re going to get some initial cashflow and you know, looking for a total IRR of kind of a low teens maybe 12 to 14% somewhere in there.

    Jay Conner (13:28):
    Say, if you can double your money or somebody can double their money in five years that is a whale of a return right there.

    Andrew Campbell (13:37):
    Yeah, no it is. And I think that’s you know, when you pair the getting some cashflow with some of the appreciation and being you know, the advantage of leverage I mean we’re pretty conservative in our leverage about 68% across our portfolio, but the power of leverage really allows you to get some outsized returns in real estate.

    Jay Conner (13:56):
    Yeah, for sure. So what are the what are some different ways that you can increase the value you know, of a you know multi-family you know, apartment complex property?

    Andrew Campbell (14:11):
    Yeah, the most straightforward is just in improving it, you know, going in, we typically will buy an asset, we’ll rebrand it kind of change the story, update the look and the amenities, update the clubhouse, so it feels like a newer more modern property, and then we’re going to go update the interiors as well. If it’s a deal that was built in the eighties you know, update the cabinetry, knock out some walls, open up the floor plan, modernize it. When you do that, you’re able to raise the rents. You know, maybe you raise them $75 or a hundred dollars. But again, over 200 units, you know, that’s increasing the NOI quite a bit. We’ve also got some strategies, you know, parking, adding covered parking adding private pet yards, you know, or just, if you’re on a first floor unit, you want your own sort of private space for your kids to run around or a grill or anything.

    Andrew Campbell (15:01):
    You can charge 75 to a hundred dollars a month for that. Amenity fees, package lockers. There’s lots of little strategies that you can employ and you know, add to the NOI. And at the end of the day, these deals are I think one big difference with single family is these are valued like businesses. So it’s based on a cap rate in the market. If you can improve the NOI on a property by a hundred thousand dollars, and the cap rate in Austin as a four and a half, or maybe sub, you know, maybe it’s a 4% you’re getting an outsized return on your value of the dollars you’ve spent. So that’s really the name of the game is finding ways to to increase the NOI

    Jay Conner (15:39):
    Is your exit strategy typically to be in a project for five to seven years add value to it and then sell it?

    Andrew Campbell (15:46):
    It is , and I think a lot of that is driven by you know, investors. I mean most investors want to recycle their capital. You know, my personal we’ve got some personal properties and the goal is to own them forever, you know, longterm cash flows but when you partner with investors, people want to recycle that capital. And the hope is they’ll recycle that and potentially might do a 10 31 with those investors but yeah, typically you’re going to sell it in five or seven years.

    Jay Conner (16:15):
    Excellent! So here we are at least in today’s show we’re still in the midst of COVID-19 and the aspects of that. So is now and today still a good time to be investing in melded family with whatever consequences and ramifications of COVID-19 that’s going on.

    Andrew Campbell (16:39):
    Yeah. You know, who knows what the world looks like? It changes by the day. We think it is, you know, and I think couple of reasons our investment thesis has always been you know, people need to live somewhere and offering that kind of B class property you know, It’s a good thing to do you know, people are gonna not pay their car payment, There’s a lot of things you’ll do to make sure you got a roof over your head. We’ve seen collections be very, very strong you know, over 98% across our portfolio since the beginning of cope. And so people have if they can pay their rent they are paying their rent. And so far they’ve been able to do that. I think when you compare it with other asset classes, you know, we feel like multifamily and industrial have been the two asset classes that are outperforming.

    Andrew Campbell (17:23):
    Obviously office is a lot of concern about office space downtown across the country. The office space in the coast is people are kind of leaving the coasts retail, you know, a lot of question marks about how fast, how many of those businesses come back. So, you know, if you look at what your options are and kind of keep cash under your mattress or, you know, you put it in the stock market and kind of, how do you feel about where that’s going to be, or your multifamily it’s always been for us a pretty conservative play and not a business it’s get rich slow. You’re not gonna go we’re not trying to hit, you know, 30% returns on development deals we’re buying existing assets, conservative leverage, and they have good returns. And we think that thesis has held up so far in COVID. And certainly we’ll continue to look for the right opportunities. Obviously you gotta tweak your underwriting and some of your assumptions now with as the market softened some, but it’s still relative to your other options a very strong bet.

    Jay Conner (18:23):
    Yeah. I’ve experienced the same thing here in Eastern North Carolina. We’ve got quite a few people that are purchasing single family homes by using our rent to own program. And we are at 100% collecting all the way through a COVID-19 and, you know, like you just said, a moment ago, people are going to do what they can do. You know, all they can do to keep a roof over their heads. One thing I’ve heard you say Andrew, is that in this line of, in this investment class, if you will, the way you offer people, you know, investing in your business and et cetera, really four ways to get returns. And, you know, you talk about cashflow, appreciation, amortization and depreciation. Can you talk for a minute about what’s the difference between those four and what are those four returns and what they mean?

    Andrew Campbell (19:20):
    Sure, so you know, cashflow is just, it’s pretty simple. It’s kind of the, what’s leftover at the end of the month after we pay all the expenses. And again, a benefit of buying an existing asset, you know, we know how that’s performed, so there’s cashflow and that when we make those distribution to investors, that’s a pretty simple concept appreciation, you know, that’s us benefiting from being in a market that’s growing really quickly. And there’s new people moving here every day, there’s new jobs. So the values go up, you know, I think a lot of people talk about real estate as an inflation hedge, which is another thing, you know in today’s day and age where there’s lot of concern about inflation with the FED and their conversations and real estate, you know, if inflation runs people for paying, you know, tomorrow’s dollars for our assets.

    Andrew Campbell (20:09):
    So it’s a nice hedge there, but that’s just appreciation. It’s the market saying that, you know, your house, you bought it for $200,000 and in five years later, it’s worth $250,000, that’s your appreciation. Depreciation and amortization are kind of based on the leverage and the tax structure. So we’re able to depreciate these assets. We actually had one advantage of large properties, cost segregation. So we can come in you hire an engineering firm and rather than taking a straight line, 27 and a half year depreciation schedule, they break down your property, you know, 200 lines on a spreadsheet and say well, your roof has as a useful value of X years, your appliances, your flooring, your mechanical, et cetera. We can depreciate about 80% of that property in the first five years which lowers your, you get a K1 that shows you, you made little to no money, even though you made got distributions. And then amortization is just us paying down the loan, you know, so every month as we pay our mortgage we own more of the property. And so you kind of combine those four aspects and it makes it’s another big advantage of really any real estate investing. But I think from a passive standpoint you know, what we’re doing multifamily it gets pretty powerful.

    Jay Conner (21:26):
    Last question I’ve got for you Andrew, what are some of your favorite ways? I mean, you’re in acquisitions. What are your, some of your favorite ways to locate these deals?

    Andrew Campbell (21:36):
    You know, we just are inherently focused on relationships, you know, so we’re born and raised in Austin. We’re focused on Austin and San Antonio. And so we pride ourselves on having really good relationships and being very plugged to the community, with the brokers and the other owners. And so we want to hear about every deal that’s coming out and we want to underwrite them and just see where the market’s going and trending. And, you know, we want to get the opportunity to buy stuff off market, which we’ve been successful three or four times, or you know, getting the first phone call if somebody’s gonna get a listing. It’s just been very laser focused on our market and building relationships here at home.

    Jay Conner (22:14):
    I got you. Well, you can’t beat the network, you can’t beat the referrals. So folks you’ve been listening to my special guests today or watching, depending on how you’re tuning in to Andrew Campbell. And so Andrew final thoughts and comments.

    Andrew Campbell (22:32):
    No, It’s been great. You know, I enjoy talking real estate and you know, mentoring people or talking through investing. And so if anybody is interested in reaching out you can see the website here, WildhornCap.com My email’s AndrewWildHornCap.com be more than happy to have a conversation, and I’m kind of a real estate junkie and love to have conversations. So it would be more than happy to reach out to anybody if they were interested in learning more.

    Jay Conner (22:58):
    That’s great! So for those of you that are listening in, let me give you that website specifically it’s www.WildHornCap.com. That’s spelled WildHornCap.com One more time that’s www.WildHornCap.com and you can reach Andrew specifically himself. And that email address again Andrew, correct me if I’m wrong, Andrew@WildHornCap.com. Is that right?

    Andrew Campbell (23:37):
    That’s right.

    Jay Conner (23:38):
    Alright, Andrew, thank you so much for joining me here with the show today.

    Andrew Campbell (23:42):
    Thanks for having me, I enjoyed it!

    Jay Conner (23:44):
    Alright, very good! Well there you have It folks! Another show Real Estate Investing with Jay Conner. I am Jay Conner, the private money authority wishing you all the best and here’s to taking your real estate investing business to the next level. We’ll see you on the next show, Bye for now.

  • Jake and Austin Deraaff

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    Here on today’s show, I have amazing guests who actually twin brothers based out of New York City. They knew that the traditional route was not the best option for them. So they quit college and found an online course on making money in real estate WITHOUT any money!

    After being told that they COULD NOT make it in real estate, they committed themselves to be successful.

    In 7 months, they were able to do their first wholesale deal. This gave them proof of concept which gave them permission to take massive action. This led to 3 more deals. Then 30 deals. Now they’ve flipped about 60 houses so far!

    Their mission is to help people build long term wealth through real estate investing.

    With that, please welcome Jake and Austin Deraaf.

    How they got to $3,000,000 in Wholesale Transactions both LOCALLY and VIRTUALLY.

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate/

    Free Webinar:

    Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

    #RealEstate #PrivateMoney #FlipYourHouse

    What is Real Estate Investing? Live Cashflow Conference
    https://youtu.be/QyeBbDOF4wo

    #LearnRealEstate #RealEstateInvesting #JayConner

    ——————————————————–

    Jay Conner (00:12):
    Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host then also known as the Private Money Authority. And if you’re brand new to Real Estate Investing with Jay Conner, We talk about all things that relate to real estate investing from finding deals, funding deals, rehabbing, flipping, wholesaling, and even more important than that is automating the business. So you’re actually running your business and your business is not running you. So here on the show, I have these amazing guest and experts come on today is no different. But before I introduce my special guest today, I’ve got a very, very exciting announcement for all of you who are tuning in here, either on iTunes or Google play or any, or our YouTube channels or Facebook live streaming ever. How you’re tuning in here to the show.

    Jay Conner (01:22):
    And that is, I just recently launched my new monthly membership, which is called the Private Money Academy membership. What’s so exciting about it. First of all, with all the benefits is that you actually get me live two times a month with a live Zoom group coaching call for all the Academy members. And so what I’m extending to you as, since you are tuning in you’re on the show, I’m going to be giving you a full free trial to the membership and it’s a 30 day trial and you can check it out go on over after the show to Jay Conner, JayConner.com/trial, Now what’s so exciting besides the two live group coaching calls, where we talk about anything in real estate investment that you want to always have special content I prepared for the membership.

    Jay Conner (02:22):
    But we also have in the membership site, we’ve got content that’s being updated every month with all kinds of resources, for private money and et cetera. We talked about finding deals and all different subjects. So again, get on over to www.JayConner.com/trial, And I’ll see you on the inside of the Private Money Academy membership. Now, today my special guests are actually twin brothers and they are based out of the big Apple after 24 long months in college they were suffering, and they knew that the traditional route was not the best option for them as far as getting on their way to a career. So they quit college. They dropped out of school and they found an online course on how to make money in real estate with no money down.

    Jay Conner (03:26):
    After being told by every friend and family and colleague that they could not make it in real estate. They still took a leap of faith and they committed themselves 100% of the way to doing whatever it took to be successful. So after their first seven months in the business, they still had not closed a deal. They finally made it to their very first closing of their wholesale delivers the wholesale deal. Well that gave them the element of poof, changed their lives, gave them a proof of concept and gave them permission to take massive action into what we call this real estate space. So shortly after that, they did three more deals and then soon became a close to doing 30 deals. So today, as of today’s show, they flipped and wholesale, Oh, around 60 houses. So far now some of their flips have been promoted even by local magazines in their area.

    Jay Conner (04:27):
    Another goal was to earn 250 units by February, 2021. And they’re well on their way. Their mission is to help people build long term wealth through real estate investing and to give their partners safe and secure returns with that. I’m so excited to have you on the show, my friends, Jake and Austin Deraaff. Welcome Jake and Austin, Hello.

    Austin Deraaff (04:55):
    What an introduction. Wow! couldn’t have said it better.

    Jake Deraaff (04:57):
    Thank you so much for having us on, Jay. We appreciate it.

    Jay Conner (05:00):
    Absolutely! Well, I appreciate you all coming on. I mean, you know, the big twin brothers, you know, at the ripe old age of 14 years old, it’s just amazing how far you all have made it.

    Austin Deraaff (05:14):
    Still going strong

    Jay Conner (05:18):
    So anyway let’s see, here we are in a high end real estate investing mastermind group, right?

    Austin Deraaff (05:25):
    Yes sir.

    Jay Conner (05:27):
    In fact, that’s how we met. Hey question. Do I get to see you in person in a couple of weeks? Are y’all doing that virtual thing?

    Austin Deraaff (05:35):
    We’ll be there.

    Jake Deraaff (05:35):
    We’ll be there.We’re flying down.

    Jay Conner (05:38):
    Awesome! My wife, Carol Joy, and I we’ve already got our plane tickets so I can’t hardly wait to see you in person. It’s, I’m looking forward to it. I know people are ready to like get out of Dodge, Right?

    Austin Deraaff (05:51):
    That’s true.

    Jake Deraaff (05:52):
    Amen

    Jay Conner (05:53):
    So I love your story. So I know you want to share this. So actually, how old are you all Austin and Jake?

    Austin Deraaff (06:02):
    23.

    Jay Conner (06:04):
    23? My lands to know what I now know when I was 23 years old mercy! could I have not owned the world? Like you’re on your way to do it. So we know part of your story. So you started out in college you know, you went to college for you know, a couple of years or so, and you figured out that wasn’t working. So did you actually go out looking to learn about real estate investing? Or how did that come along?

    Austin Deraaff (06:38):
    So, yeah, it was actually funny. We actually, you know, we always liked making money. We used to flip shoes, flip electronics with everything. And then one day I was with Jake and we found this course online by Cody Sperber The Clever Investor. And it was how to make real estate with how to do real estate with no money down, no credit, no money. Well okay, we have no money, no credit, no license. Let’s try this out. So that introduced the wholesaling. And like you said, it took us seven months to finally get proof of concept. But once we got the proof of concept, you know, we take massive action. Like we get obsessed very quickly and that can be a good thing or a bad thing. And our scenario was a good thing, cause it was absolutely for our business. But it took us a while, but you know, we got it done.

    Jay Conner (07:19):
    That is awesome! So you took that course and so give it, just give us like a summary as to, so when did you do your first deal?

    Jake Deraaff (07:31):
    We did our first deal in may of 2018.

    Jay Conner (07:35):
    Okay. 2018. You did your first deal.

    Jake Deraaff (07:39):
    I’m sorry. March of 2018.

    Jay Conner (07:41):
    Okay. So we’re a couple of years down the road. So share with us what that journey looks like from the time you started. I mean, first of all, you went seven months without doing your first deal. What do you think was the cause of that? And then what happened that really started to catapult your business? So just give us a summary of what’s that journey look like since you started.

    Austin Deraaff (08:06):
    Yeah. It’s like any other business, you know, most people probably would’ve quit after month three or four, but you know, we had times where we want to stop and this doesn’t, we thought it didn’t work. We kept going after it. But the problem, we didn’t get the first deal. It wasn’t even about what we didn’t know. I’m sorry, what we did know it’s what we didn’t know. Like we weren’t really good at marketing. So we were doing very little strategic and the consistent marketing. Like we would put up band-it signs, talk to attorneys, do all these things, but not consistently. But once we started to do consistent efforts in marketing, we actually saw results. So I think the biggest thing was consistent marketing, you know, implementing what we’re reading and learning and stuff like that. A lot of people just reading on YouTube, but they don’t take action. So we start to take a lot of action and then, you know, results started to happen.

    Jay Conner (08:52):
    I got you. And so in a couple of years I think you said you’ve done like 30 deals so far, right?

    Austin Deraaff (08:59):
    Yep.

    Jay Conner (09:00):
    That’s fantastic! So one of your goals is to have 250 units by February, 2020. When you say a unit, are you talking single family houses? Are you talking apartment doors or what’s your definition of a unit?

    Jake Deraaff (09:17):
    Apartments.

    Jay Conner (09:18):
    Apartments? Have you already started in the commercial space?

    Austin Deraaff (09:22):
    Yeah, we have 16 units right now and then another 10 in contract. So 26 units are going to be at the end of the month, about 26 units and the rack, you know, marketing and try to find commercial buildings. So hopefully we have, you know, close to that number by the time the year ends.

    Jay Conner (09:36):
    Are you focusing more on commercial now or single family houses?

    Jake Deraaff (09:40):
    Single family is our bread and butter, but we are starting to look more into the multi-family space

    Jay Conner (09:46):
    I got you. So in your single family space, are you doing more wholesaling or flipping or what’s the percentage of those deals was like?

    Austin Deraaff (09:55):
    We have a couple of different buckets in our wholesaling flip business. So we wholesale and we wholetail we fix and flip. I would say if we did, you know, at a hundred percent, I’d say about 60% is wholesaling, 20% is wholetailing then 20% is flipping.

    Jay Conner (10:09):
    All right. So most people know what wholesaling is. Most people know about flipping is let’s make sure everybody understands what’s wholetailing.

    Austin Deraaff (10:17):
    Yeah. So wholetails are great, especially in the market that we’re in. So basically when you’re able to identify a property that you can buy at a wholesale rate. And at that point, what we do is we clean it out. We close on the property and if it’s in the condition where a bank would be able to loan on the property, that’s when we’ll relist it back on the market and get that full market value.

    Jay Conner (10:37):
    I got you. So in your businesses Austin what hat hats do you wear and Jake, what hats do you wear?

    Austin Deraaff (10:47):
    So I focus mainly on the sales and marketing and any type of like finances, again, the financing. So sales, marketing, and financing, and then I’m on the dispositions, operations and hiring.

    Jay Conner (10:59):
    I got you. So you got to divide it out. Was it any of it? Was it any kind of a challenge when you started out and to figure out who was going to do what?

    Jake Deraaff (11:07):
    He’s the born salesman, So he was on the acquisition team from day one. So

    Jay Conner (11:13):
    Is that why Austin smiles more than Jake?

    Jake Deraaff (11:16):
    Probably.

    Austin Deraaff (11:18):
    Built him for it.

    Jay Conner (11:20):
    I hear ya. So when you got started, what were some of your biggest challenges that you’ve faced and lessons learned?

    Austin Deraaff (11:29):
    Good question. So I think the biggest thing, like any entrepreneur is like, is it gonna work like seven months felt like seven years? Because you didn’t see a check and you’re like, you have to keep telling yourself everyday. It’s going to work. It’s going to work. It’s going to work. But no one around us even knew what wholesaling was like, if you’re in Phoenix other places, it’s common to wholesale. But were in New York, no one even knew what it was. Even most of our attorneys didn’t even know what the word wholesaling was. We have to like reinvent the word in our area. So like, it was just, we had no one, not a lot of support. So we had to build our own inner belief system. So, and that’s the hardest part was telling ourselves It’s gonna happen. It’s just, when is it gonna happen? So we kept going and kept going. But I think if we would have had someone in the beginning that, you know, maybe the coaches have guided us and we were more consistent on marketing. We probably would’ve got a deal done a lot faster, but you know, life, the lessons you learn and the money you make. So that’s our philosophy.

    Jay Conner (12:17):
    Exactly. So while were talking about marketing, you know, the two main things that people want to know that are real estate investors, whether they’re brand new or they’re seasoned, the two things they know want to know more than anything else is where do I find the deals and how do I fund the deals? Where do I find the deals and how do I get the money? Those are the two most popular questions. So in today’s market for your single family houses, let’s focus on that on single family houses. What are your best marketing methods that consistently? And that’s a word you used a few minutes ago. Very, very important word, consistent leads If we don’t have consistent seller leads coming into the pipeline in the funnel, we’re not in business, we’re out of business. What are your favorite methods now to get consistent seller leads?

    Jake Deraaff (13:06):
    So our goal Do a lot of different marketing strategies. So we always continuously have leads coming in. So the stuff that’s been working for us has been direct mail, band-it signs, cold calling, texting door knocking. And we’re just we’re we love to network. So we’re always getting deals with realtors, other wholesalers and even attorneys.

    Jay Conner (13:24):
    So in all those activities, what does your team look like? Like, do you have virtual assistants or what? Like you just mentioned a bunch of things that are like sub businesses or marketing efforts you know, in and of themselves, door-knocking, that’s a business model right there texting outbound calling. So how do you get all that done consistently?

    Austin Deraaff (13:50):
    Yeah. Good question. So right now we have someone who does texting. Like his only job is just, you know, drop the text and answer the text. So he focused on that. We have, we have a van assigned team and then we have about four or five drivers. And what we did was we picked the one that had the most leadership qualities and made him the leader of the team. So he’s a leader of the van assigned team, same with door knocking and then cold calling and keep it in house. So all of our acquisition guys would make outbound calls daily, so led to keep everything. We don’t do any, any like Philippines cold calling, but we do work a lot of VA’s to help us out.

    Jay Conner (14:23):
    Got you. So when it comes to door knocking what types of properties do you door knock?

    Austin Deraaff (14:31):
    Pre-Foreclosures people who just passed away or inherited a property. We’ll get like a bunch of lists, Jay. And what we’ll do is we do something called list stacking. And if you’re new in the business, that’s something I would really recommend because you can get deals that are very cheap. So you basically get a bunch of different lists. Pre-Foreclosure probate, high equity combined into one list, whoever is on multiple lists, put it on a new list. And then we hit those doors. Cause if they’re on three, four, five lists, there’s something going on that you might need to know.

    Jay Conner (14:57):
    How did you train your door knockers

    Austin Deraaff (15:00):
    By doing it with them, Just like people try to automate that It’s really hard. You have to describe a deal with them, show how it’s done, record yourself, doing it, and then, you know, have them consistently do it.

    Jay Conner (15:11):
    So let’s talk about door knocking. So you knock on a door give us your tips on how to successfully door knock. What’s the mindset. What’s the talk off points. How do you build immediate rapport? How do you keep the door from being locked in your face? And what’s the scripting sounds like.

    Austin Deraaff (15:35):
    Yeah. Great question. So we actually started to do was before let’s say we have a list of 50 properties before we go out and actually physically knock. We’re going to send them a handwritten note. Hey, this is so and so we bought a couple of houses in the area. Would you ever consider selling? And now we go to the doors and say, Hey, you know, we’re just knocking. We actually left you a letter. Do you happen to get it? So I’m like, yeah, I got the letter. Awesome. Are you guys considering selling? Me and my partners bought a couple of homes in the area and we love to make an offer. So we kind of go in there with like a warmth, we sent a handwritten letters before and then go out to the house. So it’s not like it’s a cold conversation.

    Jay Conner (16:11):
    Do you think the age of the person helps as far as who’s doing or the age of the person doing the door knocking?

    Austin Deraaff (16:19):
    Yeah, All of our guys are under 30. We had to keep them yet kind of it’s for us. It’s been working well, we have everyone that works with us is younger. So that’s why it’s been working for us.

    Jay Conner (16:32):
    So younger people are perhaps less intimidating when they’re knocking on the door, right?

    Jake Deraaff (16:38):
    Exactly.

    Austin Deraaff (16:38):
    Yeah.

    Jay Conner (16:39):
    What’s your favourite way to find your team members?

    Jake Deraaff (16:43):
    We use a lot of wisehire.com indeed.com.

    Jay Conner (16:47):
    I love wisehire. My favorite reason for wisehire is you’re like already, automatically plugged in to all the other ones just by going into wisehire.

    Jake Deraaff (16:58):
    Yeah. It’s great!

    Jay Conner (17:00):
    Do you use any of their tools such as personality, self profiling tests, et cetera?

    Jake Deraaff (17:06):
    Yeah, we use the PI. Predictive Index.

    Jay Conner (17:10):
    Yep.

    Jake Deraaff (17:10):
    Yeah. So that’s definitely helped us out. We actually hired Sharper Solutions Gary Harbor’s team. And they’ve been helping us out with some hiring as well for some of our key candidates.

    Jay Conner (17:21):
    I got you. So how about, what’s your advice for young real estate investors, young entrepreneurs wanting to get into the business, like, you know, from your experience, what’s your advice to give them

    Jake Deraaff (17:37):
    Well first? Yeah, there’s a lot of different things you can do in real estate. So what I would tell them is figure out exactly what you want to do. Do you want to flip, do you want to wholesale? Do you want to be an agent? Do you want to do creative financing deals? Do you want to be a landlord, figure out and identify what you’re looking to do. And once you figure out what you’re looking to do, just keep failing forward, hanging around the people that are, that have what you want or that are doing what you want and just continue to fail and just keep going. Because if you keep going and you keep learning, you’re just going to keep growing. And that’s basically what we did.

    Jay Conner (18:08):
    So would you say you all have a company mission?

    Austin Deraaff (18:12):
    Yeah. Our mission is to help as many homeowners as possible. Our goal is have 150 homeowners for the year. If we can do that buy a lot of apartments, you know, we’re happy where we’re at. We’re happy at that number.

    Jake Deraaff (18:21):
    Yeah.

    Jay Conner (18:22):
    Well, you said a word that’s very, very important to me and that is that word help. So the reason I asked you about the mindset or how you’re, you know, looking to approach and particularly when you’re door knocking or whatever, myself and my team, we take on the approach of, we are servants. We’re out here to help people we’re out here to serve people. As a matter of fact, when people respond to our marketing and they’re in foreclosure, one of the first questions we ask them is, do you want to keep your home? And I’m in a very, very small area. My total market is only 40,000 people. And so we asked her, do you want to keep going? Yeah, I want to keep your home. I said well, we’ve got a checklist of 10 different ways that you might want to check out what, of course we tell them, we’re not attorneys. We can’t give you legal advice, but we’ll ask him, you know, have you talked to your mortgage company about a a loan deferment program or what have you, and if we give somebody an audio that helps them save their home, there’s nothing in it directly for us. But I do know through the law of reciprocity, what goes around, comes around and the more people we can help get, what they want. We don’t have to worry about ourselves. Would you agree with that philosophy?

    Austin Deraaff (19:34):
    Yeah, 100%. What goes around, definitely comes around. Yep.

