Jay Conner

Category: Foreclosures

  • Matt McKeever, BRRRR Investing

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    Jay Conner (00:10):
    Well, hello there and welcome to another episode of real estate investing with Jay Conner. I’m Jay Conner, your host, and also known as the Private Money Authority. If you’re brand new here to listening on iTunes or Google play, or you may be watching and listening to the live stream right now on one of our YouTube channels or Facebook and you’re new to Real Estate Investing with Jay Conner show. We talk about all things, real estate, how to find deals, how to get them funded, how to sell them fast, how to automate your business. So you’re actually running your business and it’s not running you. And since we launched the show back in June of 2018, I’ve had some very, very amazing guests here on the show with me, and today’s no different, but before I bring my guest on, I want to let you know about what one big thing that we do here on the show. And that’s talking about funding for your deals.

    Jay Conner (01:04):
    Well, the short version of my story is, my wife, Carol Joy and I started investing in single family houses here in Eastern North Carolina, back in 2003. And the first six years that we were doing business, I relied on the local banks and mortgage companies. But in January of 2009, I was cut off from a funding, but no notice like the rest of the world. And so I was introduced to this wonderful world of private money. How to get funding for your deals that has nothing to do with your credit. Nothing to do with your verification of income. Nothing to do with your experience and how you can actually set your own rules to get funding for your real estate deals. So I’ve been using private money for funding ever since 2009. We’ve got 49 private lenders right now, funding our deals.

    Jay Conner (01:55):
    And if you would like to learn as well about how you can get funding for your deals, the same way I do without relying on banks, then I’ve got a free online class for you to check out after the show. You go over after the show to www.JayConner.com/MoneyPodcast. That’s JayConner.com/MoneyPodcast. There, I will teach you and reveal the five easy steps as to how you can quickly have zero funding for your deals, and very quickly having the hundreds of thousands and millions of dollars in funding.

    Jay Conner (02:37):
    So with that, I’m just so excited to introduce to you my guest today. My guest is a CPA and a real estate investor. You don’t find too many of those combinations inside the same head. So anyway, he implements this thing called the BRRRR investing strategy. And we’re going to dive on that and find out what in the world that strategy is. So he primarily focuses on small apartments and commercial deals. Now he has got a very, very popular YouTube channel. That right now has over 60,000 subscribers. And we’re going to tell you here in a moment, how to get over that YouTube channel and you can check him out, but on his YouTube channel, he teaches you how to analyze multifamily properties and how to maximize your return on investment through strategic innovations and renovations. That will show, that will allow you to increase your rents, increase your equity and how to increase very quickly your cash flow and these properties. And own this same YouTube channel, you’ll find videos where he’s teaching this ranging from renovating properties, duplexes, triplexes of all sizes, as well as dealing with student rentals his best practices for buying properties, how to manage your tenants and your portfolio of properties.

    Jay Conner (04:02):
    So he’s also going to show you on his YouTube channel, how he structures joint venture deals. How he gets funding for his deals. How he negotiates with banks, refinances properties, and of course, much more. So be sure to subscribe to his channel when we tell you about it here in a moment, and you’ll be able to follow him in his pursuit of financial independence and how you can get it also as well. With that, I’m so excited to bring onto the show right now, Mr. Matt McKeever. Hello, Matt! And welcome to the show, my friend.

    Matt McKeever (04:35):
    Thanks, Jay. Appreciate the warm introduction.

    Jay Conner (04:38):
    Absolutely! Glad to hear you. So, you’re up in Canada. Well, whereabouts in Canada?

    Matt McKeever (04:43):
    So located London, Ontario, about two hours from Toronto, which is our big city here in Canada.

    Jay Conner (04:49):
    I got you. Now is all of your investing these days taking place in Canada?

    Matt McKeever (04:54):
    Yep. So right now my portfolio is exclusively in Southwestern Ontario. So within right now, actually it’s pretty much all clustered in London, Ontario, which is a market with a 500,000 Metro population area. Just to kind of give you guys a rough idea. Median house price is around 350 to 400.

    Jay Conner (05:14):
    So with everything that we’re going to be talking about here on the show today, and also on your YouTube channel, do all or most of the strategies apply to doing this type of business the way you do it in the United States?