    Jay Conner (19:38):
    Excellent! We’re actually live streaming right now. We’ve got quite a few comments coming in from folks. So everybody that’s watching the live stream. We’re glad you’re here and and welcome to the show. So what type of advice would you give to people? You know, just in general, what, you know, when I’m asking a general question, what’s the best advice I can give to a real estate investor. That’s starting out. One of the first things I tell them is don’t try to go about this business by yourself. You need to join hips with somebody that actually has walked through the mines you know, instead of getting blown up yourself. And I believe you all got a coaching program that I know you can help anybody of any age, but for those that are particularly perhaps younger and starting out how has your coaching program worked guys?

    Austin Deraaff (20:33):
    Yeah, so, like I said, we have a coaching program, so we have set times customized program per person. So if you’re in a different market than us, we can still help you out. So we do across the country, a set plan, set time for the calls. But the most important thing is we hold you accountable because a lot of times you can’t hold yourself accountable. You need somebody else to help you do that. So our goal is not to do the work for you, but to give you the roadmap, to do the work, hold you accountable, be coachable and give you a support system. cause the biggest thing for us was we didn’t have support. So it took us a while to get a deal.

    Jay Conner (21:06):
    Yeah. how about you, Jake? Any other thoughts come out?

    Jake Deraaff (21:10):
    That’s pretty much it. Yeah. We’re just anybody who’s looking to get their first deal done, whether it’s, you know, locally or, you know, even out West or wherever.

    Jay Conner (21:18):
    Excellent. Well, you know, it’s for that reason that the three of us are in a mastermind together. I mean, it doesn’t matter whether you’re brand new or, you know, you’ve been doing this thing for a long time and you know, what was working really well, maybe two years ago may not be working so well today, particularly when it comes to different marketing methods and et cetera. So parting comments. I’ll start with you, Jake. And then we’ll wrap up with Austin parting comments that you’d like to share with my audience.

    Jake Deraaff (21:51):
    Figure out what you guys are looking to do and what you’re looking to accomplish and back your way into it. So if you want to do 10 deals your first year, figure out how you’re going to get that. First one done continue to network with people. Cause one of our big sayings is your network is your net worth. So show me the five people you surround yourself with and I’ll show you your, your future. So if you continue to hang around, people that are elevating you and who are going after what they want, you’ll be in it heading the right direction.

    Jay Conner (22:16):
    Awesome, Austin?

    Austin Deraaff (22:18):
    I would say this six letter word it’s called commit. So even if you don’t want real estate wholesaling, or you don’t want going to real estate, whatever business or venture you’re going to do, just commit to it. Because when we first started, we didn’t give ourselves a plan B or C, we just burned the bridge. It was either real estate or homeless. So we have to make it happen. Cause we left their parents’ house. And he said, you’re either going to college or you’re until you’re coming home and going to college or you’re not coming home. So we said, alright, we’re not coming home. So we had to really commit to it. And yes, it took a time. It took, we learned a lot in the process and one quote that I was like is “you can’t fail if you don’t quit”. So the only time you actually fail is if you quit. So if you’re continuing to prosper, continue, stop daily and continue to take action. You’re actually not failing. You’re not doing at all. So continue to take massive action. Listen to guys like Jay and you’ll be very successful.

    Jay Conner (23:07):
    Yeah. It’s improper for you to fail until you decide to quit. I think I heard somebody say that one time.

    Austin Deraaff (23:12):
    Yep.

    Jay Conner (23:13):
    That’s awesome. Well, listen, folks, if you want to stay connected and get to know Austin and Jake even better and perhaps work with them go on over to www.JayConner.com/closer, Again, that is to connect with Jake and Austin Deraaff go over to www.JayConner.com/closer, Austin and Jake. God bless you guys. So good to see you I’m looking forward to seeing you in a couple of weeks.

    Austin Deraaff (23:54):
    Thank you so much, for having us in this show. That’s the best show on the internet. So we appreciate that.

    Jake Deraaff (23:58):
    We’ll see you soon.

    Jay Conner (23:59):
    All right. Thank you so much. There you have it folks. Another episode of Real Estate Investing with Jay Conner and I am Jay Conner, The Private Money Authority. Wishing you all the best. Here’s to taking your business to the next level. And I’ll see you on the next show. Bye for now.

  • Randy Lawrence, The Real Estate Preacher, Joins Jay Conner LIVE!

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    Jay Conner is joined by The Real Estate Preacher, Randy Lawrence.

    “I’ve seen and done it all in real estate. Now I want to help you achieve the success I’ve enjoyed.”
    – Randy Lawrence

    Prosperity Capital Partners lives its mission of serving others by providing
    Investors with financial freedom: Double-digit returns with zero capital loss and excellent tax benefits to our private investors for 17 years via asset-backed real estate investments.

    Families with high-quality, affordable homes: Offering updated affordable housing enhancing the quality of life of working American families who live in our apartments.

    https://pcpre.net/
    https://therealestatepreacher.com/

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate/
    Free Webinar:

    Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————

    Jay Conner (00:02):

    Well, hello and welcome to another episode of Real Estate Investing with Jay Conner! I’m Jay Conner, the Private Money Authority, also the host of the show. And I wanna welcome you whether you’re a brand new or you’ve been following the show for some time. My lands! We’ve launched back in June, 2018, tracking fast over 300,000 downloads. Thanks to you. And I do need your help. If you find this episode to be valuable, and you can use this information in your real estate investing business, then please help me out. Let’s share this information, like share, subscribe, write, and review whether you are on iTunes or watching on YouTube or any of our other platforms. Well, here on the show, we talk all things that relate to real estate investing. We talk about how to find deals. We talk about how to fund the deals without relying on local banks, mortgage companies, or even hard money lenders.

     

    Jay Conner (01:11):

    We talk about how to sell houses, rehab houses, and how to automate your business to where you’re actually running it. And it’s not running you. But as I mentioned, I’m known as the private money authority. I became an expert on raising private money and I’m not talking about doing business with brokers. I’m talking about actually attracting hundreds of thousands and in the millions of dollars in funding, that’s got nothing to do with your credit, your verification of income, or actually even the number of deals that you’ve done. If you’re interested in getting more funding for your deals to where you never miss out on a deal because you didn’t have the money, I’ve got a free gift for you. Yes, I have got a new monthly membership that I launched that I’m going to show you how to get free access to the membership. It’s called The Private Money Academy, and on the, or in the membership twice a month, I am live on Zoom with coaching for all of the Academy members.

     

    Jay Conner (02:11):

    We’re tracking fast to a thousand members. Right now, we got about 150 members. And as a matter of fact, the next live Zoom coaching call is within the next week. So I’m going to tell you how to get in, you get the live coaching. We also put someone, one of the members in the hot seat where we analyze your business, figure out your challenges and fix your challenges to where you’re able to take your business to the next level. And we also have new content and training in the membership every month on finding, flipping, automating funding, selling, et cetera. We also cover all in the membership, all types of real estate deals. We cover single family houses, commercial land, self storage, and you name it. We got it covered. So here’s how you can take advantage of checking it out for free. Go to www.jayconner.com/trial.

     

    Jay Conner (03:10):

    Again, that’s JayConner.com/Trial. Look forward to having you live on the membership Zoom conference calls. Well now in addition to that, if you’ve been tuning in for any time, you know that here at Real Estate Investing with Jay Conner, I have amazing experts. And in fact, the guests that I have on today’s show is a good friend of mine and is a fellow member of a very top and mastermind group where we have about 120 real estate investors from all across the nation. We get together about four times a year and help each other out on our businesses. Well, let me tell you about my friend. First of all, he’s an entrepreneur with over as of today, 24 years of experience, and he has four very successful real estate investment companies.

     

    Jay Conner (04:08):

    In addition to that, my friend and I have got the same, same heart, and we’ve got a lot in common. He’s a pastor and also a founder of multiple life-changing ministries. And as of this day in the last 15 years, he has impacted and then blessed impact over 40,000 people. He’s been seen on CBN, NBC, CTN and featured in the St. Petersburg times Tampa Tribune. And he’s known as the transformation expert. In addition to that, he’s experienced his own life transformations as well, overcoming the upbringing from a broken home and his life as a drug dealer to becoming a successful entrepreneur, pastor husband, and a father. In addition to that, his spiritual breakthroughs led him out of the economic collapse and the financial collapse of 2008. And man can, I not relate to that! Took him from bankruptcy to a real estate rehabbing business, generating a seven figure annual income, again, something else that he and I have in common.

     

    Jay Conner (05:16):

    Also he, and I’ve got another yet person. That’s a mutual friend and mentor back in 2013, he co-authored a book titled Dare To Succeed with Jack Canfield, who is the co-creator of Chicken Soup For The Soul detailing in this book his personal and professional rise from the ashes, his mentors and his coaches include world renowned business leaders, authors, international speakers, such as Les Brown and also John C. Maxwell. He also is an active member contributed to the same mastermind group that he and I are a member of. Comprise, as I mentioned of nation’s elite real estate investors, beyond that he passionately believes in God’s promise of abundance and freedom, and he uses his unique strategies to help transform lives like yours by unlocking spiritual, mental, and tactical financial potential through real estate investing. He also has a very popular podcast titled The Real Estate Preacher on the podcast. He shares his successes and his failures along with his proven strategies and techniques that help build systems that work he’s proven them to work. And he does this so others like you can achieve their own seven figure incomes and their own abundance, just like him. Welcome to the show. My friend, Randy Lawrence also known as the Robo State Preacher.

     

    Randy Lawrence (06:47):

    Awesome! My brother. Good to see ya.

     

    Jay Conner (06:49):

    Good to see you too, man! Would you reach around please? And like scoop up a little energy and bring to the show to grab a little more

     

    Randy Lawrence (06:59):

    After that intro I’m ready to jump up and run around the building Man! Praise the Lord!

     

    Jay Conner (07:04):

    Randy, you’ve got quite the story, quite the backstory at one time you were a drug dealer you were bankrupt. You were like, you know, you were like slap dab in one time. And the financial collapse of 2008.

     

    Randy Lawrence (07:19):

    Yup!

     

    Jay Conner (07:19):

    So, before we get into those pieces of your story how about give us your backstory and little an overview as to.

     

    Randy Lawrence (07:29):

    Yeah

     

    Jay Conner (07:30):

    Where you’ve been in, what you went through to get you where you are now

     

    Randy Lawrence (07:34):

    For sure, man. Well, so my background, I come from, you know, a broken home parents divorced it, you know, four or five years old that kind of led to, by the time I’m in middle school, high school doing my own thing, kind of wayward with the wrong crowd, wrong group, doing the wrong things and just, you know, partying and all like that. Went on through college, got my degree in finance, minor in economics, went into the stock brokerage business right after that really kind of continued on with that same kind of money and partying lifestyle and all. And it was probably about 27 that I, you know, had had success in, in that respect, but really wasn’t fulfilled. And it was at that time that I really kind of found through reading a book Norm Miller chairman of Interstate Batteries, where it outlined about faith in God.

     

    Randy Lawrence (08:25):

    I put my trust in Christ. It really just complete 180 from my life, Got involved in the church locally and then got met my wife there. We got married and then, you know, God called me in the Ministry as well. And so I’m running a money management company that I started and then also ministering there at the church and probably around about 2003, God, just really, Has showed the power of the difference of what real estate can do versus, you know, stocks, bonds, option traditional money management. So really started focus on that. And you know, that was really the beginning of where things took off for us. We sold our money management practice in 2006 and moved out North of Tampa to start a church. And then of course that’s where we were having gone through that economic collapse that happened here in Florida.

     

    Randy Lawrence (09:17):

    And it was just quite the incredible journey because I was simultaneously pastoring the church, also running the real estate business and navigating the economic collapse that the whole country went through. So really kind of an incredible time at that moment in time.

     

    Jay Conner (09:34):

    Did you say you met your wife at church?

     

    Randy Lawrence (09:36):

    I did. You know, it’s funny. My dad always used to ride me now again, he was in North Carolina, we’d see each other, maybe once a year, talk on the phone once a week, I’d be going to the bar at happy hour after work, you know, and talk to him on the weekend. And he’s like, what’d you doing? That’s all, I’m going out with some friends at a ball game. And he’s like, man, you should go to church. I’m like go to church? He’s like, well that’s where you going to meet you a right girl. And I’m like, yeah, that’s not the kind of right girl. I want to meet, but he was right. You know? And so yeah, I was blessed to meet my beautiful wife, Sarah Jo there. And we’ve been married now 21 years coming up in October.

     

    Jay Conner (10:16):

    Did you say her name is Sarah Jo?

     

    Randy Lawrence (10:18):

    Sarah Jo? Yeah. She’s.

     

    Jay Conner (10:20):

    We got two things in common, We both met our wives or our to be wives At church.

     

    Randy Lawrence (10:25):

    Yeah.

     

    Randy Lawrence (10:25):

    And both of them have good Southern devil names. Mine’s Carol Joy,

     

    Randy Lawrence (10:32):

    Okay.

     

    Jay Conner (10:32):

    And yours is Sarah Jo, you want to know something else we got in common?

     

    Randy Lawrence (10:36):

    ah.

     

    Jay Conner (10:36):

    So in your bio in 2013, you coauthored a book with Jack Canfield named Dare To Succeed.

     

    Randy Lawrence (10:44):

    yup!

     

    Jay Conner (10:44):

    Well guess what? Two years later in 2015, I got certified as a Jack Canfield trainer by Jack Canfield.

     

    Randy Lawrence (10:53):

    Awesome. Yeah, it’s a, it’s amazing how many things, you know, it’s like the commonalities that the Lord, when you surround yourself with great people, it’s like you attract those similar qualities. And then here it is, you know, that we’ve been together through CG and the friendship there. And then now as we connect together with that further, you find all these backstories that line up with the identical things. That’s just pretty cool.

     

    Jay Conner (11:22):

    Well you know, I don’t know who came up with the idiotic idea, In my opinion, that opposites attract that’s stupid.

     

    Randy Lawrence (11:29):

    yeah.

     

    Jay Conner (11:29):

    I want to be around people. That’s like me. It’s like birds of the same feather flock together. Right?

     

    Randy Lawrence (11:34):

    For sure. Absolutely. And that’s, you know, we’re really, as you begin to have the synergies, the thinking is the same, the thinking that elevates one another and pushes each other to higher levels. That’s when I heard your intro about the monthly mentorship program, it’s like, man, that’s what people need to be a of because you know, you just, you come together with great thinking and then it inspires your thinking and then you see these actions that others are doing, or, you know, it’s just a win, win. It’s like the synergy of one plus one, it’s more like, you know, two times two equals four and then it just expansively grows, you know? And that’s the thing, man. So,

     

    Jay Conner (12:15):

    Yeah, exactly. So would you say, first of all, were you raised going to church or no?

     

    Randy Lawrence (12:21):

    I was not. You know, both my parents, you know, kind of by the time I was in middle school, I was kind of given ability to start making my own decisions and, you know, good parents, but this not focused on, you know, religion or, and again, as a broken home you know, they were just trying to do the best they could do to do their thing. And, you know, so that left me to my own accord and left them on accord. I probably connected together with the wrong group and ran with the wrong crowd and all that kind of stuff.

     

    Jay Conner (12:53):

    So I want to speak for a moment to people listening in or viewing whichever platform they’re viewing as someone or listening. My best guess is the majority of people out there like you and me went through a time in their life. The majority, not all, but a lot of people went through a time in their life or an extended time in their life that was very dark. Right? And I went through my dark time. My dark time lasted from the time I was 21 years old until I was 24 years old. And it just progressively got darker and darker and darker. Here’s my question for you. Did you have a wake up call? If so, what was it?

     

    Randy Lawrence (13:42):

    Yeah.

     

    Randy Lawrence (13:42):

    And if you did, what was it?how did you get out of it?

     

    Randy Lawrence (13:50):

    Yeah, So I was, you know, in that period for me would probably been 13 through 27. So like 14 years kind of like a Joseph in the journey, the two kind of coming out of the pit and all like that. But it was really at 27. I was helping take care of my mom. She had gone through numerous health challenges with failed back surgeries and all like that. And I had gotten a DUI charge, you know, for driving home apparently intoxicated. And again, I’m like, no, you know, that’s not the truth, but really what it was for me at that moment was it was this wake up call that here I am, 27, I’m facing the possibility of losing my license for six months. And, you know, I worked at a brokerage firm in Tampa. I lived in Seminole there with my mom helping to take care of her.

     

    Randy Lawrence (14:43):

    There were these recoveries and health things she’s going through and it just hit me like, you know, good Lord, man. I’m nowhere near where I want to be in life, cause if I lose this thing, now I’ma have to ride my bike to the 711 and maybe get a job. There not knocking people to work at 711, but that was not my aspiration. And I’m like, what I’d aspired to become and to do and achieve is nowhere near the realities. And the truth of the matter is it’s because of where I’m at in my life and the choices. And so that began to be that process to me, to see it’s like, what I’ve been doing is not the right thing. And so in short order, I laid my hands on a book, another friend of mine and I we’d started in an automotive garage and in the we sold interstate batteries.

     

    Randy Lawrence (15:33):

    And so the interstate battery salesman dropped off a book called beyond the norm. And it was about Norm Miller and his journey. I thought it was a sales success book, but it was his journey on how he came to faith in Christ. And then they became the number one battery reseller in the world and went on to such great success. And when I read that book, I’m like, that’s it, he’s got a beautiful wife, he’s got success, he’s got fulfillment. He’s in, he’s found it all in Jesus. And I’m like, wow! And I’m like, you know, Lord, if that’s true, and this is real come into my life, come into my heart, show me the direction you want me to go. And it was just like wham! This giant Volkswagen that I’ve been carrying on my shoulder for 15 years was just released. And it was just an incredible thing. And I, I knew I didn’t know what exactly happened, but I knew something happened and that my life had been changed. I could just feel it at that moment,

     

    Jay Conner (16:31):

    If you would like to follow Randy Lawrence and his story, you can follow Randy at www.TheRealEstatePreacher.com So Randy what does your, so how’d you. So when did you start in real estate? How did you get into real estate and what is your business model look like today?

     

    Randy Lawrence (16:52):

    Yeah, so we started in 2003. I bought my first multifamily property with little small duplex in 99. And you know, just really loved real estate even while I was a stockbroker and a money manager, you know I just loved real estate. And the more I looked at it, I saw the power of the returns you could generate in real estate with a really a lower adjusted beta or better risk adjusted return than what we were getting with our stock portfolios. And so it was 2003. I mean, God just really helped me to see that’s the direction. And so we bought our first small apartment complex in 2003 and began buying more properties. Now in Florida, it was a real white hot market. So it was tough to get properties. My first mentors had a several thousand doors that they own in apartments.

     

    Randy Lawrence (17:41):

    And so that had always been our focus, but you know, we probably started in five and six rehabbing houses just cause there’s so much, you know, money that could be made in that arena. And so we started building that business and also, you know, owning the small multi-families and 2008 hit. We went through the decline here in Florida you know, thankfully it was a great retooling that helped me to just learn a lot through that process. And so we came out through that process where a lot of people just left real estate. We did a huge short sale business, helped hundreds of people. And then, you know, 2011, 12, 13 started rehabbing houses again. And then 15 started focused back on large multifamily. So now to this day, kind of fast forward, we have over a hundred million dollars in apartment complexes on our commercial multifamily side. We have probably three more complexes under contract. Now we’ll buy eight more complexes next year. It’s kind of a velocity approach that we use. And then we still on the residential side buy fix and sell about 70 houses a year.

     

    Jay Conner (18:53):

    Wow! That’s quite an operation for both single family and your commercial, what size operation do you have as far as employees that are with you full time and numbers size is your team?

     

    Randy Lawrence (19:08):

    Yeah. So our internal team here in the office, we’re based in Largo, Florida, which is kind of the Tampa Bay area. We have seven employees in our internal office team. And then we have right about 28 employees that are through our multifamily side, through our management partnership so that, you know, they’re, they’re not direct report to me, but they work for our company through our management operations. So with every property that we buy, cause on the apartment side, our complexes tend to be 75 units to 200 units is the range kind of the sweet spots, probably a hundred, 110 15. And so every one of those complexes, we always have a full time manager and a full time maintenance. And so with every complex we buy that adds two more people to the mix. And then we have a regional manager that oversees them. And then one of our internal asset managers that oversee them as well

     

    Jay Conner (20:07):

    On your apartment complex projects is your business model to search for distress properties that you can fix up and get the rents raised and then turn them for a profit or what’s your business model would like, are you staying in the deal long term or what?

     

    Randy Lawrence (20:24):

    Our focus typically is about a three year hold. We look for kind of the threefold, the Holy grail, if you will, that we’re looking for the, the property that has a, you know, original type condition. So we focus on workforce type housing. So that’s people making between 30 to 60 grand, you know, real C, C plus type property. These people are, you know, typically blue collar or lower end white collar workers, you know, just good quality working Americans. They need a good place to live. So that property typically built in the seventies, early eighties, original condition on the interiors. A lot of times, a little bit of deferred maintenance, you know, where they’ve owned it, but they just haven’t really fixed it up and kept it spruced up on the outside. They’re typically, you know, keeping the cashflow and then operational areas where we can improve efficiencies.

     

    Randy Lawrence (21:15):

    Cause we have a more corporate structure, you know, large scale discounts. So with that, we’re able to go in upgrade the units so that they’re for about $3,800. We’re able to make them like new two thousands, you know, paint the cabinets, new floor, new lighting and then bring the rent because if they’re renting at 800 and the market’s at nine, it makes sense. This place is a little tired. The place is not updated. So we’re able to update the units on the turn. So that keeps cashflow consistent. It keeps us to be, you know, positive out of the gate so that we’re not running a negative. And it also is much more secure because we’ve got positive cashflow from day one. So on a hundred unit property, it takes us probably about 18 months to cycle through the rent roll, renovate the units. The first 90 days though we renovate the exterior. So it gives it a fresh pop and looks nice. So, you know, you know, the first three months you pull up on the property, looks like a new place and we’re able to start methodically working through the rent roll to improve the interiors during that time as well. And then that prepares us to be done within 24 months and then operate it for another 12 months to really improve the the T 12 and prep it ready for sale.

     

    Scott Paton (22:37):

    I think we lost Jay for a minute there, Randy. So.

     

    Randy Lawrence (22:42):

    No problem. Well then, you know, so just kind of carrying forward with our business model on it. So typically those properties, you know, we’re buying them at 85, 90, 95% occupied, and we have people that invest with us in the complex. So, you know, we’re buying a, let’s say a $10 million complex, we get a seven and a half to $8 million loan. And then that additional 2 million comes in the form of our capital as well as other people investing with us. And you know, it’s a typically like that is a three year hold period based on the model that I just share.

     

    Scott Paton (23:18):

    Cool! So I have a question that’s of interest to me, and that is, is the, if I invest in your deal or your project, is it interest that comes back or interest plus a percentage of profits? Or how does that?

     

    Randy Lawrence (23:33):

    So how it works on the majority of our properties, we have a preferred return model where you’re getting a 12% preferred return. So you get 7% paid on cashflow. So that’s a quarterly check every quarter. And then you get another 5% appreciation that is then a preferred return so that you, for example, put in a hundred grand, you’re getting 7,000 a year paid quarterly and then another 5,000 a year that’s accruing as appreciation so that when the property sold in three years, you get the hundred grand back plus another 15,000. That’s the appreciation. And then meanwhile, you were paid 21,000 through the cashflow during that three year hold period. The interesting thing with apartments too, and this is one of the greatest elements to it because you’re an actual owner in the individual apartment, you get a K1.

     

    Randy Lawrence (24:24):

    And so instead of a 10 99, you get a K1. And on that K1 because of the depreciation, you’ll get you typically on a hundred thousand, about a 40,000 depreciation loss. So you actually got 7,000 of income, but your tax statement shows you lost 40 grand. So you don’t pay any tax on that 7,000. So it really is a highly favorable and tax efficient investment vehicle.

     

    Scott Paton (24:48):

    I don’t understand why anyone would buy stocks, just listening to you right now. But Jay has returned.

     

    Randy Lawrence (24:54):

    Awesome!

     

    Scott Paton (24:54):

    I’m going to step away and make room for him right now.

     

    Randy Lawrence (24:58):

    All right. Very good.

     

    Randy Lawrence (24:59):

    So I don’t know what happened, but poof! I’m going poof I’m back

     

    Randy Lawrence (25:05):

    Yeah.

     

    Jay Conner (25:05):

    So, You may have already answered this question, Randy, but one more chance, your favorite way to find your apartment deals and how many of you got the analyze to buy one?

     

    Randy Lawrence (25:14):

    Yeah, they’re very good questions. So really, you know, we network in any market. So like if you focus on a market that you want to be in, we want to be in high growth markets cause that’s where demographics and jobs are coming. So in that market, you’re going to have typically three to five people that are the majority of the brokers that sell the big projects. Right? And so we develop a relationship with those people. They know that we’re no BS shake on it, we get it done. And with that, we’ve developed a very clear track record and a confidence. So when a deal comes that’s like, I just got an email yesterday, guys like, Hey, we’ve got an amazing property that it’s off market. The sellers looking to want to sell it. We want to get your input on it. First we get that kind of first shot at stuff that other people aren’t going to get because of the relationships we’ve developed and the performance that we’ve done in executing, you know? And so that’s really the number one strategy that is yielded the results that we’ve seen. And then currently we own 11 complexes right now just over a thousand doors. And then we have three more complexes under contract right now. That’ll bring us right to about 1400.

     

    Jay Conner (26:34):

    Awesome. And how many deals you’ve got to analyze to buy one?

     

    Randy Lawrence (26:37):

    Oh yes. That’s the question right there. So it probably is anywhere from 30 to 40, a lot of times, you know, we’ve developed a system where I have a full time acquisitions person. We have a two 10X14 double spreadsheet and he’s just going through property after property, after property. And so on a weekly basis, kind of the crap that’s on the back and it migrates to the front. So now when you get to the front page, the top 5 to 10 are right there for me to look at. And then we say, okay, dive into this one, this one, this one. And that’s a process that we’ve refined and developed so that we’re able to go through that kind of ball on, because you got to shift through the chafe, define that, you know, nugget of gold and you know, and that’s really been the key.

     

    Randy Lawrence (27:26):

    And so I think a lot of times people looking at apartments, you know, they mistake well like, Oh, well I look at this one or look at that one. And it’s like, that’s really not how it works. You’ve gotta be willing to 1, be accurate and understanding the dynamics that go into it. And then 2 have the volume ability to be able to look at a lot of deals.

     

    Jay Conner (27:45):

    Excellent. Well, Randy has been such a pleasure to have you here on the show and folks to stay connected with Randy Lawrence, go on over to his website at www.TheRealEstatePreacher.com. God bless you, Randy. Thank you so much.

     

    Randy Lawrence (28:04):

    Thank you so much, brother. You have an awesome day. God bless.

     

    Randy Lawrence (28:07):

    You too. There you have it. Folks. This wraps up another episode in show of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority wishing you all the best here’s to taking your real estate investing business to the next level. And I’ll see you on the next show!

     

  • Dr. Paul White of RealNumberz

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    Jay Conner is joined by none other than Dr. Paul White, the founder and CEO of White Orthodontics, and author of several best-selling books.

    White Orthodontics is a high-end, technology-focused orthodontic practice based in Virginia.

    Dr. White created RealNumberz with his son, Trey, to utilize the latest technology to “supercharge” his real estate investments.

    RealNumberz is the only comprehensive software application designed to help investors manage a diverse set of assets that includes rental properties, private lending, fix-and-flip, and fix-and-hold projects, as well as mortgage notes and syndications.

    This incredible software eliminates investor anxiety by using real-time data and an automated reminder system to allow real estate investors to maximize their returns with 50 percent less time.

    Paul believes the key to achieving financial freedom has as much to do with optimizing your existing investments as it does with acquiring more of them.

    RealNumberz is the easy-to-use solution for the ongoing problems associated with late or inaccurate rents, incorrect note payoffs, uncontrolled and over-budget rehab projects, “yield drag”, and much, much more.

    RealNumberz has helped many of its clients save thousands of dollars and manage their real estate investments from their pockets! Go to https://www.realnumberz.com to see how you can “supercharge” your portfolio with this amazing software!

    Real Estate Cashflow Conference: https://www.jayconner.com/learnrealestate/
    Free Webinar: 

    Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————-

    Jay Conner (00:00):
    Well, hello there and welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner known as the Private Money Authority. Also the host of the show today. And if you’re brand new to the show, we talk about all things that relate to real estate investing. We talk about how to find off market deals, motivated sellers. We talk about how to get your deals funded without relying on banks or mortgage companies also talked about how to rehab houses. We talk about how to sell them fast. And just as importantly, we talk about how to automate the business because after all, why are we in this business? Well, we’re in the business for the wealth and the freedom. So we’re not looking to replace our day job with another job, called real estate investing. We’re looking to run the show to where we are running our business and our business is not running us.

    Jay Conner (01:03):
    Well, again if you’re brand new, I started back in 2003 in Eastern North Carolina, investing in single family houses. And for the first six years, until 2009, I relied on the local banks. I got cut off like the rest of the world did in January, 2009, after being in the business for six years. And I learned about this world of private money and private funding. How to use people’s individual investment capital and their individual retirement accounts to where I can have an unlimited number of private lenders into an unlimited number of private deals. As of today, my wife, Carol Joy, and I have got 49 private lenders individuals, just like you, that are investing with us and and funding our deals. So if you are also interested in learning how you can get funding for your deals and not ever miss out on another deal, because you didn’t have the money and you don’t want to rely on your credit, you don’t rely on your verification of income and your credit score.

    Jay Conner (02:05):
    I’ve got a free gift for you. And that free gift is to come join me, access free for the first 30 days to my new Private Money Academy membership. So why in the world would you want to come check me out for free? Well, first of all, you get me live two times a month in a Zoom coaching call in the group setting for all of the members. Right now, we’ve got about 150 members or so, and it’s growing very, very quickly. We do that twice a month. You can bring all of your questions to the Academy membership, Zoom call. And we also update content every month, talking about locating deals and funding and et cetera. And on each Zoom coaching call twice a month, we put one of the Academy members such as yourself in what we call the hot seat, where we analyze your business, figure out what your challenges are and help you put together a plan to help take you to the next level in your business.

    Jay Conner (03:04):
    So come join me for free for the first 30 days at Jay Conner, www.JayConner.com/Trial again, that’s Jay Conner, JayConner.com/Trial. You will absolutely love coming and checking out these Zoom calls and et cetera, with all the benefits that you get as being in the membership. Well, if you are brand new to joining the show, you may not know this, but if you’ve been tuning in for awhile then my lands, we launched June, 2018. We’re almost North of 300,000 downloads and growing very, very quickly. I have some amazing experts here as guest on the show. Well, today is no different. Let me introduce to you my friend and expert. Well, this gentleman is the founder and CEO of a company called White Orthodontics, which is a high end technology focused orthodontic practice in Virginia.

    Jay Conner (04:12):
    And he’s also the author of several bestselling books. Now this gentleman also created a service that is called Real Numberz that ends in a Z. And he created that with his son, Trey, and the reason he created it, they created it was to utilize the latest technology to supercharge their real estate investments. Well, here’s what Real Numberz is about. It is the only comprehensive software application that’s designed to help real estate investors manage. And that’s the key word because this gentleman is an expert when it comes to managing deals after you bought them, which is a challenge for some people, but he designed this software to help real estate investors manage a diverse set of assets, which could include rental properties, private lending. There you go! Fix and flip properties, buy fix and hold properties, as well as if you’re into notes, mortgage notes, or syndications, his software will also help manage those investments as well after you get in.

    Jay Conner (05:25):
    So this incredible software that he and his son Trey developed eliminates the number one investor anxiety by using real time data and an automated reminder system that allows real estate investors to maximize their return with 50% less time of yours involved in the deal. He also believes the key to achieving financial freedom has much to do with optimizing your existing investments as it does with acquiring and getting more investments. Well, his software Real Numberz is that easy to use solution for the ongoing problems associated with later inaccurate rents, incorrect note pay offs, uncontrolled or over budget rehab projects, and much, much more. In addition to that, this software has helped many of their clients save thousands of dollars and manage their real estate investments from their pocket. So with that, let me welcome my friend to the show and expert Dr. Paul White. Hello, Dr. White!

    Dr. Paul White (06:35):
    Hey Jay, how are you doing?

    Jay Conner (06:37):
    I am Fantastic! And just for the sake of these, may I call you Paul on the show?

    Dr. Paul White (06:42):
    Oh, please do.

    Jay Conner (06:45):
    So. Welcome to the show Paul. So glad to have you. Of all the experts and guests that I’ve had on this show. I haven’t had anybody else come on the show with this type of software and this kind of service to help real estate investors. I mean, in my business still today, we keep up with everything on an Excel spreadsheet. Seems to work pretty well since our average profits are 67,000, but you know, one of the four pillars that I teach in my business is what I practice. And that is automation. I actually work in the business less than 10 hours a week because of automation, other software we use and the team we have. And so I’m so excited to hear about this automation software that you and your son Trey have developed.

    Dr. Paul White (07:33):
    Well, Jay, thank you so much for having me and, you know, I appreciate so much what you do and the great coaching that you give your clients. And it’s an issue that I have seen. It’s the same thing you just said. There’s just not much out there, right? We’ve never had anybody on that talked about this stuff. And it was a problem that I had and, went to solve the problem by looking for software. And all I found were spreadsheets and things like that. And I had sort of a bigger list of things I wanted to accomplish. And so spreadsheets are great, but they don’t take care of everything that you want to do with them. And so as a matter of fact, I was a member of a mastermind years ago, and I’m doing a lot of what you were coaching and that is to acquire stuff.

    Dr. Paul White (08:09):
    You know, I had been for too long that guy that did what Dave Ramsey said, and that was to just save your money and pay off all your debts and do all those things. And that’s great if you’re in debt or if you have, if you can’t manage your money, but it’s not a great formula for managing wealth , and so anyway I started, you know, I had some money saved up. So when I got into these masterminds, I started, you know, acquiring a bunch of assets and I was feeling really good until the phone started ringing, you know, for more money and, you know, verifying payoffs and all this stuff. And I just started going, Oh my gosh! You know, what do I do? And here’s the problem. I went and talked to some of the guys in the group that had been in there before me.

    Dr. Paul White (08:43):
    And I said, what are you doing to kind of keep track of all this stuff? And surprisingly the answer was nothing, you know, and occasionally the really sharp guys were using spreadsheets. And so then I asked, okay, well, what, what kind spreadsheet? And one guy said, well, I got this one off the internet. And other guy said, well, I got this from my brother-in-law. And I looked at him and they weren’t even the same, you know, and as orthodontists, we were like things nice and straight and neat, and even, and I just, I wouldn’t see in any kind of congruency there. So it made me a little nervous. So that’s sort of how it got started.

    Jay Conner (09:11):
    There’s no doubt. There’s a huge demand for this type of service. Let me go to your background for just a moment.

    Dr. Paul White (09:17):
    Sure!

    Jay Conner (09:17):
    Please share with me and the audience, your story. You’re a doctor. And you know, you can straighten people’s teeth, right? And then you got into real estate investing along the way. So let’s hear your backstory.

    Dr. Paul White (09:31):
    Well, you know, thank you for the question, cause it’s a great question. And it’s a lot of what we wrestle with it, you know, Warren Buffet famously said, you know, if you don’t make money, while you sleep, you work till you die. And that was sort of a, you know, kind of a crazy thing. And the Aha moment for me was when I finally understood the difference between income and wealth, you know I have a great job, but as Kiyosaki would say in his book, Cashflow Quadrant, I owned my job and that was all I had. I didn’t have wealth and I wasn’t building any wealth I was just working. So, you know, just like you’re trying to do with your clients, we’re trying to have freedom. You have to have income for that. Actually I have to have wealth from that.

    Dr. Paul White (10:08):
    And I had income and I didn’t have freedom. And even still with my job, I own a good job and I make a good living, but I can’t leave the job for more than, you know, a week or so because of the amount of work that it creates before I leave and the tremendous amount of work that leaves when I get back. And so you just never gone very far and you’re always, you know sort of tied or chained to the practice. And so that was sort of a big Aha for me, is understanding that if I’m going to have some more freedom, I have to have something that’s making money while I’m not there. And for me, orthodontics was not that, not that thing. I love it it’s been great, but I started looking for other ways to make money and I discovered what you know, and what all your clients have known or will know.

    Dr. Paul White (10:46):
    And that is that all the wealthy people in the world that are successful have real estate as a major portion of their portfolio, if not all of it. And so including our current president. Thanks. So, anyway it’s one of the things that I’ve learned is that real estate is the way to go. And, as I said, when I was in this mastermind sort of, you know, a little hand holding and trying to learn how to learn the ropes I just found that no one was keeping track of things. And so you see these pictures of messy desk and and so mine, wasn’t a messy desk. It was on a pool table. So I had paperwork spread everywhere and I was just excited, you know, I was acquiring stuff left and right. And I was just leaving this pile of, paperwork and assets behind me.

    Dr. Paul White (11:26):
    And I thought, that’s all I had to do. Right. Cause you hear the term passive income. And so I thought that was it right? I’m there I’ve arrived. And then, you know, the headaches started coming and the questions started coming and you’re getting a lot of emails and phone calls asking for more information or more money or any of these things. And I just started going, Oh my gosh, how am I going to handle this? So my, momentary moment of sort of peace and I feel finally arrived and I’ve got it going, just sort shattered into the reality of my portfolio was chaos. And so I had to find a way to get control of it. And and that’s when I went to my son. Cause I know you mentioned you know, spreadsheets Excel. And to be honest with you, I’m a little intimidated by that.

    Dr. Paul White (12:08):
    It’s not that I don’t like numbers, but for some reason I never learned Excel and all the other software that I ever learned, I just sort of picked it up and started working with it. So, and I can do the basics in Excel, but I can’t really do, you know, create all the sales and do those kinds of things. And so I asked my son who is a programmer. I said, can you make me an Excel spreadsheet? And he said, sure, what do you want on it? And so I told him a few things and as he’s programming, I said, I started asking more and I started adding more things. He goes, alright, do me a favor before I keep this madness going, make a list of all the things you want this to do, and then I’ll make it happen. Right? And I made the list and I handed it to him and he goes, he said, data, a spreadsheet.

    Dr. Paul White (12:42):
    I mean, spreadsheets, can’t do this kind of stuff. I said, If I said, so what are we doing? He goes, you need an app. And I went, A what? Cause I had no idea what an App was Right? And so that’s how we started Real Numberz. And that’s been the, probably the most rewarding thing for me has been to have these ideas of how I want to manage my real estate and all the different investments that are real estate related investments have him sort of have these ideas in my head and I write them down on a piece of paper and he makes it happen. Now in the software world, they call Wire Frame is how you plan out every little step in the development of software out. And I, I call what I’m doing, you know, Wire Frame me. He said, dad, just writing crap on a piece of paper.

    Dr. Paul White (13:20):
    You’re not Wireframing so, that’s been kind of fun, but it’s been amazing. Number 1, to recapture some of the money or my investment in his education. And number 2, to be able to work together with him and sort of work through these tools. And to be honest with you when it first happened, you know, and I looked at for spreadsheets, I go, well, there’s gotta be something else out there. And I looked everywhere for some software that was as comprehensive as what we’ve created and there’s nothing out there. So that’s been, you know, my why for 30 years was to make the quality of orthodontic treatment in the Richmond area better than it was when I got into it. And now my why’s to help real estate investors know their numbers so they can get to freedom faster.

    Jay Conner (13:59):
    I love it! S, what different, before we actually get into what Real Numberz does.

    Dr. Paul White (14:07):
    Sure!

    Jay Conner (14:07):
    And the benefits of it. Because it definitely sounds multifaceted as to what it will do before we get into that. What type of different business models can this software serve and help real estate investors? For example, my business model is two fold. I either buy them in single family houses. So we’re talking to here all single family houses, I mean, in my case. So that will be a subset of my question. What different business model is that many single family houses only is it also commercial? We’ll get to that in a second. But in my single family house world, I’ve got two business models. I buy them. Business model, number one, I buy them, I fix them up. I flip them, I cash out, right? So we kill the golden goose, no wealth right there.

    Jay Conner (15:01):
    That’s just big checks. My second business model or that I do with other deals is I’ll buy them. If they need fix up, I’ll fix up. If they don’t need fix up. And they’re a pretty house in either case. The second business model is I sell on rent to own. Now what makes my rent own or selling a lease purchase different is I actually believe it or not actually require my buyers to enter my credit repair program. And I actually help them get a mortgage. Therefore, 80% of mine cash out. Most of the real estate investors may be 5% cash out on least purchase. Those are my two business models. So leading up to my question what are the different models that Real Numberz will serve?

    Dr. Paul White (15:54):
    Yeah, that’s a great question. Well, you know, what’s so funny about software and this is a true expression software’s never done. So you have this long runway of things that we’re trying to accomplish. And, basically real numberz is divided into four basic buckets. One is real property. The next one is private lending. The third is mortgage notes. And then the fourth is funds and syndications. And so within the real property space you can it takes care of any kind of property think of multifamily, single family you know, self storage, all those kinds of things. And, and what’s really neat about it is also there’s a dashboard for the entire portfolio. And so what we’re trying to build is a piece of software that not only manages all of your properties or all of your assets day to day as needed, but it also gives you a global input about how you’re doing as far as having some kind of target date for retirement or job transfer or, you know, whatever it is that you’re trying to do.

    Dr. Paul White (16:49):
    And so what we’ve gotta do is have weighted average returns on all those things. And that’s a pretty complicated piece that we’re building. As far as real estate now, all there’s a general ledger for the entire portfolio for your entire asset base. And so, regardless of what kind of assets or different types of assets you’re doing, there’s a ledger that keeps track of all the money coming in and out of your portfolio. Then each individual asset has a ledger as well. And so it obviously takes care of transactions. And then those ledger items are then used to drive analytics, and then eventually it’ll drive tax reporting as well. And one of the features that we added to it, what’s sort of speaks to your fix and flip is I, years ago I was buying active turnkeys, like you’re talking about.

    Dr. Paul White (17:35):
    And I had bought a piece of property and and from a guy in CG and so they were rehabbing it. And then I got an email that said we needed, you know, $8,000 more. And so I just wired the money site on scene. And, you know, one of the challenges with professionals, doctors, dentists, lawyers, whatever is at least for medical professionals, is we do whatever it takes to make things right for a patient, even if it costs us money. So we’re just, you know, we just want people to trust us. So we do whatever it takes. And we tend to have that same mentality with those that we work with. And what I’ve discovered in all other walks of life is not everybody’s that way. And even there’s some, I guess, in the medical profession, not the way, but I don’t know any of them.

    Dr. Paul White (18:15):
    And so we’ve just always done whatever it takes to make it right. So there’s a high level of trust. So if somebody said I needed $8,000 more, I just would wire the money. Right? I don’t do that anymore, but that’s what I did when I first started. And it turns out after the the property had been rehabbed and closed, and then we had a tenant in place. We had actually then just finished creating real numberz. So I went back and just to play with the software, entered in all of the the data from the acquisition. And it turns out that that $8,000 was $8,000 over the budget. And I didn’t know it, and I had no clue. And and so I called the property management. So what’s the deal with this $8,000 is, Oh, we put new windows in the house and I go, well, great!

    Dr. Paul White (18:53):
    I’m not saying I wouldn’t have done it, but that certainly would have been a decision I would have liked to been involved in. And so that really sparked me to create one of the features of a real property is a thing called a rehab tracker. And so you create a budget and you create as many different rehab projects as you want to name them. And then you put the amount of the budget, and then you start making deposits towards that budget, which come off your balance sheet, but then any of the charges against those do not, again, hit your, ledger again. So it keeps track of those things, and it keeps a running balance of how much money was spent in those kinds of things. So it can certainly be used for that. If you’ve got a business where they’re flipping a bunch of houses all the time, you know, there are other softwares out there where you need a professional to help you develop it for you, but for the average investor, it’s a great, it’s a great solution.

    Dr. Paul White (19:37):
    That’s a fairly inexpensive to be able to manage those things, and then to have the property and track the income, if you’re renting it as far as the the selling part of it, it’s one of the things that’s actually in development is a sell feature that then you create a subject to, and then seller finance the houses as well. So in our mortgage note section, we already have that capability. So you can then turn and open that app up in the mortgage part, and then keep the mortgage that way, if you want it to. But eventually I want to meld the two, but we’re trying to get a basic program that works for enough people. Cause that what you’re talking about is fairly sophisticated. So,

    Jay Conner (20:12):
    So you mentioned there’s actually four different categories for Real Numberz, one was flipping, Right?

    Dr. Paul White (20:22):
    Well, real property in general. Yes.

    Jay Conner (20:24):
    So just real property though whether you’re flipping or holding,right?

    Dr. Paul White (20:27):
    right, right.

    Jay Conner (20:28):
    And then you said private money or private lending. Tell us how.

    Dr. Paul White (20:31):
    Yeah.

    Jay Conner (20:32):
    Tell us how the software helps that category.

    Dr. Paul White (20:37):
    That’s ,Thank you for the question. Yeah, one of the things that’s funny is, you know everything that we do in Real Numberz, I wanted everything lifestyle wise to be able to my portfolio from my pocket. So everything you need is stored on the app. Your pictures, your photos, your contacts, your documents,security duct, documents, all those things are right there in the app. And so one of the things that’s interesting if you’ve done, I know you have, but I don’t know about your listeners that have done private lending, but you know, at some point in time that the borrower wants to pay you back. And so they want you to verify the payoff. And again, because of my ignorance and inexperienced, I just assumed when they gave me a pay-off amount, I went, yep, that’s right. And it turns out I went back and checked them off by several thousand dollars or one of them.

    Dr. Paul White (21:18):
    And so, and I typically lend out of my self directed IRA for those, those types of investments. And so one of the things that I kept noticing was the sense of urgency when they want to close all of a sudden, they out of the blue, they need to close some cause some deals coming up or they need money. And so anyway I got an email one time that said,we want to close this deal today, if possible, can you verify this pay-off? And I got, well, you know, my stuff, the documents are on a pool table back in my house. I don’t even have them here at work. And I’ve got my hands in somebody’s mouth all day. And so, I said, I can get it to you as fast as I can.

    Dr. Paul White (21:52):
    And so, you know, worked all day. And then I went home and then I found the folder. At first I had things in piles on the pool table, my wife at least put them in folders put address on. So I found the folder and I find the the promissory note and I started doing the math. And at first I didn’t even understand that. So I’m doing it monthly, which is not the right way to do it either. And so of course now know that. And so I did the math for how much I was owed. Then I had to log into my self directed IRA account, find that asset, then look at all the amount of money that had been paid to me and then subtracted them, and then add it back to my original principle. And five hours later, I got the instant pay-off for him.

    Dr. Paul White (22:27):
    And I was like, well, there’s gotta be a better way to do this. And so, because each asset, regardless of whether it’s your lending or flipping a house or whatever, has its own ledger, you’re tracking all the payments that you’ve received, which actually saved me a lot of money in the long run. But anyway, and so it knows the deal of the, of the original note, even if you’re wrapping somebody, which you can do, you can have a, we shouldn’t use the term JV, but a partner in the terms it’ll keep track of what the partner what his portion of the deal is. If you’re wrapping somebody. And when you hit, pay-off, there’s a button called pay-off and you hit that button, select a date, and it’ll give you the pay-off amount instantaneously. And it’s accurate. I closed five lending deals in January and every one of them was wrong to my favor, you know? And so it’s nice to have a piece of software. I just pull it out of my pocket and do find the, you know, open the app, find the asset and then push a button. And it tells me what I need. So it takes no time. And, It’s really kind of fun to be able to do that and people know, I know what I’m talking about now, so.

    Jay Conner (23:25):
    That’s awesome! So that’s,

    Dr. Paul White (23:27):
    yeah,

    Jay Conner (23:28):
    That’s an App or that category confirms to the private lender as to how much they should be paid off.

    Dr. Paul White (23:37):
    That’s right. So, yeah. And so it’s great for me. So I’m doing mostly most of the lending, so it’s telling me to pay off what it should be so that they, and they want me to verify it. So that’s the way that it works best. What’s really interesting is again, before I hadn’t created the software with my son I went back and again, sort of historically looked at a deal I’d done. And it turns out that they had missed a payment to my IRA. And I just thought, I didn’t really understand what a custodian did. I just thought they keep track of all the payments and call them when there’s a missed payment. And then they will give you some analytics to tell you how much money they’re making. And it turns out that that’s not right either. I looked up the word custodian means, it hold your stuff.

    Dr. Paul White (24:19):
    You know, so I had closed the deal. I went back and just entered all the numbers. And this particular borrower had not paid a $1,500 payment during the whole transaction of the whole note. But then they closed the note as if they had paid that. So I missed a $1,500 payment, you know, and didn’t even know it and had already closed the note. So I couldn’t get that money back. So the app, just for that reason alone has saved me thousands and thousands of dollars. And it’s been great. And we hear that same thing from other investors that use the software.

    Jay Conner (24:50):
    And I suppose that, of course, for the app to give you an accurate pay-off, then when you receive money you or someone is putting in the App, Oh, I received.

    Dr. Paul White (25:03):
    that’s right.

    Jay Conner (25:03):
    $1,500 payment on such and such a date. So it’s keeping up with what you have received so far.

    Dr. Paul White (25:09):
    Yeah. And even if you get part of your capital returned, it’ll track that as well. So it’s really doing the math based on what you’re owed and what you’ve already received. And so that’s really, you know, and again, if you have a lot of these going, it’s hard to keep up with that kind of stuff. You know, spreadsheet can do it, but you know, what’s great about this software is it sends me a reminder of somebody misses a payment. Now, again, my need was somebody didn’t pay me and I didn’t know it cause an IRA is not calling them. I thought they were right. So, now I get a reminder if the payment has not been entered as received into the software. And so it’s a great way for me not to have to scan all the investments all the notes that I’ve got to see if there’s a problem. You know, it tells me if there’s a rent, a missed rent payment, it tells me I don’t have an interest payment from a loan, or if a note, a monthly payment hadn’t been made, all those things I know without having to go looking for it. So it really does make it easy to it reduces my stress and it alerts me when there’s a problem. So I can kind of keep doing what I’m doing and not have to worry about it all the time.

    Jay Conner (26:06):
    Dr. Paul White’s website, that you can check out Real Numberz is www.RealNumberz.com , Paul there’s two other categories you mentioned that this software keeps that where, so it keeps up with any kind of real property investment keeps up with private money when you are the lender and what was the third category?

    Dr. Paul White (26:32):
    Well, the other is a mortgage note, and I make a distinction between private lending and mortgage notes, because it’s a longer term investment and what’s unique about, and you can do these things with a lot the private lending, but a lot of private lending is usually straight answers with some points. And so what’s interesting with mortgage notes is you know, it’s an amortizing investment. And so it keeps track of all those things. And basically you can just buy a note and hold it and that, and just have this income for as long as you want. But there are other things you can do with a mortgage note that really can supercharge it. And one of the things you can do is sell it. And you can sell either a portion of it, or you can sell all of it.

    Dr. Paul White (27:08):
    If you sell a portion of it’s called a partial.And so you can actually, in some deals, like if you bought a note, that’s, you know, say $50,000 and you bought that note for $30,000 let’s say a 10% rate, you can turn around and sell it to another friend or investor let’s say a 6% rate and get your 30,000 back out of it. And they will tell you in the app itself, it’ll calculate the number of payments that you have to sell in order to get your money back. And then at the end, the note comes back to you and you’ve got zero money in and invest it. And yet you have this stream of payments that are coming to you. And so, you know, a zero invested money returned is a pretty good infinite return that we all like to hear about.

    Dr. Paul White (27:45):
    So that’s one of the things you can do. And the other thing you can do is borrow money against that note. So it’s just like having a house where you can borrow money against it. You know, it has that same kind of value to a bank or to a private lender. So there’s the things, and it keeps track of all these things. And again, if you sell five months, five years of a mortgage note, it creates a reminder at 4 years and 11 months to tell you that this payment’s coming back to you. So again, it gives you a heads up when a note is coming due when investment’s coming due. When rent is coming. And when the end of a lease on a rental that you have, it’ll send you a reminder, say this rental is coming due in 30 days. And so it helps me to send a note, send that very thing I just forward it cause it comes to my desktop or to my phone to be able to forward that note to the property managers say, okay, what are the plans for this property? We got anybody rolling here. Is he going to reinvest, you know, or renew? And so that way, again, I look like I’m on top of my game and I’m not having to do all that. I love that kind of aspect to it.

    Jay Conner (28:41):
    That’s what I call automation. And then there’s a fourth category that this app provides service for, right?