    Matt McKeever (05:29):
    Yeah, absolutely. So if anything, the United States has maybe more friendly investor regulations in most States. So everything we do here in Canada can absolutely be replicated in the States. And in fact, sometimes it’s easier because you guys have nifty little tricks, like the 10 31 exchange, which is completely nonexistent here in Canada.

    Jay Conner (05:50):
    I got you! And that comes into play more often in the world of commercial than it does in single family homes. Right?

    Matt McKeever (05:58):
    Absolutely! So here in Canada, unfortunately we don’t have that 10 31 exchange. We can find a handful of other innovative ways to try and, you know, help us speed up the velocity of our money. But really for myself, when I first joined like a lot of investors, my biggest thing was either limited amounts of resources, right? The limited amount of my own money. And like a lot of people I had discovered private money like yourself. So we’re constantly focused on how can I stretch the little bit of money I have to control the most amount of real estate as possible. And that’s what really led me into that BRRRR investment strategy, where you buy a property, renovate it, you know, fix it up, bring it up to its highest, best most efficient use, then rerent it out at a higher amount, then go back to your lender and refinance and pull out the money. And I started originally doing that on small single family homes and small multi-families. And now I’ve just graduated to doing the exact same business model, but just with small apartment buildings, rather than like a triplex or a fourplex,

    Jay Conner (06:56):
    I got you. Well, just in case some people aren’t able to stay to the end of the show. Let’s go ahead and let everybody know right now how they can find your YouTube channel. That’s got all the trainings on it and et cetera, where can they go for that?

    Matt McKeever (07:09):
    Yeah. So if you hit me up on YouTube, it’s just Matt McKeever. That’s M C K E E V E R. And anywhere social media, you’ll find me on those platforms. So if you’re not on YouTube, I’m everywhere else as well.

    Jay Conner (07:24):
    Well, what I want us to talk about. Well, thank you for sharing that, Matt. What I want us to talk about today here on the show are really three topics. First I want to hear about your personal journey in real estate. Secondly, I want to, I want you to talk about the power of social media and how you use social media to leverage success in your business. And then thirdly, you got an interesting concept that you talk about. You don’t talk that much about ROI, Return On Investment or Return On Cash. You talk about this thing talking to call return on time. So those are the three topics let’s start with your personal journey, Matt, and your story.

    Matt McKeever (08:03):
    Absolutely. So like a lot of real estate investors you know, my gateway into real estate investing the gateway drug, as I like to say it, Rich Dad, Poor Dad. That’s what really started my entire journey. And in my fourth year at university, you know, I was going through for business. I was going to get my CPA license and really the reason I wanted to get into business or become an entrepreneur was to, you know, get rich. Like a lot of people. But I didn’t really know what get rich meant and had no idea how to actually achieve it. And so I was speaking with one of my roommates at the time we lived in a six bedroom student rental house and I was like, Jake, your dad’s rich. He owns like a big company with hundreds of employees. I was like, go ask him how we get rich.

    Matt McKeever (08:49):
    Cause we both know we want to get rich, but we have no idea. And he actually gave us the book, Rich Dad Poor Dad. And ever since reading that book in the back of it and a list of other books to go read, I went and read every book from that as well. And just really got addicted to this idea of real estate investing and being able to build up a, you know, passive cash flowing investment portfolio. I didn’t end up jumping into real estate until age 25. So from kind of 2021 discovering real estate to 25 and actually executing that I was just consuming information, trying to save up money. But also I was trying to get outside my comfort zone because all my friends and family thought I was crazy for wanting to get into real estate investing when I was already on, you know, the corporate path to that white collar job with the corner office.

    Matt McKeever (09:37):
    At the age of 25 is when I bought my first rental property. And on my 25th birthday, I ended up making a commitment to myself. So I downloaded an app on my phone that would count down the days to my 35th birthday. And I decided to make a commitment that I would retire by the age of 35 because of real estate investing. And so I was the guy at different parties or networking events, people would say, Hey, Matt, what’s new with you? What’s up? I’d pull out the phone and be like, Oh 2,465 days until my 35th birthday. When I get to retire. Long story short, kept buying real estate, kept in asking them that. And instead of having to wait 10 years, I actually retired from being a CPA, a chartered accountant at the age of 31 and just went all in to real estate investing at that point.

    Matt McKeever (10:22):
    And then from that I found like a lot of people, once I left the corporate 9-5 behind, my success in real estate actually really started hockey sticking because I had all this extra time and energy now to deploy into my real estate investing business. And in that first year of quitting my day job, I think I acquired 32 additional units that year. And then continued just to, you know, focus on different unique investment opportunities, started teaching other people about real estate investing as well. Because when I quit my day job at 31, I found it’s kind of lonely. There’s not a lot of other 31 year old retirees out there. And so I didn’t really have a peer group to hang out with. So I decided to start writing these really long emails to my friends, you know, like 5,000 word emails, trying to explain to them how they could quit their day job in five years, if they would just invest in real estate like I did.

    Matt McKeever (11:15):
    And I’m sure as you can imagine, your audience can imagine. No one responded to those 5,000 word emails because that’s a small novella. Thankfully at the time I happened to be reading a book and the books that speak to your audience in the language they wish to be spoken to. And immediately clicked for me, the reason that I love real estate and the reason so many people are drawn to real estate investing is because it’s such a tactical, you know, real investment, right? Like it’s a physical thing. Unlike say paper stock or paper assets. So immediately started documenting on my YouTube channel, just how I was going about investing in real estate. So if you go back to like my very first video, you can see, I was still swinging a hammer. Like I was still sweating up in the attics, re-insulating, running duct work, stuff like that.

    Matt McKeever (12:01):
    So really have been exposed to almost every aspect of the real estate investing journey. But at this point now what the day to day looks like is I’ve got a wholesaling business with five full time employees just wholesaling real estate. I’ve got a company that just BRRRRs apartment building. So in the last eight months or so we’ve acquired about 70 units in that entity and have just been BRRRRing those apartments and then also have my education and just networking, which is, you know, my YouTube channel, social media presence and a couple other little education companies. So definitely just, you know, constantly trying to level up and surround myself with like minded individuals when it comes to real estate.

    Jay Conner (12:43):
    Now you just said, that particular entity you’ve been BRRRRing properties. First of all, how do you spell that? Secondly, what does it mean?

    Matt McKeever (12:53):
    Absolutely. So B R R R R. And so it stands for Buy, Renovate, Rent, Refinance, and Repeat. And so really what that looks like is simply finding, to me the best way to explain it is you’re just looking for under utilized assets and you’re going to try and bring them up to their highest, best, most efficient use. So oftentimes what that looks like for me these days is we’re buying an apartment building here in Ontario that maybe is being rented out for 50% of fair market value. And the landlords owned it for 10, 20 years. There’s not a lot of equity and they’re no longer motivated to operate it at a hundred percent efficiency or anywhere close to it. They’re often approaching retirement age. So we go in there, buy the property. Then we implement strategic renovations, which again, unlike, you know, on HGTV, a lot of my YouTube fans would love to see me blowing out walls, you know, doing open concept this, that, and the other, but most of my renovations are really boring.

    Matt McKeever (13:52):
    It’s like, let’s clean out all the junk. Let’s paint the property. And maybe we’ll put a new kitchen and bathroom tops. And so really we’re just focused on what creates the highest return on investment from those dollars we’re investing into the property. So in my market here in London, Ontario, specifically usually adding dishwasher to a kitchen that can increase not only the rent we can charge every month, but also in general increases the quality of tenant that we’re going to be drawing from as well as say, adding laundry. If you can put in suit laundry, oftentimes in my market, I can charge between a $100 and $150 more per month in rent. And yet the cost of actually, you know, installing that laundry, depending upon the layout of the unit might be $2,500. So a very fast payback period in regards to when we can earn back that initial investment. But because we’ve increased the rent amounts.

    Matt McKeever (14:44):
    Now the actual capitalization rates of the property, you know, is going to revalue the property at a higher amount as well, if we the same cap rate. So again, what I’m really focused on is just taking underutilized assets, bringing them them up to their highest, best, most efficient use. Then re-renting them out for top dollar. And once we’ve re-rented it out for top dollar, you know, our income statement looks a lot more attractive, which means the lender and the appraiser is going to reappraise the property and refinance the property a much higher value. And ideally with our business model, if you’re doing it right, once you’re done this BRRRR and with the larger apartment buildings, it’s usually taken us about 18 months to do it from start to finish. What you’re going to end up doing is being able to extract all the initial capital you invested in. So the idea here is, you know, if I can refinance at a 75% loan to value, I maybe buy the property for, let’s say a million dollars, put 500,000 renovations, but then get it to reappraise at 2 million. Well at a 75% loan to value, I actually will get $1.5 million in new financing, right from the property, which means I can pay off the entire acquisition costs. So that’s really the base model here is to implement what we call a perfect BRRRR.