    Dr. Paul White (28:47):
    Yeah. Some people do funds or syndications and we’re just starting to build that part of it out. It’s mainly to track, you know, the issue with funds or syndication, is really no money in it and not much is returned to you until the deal closes. So, you know, a typical fund or syndication, will go five to seven years. Some of them pay off early. And so that one, we haven’t put as much time into it. Cause not as many people do those. It’s a great way for people that maybe don’t have a whole lot of experience to, if you can trust them. That’s, that’s the deal because a lot of those things can, you can lose your principal real quickly. So you have to be able to trust the people that you’re doing business with, but you don’t have to know a whole lot about real estate. But again, everything has due diligence. A better way is to have somebody like you start them off with a single family home because you can see that thing. You have all the control where you have no control over a syndication. So it’s one of those things that we’re sort of programming out for some of the other investors that have requested that. But most of what we do is those first three buckets.

    Jay Conner (29:45):
    So the bottom line Paul, as I understand it is whether you are investing in single family houses, commercial, any kind of real property, the software is going to keep up with where you are and make sure you’re not, you know, wasting money or losing money, same thing as a private lender, make sure you got coming to you. What was in the promissory note and then mortgage notes, which are longer term you can do fractionals and then again, syndications. So, wow!This is simply amazing, Paul! And I’m so glad I’ve had you on here. So what do people need to do to go check out this software?

    Dr. Paul White (30:25):
    Well you know, if you go to our website, RealNumberz.com and there’s a 14 day free trial. If you want to check it out, we’ve now adjusted it. So we’ve got a special running now where there’s a discount of 30% off the monthly fee and we do it by property. So if you have five properties or less, it’s less than it’s $47 a month as a subscription. And you have all the software, one of the cool piece of software that I didn’t talk about, there’s a piece of software attached to this, again, that you can’t do with a spreadsheet that actually connects to your bank account securely. So we don’t store any of the data. So it’s secure and encrypted, but it’ll pull the numbers and the transactions that go to that account. So on the general ledger, you’ll get uncategorized transactions and you would simply assign those transactions to one of your assets and it automatically populates the the ledger for that particular asset.

    Dr. Paul White (31:14):
    And then it keeps track of all the other things that are going on. So it’s really helps you understand what’s going, coming and going and your business account. So it’s a great way to keep up with things and you should have a separate business account. Don’t keep this in your personal account. I’m sure you already have taught them that, but I’ve seen guys do that too. And it’s like, yeah, they have no idea where their money is or what’s going on with it. And you have to keep some reserves. Cause you know, real estate takes a little bit of management sometimes. So anyway, and then there’s an unlimited version of that, which is which also includes the mortgage notes part plus all the other things. And it’s unlimited data, all those other things and it’s $97 a month with a discount.

    Dr. Paul White (31:49):
    And so one of the things that’s interesting to me is we had a client that was, I think he was spending a thousand dollars a month for a Bookkeeper’s account just to keep track of some rentals. And I’m like, dude, we can save you some money here. And he jumped on this in a heartbeat. He goes, this is way more than what I was getting before. I said, well, that’s, you know, we’re trying to make it something that you just, after you start using it, you won’t want to go without it. And that’s been my experience. It has saved me literally thousands, thousands of dollars.

    Jay Conner (32:14):
    That’s wonderful!

    Dr. Paul White (32:15):
    Yeah.

    Jay Conner (32:16):
    Well Paul, thank you so much for joining me here on the show. And folks there you have it. Be sure and check out www.RealNumberz.com And go check out how to stay on top of your business and save a lot of money. Paul, thank you so much. I look forward to staying connected with you and folks, I’m Jay Conner, Private Money Authority wishing you all the best. Here’s to taking your Real Estate Investing business to the next level. We’ll see you on the next show!

  • Brad Smotherman on Flipping Real Estate

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    Brad Smotherman manages a 7 figure flipping business, and hold notes across Middle Tennessee. We invest in multiple states, and have houses from Michigan to Georgia right now.

    Real Estate Cashflow Conference: https://www.jayconner.com/learnrealestate/
    Free Webinar: https://www.jayconner.com/training/wtgtmn-webinar-rev2-podcast/?oprid=&ref=42135

    Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

    The Private Money Academy

    http://www.JayConner.com/Trial

    ———————————————————————-

    Jay Conner (00:01):
    Well, hello there! And welcome to another exciting episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host of the show. Also known as The Private Money Authority. And if you’re brand new to the show, here on this show, we talk about all things that relate to real estate investing. We talk about investing in single family houses, commercial projects, small apartments, self storage, land deals, notes. And we also talk about how to get funding for those deals creatively and with private money. Now, if you’re brand new to this show, I’m known as The Private Money Authority, because from 2003 to 2009, I relied on the local banks and mortgage companies to fund my deals. But then I got cut off with no notice in 2009, but it was one of the biggest blessing in disguise. I was introduced to this wonderful world of private money.

    Jay Conner (01:02):
    Since that time I’ve never missed out on a deal. I’ve rehabbed over 400 houses. Done even more deals creatively. And the reason I’ve never missed out on a deal since 2009 is because I got the cash ready to buy those all cash deals. And as we know, most of the sellers require all the money. So I’ve got a brand new free gift for everybody that’s tuning here on the show. And that is, I just launched The Private Money Academy. Which is a monthly membership where we actually have two live zoom conference a month with yes, yours truly me. For at least an hour to an hour and a half answering all your real estate investing questions. Getting you plugged into private money and funding for your deals. And we also have a hot seat session where we will take one of the members of the Academy, put you in the hot seat, analyze your business, and create a plan to take you and your business to the next level.

    Jay Conner (01:57):
    So I have a free gift for everybody tuning in, and that is four weeks absolute free access to The Private Money Academy. And you get to come on the next two live shows for the Academy membership. Absolutely for free! You can take advantage of that and learn all about it after the show today at http://www.JayConner.com/Trial that’s http://JayConner.com/Trial Be sure and check that out, come on in to the membership for free, and I’ll see you on the inside of those live zoom conference coaching calls.

    Jay Conner (02:41):
    Well, as you know, if you’ve been tuning in to Real Estate Investing with Jay Conner, we have amazing guests and experts here on the show. And today is no exception. Before I bring my special guest out of the green room and here to the forefront. Let me tell you just a little bit about him. Well, my guest today is a real estate investor and a mentor. And he owns and manages a seven figure per year flipping business. So my guest and I, we’ve got a lot in common. Well, his passion is being a top house flipper in the nation. And his other passion is also helping other newer investors build a sustainable real estate investing company. Well, with 11 years, he started back in 2010 on the real estate investing side. With 11 years in the real estate investing business, he’s invested in over 15 States. And yes, today on today’s show, we’re going to be talking about how do you do this business remotely and totally virtually.

    Jay Conner (03:41):
    He also has houses all the way from Michigan to Georgia. And today he has completed over 550 transactions today. Yes, he knows what he’s talking about from experience. In addition to that, he focuses on buying single family flips creatively. Using both subject to the existing note strategy, and he buys a lot with owner financing. In fact, he is known as the Owner Finance Guy. He also uses the strategy of selling retail or with owner financing, with creating wrap around notes. I know you’ve heard that terminology. Wrapping around a note. And if that’s sort of a new term to you or an old term, and you don’t know what it means, we’re going to talk about that on today’s show as well and how you can utilize that strategy as well.

    Jay Conner (04:34):
    Well, he is also the host of one of the top 100 business podcasts in the nation. And the name of his podcast is Investor Creator. And there on the podcast, he teaches new and seasoned real estate investors. How to take their house flipping business to a multiple six or even seven figure income without sacrificing freedom. After all, what do we want in this real estate investing world is, wealth and freedom. And my guest today is an expert in that area. My guest lives in Nashville, Tennessee. And with that, welcome to the show, my friend and expert, Mr. Brad Smotherman! Brad, welcome to the show!

    Brad Smotherman (05:18):
    Jay, I appreciate you having me on. I have a feeling we’re going to have so much fun with this. I’m just going to have to take a nap after we get done.

    Jay Conner (05:24):
    Yes, you are! My lands! Brad, I’m so excited to have you on. And I know just by your intro, your bio and the short period of time that we’ve been around each other, we’ve got a lot in common. In fact, my best guess, one of your core values, and one of your secrets to success is having the mindset and the framework of putting other people first, having their interests ahead of your interest. Would you agree with that?

    Brad Smotherman (05:52):
    Hundred percent! A hundred percent!

    Jay Conner (05:54):
    So Brad, first of all, you look entirely too young to be this successful, but anyway, I’ll go beyond that statement pretty quickly. You’re from Nashville, Tennessee. You grow up in Nashville?

    Brad Smotherman (06:06):
    I did. Born and raised.

    Jay Conner (06:08):
    You’re sing country?

    Brad Smotherman (06:10):
    No. I don’t see anything. And that’s a good thing for everybody that would have to listen. So for the people that know how to sing it I’ll just listen politely like everyone else.

    Jay Conner (06:20):
    But now you enjoy going to the Grand Ole Opry, right?

    Brad Smotherman (06:22):
    Oh, certainly! And like I was telling you guys before I’m out taking my grandmother to see Merle Haggard there twice, and we saw George Jones once and just had a great time. So, absolutely!

    Jay Conner (06:33):
    That’s awesome. Well, I’m excited to have you here on the show today. Brad, because you’re known as the owner financed guy. You’re an expert in the area of buying houses on terms controlling them creatively or whatever. So first of all, if you would explain to the audience, what is your business model look like?

    Brad Smotherman (06:59):
    Well, I think my business model is a little bit different than most because everybody out there, especially the past five or six years, what they wanted to do is, you know, they wanted to wholesale something. They wanted to fix something and flip it. And you know, the past 10 years we’ve had an explosion of these fix and flip TV shows. And frankly, Jay, those shows just give me anxiety. Like I can’t watch them. Literally. I went to the dentist the other day and asked me what I wanted to watch as I’m sitting there in the chair. I was like anything, but this HGTV stuff, right?

    Jay Conner (07:25):
    Well, wait a minute, Brad. Now, why would I, why would a reality show that I’m sure is real, that shows you how to make a hundred grand in 30 minutes with no headaches. Why would that give you anxiety?

    Brad Smotherman (07:36):
    Well, just like, you know, I mean, it’s not real. And then, you know, secondly, I’m looking at what they’re spending on the kitchen. I’m thinking I could do it for a sixth of that. And then the person buying the house, it’s like, well, what do you do for a living? And they say, well, we catch butterflies and rainbows all day. And our budget’s 2 million bucks and it’s just like, it just doesn’t seem exactly genuine to me. But maybe they’re just in a different market, a better market than I’ve ever seen. Let’s just say that.

    Jay Conner (08:01):
    Yeah! I get it, Brother, I get it. Sorry to interrupt. What’s your business model looks like?

    Brad Smotherman (08:04):
    Yeah. And that’s a hundred percent fine. So, you know, I started in 2010 and my background was very similar to yours in a certain way, although I didn’t live it. So I worked for a builder developer. Well, I sold real estate through college and everything was going really, really well up until the crash of ’08. And in 2009, the bankers came in and said, well, sorry, we’re going to have to call your loan. You have 30 days to pay us off. And as you know, during that time, there’s really no way to refinance commercial lending, you know, especially a development loan. And so it bankrupted them. And luckily I was able to learn the lessons from the crash without actually having to be involved in the crash. And so when that happened, I realized very quickly, I didn’t want bank money in my business. Very similar to what you’re dealing with. Right?

    Brad Smotherman (08:46):
    So it’s like, guys, being able to raise private money is paramount to this business. Like what Jay is talking about is super, super important. But, so I got started in 2010 and back then, you really couldn’t wholesale because no, very few people had an equity position that was big enough to where you could wholesale it. And then also the fix and flip model was very difficult because that couldn’t get money. And so I had to find another way. Well, what I found worked. Has always worked and what I feel will always work is creating owner financing. And so what we do is we buy creatively when we buy and then we sell with owner financing and a vast majority of our transactions. We still go retail at times and that’s okay. But what we want to do is we want to create longterm cash flow with longterm capital assets. And for me, I’d rather have that in mortgage notes. I feel like it’s far more scalable than rentals. We’re able to get paid to take the note in most of our transactions. It’s not like I’m putting cash out there to invest. We’re getting longterm assets given to us. And I just had to find another way because I couldn’t, I didn’t want to wholesale, I couldn’t wholesale. And the fix and flip model looked like really difficult to me during that time. And so we’ve been pretty much doing a similar model ever since.

    Jay Conner (09:53):
    So to recap what you just said, tell me if I got it right. Your core model is buy on terms, buy with owner financing, buy with subject to, buying creatively without paying all the cash. Take that same property, turn around and sell it creatively to a new buyer with owner financing or what have you. So let’s break that down. First of all, you said, the reason you do that is because you want to build longterm wealth by leveraging an asset that’s going to continue to pay you monthly for a long time. Is that right?

    Brad Smotherman (10:38):
    A hundred percent. That’s right.

    Jay Conner (10:40):
    So in today’s market, I know from my own business, I know from my students’ businesses that finding a deal today in the multiple listing service is a bonus. The deals are not in the multiple listing service buying large. So we have to find our deals off market. We have to find houses that are not in the multiple listing service. So if you don’t mind pulling back the curtain for us just a little bit and give us a little sneak peek as to what is working for you today to find these people that have houses for sale, or maybe they haven’t considered selling their house. How do you find these deals?

    Brad Smotherman (11:30):
    That’s a great question. Well, I mean, as we know, everything starts with a motivated seller. So the foundation of the business is marketing for motivated sellers. Now for me, real estate is a means to an end. I mean, if I can do this business with dump trucks or swimming pools, I would do that. I’m not in love with houses. They break, they smell bad. Some of them. One of my apprentices yesterday in San Antonio, he’s buying a house that has 70 cats in it. And I can’t imagine how bad that is, but you know, at the end of the day, marketing comes down to two different avenues. We can do sweat marketing, or we can do paid marketing. Man. When I started, I didn’t have any money. So I had to do the sweat marketing side of things. And so the examples of that would be, you know, putting out bandit signs, you know, although you’re paying for the sign, what I would do is I would put them out Friday night and pull them up early Monday morning.

    Brad Smotherman (12:13):
    And so a hundred signs, a couple of hundred bucks would last me three or four months, right? So that’s more of a sweat technique as opposed to leaving them out. Another one that were having a lot of success with is actually networking with wholesalers because wholesalers are slave to the 70% rule. We’re able to go in and do deals that they can’t do, right? Because we buy creatively as opposed to just throwing cash offers around all over the place. Right? So I’ve got an apprentice in Texas. He’s done three transactions this month, where wholesalers are bringing him the deal. You know, one of them is at a 0% owner finance rate. Now why a wholesaler would want to make a $5,000 assignment fee on a deal where we’ve got like four years and this thing is going to be paid off and we’ve got an $80,000 note on it.

    Brad Smotherman (12:55):
    I don’t really understand. Okay. So that’s a couple of options in terms of sweat marketing. What I hope for people is that they understand that marketing is an investment. It’s not a cost. So effective marketing should at a minimum of 25 X. So if you’re spending a thousand dollars in effective marketing per month, you should over time buy at $25,000 per month in equity. Right? As an average. Now, what I hope for people is that if you have to start with the sweat side, that you go to the paid marketing side, as soon as you can. Okay? So in my world, the best paid marketing that we can do is Pay-per-Click so being there on Google ads, whenever they’re there, like people are searching for us. Searching, sell my house fast, or companies that buy houses. We want to be there. When people have already realized that they have a problem and we can be there to offer a solution, but it has to be done very well. I know a lot of people that have lost a lot of money when it comes to doing Pay-per-Click campaigns, because they don’t understand how to drive traffic number one, and how to create conversion. Once someone is, has landed on a page number two, but those are examples of sweat marketing paid marketing that we use in our business.

    Jay Conner (13:57):
    Excellent! So as we know, and most of our audience here knows. When talking to an off market seller, a person that owns a single family house, you know, they don’t have it in the multiple listing service. They have some type of motivation. Most of these people are going to be anticipating when you’re starting that conversation with them of you buying their house. Most of these people like 99% of them are more having their mind that, well, if I sell my house, I’m going to get all the money, right? I mean, it’s like, that’s the traditional way. I sell a house, I get all the money. But now, you come along and you are going to be talking to them about creative selling or them becoming the bank. Or there’s a note and they’re going to get payments. What are your secrets? And as our friend Eddie would say, talk off points. Well, what are you, what are your secrets or scraping that takes a person that’s never considered selling on terms and waiting for all their money over time, from the point of then expecting to get all the cash up front?

    Brad Smotherman (15:06):
    That’s a great question. And what I would submit to you is the first thing that we can’t do is make offers. So in my world, I really feel like an offer is a commodity to shop. And I can’t even begin to tell you how many houses that we’ve gone in and bought because, you know, two or three other investors had gone in and left an offer behind for them to think about. And then we come in because we won’t give them our price. They’re giving us a price. We’re making sure that that’s the least that they will take. And then we’re going to switch it to terms. So let’s say that someone says, well, and we talk about things in terms of cash at closing. So if somebody owes a hundred thousand dollars and they want to sell the property for 115, then I’m going to switch it and say, well, so your cash at closing is $15,000.

    Brad Smotherman (15:48):
    So assuming that they would sell to me for that $15,000 cash at closing, then I’m going to say, well, you know, I can do that. If we can do it another way, and this is how we can make it work. So I’ve never given them a price and they’ve given me the price. So I mean, what we’ve done there is we’ve made it very difficult for them at that point to really begin to pull back and think about it because we’re giving them their number. We never give a price ever. Now, Jay, there’s some times that we do pay cash for properties, we just bought one outside of Huntsville, Alabama, about a month ago that the people had paid $160,000 cash for it in 2012, we paid 15,000 for it. And, you know, it’s like at that price, I don’t really feel the need to negotiate terms.

    Brad Smotherman (16:29):
    You know, it’s like, we’ll just pay the 15K. And I thought about it. It kinda hurt my feelings to not get 0% owner financing on that 15. But I was like, you know, they need the money. They need the 15 grand we’ll just go ahead and pay it. But the short answer is I think the real skill is to, to be able to negotiate with people, without giving them a price, giving them an offer. I feel like if you give an offer, it’s a commodity, a commodity for them to shop. I also think it’s kind of acrimonious. People feel like they’re good negotiators because somebody can say, well, I want $200,000 from our house. And you can say, well, how does a hundred thousand sound? I don’t think that’s negotiation at all. I think that’s horse trading. And like my family came from the agriculture world.

    Brad Smotherman (17:09):
    So, I mean, we were pig farmers. I mean, and I saw that growing up all the time, you know, that doesn’t work for houses as well. Like if we can make people realize that we’re not there to take advantage, if we can make the number work, then we will make it work. But there’s equity. There’s two types of equity. There’s equity at price and equity in terms. So if we can create equity in terms, a lot of times that’s a better equity position for us to have as a longterm play, as opposed to just like really working in the 70%. If that makes sense.

    Jay Conner (17:37):
    Do you ever offer or give multiple offers or multiple strategies of saying, okay, if you want your price, we can do it this way. If you’ve got to have all cash, we can do it this way. And if you want a third option, we can do it this way. Or do you, most of the time stay with say the the terms negotiation and conversation?

    Brad Smotherman (18:02):
    And that’s a great question. So we don’t do like the three offer strategy of like, we can do it this way, this way, or this way, this way, because what I’ve found, at least in my own personal experiences that I had people say, well, I want this price with that term.

    Jay Conner (18:14):
    They want to pick and choose the way they want it.

    Brad Smotherman (18:18):
    Yeah. It was like, we’ll take this closing date. We’ll take that price with those terms. It’s like, well, that’s not really how it works. What I’ll say to that is it’s really common for us to, to bounce back and forth between price and terms. So if someone says, okay, this is the price that we want, they’ll say, well, if you want it like that, here’s how we can make that work. And they said, well, that doesn’t work for us. And then we’ll go back and say, well, is that price the least you would take? And so we start talking about pricing in. And I’ve had situations where we have to kind of go back and forth three or four times before we land somewhere. And it’s generally somewhere kind of in the middle that we find that people will work within kind of the median based on what they’re hoping for. You know, if we can substantiate pricing and values and costs to where we can show like, Hey, these are the numbers that you’re working with. Like, this is the value. This is the cost to get it there. Here’s my breakeven number. You know, what are you hoping for your cash at closing people generally tend to be a little bit more reasonable if we can substantiate why they should accept a lower price and what they were hoping for.

    Jay Conner (19:15):
    When you have someone that is agreeable or at least open. They’re open to the idea Terms and, you know, taking payments or equity over time or whatever. Do you, in your, in your conversation, do you tell them how long or how long the term of the note would be? Or do you ask them what’s the longest they could go? Or how do you get to that agreeable length of the note?

    Brad Smotherman (19:51):
    Yeah. So what we talk about is in terms of some now and some later, so we’re going to talk about it and say, okay, how much cash do you need at closing to make it work? And they’ll give us a number and we’ll kind of negotiate that. It’s like, okay, if I can get you X at closing, then how soon were you hoping to get, no, we do it this way. We can either do payments every month, like an annuity or retirement plan, or we can do a lump sum in the future, which were you hoping for? Generally, people kind of gravitate towards the payments per month. But the thing that we never mentioned is interest. Okay. We never really talk about terms. We’re going to talk about it in terms of, you know, $20,000 at closing and $500 per month until paid.

    Brad Smotherman (20:27):
    And so people are kind of looking at that and saying, especially if they’re a landlord. Guys, if you’re, if you’re dealing with a landlord that has free and clear property and they’re tired landlord, you should absolutely be able to negotiate owner financing because these people are open to receiving payments. That’s what they bought the property for in the first place. Well, if we can just kind of segment it to being like, well, how much do you need at closing? What would you like a lump sum in the future? Or would you like monthly payments? Generally, they’re going to say, well, I’d love monthly payments and we can negotiate something, but we never really talk about it in terms of, well, it’s a 10 year loan and here’s the rate we never mentioned. Certainly we’d never mentioned interest. We don’t really ever talk about the term as well.

    Jay Conner (21:03):
    So you would agree that most of the terms that you structure are payments with no interests?

    Brad Smotherman (21:10):
    Correct. A hundred percent. I’ve only paid interest twice on owner finance deals. And both of those were properties I wanted. They were both lake properties and I was like, I’ve gotta have this. I think I paid a 3% rate on one and four and a half on the others.

    Jay Conner (21:24):
    I love it! I love it! Well, Brad, now let’s really change gears from the owner financing thing and the term thing to this world that you’re in of investing remotely. My lands! You are in, you’ve invested in 15 States. You invest from Michigan to Georgia. And when I asked you a question that could take you three days to answer, but you got about three minutes instead.

    Brad Smotherman (21:55):
    We’ll work with that.

    Jay Conner (21:55):
    But how in the world do you invest remotely in 15 different States? And we know what, we know everybody’s concerns are. I mean, how do you find those deals, you know, out there in a different state, what’s your boots on the ground? How do you make sure you’re not being taken to the cleaners? How do you manage all that stuff remotely? And you know, my land! You can’t drive by it and see what’s happening to the property. I mean, what does that world look like?

    Brad Smotherman (22:24):
    Yeah. And you’re right. That would be about a three hour answer. But to put it into three minutes, the first fundamental that we have to understand is that the farther away we are from our own personal market, the cheaper the property must be. So we have to have a higher discount. Now, I’ll buy something at 60 cents on the dollar cash in my backyard, but I’m definitely not going to do that, you know two States away, right. So we have to have a greater discount because you’re a hundred percent, right. We’re going to have issues that we don’t expect right now. We don’t have, you know, a large amount of like workforce that can help us in these deals generally. Right. So what we’re going to do is we market to areas that we like, okay. And because we’re marketing in big geographic areas, our lead cost is actually quite a bit lower.

    Brad Smotherman (23:12):
    It’s substantially lower. So we can do one of two things. We can either have a lower ad budget, or we can keep our ad budget the same and have maybe three or four times a lead flow. Okay. So let’s just say we have four times the lead flow. Well, what that means is that, that deal that comes around twice a year, three times a year is going to happen for me roughly every two months. Or, you know, the deal that happens every four months is going to happen for me every month. So I can be a little bit more picky based on what I’m looking at. And so in terms of the value, the decisions are very easy, actually. So I mean, case in point, we just bought one in Montgomery, Alabama. The property had a comp across the street that sold in in February for 76,000, we bought this one for 13, so we have it under contract.

    Brad Smotherman (23:59):
    And so once we have an under contract, we go into due diligence. So the first thing we’re going to look at is value. So what is the value based on what we expect right now? So we feel like roughly this thing’s worth $75,000 and I can probably owner finance it for 89 or maybe 99,000 with a 10K down payment. You know, at a minimum 10K. So with that, we’re gonna talk to two or three brokers in that market, real estate agents that are gonna give us CMAs. Give us an idea of value. And then we’re going to then once the value looks okay, we’re going to switch to condition. So we’re going to get actually a home inspection on this property. Okay guys, once we have three different CMAs from agents and they all kind of make sense for one another, like there’s congruency in those three CMAs, and then we go and we get the home inspection, we’re going to know really everything that we need to know in terms of that property, especially with the discounts that we’re buying.

    Brad Smotherman (24:48):
    So, I mean, the question being is that a little bit more risky than buying it around backyard? It certainly is. Whenever, if you were paying dollar for dollar the same amount, but if you’re paying 60 cents in your own backyard or 20 cents in another state, then I would ask you, well, which is more risky at that point. Okay. So short answer, we’re going to get things under contract that we feel pretty comfortable with. Then we’re going to verify and find the facts that we know and what we don’t know. At that point, we’re going to make a final decision. Sometimes we have to renegotiate price most of the time we don’t, because it’s just such a severe discount on the front end. And I mean, in terms of management, the thing is that we’re owner financing most of these, almost all. And so if we’re owner financing things, we’re serving the least served in the most underserved buyer pool in the country.

    Brad Smotherman (25:32):
    There’s a lot of people that need owner financing. And since March, this is what I heard from Eddie Speed yesterday. And Jay, I know, you know, Eddie. So he said that if a hundred people could get a mortgage in March before this COVID thing hit, then right now there’s 64 people that can get a mortgage that’s left out of those hundred. Well, what happened to those other 36 people? Did they just decide not to buy? Well, no, they need owner financing at this point. So we’re serving a very needed, a very underserved buyer pool that needs owner financing. So sell the house with owner financing, create the note. I don’t want ownership and property. I feel like property is liability. We want to own the paper. Okay. So we create owner financing. So the house owner financing to have a longterm cash flowing asset. And in a nutshell, that’s how we buy remotely.

    Jay Conner (26:18):
    To what extent do you buy houses remotely with owner financing? To what extent is, are you comfortable with the amount of repairs or rehabbing involved?

    Brad Smotherman (26:33):
    Yeah. I mean, we’re not going to rehab anything. So if the property means that the grass cut, somebody better go cut the grass because we’re going to buy it. We’re going to sell it as is, you know, the best example that I have with this. I had a house that I bought for $2,000 one time. And now I don’t understand why people do what they do sometimes. Jay, I know that doesn’t resonate with you. I’m sure that you’ve never seen anything that didn’t make sense. But for me, I see a lot of things that don’t make sense in my world. And this lady sold me the house for $2,000 and she had just done new vinyl and new windows on the exterior. They surely looked great, but she said, I don’t want you to go in the house because I’m afraid you won’t buy it.

    Brad Smotherman (27:07):
    This was maybe six or seven years ago. And I’m actually going to look at houses. I said, well, respectfully, I have to go look at, you know, I have to go inside. And so this lady, the roof look kind of bad, but I didn’t realize how bad the roof was. She did new vinyl, new windows. She didn’t do the roof. And so water had been pouring into this house for like four or five years. And so like, literally the back half of this thing was gone. I mean, it was like molded. It was soft, the subfloor, you couldn’t stand in the kitchen, all this, it was a mess! But we sold it with owner financing. As is! Like, I’m not going to do that kind of construction. I’m not a construction guy. Literally I had to come over. I had to have a handyman come to my house and replace the doorknobs because I don’t know how to do any of that stuff. So like, I’m terrible.

    Jay Conner (27:46):
    You and I have something else in common, my friend!

    Brad Smotherman (27:49):
    Glad to hear that, man! I think we’re like kindered souls just, probably not from the same parents, just generationally, but you know what I’m saying? We’re cut from the same cloth.

    Jay Conner (28:00):
    A brother from another mother.

    Brad Smotherman (28:04):
    For sure.

    Jay Conner (28:07):
    So you’re not gonna do any, you’re not gonna do any major rehabs. I get it. So my lands! How do you find, so are you finding most of these deals remotely in other States? Again, as you mentioned using Pay-Per-Click. Google Pay-per-Click.

    Brad Smotherman (28:25):
    A hundred percent. So, I mean, these are people that are actively searching to solve a problem and we’re there when they need to be.

    Jay Conner (28:30):
    I love it when people are looking for me and I’m not looking for them.

    Brad Smotherman (28:34):
    Big difference because people don’t understand the difference in the negotiation structure. So, I mean, if I’m contacting someone to sell me something, versus someone contacting me to buy something, that’s a huge difference in the frame of negotiation. And so we always want to be where someone is searching for us. If we can be, of course, there’s always exceptions. You know, like anything works some of the times. So we can do the text, we can do the direct mail. I used to do 70,000 direct mailers a month. I don’t do any of that anymore because it comes down to, I don’t want to contact someone to sell something. I want people contacting me to buy something.

    Jay Conner (29:08):
    Final question, Brad. At least almost final question I have to, I have to precursor that. So we know how you’re finding these deals. You got all these people that need owner financing. They don’t know there’s a way. So how in the world do you get the word out to all these people that you’ve got owner-financed terms available? How do you find the buyers?

    Brad Smotherman (29:29):
    And that’s a great question. So our big three are Craigslist, Facebook marketplace, and then putting yard signs out that say owner financing. And so…

    Jay Conner (29:38):
    My number one on a, so I sell, I don’t do owner financing out here in this market. That’s another conversation. I do a lot of rent to own. I love your model. Regardless. It’s the same buyer, whether they’re buying owner financing or they’re buying rent to own. But with that, Facebook marketplace, hands down. Is my best lead source for finding these owner finance buyers.

    Brad Smotherman (30:04):
    Yeah. It’s really amazing. I’ve got a, I’d say she’s at least half time and probably closer to three quarter time. And the poor girl, she probably has carpal tunnel by now because like you post a house for sale with owner financing and all of these buy-sell-trade groups. And like, you can see like the computer almost begin to melt because it’s overheating from all the people responding. And it makes sense. I mean, it’s really common in a market. So I’m in Nashville, Tennessee. The last time I checked, there were 2,700 houses on the market on the MLS to service everyone that could get mortgage financing. Well, there were three that were offered with owner financing and they were mine. And so it’s like, if that’s the case, you can see the disparity in the supply demand curve. You have a huge group of demand for very, very little inventory. And so selling the houses never really been a problem.

    Jay Conner (30:53):
    I love it! Brad, I know my audience wants to stay connected with you. How can they stay connected with Brad Smotherman?

    Brad Smotherman (31:00):
    Yeah. So for those that are interested more on owner financing and what we do, then you can listen to my podcast, Investor Creator, on iTunes and the various other platforms. And if anybody wants to reach out to me directly, feel free to do so. At http://BradSmotherman.com

    Jay Conner (31:13):
    That’s awesome, Brad! It’s so great to have you here on the show, Brad, I really enjoyed our conversation. I know the audience did as well. And so let me give it to you for parting comments and final advice.

    Brad Smotherman (31:26):
    You know, the thing that I want to say to people is, always would try to instill the amount of hope that I can, you know, I think a lot of people want to do this business and they have a lot of fear. And I remember how that was in 2010 when I started, because you know, I started in the brokerage business. I was a realtor and not a super successful one at that. I made a living, but you know, whenever I decided to be an investor, I thought, gosh, like nobody’s going to leave a loan in place. Nobody’s going to sell out a discount. Nobody’s, you know, and it’s the same thing that I’ve heard, you know, and here’s kind of like the hierarchy of beliefs that fell down for me. I thought nobody would leave alone in place. Well, that happened.

    Brad Smotherman (32:01):
    And then I thought, well, nobody’s going to sell at 50 cents on the dollar. And then that happened. And then I thought, well, nobody’s going to give me 0% owner financing. And then that happened. And then I thought, well, all of this is because we’re that good in person. We can’t do it on the phone. And then we started buying all of those on the phone. And so at the end of the day, I mean, this business works. It’s an amazing business. It changes lives. And if you feel compelled, you have a passion for the business and you have a passion to help people with their problems and you can do very well in this business. Stay with it.

    Jay Conner (32:28):
    That’s awesome! Brad, thank you so much. And thank you! My audience for tuning in. It’s always great to have you here. And I know you found this episode very valuable. I’m Jay Conner, The Private Money Authority. Wishing you all the best and here is to taking your real estate investing business to the next level. And I’ll see you on the next show. Bye for now!

  • Chris Prefontaine – Scale and Automate Real Estate Investing

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    After many years of coaching and constantly doing deals himself independently, Chris Prefontaine founded Smart Real Estate Coach in 2014, bringing in his son Nick, daughter Kayla, and son-in-law Zachary as the company began to grow.

    The family team coaches investors on how to properly scale and automate their businesses throughout North America — all without using their own cash, credit, or taking out bank loans to buy property. His team buys and sells homes in his own market every month.

    Join our new Private Money Academy with a free 30 day trial, https://www.jayconner.com/trial

    —————————————————————————————————————–

    Jay Conner (00:01):
    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority and your host. And let me give you a special welcome, particularly if this is your first time to tuning in. Here on the show at Real Estate Investing with Jay Conner, we talk about all things that relate to real estate investing from single family houses to commercial deals, to self storage, to land, to anything that you can imagine. Even note investing. Anything that you can imagine that relates to real estate investing. This show is for you, whether you are a seasoned real estate investor, or a brand new real estate investor.

    Jay Conner (00:51):
    Here’s why. First of all, we talk about private money a lot on this show. How to get funding for your deals, regardless of your experience or your credit or your verification of income. You know, whether you’re seasoned or you’re brand new, everybody is always looking for new funding for your deals. As a matter of fact, on today’s show, my special guest, we will be talking about creative ways to get funding for your deals regardless as to whether you have private money lined up or not. In addition to that, people are always looking for ways to find really, really hot deals. We talk about that on the show here, we talk about how to automate your business, how to sell properties very quickly in order to reduce your carrying costs.

    Jay Conner (01:36):
    But before I introduce to you my guest today, I want to give a special gift to you. You see, I mentioned a moment ago, I’m known as the private money authority. So if you are seasoned or brand new and you want more funding for your deals, I’ve got a free gift for you. And that is, I just recently launched my brand new membership, which is titled The Private Money Academy. It’s a monthly membership where I am live at least two times a month for the entire Academy where we do a hot seat. We analyze your business, help put a plan together to expand your business and scale it and grow it very quickly. I answer Q and A every time live twice a month for Academy members. We’ve got a closed Facebook group where you can ask questions at any time. It’s a very, very expensive and live forum. And we also have brand new training content for the Academy members every month. Well, I’ve got a brand new offer here. Brand new, and it’s free. You can have free access to the Academy for four weeks, and I’m going to give you the URL right now. To where you can go take advantage of this free gift after we finished the show and that’s www.JayConner.com/Trial That’s JayConner.com/Trial

    Jay Conner (03:05):
    So you may be tuning in on YouTube, or you may be on Facebook, or you may be listening to iTunes or Google play or one of our platforms. And so no matter where you’re tuning in from, we need your help. Please subscribe, rate and review. If you’re watching on YouTube, be sure and subscribe and hit that little bell. So you can be notified every time that we go live with a new guest and new training. And speaking of guest and training today is no exception to the past where I’ve got a fantastic expert guests to join me. And so I’m so excited to have him on before I bring him out of the green room and bring him on here, live on the show. Let me tell you just a little bit about my friend.

    Jay Conner (03:50):
    First of all, he is a three time best selling author. One of his books, Real Estate On Your Terms, we’ll be talking about that. Secondly, the new rules of real estate investing and also he is co-author with Moneeka Sawyer’s, Real Estate Investing For Women. He’s also the founder and CEO of SmartRealEstateCoach.com. And he’s the host of the Smart Real Estate Coach Podcast. In addition to that, he’s been in real estate for almost 30 years now. His experience ranges from constructing new homes back in the 1990s and owning a Realty executive franchise to running his own investments, commercial and residential. Well today he runs his own buying and selling businesses where this family thing, which purchases about two to five properties every month. So this guy is still in the trenches today and knows exactly what’s going on. He’s an expert in the realm of terms, he’s also an expert on how to take your business from part time to full time. And he has this very, very special strategy and formula that he employs and also educates his students on which is called, The Three Pay Days. With that, I’m excited to have on and introduce to you my special guest today, Mr. Chris Prefontaine. Chris, welcome to the show!

    Chris Prefontaine (05:16):
    Hey Jay! Good to be back, buddy. Good to see you as always.

    Jay Conner (05:19):
    Good to see you too. And I’ll tell you folks, one special reason I love having Chris here on the show is because Chris and I have got the same exact core values and ethics when it comes to doing business. It’s all about putting the other person first. Whether you’re talking to a buyer or you’re talking to a seller, or you’re talking to a private lender, Chris believes exactly the same thing that I do. And that is, put other people first and you don’t have to worry about yourself. Just sort of like Zig Ziglar said. So Chris, I had you on the show. I guess it’s been coming up on a year ago. I lost track of time, but since that time we’ve had this crazy thing called COVID-19 come along. Corona virus. So first of all, if you would Chris share with the audience how have you been dealing with the Corona COVID-19. How’s it affected your business? And what have you done to adapt? And as your business increased, decreased or stayed the same?

    Chris Prefontaine (06:25):
    Yeah. Thanks, Jay! It’s interesting because when this happened, so I’m going to go back to March when it started to happen. I said to my son, Nick and my son, Zach, I said, okay, I’m hoping what we built post-crash was built to what our expectations were, which was to weather all storms. It really was built to do that. And so our business has tripled and the amount of properties we’re doing as has all the students, so super happy with it, super pleased with it. It’s still, as you know, nobody knows the answer, right? The billionaires don’t know the economists don’t know. So the jury is still out, but so far, we’re just, we’re not getting by with driving. And I love to see that for the students, cause it’s almost like they had an, it’s not even, not official. It’s just a massive pump up in business.

    Chris Prefontaine (07:07):
    I think a lot of that’s because the banks are making it very difficult for your conventional buyers, which makes it difficult for the sellers. I see that, especially in the higher end, you know, the jumbo loans over and over and over again. So I love, and I think you do too, dealing with those buyers that are truly great buyers. They just need a little bit of time. So that’s the kind of path we took since April. What do we change? Only thing we change as a team is virtual meetings every morning, cause we’re virtual, except for one day a week now. And then the, from the, from the standpoint of sellers, we started about a year and a half, probably about the time I was on your show or early, we started pivoting to virtual. Anyway, it just, now that’s overwhelmingly accepted by the sellers, whereas before it was a bit of a sell to let them know how we’re going to do things virtually. So I I’ll end that question or that answer with my son-in-law said to me the other night, we’re at dinner privately. The family. And he said, I gotta tell you, I think COVID coincidentally is one of the best things that ever happened to our company in our portfolio. So probably a little bit different answer than most people give. But that’s been, it’s been a disguised blessing for us so far.

    Jay Conner (08:17):
    Well, when you say your son said, dad, coincidentally, I think this is a, been a blessing for us. You may or may not have heard of my definition of coincidence, but my definition of coincidence is God’s way of staying anonymous.

    Chris Prefontaine (08:35):
    I love it!

    Jay Conner (08:36):
    Well, your story, Chris, and your results and your experience since COVID-19 is exactly the same as mine. My business has tripled both my coaching business and my buying and selling house business. Year to date since January, of course, you know, COVID came in strong in March. I have bought and sold more houses this year than any year since I went full time back in 2003. My coaching business has skyrocketed. And I think another reason for that is because what you just said, virtual. And I really cannot tell you, I wish I could tell you. Well, I can give you part of the reason, part of the reason our real estate investing business at sky rocket is because I was, and you were prepared for the increase in business.

    Jay Conner (09:34):
    For the all cash deals, we have plenty of private money on the shelf ready to take advantage of serving all those people and et cetera. But the, but the demand itself, I must say, I can’t, I cannot give you a definitive answer, but I’m thankful for it on both the buying and selling side. And we were prepared to take care of it. Now, your popular business model that you talk about, your strategy is a strategy that’s called the three pay day strategy. And we talked about it. Last time you were on the show, but we got a whole lot more additional new viewers and audience members since then. So from scratch, how about explaining your three day strategy or three payday strategy and what that means?

    Chris Prefontaine (10:22):
    Yeah, so the three payday is this is on the exit. So we buy them on lease purchase or owner financing sometimes subject to, but all of our exits, almost all of our exits are going to be rent to own. And when we do that, we create the three paydays. That I know you’re familiar with, but the first payday is a nonrefundable down payment. And the second pay day is the difference between what I’m paying the underlying mortgage on that’s in the seller’s name or the seller directly, if it’s owner financing and what I’m collecting from my buyer, my buyer who needs time to get financing. That’s payday two. Payday three is the, is pretty cool because not only the cash out the mark-up and the price that we were able to achieve, but it’s also all of the principal pay down. When you start looking at principal, pay down on some of these deals, of course, the longer the term, the better, right? But when you’re talking about on financing deals, Jay, we only do on a financing deals when we buy, when they’re free and clear property. So we’re doing always principal only pay downs. And so over the course of three, four, five, seven, 10, my building 20 years, you got some massive principal pay down. So I love the three paydays. I also love the longer terms, especially during Covid.

    Jay Conner (11:29):
    So let’s just make sure our audience understood what you just said. So you said the majority of these deals that you’re doing, the three payday strategy and those three paydays again are on the selling side when you’re selling the home they are, you’re getting the nonrefundable option fee or down payment. You’re getting positive cash flow between what you got coming in, what you got going out per month. And the third one, what’d you say the third one was?

    Chris Prefontaine (12:02):
    Principal Pay down. And if there’s any mark-up from what we purchased to what we’re selling.

    Jay Conner (12:07):
    Yeah. It’s just so that principal pay down means you, and then this is what I want everybody to not miss. You’re buying homes from sellers and the way you’re funding those deals, the way this third pay they have is you’re buying those houses with the seller, being your lender. The seller is your bank. The seller is taking a note back and selling to you as seller financing, or you bought it subject to the existing note. Is that right?

    Chris Prefontaine (12:39):
    That’s correct. When they’re free and clear the seller financing, we prefer so that we can structure whatever we want for principal pay down. And the third way buying them would be lease purchase. So more of a sandwich, sandwich lease.

    Jay Conner (12:51):
    Gotcha. So, what are the reasons, what are the benefits, why have you decided to exit with the rent to own strategy versus putting it in the MLS and cashing out?

    Chris Prefontaine (13:06):
    Yeah, mainly it’s the three paydays Jay, but I’ll tell you a pre COVID, but certainly more so now to our earlier comments, both of us. The amount of buyers, the buyer pool for people that can’t walk in a bank today and get financing. And then especially when you get to jumbo and above is crazy. We had a guy, give you a direct example. I think it’s always easier to understand. $1.3 million house. One of our students had a buyer saw that same home had an under agreement. COVID hit, he has a 760 credit, but he didn’t have enough down at the bank. Wanted to see some ungodly amount, like two and a half year reserves, 25% down. He had like 10% down. So he, he thought he lost that house. My student picked it up. We did together. We partnered on it and this guy came out again for the same house and did a rent to own on it because we’re going to give him the two year ramp. He needs to save more money than satisfy the bank. Well, those are everywhere right now. Like the buyer pool is enormous. Prior to COVID I use the percentage of like 60% to 80% of the buyers couldn’t get financing. If you took a snapshot in time, I don’t know what the number is today, but it’s bigger. And so they need our help. And that’s the cool thing about a very healthy relationship. So to what you said earlier, if we put their interests for us, it’s a win-win. Big win-win right now, helping these people.

    Jay Conner (14:24):
    So I’m going to ask you a question that you could actually take three days live seminar to answer. We don’t have three days. So let me just ask you to let your consciousness just flow and just answer it the best that you can from the 30,000 foot view. Here’s the question. When you and your students are talking to a potential seller, of course, all these sellers were talking about where you buy creatively on terms are off market. Clearly you’re not buying these properties in the multiple listing service they’re off market. When you are beginning a conversation and establishing rapport and getting information on the property, we know that the seller of that property in most cases, either has not considered or even thought about the possibility of selling their property on terms. They are thinking somebody just going to buy this house. So my three day seminar question is, what is your talk off? How do you convince someone to agree to sell their house on terms? Before you answer this question, Chris, I want you to explain to everybody and unpack what does it actually mean. The sell on terms. Let’s get that clear you, after you clear up black and white, easy peasy, really, what does it mean to sell on terms? How do you convince somebody to do that when they never consider doing that? And when the conversation started with them, they’re anticipating, you know, getting a check and getting all their money.

    Chris Prefontaine (16:22):
    Yeah, absolutely. So terms to us, cause it does mean different things to different people, as you and I said off air. Terms to us is simply lease purchase, owner financing and or subject to because we combined some of these strategies. That’s what terms is to us. Those are the three areas we live in. The conversation, this, the question you asked with the convincing is by far the biggest thing we get in live trainings. So it’s not convincing. So just to clarify that, so it’s like the same reason you would go to an autobody or an attorney or an accountant because you have something you’re trying to either fix, improve or accomplish, because not always negative, especially with debt free properties, it’s not negative. They just wanted the most. So that’s, so first and foremost, I have a simple question at the beginning of the conversation. Jay, if you were to get your price, I haven’t seen your home yet, but if you were to get your price, are you open to doing that on a lease purchase or owner financing?

    Chris Prefontaine (17:15):
    Now most say, well, I just want to sell it out. Right? And my answer is I get it. 99% of the sales I deal will say that. Of course I would want to sell tomorrow of a full price cash, and have no issues. Right. But the reality is this. Mr. Seller, you have a significant part of the buyer pool right now that can’t do that. They can’t, they can’t do, they can’t buy your home because of financing. Now that has made, it’s made even easier for me to explain with Covid. It’s even, it’s even worse for them. So that’s the conversation. And then back to the convincing, there is no convincing if they can, A. Wait for their cash, if they have any in the house, any equity left. And B. I can solve whatever issue they have. Give you some off the top of my head.

    Chris Prefontaine (17:57):
    I’m moving to Texas. My family is already there. I want to be there for the holiday. I have two homes. I can’t keep them both during COVID. I owe about what it’s worth. I can’t afford a realtor. If there’s any motivation for selling, that makes sense for me to solve. I can solve it. As long as one of two things are in the mix. One, I need my cash right away. Two. I’m a year behind and has no equity in my house. Like those are the two things that I just can’t do anything with typically. But every other scenario, if they can wait, we can solve it with a lease purchase or owner financing or subject to. So is that, was that a condensed enough or too condensed?

    Jay Conner (18:34):
    Yeah. Yeah. You took three days and put it in three minutes. Which is what I wanted you to do. So what would you say is a realistic percentage of people that you’re talking to. And this is putting aside those that you can’t help. Like, you know, those scenarios, you just, I mean, you know, they’re a year behind and they have no equity. You know, those do have equity. Those that, you know, the math would work if they get it and they can wait, what percentage of those people that you talk to actually end up being, you know, agreeable to selling on terms in some kind of structure?

    Chris Prefontaine (19:17):
    Yeah. About a third. But let me clarify where the third came from. The third have already been weeded out by virtual assistants who spoke to them and they said, yeah, I’m somewhat open. Have someone call me. You know, they weren’t shutting it down totally. They could wait for their equity. So out of those that we get about a third are open to terms. Now I can’t tell you in accurate metric from April 1 to now segregated. I can just tell you ongoing. We’re about a third. So it’s a significant amount. Look, here’s a stat. This is a cool thing. I, some of us, our company and some of our students are niching down just to do owner financing, just at target free and clear properties. Well, if you look at this different stats, but if you look at the stats about a third of the property, the United States are debt free or close to it.

    Chris Prefontaine (20:02):
    That’s a lot of properties! You don’t need to talk to many of those. These street paydays, those free and clear properties. If you get four year terms, you’re talking about six figure deals right across the board. If you get a house that’s 200 grand or higher and you get four years of more, and the principal payments, you’re talking six figures, three paydays, you don’t need to do, you know, 50 of those a year. You can go out and try and do that, but you don’t need to do that for most people. So super, super, super lucrative for both parties. If, if that’s the criteria. So probably a longer answer to your good question.

    Jay Conner (20:36):
    That’s good. Would you say most of these sellers, you’re able to negotiate, that you do negotiate terms, they are willing to take payments or whatever. Would you say most of those are principal only payments or do some people you have to pay interest?

    Chris Prefontaine (20:55):
    Okay, good question. So in the mix of what we do about 20% of the properties we take on our contract offering clear, and yes, we do those with principal only payments. Now there’s been a hybrid or two. I’ll give you two real examples. We did our office building and the owner is very sophisticated investor owns probably not the largest landowner, but one of the largest on Island here where we live. And so he sold me the building and he said, I want five and a half percent interest. This is a year and a half, two years ago. I said, well, you should pay principal. So here’s what we did. We both loved it from when I closed on it in November of 18, all my payments. And there were teared up payments were principal all the way until about September of 19. So as long as the shorter that is, I took that principle five 50 and had it paid down to four 90 without a penny of interest, then he advertised it at 5%. And he got his way. And I got my way. There was no way I would’ve got a 60 grand pay down in principal by doing a conventional mortgage. He knew that. And I knew that. So we both got our way. That’s one example.

    Chris Prefontaine (22:01):
    The other way we do things is let’s say I’m three years into a four year on a financing term. This was an exact deal. And every holiday season, I send them a note or an email. And I say, look, I know you got three years left or two years left, as we click along. If I was to prepay 6,000 was in this case, it was 6,200 prepay. So take it for another day, like prepay some principal when you extend it a year. So I get another year principal pay down that’s of course, if my buyer’s not ready to cash out, it works even better. We did that two years in a row at a particular property. The third year, last Christmas, they called us and said, will you do that thing again? And I said, well, instead of that, why don’t we do this? If you guys don’t need the cash, why don’t we change your note? That’s going to be coming up next year. Why don’t we change that to an interest rate of 4.2? And why don’t we put that out 15 years for balloon? So a four year deal on a financing principal only became a five, then became a six, then became a 21 year deal. So that’s why I said earlier, you can mix and match some of these strategies depending on what the motivation is of the seller. In this case, they didn’t need the money and their account and loved it, that they were going to stack it in some interest. So we do sometimes that was another long answer, but I hope that helps.

    Jay Conner (23:12):
    Oh, it did help because what you just explained was a real life example of the deal after the deal, after deal, after the deal.

    Chris Prefontaine (23:21):
    Exactly.

    Jay Conner (23:23):
    So that’s a great example of, I mean, you know, when I first heard years ago that sellers of homes of houses, of single family houses, would be willing to take a note out 15 years, I thought to myself who in the world would wait 15 years? I mean, they might be dead by then, who would wait 15 years to get their money? And I, and the light bulb finally came on to me years ago. Well, the same answer is to the site to a different question. Who in the world would be willing to sell their property and agree to leave the mortgage in their name and trust me to make the payments? The answer is the same. And the answer is, I can’t make a decision and have the same motivation as somebody else for the seller. They do things for their own reasons. I do things for my reasons and I need, and we need to let them make their choice. Right? One of the biggest mistakes I made when I started in real estate investing was making decisions for other people or deciding in my mind what I thought they would do, or they would not do. And I don’t have a clue what somebody else is going to do until I give them the choice. So my lands! Give them the choice! Right?

    Chris Prefontaine (24:44):
    Yeah. To your last point there about making the decisions pre COVID too many of our students and us, when we first started, we’d say, if they asked us how long a term we may have come out with a term back then, like four years. Now, simply by changing how we answer that we’re getting five, seven, 10, and 20, just as easy as we were getting three to five in the simple question, when they say, how long is, if you got your number, I don’t know if you’ve got your number, what’s the longest you could see yourself going in terms? And I am pleasantly surprised. I won’t say shocked at how many sellers are programmed to say things like, well, I wouldn’t go up 30, like a regular mortgage, but I might go up 20 or might go upto 10, like automatically they do. And so it took us four or five years to figure that one out, but all the students, new students now. So you think we would have had to pick it out first. New students, as soon as we told them that technique thought that was normal. And they’re getting those longterm,

    Jay Conner (25:38):
    Chris, you’re the expert on terms. I’m the expert on private money. But I got a question for you and your students to play with, and I want to hear how it goes. So the question that you just said was, well, what’s the longest you could go? I would love to play with this question. And that question would be, well when they say, well, you know, how long have I got to go? I might ask them, well, how many years would you like to continue receiving monthly income?