    Jay Conner (15:58):
    I love it! I never heard of the BRRRR strategy. I love it! Now, one thing you were just talking about was buying the properties. That’s the first letter in the BRRRR strategy. So here in the US there’s a popular website called LoopNet. What are, what are some of your favorite strategies these days for locating these under you know, these underperforming assets?

    Matt McKeever (16:26):
    Yeah, so there’s a lot of different strategies. One thing that is very different about the U S market and the Canadian market is, in the U S market, you guys have the freedom of information act. Here in Canada, we’ve got the protection information. It’s so like, it’s literally the exact opposite. So you guys are all about free information. We’re all about keeping it all secluded and hidden and private. So honestly my best way is like personal networking. So I’m happy to share some tips here, but it’s something that doesn’t seem to resonate with a lot of people my age or my generation, which actually makes for a great opportunity for anyone that’s willing to actually just build relationships, build rapport. And so, like, we actually target a certain type of realtor even to network with. Like the realtor I want to network with is he’s like, realistically, they’re above the age of 55.

    Matt McKeever (17:21):
    They’ve been in business for at least 15 years. And what we’re doing is we’re approaching those realtors and being like, Hey, who have you sold the property to? Like a large apartment building to 10 years or longer ago? They’re sitting on a ton of equity. I want to go make them an offer and make them a ton of money and make that offer through you and have you make commission off of it. So we’re very focused on trying to structure win-win opportunities when possible, and make sure that everyone eats because we find when make sure that everyone else profits from a deal we’d done, they get addicted to that cycle and they want to get us more deals. But again, we’re very boots on the ground and often focused on doing things that our competition won’t do. So everyone loves the idea of hiring a VA out of the Philippines and hitting them, them hitting the phones for a thousand calls a day.

    Matt McKeever (18:10):
    But what we’ll do is I’ll literally send one of my employees to stake out an apartment building, and they’ll just park in front and literally talk to every person going in that building, being like, who’s the owner? Can I get the owner’s phone number? And we find that usually, you know, we ask enough, we will get that owner’s phone number. And a lot of the apartment buildings I buy are literally through that process of, originally it was myself or a business partner just taking it out. Now we have employees taking out the apartment buildings, but we found that that’s the best way to really get deals. Because if an owner has already thought about selling the property, contacted a realtor and listed on the market, they’re now focused on just getting top dollar. And if they’re solely focused on getting top dollar, that’s fine for them, but it’s usually not going to work for me and my business model. So we’re often focused on not finding sellers, but actually creating sellers by making what we call blind offers. I don’t even really know what their motivations are, but I know that they’ve owned it for so long that they’re probably sitting on massive amounts of equity. And so I’m hoping that I can present them with a unique offer that they haven’t even really considered. And, you know, then we can get that conversation rolling.

    Jay Conner (19:17):
    So do you have your people stake out properties that looks just on the outside like it could use, you know some rehab and renovations and really be brought up to increase, you know, rents or whatever, or do you approach it differently? By again, looking for someone that probably has owned this property for a long time or which comes first? They’ve owned it for a long time or it looks like it could use some renovations or both?

    Matt McKeever (19:47):
    Yeah, we’re definitely open to either. In general, the way we’re usually going to like again, because we don’t have like easy databases of information. It can be very cumbersome to really figure out who’s owned what property for how long on a grand scale. I can definitely look it up individually, but there’s no way for me to like print off, you know, a giant data set. So in general, we’re more focused on the building first and then doing our research afterwards. So literally what I’ll do, and again, nothing fancy here, but I’ll go to my local cities, zoning map, look at the zoning, look for a high density residential. And then I’ll go on Google satellite and look just from the satellite view and find apartments, buildings, right? Identify the apartment buildings. Then literally go on Google street view. Sometimes on Google street view, you can see the property manager sign on the building.