    Chris Prefontaine (26:15):
    I love it! in to the point!

    Jay Conner (26:15):
    Well, I don’t, whatever. I don’t want to ever stop getting monthly income.

    Chris Prefontaine (26:20):
    No, I love that one. Thank you for the share.

    Jay Conner (26:23):
    So anyway, it just came. It may be a stupid idea, but I don’t know sometimes what I think stupid works and vice versa. So, so the next question. You talk about operating. In the midst of this current chaos, you talk about operating in the perfect triangle. What does that mean? What is the perfect triangle that you talk about?

    Chris Prefontaine (26:50):
    Yeah. I thought of this right when Covid hit and literally I moved home to the home office here. And that was, we’ve got a really cool community, like really a family environment in the office and amongst our community. So I said this, if we can all attach ourselves to one side of triangle, a cause, just a cause. Like a major mission, like right now, because of the chaos, sellers and buyers are some of them afraid, but all of them need a guide. They’re like screaming for help. And in some cases, literally don’t know, should I sell, can I sell? Does this work? So find a cause that can, then the second piece of the triangle actually affect lives, like affect them, generationally affect them. That’s what we’re doing.

    Chris Prefontaine (27:32):
    We’re going to affect generationally. These people that thought they couldn’t buy or sell. And that’s going to forever be in their family. And then third. And in affecting our lives as well. And then third piece of the triangle is to get paid, to do it. So find a cause. Go out and affect lives positively, including your own. And then get paid to do it. I don’t think that triangle has ever been so prevalent because of the chaos right now, because of the need for a guide and someone to like take them by the hand. There was a major survey done, Jay, I’m going to forget the name. One of my mentors told me about it. They do a trust survey every year. It’s not cause of COVID. They happen to do it right around covid. But the number one thing with sellers and buyers was this trust factor. Like they just want a guy that they can trust and that perfect triangle is where we could camp out.

    Jay Conner (28:18):
    So beautiful way to describe win-win-win. Final question, Chris. For this show. And that is given your experience. We’ve had COVID come along both you and I lived through 2008, 2009. I mean, you’ve been doing this real estate investing thing for 30 years, yourself and your family. What’s the best advice you can give today on how to prepare to handle the next recession. When’s the next recession? Well, if we, any of us knew that we could retire today.

    Chris Prefontaine (28:56):
    You wouldn’t be yet.

    Jay Conner (28:58):
    Is there going to be another recession? Of course. Is it going to be another stock market crash? Of course. You know, it’s cycle cycle, cycle cycle. So what do we need to do to prepare?

    Chris Prefontaine (29:11):
    Sure. I mean, I could go a couple different directions here, personal and business, but let’s go business first. I will personally tell you my opinion, never, ever, ever sign personally on a bank piece of paper, pledging your assets. That’s my opinion, except for maybe an exception of your own home. I could see that working, but you could still buy that on terms as my family members have. So that’s number one. Don’t sign personally. Number two. So then you’re not worrying about if,if,if,if,if. That they’re going to come knocking if the market drops. Okay. Number two. Hang out with someone that weather the storms, Jay, you said you and I have gone through ’08. I went through ’08. I went through 9/11, like you did. I went through my son’s accident where he was put in a coma and that was an overnight shot. You know, all these things beat us up, but they also weathered us because unfortunately success without the, those trials and tribulations, their rotten teacher, they really are.

    Chris Prefontaine (30:01):
    So if you’re going to do anything in real estate, just hang out with someone that weathered a few storms, that’s the way to do it. Just don’t deviate. There’s no reason to reinvent the wheel. And then lastly, on a personal note, pre ’08, I know I would have no problem, no problem whatsoever. Having a personal residence that had there was leverage 70, 80, 90% of it. I would have no problem doing it until you said, Oh, that’s normal. I have good rate. And I’m in real estate. I will tell you if you can live on 50% or less of your income and never have to be in that debt or leveraged position, you will also sleep better. So if you could tell all of these are based on my way, crashing, not needing to sleep at night. When I put my head in the pillow, I want to know that everything’s fine. And so that’s a smidgeling of what I would tell people to do.

    Jay Conner (30:48):
    Awesome advice, Chris. Awesome advice. So Chris, I know that the audience wants to stay connected with you. So how can folks further the conversation and stay connected and get plugged into Chris Prefontaine?

    Chris Prefontaine (31:03):
    Sure. Thanks, Jay! They can go to SmartRealEstateCoach.com There’s if they don’t mind listening to me babble for another 45 or so minutes, there’s a free webinar there. It’s content rich. It’s not going to teach how to make a million dollars. It’s going to expose you to some more information on what is possible for you. And then if you want, we can actually, I’ll probably get a, I’ll get a spanking for this one, but I’ll offer a free strategy call for anyone that wants to talk, especially with Covid here. Just go to SmartRealEstateCoach.com/Action. That’s all. They’ll just ask you if you’ve done deals. If you haven’t done deals, no wrong answer. Allows myself or my son, Zach, to help you out with a free strategy call. No ties, no hooks. We’ll get on 15 minutes. We’ll make it well worth your time.

    Jay Conner (31:46):
    That’s awesome. Well, thank you so much, Chris and parting comments.

    Chris Prefontaine (31:53):
    I said some of them in the interview, cause you, your questions were just spot on. I don’t care what niche you’re looking at. You and I have both advocates of exposing all niches. We both do that on our podcast. I love that. So, find an issue and get behind. I’m not so naive to think it’s mine. I’m sure Jay feels the same way. Find one you can get behind. Secondly, find someone in there that has weathered a few storms. And third don’t deviate for three years. Like just don’t. Don’t get the shiny object syndrome. You’ll have a great experience with that simple formula.

    Jay Conner (32:19):
    I love it! Chris, thank you so much for joining me on the show!

    Chris Prefontaine (32:22):
    Thanks for having me, buddy. Good to see you.

    Jay Conner (32:24):
    Absolutely. And, thank you! My audience for tuning in to another episode of Real Estate Investing with Jay Conner. And I’m so glad you were here. Be sure to tune in for the next show. Here’s to taking your real estate investing business to the next level. I’m Jay Conner, The Private Money Authority. And we’ll see you then. Bye for now.

  • Jay Conner – Real Estate Investing Successes

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    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority. And also the host of the show. And if you’re brand new to the show or never tuned in before, here we talk about all things, real estate investing. We talk about single family houses. We talk about commercial deals, lands, self storage, multifamily, you name it. But the majority of the time we do talk about single family houses and how to never miss out on a deal for not having funding. You see, I became known as The Private Money Authority back in 2009 because when my wife Carol Joy and I started investing in single family houses here in Eastern North Carolina, back in 2003, the first six years, we relied on local banks and mortgage companies.

    And then I had a rude awakening in January of 2009. And that’s when I got cut off from the local banks with no notice like the rest of the world did when we had the global financial crisis going on. So I knew I had to find a better way and a more efficient way to get my deals funded. So that’s when I learned about private money. I was able to raise over $2 million in private funding from the time I started attracting the private money. So we know in the real world out there, even though there are many creative ways to buy houses and properties, at the end of the day, most of the deals are done and concluded by having all the cash ready to go.

    So on today’s episode, I want to share with you four ways to get more offers accepted. Four ways. To get more offers accepted. But before I do, I have a free offer for you and you can’t be free. You see, just recently I launched my new membership site, which is called The Private Money Academy, and this is a monthly month to month membership. And we now have over 100 members that are showing up twice a month to have zoom coaching with yours truly, myself. And I’m going to give you in just a second, a way for you to have access, to enjoy the membership for a free four week trial, just to give it a trial run and see how you like it. The reason you want to take advantage of this is, first of all, I just mentioned. We have at least two live zoom conference calls a month where I’m coaching all the Academy members revealing my secrets to how we actually run this business in less than 10 hours per week. Netting over seven figures per year.

    On each of the zoom conference calls for the Academy members. I have one of the members in what we call the Hot Seat Section. And in the Hot Seat Session, what we do is analyze their business, find out where they are, what their struggles and challenges are and how to overcome those. And then we put a plan together for the members to take their business to the next level. We also have a private closed Facebook group for all The Private Money Academy members to be a member of. And then I also have four different areas of training in the membership site, video training that we update every month. So if you would like to check it out absolutely for free, then after this show, get right on over to http://www.JayConner.com/Trial That’s http://JayConner.com/Trial Come on in to the membership and come join the fun and come learn a lot about real estate investing.

    In addition to that, before I dive into today’s topic. I really appreciate it if you would subscribe so you don’t miss out on any future episodes of our show. And if you are tuning in on iTunes, we would love for you to not only subscribe, but rate and review and give us five stars. If you think we’re worth it. We’re on Google play and many other platforms. No matter where you’re tuning in from, we’re glad you’re here.

    So let’s go ahead and jump into today’s show, which I’ve titled, Four Ways To Get More Offers Accepted. But before I go over those four ways, I want to, first of all, give you two underpinning principles that always helps you get more offers accepted regardless of the structure or the way that you have done so. Or that you’re going to structure a particular deal.

    First of all, the way I do this business and the way I’ve done this business since day one is having a mindset of always creating win-win scenarios. It’s gotta be a win for everybody. And the way for you to create win-win scenarios is for you to have a servant’s heart. You see, if you have the mindset of I’m going to just come in there, you know, whether you’re looking to do a wholesale deal or you’re looking to, you know, make an all, you know, all cash offer and you’re just going to offer, offer, offer. You know, sometimes, it’s the price is not the, is not the main objective or the main motivating factor that seller has. You know, my students hear me talk all the time about when we are doing deals. There’s so many different people that win. We want to create a scenario to where the seller is going to win and they win by us solving their problem. We wouldn’t be in this business unless we had the opportunity to actually solve problems.

    So we want a win for the seller. We also, if you’re going to use private money, we want for the private money lender to win by paying them a high rate of return safely and securely. When we go to sell that home, particularly if we sell that home on rent to own, then we’re creating a win scenario for that buyer because the buyer didn’t have any other way to buy a home until we came along and we have a program to where they can actually have a pathway on to home ownership. The American dream. And then we win as well because we are able to bring these solutions and these different structures together. Now, I just, I want you to really think about this win-win scenario. You see, sellers, whether you are meeting them in person or you are talking with them in person the very first time. The seller knows and can tell what your outlook is.

    Are you there in that conversation just to make a deal? Or are you there to really fix their problem? You see, here’s what I’ve discovered. When my focus is on the other person and I’m really tuning into what they need and what their problem is that they’re wanting to have taken care of. And I’m really focusing on them. I don’t have to worry about me because you know, it’s like Zig Ziglar said, if you take care of enough, other people, helping them get what they want, you don’t have to worry about getting what you want in the overall scheme of things. You know, over the years we have purchased and invested in a lot of homes that were in foreclosure and I’m not talking bank and properties in this conversation. I’m talking about helping people that are in foreclosure, but their house or home has not yet gone to sale.

    You see, here’s another example of creating Win-Win. When we have someone respond to our marketing and someone has received one of my letters, that’s in foreclosure. And they respond to us. One of the very first things that we ask is, do you want to keep your property? Do you want to keep your house? And if the answer is yes, then we’ve got us a checklist of 10 different ways that they can keep their house. And if any of those ways work, there’s nothing in it for us directly out of that deal. Of course, one of the first ways we talk about is have you talked with your mortgage lender about a deferment program to where payments that are in arrears can be put on the end of the note, and then you just start making payments currently right now.

    So we go over these different ways. Unfortunately, most of the time they cause a financial distress and other reasons. The person is not able to bring their payments current or start even making payments on a timely basis. But at least they know we have these ways to offer. And if we can help them get what they want and that is keeping their home, then we do it. So that’s my first principle I want to share with you. Whenever you are beginning conversation with a seller, take on the framework and the hat of making sure that it’s going to be a win for them first. And then you’re not going to have to worry about yourself.

    The second principle that I want to share with you before we get into the different ways of structuring these deals is I want you to right up front, tell the people, tell the seller what to expect in the course of you helping them out and possibly purchasing their house. For example, just this morning at 8:00AM I got a call last night from a individual that knew what we do here in the area of investing in single family houses. And they called me up and left a message last night. So I called them back at eight o’clock this morning, and we began the conversation. And here’s one of the first questions that I ask after we build a little bit of rapport. I ask the seller, I’ll say, well, tell me what your situation is. Tell me what your situation is, or just tell me about the situation.

    Now, let me tell you what is so critical about you understanding and using that scripting of saying to the seller. Well, tell me about the situation. You see, when you say to someone, tell me about the situation, they could first start talking about the property and the condition of the property. The situation that the property is in. Or they could start telling you about the situation that they are personally in.

    You see, when a seller contacts us and it’s an off market property, meaning it’s not listed in the multiple listing service. Then they have got a problem. Either the property has got a problem or they personally, or their family has a problem, or both. The property itself could be in distress. The people themselves could be in financial or personal distress, or both. The reason, one of the first questions I ask after building some rapport with the person. My question to them is, tell me about the situation. Tell me the situation. If they talk about the property, then I know that is one of their top motivating factors. And that is the property. They’re wanting relief of that property in some kind of way. Maybe they’re having carrying cost. Of course, they’re having carrying cost. If they still own it. Perhaps they need debt relief. Maybe the monthly financial burden of mortgage payments are just weighing them down. And you know, they just can’t stand it anymore.

    I was visiting with a seller about a month ago, and that’s what it was. She had already moved into another home and still had the mortgage monthly payment, financial burden of the existing home. So when I said to her, well, tell me about the situation. First thing she started talking about were the monthly payments. So again, that’s one of the first questions you want to ask because when they answer that question, tell me about the situation. Then that’s going to tell you exactly what you need to hone in on as far as what the focus on, on solving their problem. So when I say tell them what to expect. This morning, as I was saying at 8:00 AM, when I was talking to this particular seller and we built a little rapport and you know, one of the first things they want to know is, well, how does your process work?

    So after I had asked the question, tell me the situation. Well, let me tell you what her answer to the situation was. This is a house that’s located in Mill Creek, North Carolina. The situation when I asked that question, tell me about the situation. The answer was, well, there are six of us heirs to this house. It sits on the water. It’s got a nice water view, but there’s still some damage from hurricane Florence, which was a couple of years ago. And this person went on to tell me that they are the executor of this particular property and this person and the other five heirs had decided that they just want to liquidate the property and not put any more money in it. They don’t want to carry any more insurance on it. They didn’t want to pay any more taxes. And they told me without me even asking anything else beyond, tell me about the situation they said, we just want to get the mortgage paid off and not have the burden of this property anymore.

    As a matter of fact, this person was actually responding to one of my probate letters that I had mailed out months ago, that my team had mailed out months ago. So I said, well, let me tell you how the process works. And so here’s how the process works. I said, first of all, I’m going to introduce to you. As soon as we finish this call, I’m going to do a group text introduction to Kim. Kim is our acquisitionist. And she’s been with us now for about 14 years. And Kim, what she does is she gets all the initial information on the property that you have. And then I ask, is it okay for me to send a group text to Kim and to you and get you two connected? So we can go in and get some initial information about the property. And the executor says, sure, that’d be fine.

    I said, so after I introduce you all, Kim is going to call you, get some initial information about the property, and then we’ll do our research. We’ll find out what the after repaired value is on the property from our realtor. And then at that point, we will decide if it makes sense for us to schedule an appointment for my team to come meet you and whoever of your designee at the property and we’ll walk around and we will estimate repairs. And then from the time we estimate repairs, we’ll go from there and see if we can put together, listen closely. Put together a win-win scenario for everybody.

    Now, again, that’s telling people and telling sellers what to expect. Now, there’s another very, very important part to telling people what to expect, because you see when you’re first having this very first conversation with a potential seller, there’s this skepticism that’s automatically built in. They don’t know what to expect. They don’t know how the process works. They don’t know if this is going to work out. So I want to tell you right here, and right now, how to immediately defuse any kind of stress or pressure that’s in the midst of this conversation, because I can tell you there’s already some type of pressure or distress from the seller standpoint, or we wouldn’t be having this conversation in the first place.

    So here’s how you defuse the pressure. Take it off yourself if you’re brand new. And what I’m getting ready to say to you will immediately give comfort and peace and destress your seller if they are feeling stress. And here’s exactly what you say. You say, you know, I just want to let you know up front as part of our process and we’ve done many of these deals. You know, sometimes it works out for us to buy the property or in some way help you sell it. And sometimes it doesn’t work out for us to buy the property. And I just want you to know in either case that’s okay. Even if it doesn’t work out for us to buy the property or to negotiate or, you know, put a deal together. I don’t want to use the word negotiation with the seller because I’d already sets up like an inherent feeling of conflict. I want them to be at comfort and at peace. So I was like, even though, even if we can’t work out something together at the very least, I may be able to refer you to someone that can help you out of the situation.

    You see that? I keep looping back to the word situation. So you see that’s part of explaining the process. Is telling them right up front, it’s okay if It doesn’t work out for us to actually work on this directly, but because my main cause and purpose and objective here is to help you with your situation. Well it works out for me to get something out of the deal or not is okay with me. My main purpose is in helping you out. Now let me give you another sub point about how this, how helping people out works out. And that is, you, God gave us two ears and one mouth, right? And the only way, not the only way, but the best way this is going to work out is if you become a listener like nobody else. I mean, when you increase your skill and talent of really listening, for example, back to the question, tell me about your situation. Now, when you say, tell me, when you asked him about your situation, you got to put on your listening cap and the taking copious notes, because the more they tell you about the situation, I can tell you what they are talking about. It’s what’s most important to them.

    Now, as I mentioned a couple of minutes ago, a lot of the times, it’s not always about the price. Let me give you an example. Not too long ago, I was talking with a seller about, I was actually talking with the daughter of the mother that lived in the house. This was in a small home, over in Newport. And I was talking with the daughter and I said to the daughter, tell me about the situation. And here’s what the answer was to that question. You know, the first answer was there were six heirs on this home in Mill Creek. They didn’t want to do any more to the house. It needed repairs. The six heirs don’t want to mess with it.

    When I’m talking to the daughter on this home, over in Newport, here’s the answer to the question and I’ve got my ears wide open. I said, tell me about the situation. The daughter says, well, my mother has been living in this home for years. In fact, it’s been living in this home for decades and she’s come to a point in her life to where she needs to move out because she needs to move to an assisted living area or an assisted living home. And she doesn’t know where she wants to go, but we know we need to sell the house in order to provide income and revenue to pay for the assisted living. I said, after she answered the question, tell me about the, she didn’t say anything about the property. It wasn’t the property. It wasn’t the upkeep. The problem to tell me about the situation was the mother needed to move on and did not know where they were going to go. And they needed money to start making that decision.

    Since I had my listening ears on. Here was the way I structured the deal. I said, I’ll tell you what I’ll do. I’ll pay you all cash. Using private money. I didn’t tell them private money cause they wouldn’t know what I’m talking about. I said, I’ll pay you all cash for the property and I will let your mother live in her home for a another 90 days, three months, rent free. For you and the family to have plenty of time to find a place in assisted living area. And you can go ahead and get, you know, I’ll give you a partial cash upfront as a down payment before we, or earnest money before we actually close on the deal. So you all can all start. You can go in and start making arrangements on the move.

    Guess what I discovered from that offer because I had my listening ears wide open. I learned after we closed, the daughter told me after we closed, she said, Jay, I just want you to know that I had another investor offer me more money than you did, but I want you to know the reason we took your offer was because you understood what my mother needed. My mother needed some cash now to go ahead and start finding the assisted living home to move into. And because you were able to work with us and give us some money up front and then close out a completely 90 days down the road, then we took your offer. Even though it was a lesser amount.

    Now, let me tell you how I structured that deal. Okay? So I structured that deal with seller financing. So I told you up front in the beginning of this episode, that I was going to teach you four different ways to get more offers accepted. So this was a combination of seller financing and private money cash. Alright. So this is seller financing.

    So number one way, I call it Seller Financing with Principle Only Payments or Seller Financing with Equity Payments. So this strategy can be implemented in many different ways. Seller financing with principle only payments or equity payments. That means the same thing. What that typically means is when the seller is selling a house that’s free and clear of any mortgages, have any notes or liens attached to it. Then I offer to make them payments that will go 100% towards purchase price until I cash it out.

    Well, let me tell you what I did in this case. So you say, Jay, how can you give them money up front and you’d be protected? What if I take the money and run? Well, they can’t take the money and run. What we did is we went ahead and closed on the property at the agreed upon price. But all I did was a 90 day note. You see, they needed cash. In this case, $10,000. They needed cash $10,000 down to go ahead and start finding the assisted living area, moving and et cetera. So I had my real estate attorney draw up a note and a mortgage. And so I gave $10,000 down at that point of the down payment at my real estate attorneys closing office. Title was went ahead and was transferred to me.

    So I own the house. I own the house. You never give a seller any money. Of course, all the money goes through the trust account, right? They get the money at closing. Alright. So now we have a note in place. And so I’m going to pay it off in 90 days. But as part of the agreement in this negotiation process, I’m not going to pay it off until the mother has moved out of a house. So you see, that’s how I structured that deal, making it a win-win scenario and giving the mother and the daughter exactly what was needed. So that’s number one, seller financing with equity payments, principle only payments, or in that particular case, a down payment that 100% of that went to purchase price. And then the balance was paid in 90 days. Now, where did that money come from? Private money, of course. But it was a combination of seller financing, a 90 day note, transfer the title and ownership at the time of closing and then paying it off with private money at the end of 90 days.

    The second way that I want to teach you today on structuring deals is what’s called, Seller Financing with Interest Only Payments. Seller Financing with Interest Only Payments. This is also called Seller Financing by Your Seller Being a Private Lender. This is making the seller of the property, your private lender. Well, how in the world does that work? This strategy works when you’re dealing in higher end, higher priced properties, where the seller is very, very intent on getting their price. Okay. So I have a friend who recently negotiated a deal and the price of the property retail was $800,000. Well, the seller wanted full retail.

    Well, they knew they could negotiate this deal, but they could only, they didn’t have private money lined up for $800,000 price. So they negotiated with the seller to sell to them with just interest only payments for 12 months. And for the, during that 12 months, that gives them. So it’s, you know, interest only payments can typically be less than principle and interest payments. By doing interest only payments that gave the real estate investor, my friend, plenty of time to locate a rent to own buyer on this very high end property over on the beach, it’s a resort property. And they can negotiate the deal. So that’s two ways to use seller financing, seller financing with principal only payments, seller financing with interest only payments.

    There’s actually another seller financing strategy. I’ll go and share with you right now. I’m not going to have it displayed at right now, but that is, Seller Financing with NO Payments Until Cash Out. Seller Financing with NO Payments Until Cash Out. So when you have a seller, particularly on a free and clear property and they don’t need the cash flow, then you can, Oh, my podcast producer is brilliant. He’s already got it up there. Seller financing with ZERO payments. So you can negotiate the deal to where you buy it with nothing down and no payments until you find a buyer. And when you find the buyer, you use the buyer’s money to then cash out your seller, and then you retain of course the profit over and beyond the price that you all had negotiated.

    So that’s two ways. Actually three ways. So now what is the next way? And y’all have heard me talk about this a lot. And that is Buying with a Subject to the Existing Note. Buying Subject to the Existing Note. So simply that is when someone will, they’re wanting retail value or they’re giving it to you at a discount. They’re willing to sell you their house, leaving the mortgage in their name, and they’re going to sell it to you, transfer the deed and you are agreeing to make the payments until you find a cash out buyer. Who’s willing to do that? A motivated seller who is interested solely in debt relief. You see the person I just told you about a few moments ago that I met about a month ago. They, that was their main motivation. When I said, tell me about the situation. And the situation was they needed a debt relief. So this strategy even works when a seller wants full retail price, where you can buy a house at full retail price, subject to the existing note, if and only if, the underlying monthly mortgage payments are less than what you can bring in per month with, you know, a rent to own monthly payment. So subject to.

    And then the fourth way, of course, is Paying Cash with PRIVATE MONEY. Using Private Money. And I can tell you that this in the real world out there is the way for you to ensure, to never missing out on a deal because you didn’t have the funding. Most sellers, even though we’re talking about these different creative ways are going to require all the money. Now, if you’re wondering about how in the world, you can get private money, regardless of your credit score or verification of income, whether you’re a seasoned real estate investor or you’re brand new, that’s another reason for you to get involved and take advantage of the four free weeks that I’ve offered you. Of The Private Money Academy. So if you want private money for your deals, then be sure and get in the four week trial at http://www.JayConner.com/Trial.

    Well, those are the four ways before I let you go on today’s show. I want to give you a strong negotiating tip and strategy on how to negotiate when it really is all about price with the seller. And that is I have got a formula. And for all of you that are in the Private Money Academy that I just offered with the trial. I have a formula that I share with all the Academy members that shows a formula to the seller as to how on average, they get only about 78% of their asking price when that is listed in the multiple listing service. So if you’ve got a seller that is just, you know, dead set on the price, then use this formula and showing them.

    Here’s what I do. First of all. Well, here’s the price they want. If you put your house, if the seller puts their house in the multiple listing service at that price, first of all, national average, 6% is gonna come off of that. We’re already down to 94% of the asking price because 6% is going to go to the realtor community and commissions. Well doing business with a real estate investor, there are no realtor commissions. In addition to that, when you sell it in the multiple listing service, there’s always going to be, I say, always 99% of the time, there’s going to be a home inspection by the buyers home inspection company. And of course, what is the home inspectors job? The home inspectors job is to, is to point out every nuance of inefficiencies. And of course, anything that is not working that is intended. Well, I can guarantee you after the home, after you’re under contract to sell the house, when the seller’s under contract to sell the house and the home inspector comes along, do you think there’s going to be now more negotiation asked by the buyer of a house? Absolutely!

    I rehab houses all the time. Carol Joy and I have rehabbed over 400 of them here in Eastern North Carolina. And after the home inspection, the buyer always wants more to come off of the price. In addition to that, how long is it going to take to sell the property with carrying costs? So while the property is on the market, then there’s carrying costs still going on. Mortgage payments, taxes, insurance, unexpected maintenance. In fact, I was talking to another seller this morning that it is his mother-in-law, his 91 year old mother-in-law that is wanting to sell the property. When I asked the question, what is the situation? The answer was the 91 year old mother-in-law and the family don’t want to spend money anymore to upkeep the property. And it’s just too much. And so just two weeks ago, and this may have been the cockroach that showed up for the most recent motivating factor of the seller.

    When I’m talking to the son in law, he says to me, the hot water heater just went out two weeks ago. And now we and my siblings have had to replace the hot water heater. We’re done. We’re just tired of upkeeping this property, keeping the upkeep on this property and we’re ready for it to go. So again, the formula that I use on showing a seller as to what the real cost of selling a house, when in the multiple listing service versus selling to a real estate investor, many times can make the difference on whether you buy the house or not.

    Well, there you have it. Not only the four ways. I think I did maybe five ways. That you can get more offers accepted. Remember the underlying principles that I went over with you as well. And that is, always creating win-win scenarios, telling people what to expect and making sure that you always have their interest first at heart. Because again, when you take care of them, you don’t have to worry about yourself. Take me up on my offer. Four weeks free trial in the membership. Jay Conner’s Private Money Academy at http://www.JayConner.com/Trial.

    Thank you so much for joining in on the episode. If you found it valuable, be sure to subscribe, rate, and review, and I look forward to seeing you on the next episode. I’m Jay Conner, The Private Money Authority. Wishing you all the best. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show.

  • Jay Conner – Members Site Invite

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    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority. Also your host here on the show. If you’re brand new to Real Estate Investing with Jay Conner, here we talk about all things related to real estate investing. All kinds of deals! We talk about single family houses, commercial deals, land deals, wholesaling, self storage, any kind of real estate deal that you can think about. And we talk about how to find hot deals, how to get them funded without using your credit or banks or mortgage companies or experience. We talk about how to sell deals fast. How to get paid fast. And just as important as anything else, we talk about how to automate your business to where you are running your business and your business is not running you. Well, again, a very special welcome to everybody.

    And on today’s episode, I’ve got a very, very special and exciting announcement. You see, I have recently launched my brand new, Private Money Academy Membership. That’s right. It’s called the Private Money Academy Membership. Before I dive in and tell you what this membership is about and how you can get access to the membership, absolutely for free! Before I tell you that, I want to tell you, take just a moment and tell you why it is that I’m qualified to talk with you about private money. Well, first of all, what is private money? Well, private money is getting funding for your real estate deals. And it’s got nothing to do with mortgage companies. And it’s got nothing to do with hard money. I’m not talking about hard money funding for your real estate deals. I’m talking about private money. I’m talking about getting funding for your deals from individuals who loan you money on your deals, either from their investment capital or from their self directed IRAs.

    Well, how in the world is Jay Conner qualified to tell you about this? Well, it all starts back in 2003. You see my wife, Carol Joy, and I, we live here in Eastern North Carolina in a real small town called Morehead City, North Carolina. Population, only 8,000. And our total target market’s only got 40,000 people here in Eastern North Carolina, where we invest in single family houses. Since 2003, we’ve invested in rehabbed over 400 single family houses. And you see, the first six years we relied on local banks to fund our deals. From 2003 to 2009, we were getting funding and financing for our real estate deals from the local banks. Well, in January, 2009, I called up my banker. I had two deals under contract to buy. And I found out very quickly on that conversation that I’ve been cut off with no more financing, no more funding with zero notice.

    And you see, at that time I had an 800 credit score. Still do! Excellent credit. Never late on my payments. So why in the world was it that I was cut off with no notice? Well, not only was I cut off, but the entire world was cut off. It was a financial global crisis. And so I found my way needing a better way and quicker way to get my deals funded without relying on local banks, mortgage companies and traditional financing. I was introduced very quickly to this world of private money where I borrow money from individuals. So in less than 90 days of learning about this world of private money, I was able to raise and attract $2,150,000 in private money funding. I also call it Relationship Money. Okay? It’s doing business with individuals. And so you see that crisis, that difficulty, that challenge actually turned out to be a huge blessing in disguise.

    Since my banker cut me off from my funding and I had to find a better and quicker way. Well, because of that challenge, our business, Carol Joy’s and my business tripled that next 12 months because I had the funding available. Well, what does this story have to relate to what I’m sharing with you today? So I am now making available to you for a limited time, access for free to the Private Money Academy Membership. So let me tell you what this is, what the membership is about, why you would want to get free access to the membership and what the benefits are.

    First of all, the Private Money Academy is a monthly membership of real estate investors. I have new real estate investors that have never done their first deal. I have seasoned real estate investors in the Private Money Academy Membership that are looking for more funding for their deals. So this membership is for everybody, whether you’re brand new and never done a deal before, or you’re a seasoned real estate investor looking for more funding.

    So why get access and why take me up on this offer to get free access? First of all, you get me twice a month. So twice a month, I’d do a one hour zoom coaching conference call for the Private Money Academy Members. On this call, I talk about my recent deals that I’m doing, how I’m structuring the deals, how I’m finding deals before other real estate investors know about these deals. And so I give case studies. Real life examples. Also on the twice a month zoom conference for the Private Money Academy Members, I will put one of the members, and that can be you at the upcoming zoom conference coaching call. I put one of the members on what we call in the hot seat.

    In the hot seat, we analyze your business. I analyze your business. And take a look at where you are, what’s your current real estate investing business look like, what is it that’s holding you back, your challenges, what do you need help with. And I put together a strategy for you on how to really get your real estate investing business moving forward. If you need help on getting private money, I’d tell you exactly on how to get the private money for the funding of your deals.

    So, we have the hot seats. In addition to that, we have a Community of the Private Money Academy Members. I have a closed private Facebook group just for the Private Money Academy Members. So when you become a member, you now have access. What in the world are the benefits of this Facebook group? You get to post questions to me at any time that you want to in the group forum. You get to post a, you know, here’s a deal. You know, how would you go about structuring this deal. Any kind of real estate investing support that you need in the Facebook group.

    Now, in addition to that, of the two calls, zoom calls that are live and we record every one of them every month and the Facebook group. In addition to that, there are four other areas in the membership site. The Private Money Academy. Number one, there’s membership training. That’s where I have new training coming out every month. All aspects of real estate. Wholesaling, finding deals, how to get your deals funded, how to flip properties, how to work with contractors, real estate agents, how to work with real real estate attorneys, how to automate your business, what kind of marketing to do, et cetera, et cetera. And we do personal development. How to own the real estate that’s in between your ears, right? Until you own this. You can’t own that out there.

    The second session or section of the membership site, our monthly interviews. That’s where I interview other experts in other areas of real estate investing. Commercial, land, raw land, self storage, et cetera.

    The third area of the Private Money Academy is where it’s called Jay Talks Deals. So these are actual case studies of deals that I am doing and previous deals. The lessons you can learn, the marketing of how I found these properties, the actual learning of how to estimate repairs within 10 minutes of being right there on the spot. So rehab budgeting, how to sell an exit quickly, how to sell using multiple strategies and et cetera.

    The fourth area are my Successful Student Interviews. So I interview students of mine that have worked with me in my coaching programs. What are their businesses looking like? How are they finding deals? How much private money have they raised and how much private money they’re working with? So all these different areas of the membership site, we update every month.

    So, that’s an overview of the benefits. How in the world is it that you can get free access as a member? Well, here it is. Go to, right now after the show, http://www.JayConner.com/Trial Again, that’s http://www.JayConner.com/Trial. What you will get there is four weeks. Absolutely free! No charge whatsoever! To check it out, come to the, to the next step, to live zoom of conference calls that we do for the members. Check out the hot seat. You get access to the membership site where you get the benefits and training that I just talked about.

    And on top of that, I’ve got a brand new bonus training that I just put in the membership site that is titled Foreclosure Secrets. Foreclosure Secrets. I just created that training and it’s just brand new in the membership site. So come on! In fact, if you get in right now, go to the website, you can be, and you will be invited to the next upcoming live zoom conference call for the members in the Private Money Academy.

    So get right on over to http://www.JayConner.com/Trial and I look forward to seeing you at the upcoming Private Money Academy, zoom conference call. I’m Jay Conner, The Private Money Authority. Wishing you all the best. Here’s to taking your real estate investing business to the next level. And I’ll see you on the inside at the Private Money Academy. I’ll see you there.

  • Don’t Do This! Jay Conner Talks About Recent Real Estate Deals

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    Don’t Do This! Jay Conner Talks About Recent Real Estate Deals

    Jay shares a recent deal and why he walked away!

    https://www/jayconner.com/trial – 30 day free trial to Jay Conner’s Private Money Academy

    Well, hello there! This is Jay Conner. The Private Money Authority. Welcome to another episode of Real Estate Investing with Jay Conner. You may be watching right now on the live stream on our YouTube channels or on our Facebook live stream. Or you may be listening in on iTunes, Google play, or one of our other channels. And wherever you are tuning in from, I’m excited, you are here for this episode because today’s episode is titled, Do not do this deal! Do not do this deal! Subtitle 112 Charles street. The reason I want to bring you this episode is because this episode and story actually reminds me of the very popular Kenny Rogers song. Which is titled, Know When to Hold Them and Know When to Fold Them. And I’ll tell you my experience in real estate investing. If you don’t know when to fold your cards and walk away from a play or walk away from a deal that can be so much more expensive than the actual profit that you could be making on a deal.

    I mean, some of the most important lessons that I’ve learned since investing in single family houses, since 2003 and rehabbing over 400 houses, is that you need to know when to walk away. Do not fall in love with a deal just because, Oh, I might be having a deal! In fact, this story I’m going to share with you on 112 Charles Street, when you first look at the numbers in this deal, it looks like there’s a spread of a potential $100,000 in this deal. But when you analyze the deal and you do your due diligence and you follow the steps that I’m going to lay out to you right now, step by step, you will see how this is not got a potential of a hundred thousand dollars profit, but in reality, it’s got a loss of over $20,000 when you analyze the numbers.

    So before I dive into this deal with you, for those of you that are brand new to Real Estate Investing with Jay Conner. Here on the show, we talk about all things, real estate investing, how to find deals, how to get them funded without relying on banks or mortgage companies or your credit, how to sell houses fast, how to automate the business. And here on the show I have amazing guests most of the time. We talk about all kinds of real estate. We talk about storage units. We talk about land deals, commercial deals, single family houses, and everything that relates. Now, if you happen to be by chance, be tuning in on the live stream right now, go ahead and tell us where you’re tuning in from right now, type in your city and state and say hello to everybody. Leave a comment, leave a question.

    As I go through this deal, if you’ve got any questions and you’re actually tuning in live, go ahead and type in your questions and I’ll get your questions answered. And if by chance you are listening to the show either on iTunes or Google play, be sure to subscribe, rate, and review on iTunes. I really appreciate you subscribing. Also, if you are watching on YouTube, be sure and subscribe and tap that little bell so that when we go live, you’ll be notified and not miss out on Real Estate Investing with Jay Conner, the guests that I have on here and the fantastic information and training that we provide absolutely for free in this road of real estate investing and education. By the way, if you would like to, Hey, Rob from Greenville, North Carolina, glad to have you on! If you would like to get plugged in to funding for your real estate deals without relying on banks or credit or mortgage companies, I’ve got a free online class waiting for you to go to at the end of the show. You can head right on over to www.JayConner.com/MoneyPodcast.

    That’s JayConner.com/MoneyPodcast. And on that training, it’s only about an hour long I’ll reveal, the five easy steps it is from going from zero funding to having in the hundreds of thousands of dollars in funding right away, very quickly again, without relying on credit banks, mortgage companies, or your experience. Alright! Let’s go ahead and jump in to this case study. This is a deal that I just within the last few day, or last few days, I said, no! No! No! This is not a deal. So let’s dive in and why, and the lessons that you can learn from it. So, first of all, 112 Charles Street. By the way, for all of you think your brains that like spreadsheets, yes. I actually have a spreadsheet to share with you today on this deal, the numbers and et cetera.

    I know that’s going to make you super happy. So this deal, how did I find this deal? Where did this lead come in from? Okay! This lead, 112 Charles Street came in from a Facebook ad. Facebook ads, and yes, today Facebook ads are one of my most consistent lead sources that I have on off market properties. Now, what I mean by off market properties? These deals that are coming in that I’m getting the most profit on are not in the multiple listing service. In today’s market, shoot! Too much competition. The bank owned properties. They’re wanting to list these properties at too high of a price. And it’s, I mean, it’s simple. I understand it. Supply and demand. I mean, right here in Eastern North Carolina in my hometown Newport zip code 28570, it’s got about 25,000 people in that zip code.

    There are less than 10 houses on the market priced under $200,000 and I’m talking a 1300 square foot single family house. And our months of inventory on the market is only 2.4 months. What that means is, if nobody puts our house on the market in the next 2.4 months, we’re going to be sold out, have no inventory. As of last week in that zip code, there were only 152 houses on the market. And over 90 of them are under contract to cash out. I’ve got three houses right now in a contract to cash out. One of them, I just put on the market this past weekend. And this morning it is under contract at full price. Full price offers. So the reason I share that with you is that’s why we cannot rely on homes or houses or properties in the multiple listing service to fund our deals.

    We’ve got to have marketing in place for off market houses. What’s an off market house? That is simply a property that a owner or a seller does not have it listed in the multiple listing service. And quite frankly, they may not even know that they are actively seeking to sell the property. They don’t have it listed in the multiple listing service. So here, 112 Charles Street, Facebook ad. My ads come up right in their newsfeed and people’s Facebook newsfeed. And there it is a picture of me holding a yellow bandit sign that says, I buy houses fast for cash. People respond to that. I have, they fill out their information. And what happens in step number two of this scenario? Well, they fill out the information and their information, their contact information and information about the property is then automatically sent to my team.

    Well, who’s on my team? Well, my important person that it gets the initial information from all of my sellers. Her name is Kim and she is my acquisitionist. Well on the, world’s an acquisitionist? Well, my Acquisitionist, Kim, does what I used to do. And that is reach out to all of my motivated sellers that are responding to my marketing. Gets the completed property information filled out all the information about the property. So that’s what Kim did. Information from this owner of this property came in, her contact information, the seller of the information about the property. And now Kim gets them on the phone and gets all the information. That’s step number two, getting the property information sheet filled out completely. Mortgage information. Is it free and clear? What’s the condition of the property? What’s the asking price and et cetera. Step number three in this deal.

    So Kim gets the information filled out and all that information is now sent to me by the software that we use to communicate with each other. She’s not emailing me a property information sheet. We use a CRM, a Customer Management Software System that gives me all the information on the properties from sellers. So now here’s the step. It comes to me. And now I quickly analyze the deal. Alright? How do I analyze the deal? Well, I look at, first of all, where’s the property located? I’m familiar with the areas around here. I’ve been investing since 2003 here in the local area. So I look at what area is located. I look at what the asking price is. Now. I do not know at this point in time in this step as to what the actual after repaired value is, but I got a pretty good idea because I’m familiar with the area.

    I know this particular property has got approximately 1600 heated square feet. I know it’s going to be worth in the areas located somewhere around $200,000 or so if it’s in excellent condition. Well, I take a look at what is owed on the mortgage. In this particular scenario, 112 Charles Street, the seller owes $105,000. Her asking price is $115,000, which is $10,000 more than the payoff, the mortgage information. Now, in this case, it’s a motivated seller and the seller is willing to give us the mortgage information. Now, don’t miss this. Whenever there is a mortgage and there’s money that’s owed on the property, my immediate thought is, can I buy this property subject to the existing mortgage? There’s a mortgage. Is there a possibility that the seller will be willing to sell me this property with them, keeping the mortgage in their name, me agreeing to make their mortgage payments and they transfer title or ownership over to my company.

    That’s the first thing I think. Now, bear in mind this property having a mortgage, I do not have my acquisitionist even talk about the possibility of buying subject to over the phone. That the seller is not going to even know what we’re talking about over the phone. I reserved the conversation of buying subject to the existing mortgage when we are in person with the seller of that property. So here I am in step three, I’m analyzing the deal quickly, quickly, quickly. Why do I think it’s the ballpark after repaired value? How much are they owed on this? How much are they owing? Well, they’re asking 115,000. They owe 105,000. So even at 115, I’m going, wow! It’s probably going to be worth about 200,000. They’re asking 115,000. Wow! There’s like a huge spread here or potential spread. Even though at this point, I do not know what the exact repairs are on the property.

    So that’s step number three. I do a quick little overview. Does it look like there’s a potential deal? The potential spread. Step number four in this process is I now want to get my real estate agents opinion of the after repaired value. How in the world I do that? Alright! Bear in mind. We’re not going to the property yet. Now at this point in time prior to step number four, I’m communicating with my acquisitionist and I’m telling Kim, please let the seller know I have reviewed the numbers. It looks like there’s a possibility we can do a deal here. We are in the meantime, going to do a little bit of research on values in the area, and we’ll be back shortly to probably schedule an appointment for the team, my team, to go look at the property. So here we are in step number four, we are now asking my real estate agent for his opinion of ARV, which stands for After Repaired Value.

    So what’s the definition of After Repaired Value? In my world, the definition of After Repaired Value is, the home is going to be an absolutely drop dead gorgeous! Ready for Southern living magazine pictures. I’m talking granite countertop, stainless steel appliances, all new interior paint, new exterior paint. If it’s a, you know, paint on the exterior. Painting the garage floor with brand new concrete paint. New floor coverings with luxury vinyl plank. New cabinets. Everything is looking and smelling brand new. So you see, my real estate agent knows because I’ve been dealing with the same realtor to do my After Repair Values. Since 2004, my realtor knows what kind of condition my home will be in if I buy it and then I get ready to sell it. So there we are. Step four. My acquisitionist ask my realtor for a CMA to get the After Repaired Value.

    What in the world is a CMA? A CMA stands for Comparative Market Analysis. So what’s my realtor going to do? My realtor is now going to do a CMA. Is going to research. You see, I don’t do my own CMAs. My lands! Let the people do what they do best. And you stay out of the way. I would rather have a root canal than do a CMA and all that detailed stuff. But my realtor loves doing that stuff. Has analyzed and studied hundreds and hundreds of appraisals. He knows what to adjust for, you know, garage. You know, only two baths, one and a half baths, all that jazz. So within 24 hours, my realtor is now going to email me and my acquisitionist, the CMA, the Comparable Market Analysis. Which is going to assume that this home is going to be an absolute gorgeous condition in the After Repaired Value condition.

    So here comes the CMA. I look at it. Guess what? The CMA now says from my realtor that this home at 112 Charles Street has got an after repaired value of… Drum roll… $205,000. So I was estimating that the ARV was going to be somewhere around 200. Now I’ve got it confirmed at least based off of closely, you know how are close houses in proximity to the subject property without my realtor seeing the home yet. It’s at $205,000. So let’s look at the numbers so far. What we know about this property so far at 112 Charles Street is after repaired value based on comps should be $205,000. We now know also that the seller has told us that they owe $105,000. We also know their monthly mortgage payment is $800 a month. We know the seller’s mortgage payment is $800 a month.

    I already know if repairs are not like, you know, off the chart, I can get a positive cash flow by charging $1,200 a month to a rent, to own buyer in this area. I already know I can have a $400 positive cash flow on this property. Once I get a rent to own buyer in it. So we know the after repaired value is 205,000 prior to my realtor actually going and looking at the property, make sure we don’t have any ugly neighbors or ugly properties next door that would reduce the value. We know the asking price is 115. We know the seller owes 105. We know the monthly mortgage payment, including insurance and taxes, 800 bucks. We know we can rent it out or rent to own for 1200 bucks. That’s what we know so far. Sounds like it’s worth going to take a look at it right? Now.

    What’s the next step? Next step is step number five. Let’s go look at the property. It’s now time for the team to go look at the property. Why do we want to look at the property? The objective, the reason we’re going to go look is for one, two sole purposes, two reasons. Number one, estimate repairs. I have no idea yet. Really. I mean, really? I have no idea yet as to whether this is a deal. I know it’s a potential deal. I mean, wrr. I mean, look at that spread. We’re looking at, right? I mean, my lands! Big potential spread, but I have no idea really, if this is a deal, because I have no idea what the repairs are. So how are we going to do that? Well, I happen to be in town since we’re not traveling very much these days. And so I’m going to go with the team.

    Who’s the team? Alright! My team are the following. To determine repairs, I’m going to have my contractor go. I’m going to go. And my realtor is going to go, alright. So my acquisitionist schedules this appointment for the team to go now, actually look at this property, bear in mind, we haven’t gone to this property. We haven’t drove by this property. We’re letting the data, we’re letting the data, make the decision as to whether we’re even going and looking at this property. Okay? So here we go. Step number five. We’re going to look. So we get into the property and now we are estimating repairs. The owner of the property, the seller is there and we, and we look around, well, come to find out this property. This house has still got damaged to it from hurricane Florence, which goes back almost two years ago.

    Now, not bad. I mean, it’s already had a new roof put on it. It’s got a new HPAC, but there’s still, I mean, there’s been no cosmetic work on the inside. We still got leaks stains on the ceiling. I wish I had pictures to show you. There’s still a hole in the ceiling of the living room, right? So let me just go in, cut to the chase. I go through the I go, actually I have my crew leader, right? You will have a contractor. I’m a crew leader guy. So we estimate repairs. Now here’s the deal folks. Here’s the deal. This house has only got one and a half baths. Big, big problem. Big problem. Thank you. OG. For the feedback there. Great info. OG, hang in there because we’re not to the conclusion yet. Everybody hang on. Here we go.

    This property has only got one and a half baths. It’s split level. And the owner of this property. When they had kids living in the house, they’ve already converted the garage into heated and cooled living space. They have converted the garage into two more bedrooms. So now as this house currently is, it’s got not three bedrooms. It’s got five bedrooms and one and a half baths. Does that sound like a scenario for a disaster in today’s market? In our market, it’s like, nobody wants one and a half baths. So we’ve, me and the team. We’ve got to figure out a way to convert this house to at least two full baths. Here’s the deal. In this house, the principal bedroom, the principal bedroom is upstairs and the bathroom for the principal bedroom. The private bath is only a half bath. Oh my lands! And it’s only a half bath.

    And the principal bedroom is not that big. You cannot put a King size bed in this bedroom that I’m talking about. So now we have to approach this property about where are we going to put a full bath? So the best scenario we can come up with is convert the garage. That’s already been converted into heated and cooled space. Convert this garage into the principal bedroom suite with a large principle private bathroom. So we estimate it’s going to be $10,000 at least to convert that garage. It’s already been converted into two bedrooms, into a complete principal bedroom bathroom suite. That would leave, still, see all the bedrooms are upstairs right now, right? That would still leave three bedrooms upstairs with a full bath servicing, two of the bedrooms. And then one of the bedrooms having the half bath, then there would be a full principal, bedroom, bathroom, suite downstairs.

    Alright. So here’s the math. So my crew leader and I, right there on the spot, we estimate $46,000, $46,000. And that’s before Murphy shows up, you do know who Murphy is, right? You know who Murphy is? Murphy is a character that shows up in every rehab you do. Sometimes his relatives show up. Grandparents, cousins, sisters, you have all these unexpected expenses. So I always calculate at least $10,000 in unexpected repairs. Also known as Murphy repairs. Yes. Watch for Murphy in every property. So I’m already at $46,000, not including the unexpected. So let’s run the math,

    Let’s run the math. By the way, before we run the math, I want to share with you my conversation that I had with the seller of this property before I left the property. And before we leave, I always tell the seller, I always tell the seller that we’re going to do our research and we’ll come back to you within 24 hours with our best offer. Now, if you’re in a competitive market, you need to make your offer to the seller while you’re there, right there in front of them before your competition shows up and makes an offer. Alright. Very, very important go into contract right there and then if you can. In my market, there ain’t no competition, but in most markets there is. So listen to this conversation that I had with the seller. I said to the seller, and you see, the seller knows nothing about subject to up until this moment. So I’m getting ready to leave the property.

    I said, we’re going to do some more, you know, you know research. But I said to the seller, I said, in most situations, my sellers that have a mortgage, what we do is we have a traditional closing at the real estate attorney’s office. And I will agree to make all of your mortgage payments for you. We’re going to transfer title and ownership into my company name, and I will make all your payments for you until I rehabbed the property and I cash it out. So all of these problems, taxes and insurance and mortgage payments are now my problem. And so the seller looks at me and says, well, I hadn’t thought about that. I wanted to be completely done with this property. I thought you’d be paying for it cash. And I said, well, I am going to put quite a bit of cash into it for rehab, but I’ll make your payments.

    So at the end of that conversation, she wanted to call my real estate attorney and find out about subject to the existing mortgage, which I was glad for her to do. She did. And she let me know, yes, I am willing to sell this house to you, subject to the existing mortgage. So why in the world was she willing? She needed debt relief. She needs debt relief. She’s making this payment. She’s already moved out to another house. And this monthly mortgage is drowning her. She is current on her payments, but she needs debt relief. Big time. She agrees to sell to me on subject to the existing mortgage. So back to where we are, we’re now leaving the property. And I now know the repairs. Well, let’s run the math. This is now step six is constructing the offer to buy it subject to. Now, let’s run the math.

    Step number seven is running the math. And what is it that always makes the decision on whether you buy a property or not? And that is the math. What’s the math? When you are putting any kind of money in the property. And by the way, I’m not putting $46,000 of my own money in this property. I’m going to use private money to fund the rehab of this house. So I will buy it. If the math makes sense, I will buy it subject to the existing mortgage and I’ll use private money in a second position for the rehab. Now, by the way, remember, she’s asking $115,000. So let’s run the math. The math is the MAO formula. What does MAO stand for? This is the formula you’re going to use to decide whether you’re going to make an offer and buy the property or not.

    Here’s the MAO formula, which stands for Maximum Allowable Offer. MAO formula starts with ARV. The After Repaired Value. The After Repaired Value my realtor now confirms while being at the house that we visited is $205,000. So now we take our $205,000 and using the MAO formula, we’re going to multiply $205,000 times 70%, $205,000 times 70%. That’s your profit that you are calculating into this formula. So $205,000 times 70% equals $143,500. $205,000 times. 70% equals $143,500. Now we’re going to subtract. We’re going to subtract repairs $46,000. Well, let’s do that. That’s going to give us the maximum allowable offer right there, but we never make MAO. We never offered MAO, we’re going to give ourselves a $10,000 buffer. So let’s run the MAO formula $205,000 times 0.70 equals $143,500. As I just said, now we’re going to subtract repairs of $46,000. There’s MAO, right there. A Maximum Allowable Offer is $97,500.

    Oh, my lands! The Maximum Allowable Offer is way below what the seller owes of $105,000, right? I mean, yeah, they owe 105. They’re asking 115. MAO, Maximum Allowable Offer is 97,500. But that’s not the maximum offer we can make. Remember we’ve got to subtract an additional $10,000 for Murphy, the unexpected. So actually the offer I can only make on this house is $87,500. That’s 205,000 times 70% equals 143,500 less repairs of 46,000 equals 97,500 less, $10,000 for Murphy, the unexpected. Maximum $87,500. And my lands! She owes $115,000. Well, the lessons are not over yet. Hang on with me one more second, and we’ll be done with this show. So I said, let me get two more estimates. So I know my crew leader, we can do it with the crew for 46,000 in an account for an additional 10,000. So what do I do?

    I get a bid from a contractor that I know and trust. Look what my contractors bid was at his cost? 64,000, there the bottom $64,680. But look with his profit. His charge to me is 76,000 plus dollars. My lands! That’s $30,000 more than the crews. I had another contractor bid and look for all you think of brains. Yeah, there’s all the line item budgets. There’s all the line item budgets, right? Had another contractor come in at 66,000. So I confirmed that me and my crew were coming in at the best at $46,000. What’s that lesson learn, always get multiple bids just to be sure you’re getting the very best deal. Right? So there you have it folks. The math makes the decision. 87,000 and look, that’s not even taking into account that half. Well, that does take into account converting the half bath, you know, to a full bath.

    So I looked at this a different way. I said, look, what if I don’t do that garage conversion? Why don’t I just, you know, do the rehab and sold it on rent to own? Well, my lands! My repairs are still at $36,000. I looked at doing it on a work for equity. Too much work to do. So we sliced it. We diced it. We carved it up every way that we could. And now, you know, step by step in this example of 112 Charles street, when to hold them and when to fold them.

    There you have it folks! Another episode, if you liked this episode, be sure and subscribe. Write and review. Give us some comments there. If you’re on YouTube. If you’re listening to us on iTunes, Google play, be sure and give us some feedback. We appreciate all your feedback and I appreciate you being here. I’m Jay Conner, The Private Money Authority. Wishing you all the best and here’s to taking your real estate investing business to the next level. I’ll see you on the next episode of Real Estate Investing with Jay Conner! See you on the next show!

  • Tim Bratz – Building Legacy Wealth Through Apartments & Commercial Real Estate Investments

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    Jay Conner (00:02):
    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host. Also known as The Private Money Authority. And here on the show, we talk about all things that relate to real estate investing. Single family houses, commercial deals, self storage, land, small apartments, big apartments, flipping, rent to own, et cetera, et cetera, et cetera. We also talk about how to get your deals funded without relying on local banks or mortgage companies. How to sell houses fast. How to automate your business. To where you’re running your business and your business isn’t running you. And I have fantastic guests here on the show. Today is no exception. But before I introduce my guest today, I’ve got a free gift for you to check out. And that is if you’re looking for more funding for your deals, particularly here in the midst of COVID-19 and you don’t want to rely on banks, mortgage companies, or any kind of traditional funding, then I have got an on demand, free training for you right now on the internet.

    Jay Conner (01:14):
    It’s only about 60 minutes long, but this training will show you the five easy and quick steps to get the funding for your real estate deals. Again, without relying on your, any of your own money, your own credit, et cetera. So you, after the show, you can check it out at www.JayConner.com/MoneyPodcast. That’s JayConner.com/MoneyPodcast. Well, my special guest today began his career in real estate in the competitive New York city. Can you believe real estate market? And he was working as a broker leasing these ground floor retail units. Well, in that experience, he saw and learned the true potential of real estate that can really transform lives. Now, although he was limited in his means and the amount of money that he had available to him at the time, he spent his time reading, attending seminars, networking, and hanging around very accomplished entrepreneurs, which by the way, is good advice for all of us.

    Jay Conner (02:23):
    And he was learning that being resourceful was the ultimate path to becoming successful. What do you mean by resourceful? He’s going to tell us. So with his knowledge he embarked on building his real estate company and empire in Charleston, South Carolina, where he had relocated in search of a better quality of life. Now he got in Charleston back in 2008. Wow! After the real estate bubble had burst and he quickly adapted and he was using a credit card, increased his credit card limit, and then wrote himself a balanced transfer check to acquire the cheapest property he could find. We’re going to get him to tell us that story about how in the world he was able to use a credit card to buy his first house at only 23 years old. Well, anyway, armed with his personal investment and a lot of sweat equity. He transformed a rundown duplex and turned a profit on his first deal. Then he took those proceeds, reinvested them, and while seeking private capital to expand his growing company. Well, my special guest is the CEO and founder of Legacy Wealth Holdings, which was a real estate investment company that acquires and transforms distressed apartment buildings into high yield assets for their own portfolio. So with that folks, I’m so excited to have as my guest today, my friend, fellow mastermind member and real estate investor, Mr. Tim Bratz. Welcome to the show, Tim!

    Tim Bratz (03:56):
    Hey, I appreciate you having me here, Jay! Excited to be here, man. I always looked up to you and I’m super pumped to be here and be chatting with you and sharing some knowledge with your audience. So appreciate you having me, man.

    Jay Conner (04:08):
    Absolutely. Well, I’m so excited to have you on, because I mean, in just a few short years, you’ve got such a wide variety of experience. You have put your portfolio. I mean, my lands! Your current portfolio exceeds 4,000 units and is North with a valuation of about more than $350 million, Right?

    Tim Bratz (04:32):
    That is correct. It’s kind of crazy. Right?

    Jay Conner (04:35):
    So I’m not going to ask my questions in logical sequence. I’m just going to do stream of consciousness with you. How long did it take from you starting in commercial, doing commercial deals to going to a portfolio of 4,000 units? I mean, is that a 10 year stretch? Is that a five year stretch? What is that?

    Tim Bratz (04:59):
    First started studying real estate and learning about it in 2005 when I was in college. I became a real estate agent 2009 or a 2007. Invested in my first property in 2009. Bought my first apartment building at the end of 2012. And it was an eight unit building.

    Jay Conner (05:17):
    Wow. You answered my question. That’s fast!

    Tim Bratz (05:21):
    Since I bought my first apartment.

    Jay Conner (05:23):
    Yeah. And now you’ve got 4,000 doors or units, right? Yeah. That is amazing! So let’s start with, let’s start with your journey. Tell us your story of getting into real estate and how it has progressed your journey. And how has it grown.

    Tim Bratz (05:44):
    Yeah, I think we all want it to go faster than it usually does. Right? And that was not any different in my case. I was going through college 2003 to 2007 when the market was going crazy before and everybody’s making money in real estate. And I was a money motivated kid at the age of 20 years old. So I had one of these painting companies in the summer rent a bunch of crews with my friends. We did a bunch of landscaping also. And then I interned for one of the largest home builders in the country and just realize I wanted to be a real estate investor, but I thought everybody got started in real estate and owning real estate by becoming a real estate agent. And so I’m from Cleveland, Ohio originally, but I moved out to New York city cause my brother was living out there at the time.

    Tim Bratz (06:23):
    And after college I got my real estate license and I started brokering just like you had mentioned in the opening. Commercial and retail offices and retail spaces in Manhattan. And I, listen, I didn’t really know what I was doing. I was just kinda like doing the labor of going and finding, you know businesses that wanted to expand and then handing them off to somebody who knew what they were doing or finding a landlord who wanted to lease their space and then handed them off to somebody that they knew it was doing in our brokerage firms. So I was just really the workhorse, right? And so I knew enough that when I closed my first deal, it took about eight, nine months to close it. And it was 400 square feet.

    Tim Bratz (07:06):
    And we signed a lease for $10,000 a month on this retail space. 12 year lease term, 4% annual increases. And I started doing the math and I’m like, Holy cow, this landlord’s gonna make almost $2 million from doing something once. And they’re gonna get paid on it for the next 12 years. Like I’m on the wrong side of the coin. I need to be owning real estate instead of brokering it. And so I moved down to Charleston, South Carolina for better quality of life and some good weather. And when I got down there is when the market crashed and everything was crumbling. And I was going through all these courses and seminars and learning as much as I possibly could. And when I was right, when I was about to pull the trigger on buying something that, you know, the market crumbles and I was like, I just showed up to the party and everybody’s leaving.

    Tim Bratz (07:50):
    Right? And so nonetheless, nobody was giving money to a punk 23 year old kid. Who’d never done a deal before in the worst housing economy ever. And I had to get creative. And I think a lot of people say, Hey, I can’t do something because I don’t have the time. I don’t have the money, I don’t have the knowledge, I don’t have the resources. And I heard Tony Robin say, one time he goes, resourcefulness is the ultimate resource. You’re resourceful. You can find time and money and knowledge and all the other resources. And I think that’s something I’ve always kind of done is I don’t let somebody tell me I can’t do something. I asked questions about how can I do something. I think when you ask good questions that leads you down a path of getting good answers. It’s like Google, right?

    Tim Bratz (08:35):
    I could Google search restaurants in Ohio. It brings up every restaurant in Ohio. And then I could Google search restaurants in Cleveland, Ohio, and it refines it to only Cleveland, then Italian restaurants in Cleveland, Ohio, it refines it even more. And so the more defined of a question that I think you asked, more definitive answer that you’re going to get. So I said, Hey, I can’t get money from the banks. I can’t get money from traditional lenders. All my friends are drunk in bars right now, cause they’re all 23 years old at the time. And not they’re blowing all their money at the bars. And nobody’s gonna lend me money. Like how can I get access to capital that I already have access? And I thought, well, I have a couple thousand dollars saved up in my bank account.

    Tim Bratz (09:17):
    That wasn’t enough. But maybe I could get my credit card company to increase my limit. And I called them up and I said, Hey, I’m about to make a big purchase. Are you guys willing to increase my limit? And they said, how much do you need? I said, $100,000. And they said, absolutely not! Like, you’ve been a great customer for about 15 months, but that’s just not gonna happen. And I said, all right, well, how much are you going to give me? And they give me 15 grand. One five. And so I found the cheapest house in all of Charleston. This is after the market tanked in 2009 now. And I bought it essentially with a balanced transfer check on my credit card, bought it for $14,000 and put on sweat equity

    Jay Conner (09:57):
    To make sure everybody understands, tell them about it. What is a balanced transfer check? Cause we’ve probably got some listeners that might want to use that strategy.

    Tim Bratz (10:05):
    Well, it was, you know, it’s essentially something that credit card companies use in order to say, Hey, go from your MasterCard over to visa. And if you transfer your balance over to us, we’ll let you, you know, give you a balanced transfer check to go write a check over to your MasterCard. And then we’ll just put that balance to overhear on your visa. And so I don’t know if they still do it. I haven’t used one in a while, but that was like a big thing back in 2008, 2009. And so I was able to get my credit card limit increase. I got them to send me these perforated checks and I just wrote it to myself instead of like transferring a balance or anything like that. I just wrote myself a check for $14,900 and I maxed out my credit card.

    Tim Bratz (10:48):
    I put all that money in my bank account. And then I went and bought this house. It was, they were asking 25 grand. I got it for, I offered 12, right? They came back at 20. I came back at 14, we ended up cutting a deal on it. So, and then I personally did all the work, you know, of YouTube and how to change out carpet and light fixtures and plumbing repairs, and all this stuff. And I turned around and sold it. And a little over a hundred days and I made about $14,000 on it net. And I was like, I don’t even know what I’m doing. I’m making money, the worst housing market ever. So then I got into wholesaling, right? Wholesaling. I learned a little bit more about that. And I met amazing people in wholesaling who had money and were buying deals from me.

    Tim Bratz (11:27):
    I could make a couple of bucks on it. And eventually what happened was they said, Hey, this kid’s got a decent work ethic and he knows how to find a good deal. Hey Tim, I can’t, I don’t have the bandwidth to take on more projects myself, but I still have more money. How could I lend you money? We just come up with some sort of like equity split on the deal. And that’s how I started doing several deals. Probably. I don’t know, the first 250 deals I did with some sort of equity split with private investors. And so, built up a small portfolio and ended up moving back from Charleston, South Carolina, back up to Cleveland, Ohio, and partnered up pretty much exclusively with a couple of guys who had a traditional business, made a lot of money in it and invested with me.

    Tim Bratz (12:09):
    And so from 2012 to 2015, built up a portfolio, I don’t know about 130, 140 units in Cleveland. That’s when I bought my first apartment building. That partnership though went South in 2015, 2016, and we ended up liquidating everything. So I had to press the reset button on my business and it’s not exciting to do when you can. You know, I think that takes a lot of work to kind of get the, get the plane off the ground. And I’m like, Oh man, I got to start all over. But really it was a blessing in disguise where it allowed me to really spread my wings and do some other stuff. And people came out of the woodwork saying, Hey, man, I want to wanting to partner with you and want to do some deals with you. I’ve been wanting to lend you money.

    Tim Bratz (12:50):
    And it just, it opened me up big time. Started to got into a mastermind for the first time in 2015, and that was just like mind boggling the opportunities that, and the connections that came from that. And so I liquidated my whole portfolio and in August of 2015, I started building my current portfolio. Although they took all my property away or not took it all away, but we liquidated all. They couldn’t take the insights, right? They couldn’t take the mindset, they couldn’t take the information. And I think that’s a really a key piece of once you learn, you get educated to how to do this stuff, you could do it over and over and over again. So I started from scratch and in August of 2015 and here we are five years later and I have a $350 million portfolio. It’s 90% apartments. And about 10% of some other asset classes. Office, a little bit of mixed use like retail. I have several self storage facilities. And a couple of vacation homes too.

    Jay Conner (13:46):
    So really these 4,000 units, you’ve built all that in just the past less well, less than five years?

    Tim Bratz (13:54):
    Yup. Just shy of five years now.

    Jay Conner (13:56):
    So you’re starting from scratch. Well, you’re not starting from scratch, cause you still own the real estate in between your ears. Right. And the experience you’ve got, et cetera. So tell us that story. How do you start from scratch? You know, looking for and attracting capital. So, you know, I’ve done a ton of that myself. I teach it myself. I really want to hear your story. So how do you start raising the capital and all these commercial deals? How do you start finding the deals? And then if you can keep it to the 30,000 foot level, what’s a structure of a deal look like? How do you structure a deal? And I’m assuming you’re looking, at this portfolio, this portfolio were those all existing apartments, et cetera, that were distressed and you turn them around?

    Tim Bratz (14:48):
    For the most part, we do a little bit of new construction also, but most of it I’d say North of 70% of it is definitely existing property. Maybe 75%, 80% is existing.

    Jay Conner (15:02):
    Let’s start with raising the capital. What’s your strategy on raising the capital? Cause that’s a lot of capital.

    Tim Bratz (15:09):
    Yup, we’ve raised. I mean, I have, and I don’t raise money from institutions or hedge funds and REITs and stuff like that. I raised money from individuals, right? Somebody who’s got a hundred thousand dollars in 401k or some entrepreneur who just exited their business and they’re sitting on a couple of million bucks.

    Jay Conner (15:24):
    Yup. That’s what I do.

    Tim Bratz (15:25):
    That’s everybody that I raise money from. They’re easy to work with. They’re too busy to complain or like breathing down your neck about what’s going on with the deal. As long as their checks hit and their deposits are made. They like going back to doing what they’re really good at and they understand leveraging other people’s efforts. And they’re really good at making money. They’re not that good at investing it. So they put it with somebody who does know how to invest it and then I can help them deploy it, make a good return. So here’s what I found because I’ve done a lot of different things. I had a big turnkey business. We were flipping about a hundred. Like when I get out of that, that past a business partnership, I went back into wholesaling and I got into like turnkey of flipping houses because I needed to build up my cash reserves again. And so while I was doing that whole process, I learned that there’s some people, there’s essentially two types of investors out there, that are looking for two different types of returns.

    Tim Bratz (16:18):
    One is like a debt return, which is a very predictable, I deploy my money and I make 12% return on my investment at like clockwork. And I invest a hundred thousand dollars with somebody. I make a thousand dollars a month and I make 12% annual return on my money. That’s great. It’s very predictable. There’s no surprises there. And, but at the end of the day, they’re not building wealth, right. They’re making a good return and their army of money has a bunch of other soldiers now that they can then redeploy and they can make more and more money. And that’s one way of doing it. And then there’s other people that I found that like the equity investment side, where there’s equity upside, they can sell the property, double their money, but there’s also equity downside where they could lose money.

    Tim Bratz (17:01):
    And there’s not a lot of predictability in consistent monthly payments in that regard. So I’ve realized there were two types of people, two types of investments. And there wasn’t really anything in the middle. When I started doing on the single family side is I started structuring the way that was a no brainer. I said, Hey, listen, I’ll pay you either 12% on your money. Or 15% of the profit, whichever is greater. That’s a no brainer. Worst case scenario make 12% of my money and potentially there’s equity upside in this thing without any downside on the equity. So that was a no brainer. And then when I started investing in apartment buildings, I did something similar. I realized that I couldn’t pay somebody 12% cause we’re talking about big dollar amounts and it would really eat up the cash flow, especially on these not performing apartment buildings that are heavily distressed.

    Tim Bratz (17:51):
    So what I ended up doing is I offered a little bit less, you know, 8% to 10% fixed return on their investment. And my whole model is based on flipping houses, right? Like I never went to a course. I never on commercial real estate. I never, I didn’t get a real estate degree from some Ivy league school. My grandparents didn’t know what a bunch of commercial real estate I just learned about it from the school of hard knocks. And so what I ended up doing was I took the formula of, I gotta be all in for 65% of the after repair value. And that’s what I needed to be able to buy and renovate these houses for in order to sell it and make a profit. I took that exact same philosophy and formula and put it into apartment buildings. So in apartment buildings, very predictable of what it’s going to be worth because it’s all based on the income approach, not on sales comparables.

    Tim Bratz (18:35):
    So I know what it’ll rent for. I know exactly what the expenses are. And so I can just figure out if I improve it and I get a fully occupied, put good management in place. It’ll generate this much money of net operating income. And in that area, it’ll appraise it, this sort of cap rate, which is kind of like a multiple on the NOI. And so it’s very predictable. If it’s gonna be worth $10 million, I need to be all in for six and a half million. If it needs a million dollars worth of work, I need to be able to, my maximum allowable offer is five and a half million dollars. Does that make sense? So the difference is I don’t sell the property. I turn around, I refinance it. So I’ll go to the you know, Fannie Mae, Freddie Mac or an insurance company or CMBS.

    Tim Bratz (19:16):
    And I’ll get a loan once the property is stabilized, meaning it’s fully occupied, good managements in place. And then I’ll put a loan on it for 70% of that new value. So if I’m all in, it’s worth 10 million, I’m all in for six and a half. My new loan is 7 million. That means I’m able to pay back my investors able to pay off my short term construction loan. And I just put longterm debt, fixed interest rate debt in place. And now all my chips are off the table. Right now we can just sit on this thing, let the tenants pay rent covers all the operating expenses covers all the debt service pays down our mortgage property appreciates over time. And that is how real wealth is built. So when I, when I got into apartment buildings, I took my investors and I just, I started paying them 8% to 10% of a fixed return while their money was invested.

    Tim Bratz (20:03):
    And then they get all their money back at the time of the refinance. Let’s say it’s 18 months later. And then I give them equity in the deal forever. Even though all their money’s back in their own pocket, they keep maybe 20% of the deal forever. And so that then incentivizes them where now they see me as a longterm partner. They see me as somebody who’s like, you know what, if somebody dangles a 12% carrot in front of their face, they’re not going to go with it because they’re like, no, Tim’s my partner. Right? I have equity and deals with him that we’re gonna be partners for the next 10 years. And it allows them to just keep on rolling their money forward with me, where they make a good fixed return. Plus they have the equity upside and it’s a win-win all around them.

    Jay Conner (20:43):
    So do you structure the deal with your private lenders? Are they investing in a fund?

    Tim Bratz (20:51):
    Yeah, so it’s not like a general open-ended fund. Every deal that I do, every apartment building I buy is its own investment, a registered sec investment with the federal SEC, Securities Exchange Commission. So every deal I do is its own. It’s its own entity, it’s its own registration. So I only raise on a deal by deal basis. So people aren’t, you know, it’s not like a stock where it’s or a mutual fund where it’s spread across many different properties. It’s a single property. So one, two, three main street will be owned by one, two, three main street, LLC. Here’s what the numbers are on one, two, three main street. What it’s going to look like, and what’s going to generate for income to the LLC. And then the investors, they invest in that LLC and they’re actual equity owners in the LLC. So they get a K1 at the end of the year and yeah, works that way.

    Jay Conner (21:43):
    So you raise capital for its own project every time. Right? So, does most of your capital for a project that you’re looking to do, do most of those funds come from existing private lenders that you might have recently paid off from a refinance deal?

    Tim Bratz (22:08):
    Yeah, so you know, we were joking about it before we kind of came online and we said, Hey, you’re either deal heavy or you’re money heavy and very rarely both at the same time. Right? So I think, I think the most important thing you can be doing as a real estate investor, the only three activities that matter are Sourcing Deals, Sourcing Money, and Refining your Operations. Right? If you’re doing those three things at all times, those are the revenue generating activities that you need to be focused on all the time.

    Tim Bratz (22:40):
    So we are always sourcing deals. We are always sourcing money. And we are always trying to refine our operations and tighten up that ship. And so, sometimes we have a refinance and we’re heavy on liquidity and we can roll all of our investors into that new project without having to raise any outside capital. Other times, like we got a bunch of refinance that were supposed to pop during this whole COVID mass. Right? And they all got delayed. And so now they’re all looking good, right? Knock on wood. But there was a timeframe where we were still buying some deals early part of this year. And we had these refinance that were supposed to pop it didn’t. So we had to raise a bunch of outside capital. But you know, it also happens where somebody invest with you in one deal, they have more money set aside. They want to diversify across multiple different assets, multiple different properties. And a lot of our existing investors came in on all those other projects, knowing that there are other funds are going to be pretty liquid over the course of the lateral this year.

    Jay Conner (23:40):
    So, when you’ve got a project that you’re getting ready do, what’s your, the logistics of getting the word out to, like when you’re raising new capital? And what’s your funnel look like? Like with me, my funnel is all the time educating. In fact, you may have heard me saying that in the past time, I’ve never asked anybody for money. I raised a ton of capital without asking for money. I educate and I teach and once they get taught and enlightened and they know about self directed IRAs and they know about private money and how the program works, if they’ve got investment capital or retirement funds, they’re going to be chasing me. Right? But where do you go and what do you do?

    Tim Bratz (24:28):
    Yep. So I’m very active on social media. So if you follow me on social media, I know we’re connected on social media. You’ll see me always talking about buying apartment buildings. How I structure the deal. What the returns look like for the overall project. When you’re syndicating capital, you gotta be very careful to stay in compliance with the SEC guidelines. You can’t just go out and tell people, Hey, I’ll pay you 12% because it’s not secured with a first lien position on a property. So because of that, you can’t go out and just generally solicit, you know, and as soon as you take two investors and put them into a single deal, you’re creating a security. So it needs to be registered with the SEC. Does everybody do it? No. Do I do it? Yes, because I have a lot of eyeballs on me cause I do the education stuff too.

    Tim Bratz (25:13):
    But I think educating people is the purest way of showing what you do, how you do it, and just naturally building trust and building relationships with people. And confidence and respect that they respect you as the authority of private money. Right? And so those are the two keys in order to raise capital. You need somebody’s respect and you need somebody’s trust. If you don’t have those two things, it’s gonna be very, very difficult to raise money. And educating people, whether that’s through social media or through formal courses, creates both of those things. You’re spending time with them. They know you, they know your core values, they know what you’re all about. And you’re obviously teaching, you’re standing up in front of the stage. You must be an authority. You must be an expert at what you do.

    Tim Bratz (26:02):
    So there’s a lot of respect that comes with that as well. So I think the whole education piece is a genius way of doing what you’re doing. So I do some of that on social media. I do have, you know, a coaching platform on teaching investors, how to scale from residential into apartments. And that generates a lot of capital. But I also just hang out in masterminds and I hang out with people who have capital who have money, who are really good at making money, but not good at deploying money. Right? Like most entrepreneurs are really, really good at making money. And then they blow it on stupid stuff. They’re not good at saving it. They’re not good at investing it. So I’m able to come in and be like, listen, man, you buy as many liabilities as you want, but first you gotta buy assets, right? Like here’s what system, what the process looks like to generate real wealth instead of just getting rich, let’s get you wealthy. And so that’s, that’s what I do.

    Jay Conner (26:50):
    Yeah. You just said that you know, you just hang around people, that’s got money and you know, I’ve been saying for a long time, the more money you wallow in, the more sticks to you. So I planted this and I also teach people to go where the money is. You know, sometimes they’ll say, Jay, you know, you talk about your warm market or relationship money. All my people are broke. I don’t know anybody with money. Well, wake up and smell the roses. How about let’s go meet some people that’s got money. And so obviously along with the education piece, networking is critical. Networking is critical to you know, to speak to the point of what you just said. Well, Tim, we are just about out of time, but thank you so much for taking the time to come on the show here.

    Jay Conner (27:38):
    And I know that there is a percentage of my audience that would like to follow you and learn some more from you. So let me ask you for two things. If people want to learn how to get into commercial investing themselves and learn from you and your education company, how would they, where would they go to learn more about that?

    Tim Bratz (28:00):
    Yeah. Well, I appreciate it, Jay. Thanks again for having me, man. And again, I appreciate all the value that you continue to put out there and your abundance mentality. So thanks for having me here. Yeah, if you guys want to connect with me, I’m very active on social media. Find me on Facebook and Instagram. And follow me, connect with me, send me a friend request there. And then my website is LegacyWealthHoldings.com LegacyWealthHoldings.com. And you can learn more about the coaching side of things and how we can potentially do deals together. I’m always buying properties, selling properties, joint venturing on projects. So if you guys come across a good deal and want to talk about something or just need some insight, I mean, we’re happy to support and offer education any way that we can. So yeah, appreciate you having me, man.

    Jay Conner (28:44):
    Absolutely! And for everyone that is listening in on iTunes, Google play and our other audio platforms, the spelling of Tim Bratz, his name, of course you got the TIM. But his last name, if you’re looking for him on social media is BRATZ. That’s TIM BRATZ. Well, Tim, I look forward to seeing you at our upcoming mastermind meeting, which hopefully is going to be in person. I haven’t heard the definitive word on that yet, but in any case, it’s been a pleasure to have you on, man. I appreciate you so much.

    Tim Bratz (29:17):
    Thank you! Thank you for having me. Take care.

    New Speaker (29:19):
    There you have it folks. Another show. I’m Jay Conner, The Private Money Authority. Wishing you all the best! Here’s to taking your real estate investing business to the next level. And I’ll see you on the next show.