    Matt McKeever (20:40):
    So we’ll immediately just call the property management firm then. If we can’t find that, that’s when I’m probably going to send someone to stake out the building. Get in contact with the tenants and find out who manages it and how. But at the same time, we’ve got a lot of other strategies. So here in Canada, Kijiji is really popular in the States. I think it’s more often Craigslist is the, you know, the online classifieds the people are going to use. But I also love going on Kijiji, looking through the for rent ads. And you just look for the landlords that are beaten down and they’re just sick of it, right? So like there’s no good photos taken. And sometimes I don’t know what it’s like in the States, but in Canada you can read it like, the landlord will write all in caps, like no debt deeds. And that’s like the title of their Ad. And like, this guy doesn’t want to be a landlord anymore. This guy wants to sell to me, even if he doesn’t know it yet.

    Jay Conner (21:31):
    I love it! When you said a moment ago, something really, really important to your, the success of your business is networking and relationships. Well, that ties right into how you’re able to leverage social media. So would you share with my audience here strategies and tips that you’re doing these days to leverage social media and to really how you harness the power of it?

    Matt McKeever (21:57):
    Yeah. And so the first thing I think that we need to really discuss is why even care about social media, right? And I find a lot of investors think that it’s simply a distraction. And if you use it as a distraction, it absolutely is if you use it as a business tool, it absolutely is. So you’re right. Either way, it really just comes down to how you use it. But for me, what’s really powerful about social media is having that one to many conversation before the advent of social media and online networking and things of that nature. Realistically, the only one to many conversation we could have as real estate investors is going out to your local real estate investment group. Right. And you could maybe go, and if you were lucky, you could get up on stage and maybe talk for half an hour, give a little presentation or breakdown about what you’re doing.

    Matt McKeever (22:44):
    And that group maybe met once a month. So maybe once a year, you could get in their lineup, get up on stage and talk, or you had to become the host of the meet-up group in order to have that one to many conversation on a reoccurring basis. Whereas on my YouTube channel. And again, like my YouTube channel, isn’t massive by YouTube standards, but it’s important for what I’m focused on. And what I’m focused on is really talking to my core audience, which is Canadian real estate investors, and then just real estate investors in general. And so even with just like 60,000 subs on my YouTube channel, any given day, I’m averaging 4,000 to 5,000 views on my YouTube channel. The average view on my YouTube channel is about seven minutes long. So I view that as myself being able to have, you know, 4,000 to 5,000 conversations that are seven minutes long, every single day.

    Matt McKeever (23:33):
    Well, that’s more minutes than there already is available on the day. So right away that one to many conversations, extremely powerful. But even more so as real estate investors, it’s not like we necessarily have to go, you don’t need millions of followers or millions of views in order to have a very effective business model. You really just need, like for a lot of real estate investors, their business would be changed if they had five good private money partners, right? Or five private money lenders. And you can really build up a relationship with those people through social media. So a lot of people, they decide that they want to lend their money to me before I ever even make an ask. And that’s simply because they’re able to watch and see my projects. They get to see me interact on interviews or go live on Instagram or Facebook and just have conversations.

    Matt McKeever (24:20):
    And they get to build a personal relationship with you. And something that we all need to remind ourselves as people like doing business with people they like. And so if you’re not putting yourself out there on social media, if you’re not trying to present, you know, your story, your image, your business model, you’re not giving anyone even the chance to fall in love with you and your story and want to invest in you or your business. So for me, there’s just so much power when it comes to social media, but I know I’ve just been kind of talking high level. So specifics. If any of your listeners here are brand new to social media, they’re intimidated by the idea. They don’t have a lot of time to invest into social media, pick one platform and spend at least 80% of your social media efforts on that one platform.

    Matt McKeever (25:03):
    Now, if you’re a small investor and you’re looking just to get a couple money partners or finding say two or three money partners with six figures or more to invest would be a game changer. I personally would focus on LinkedIn and I would literally just write one or two blog posts a week about my business model. Understand that’s never going to go viral. You’ll probably be lucky to get more than a couple of dozen views, but that’s all it takes. All you really want to do is really cultivate a strong relationship with a handful of money lenders. Now, for myself, there’s value in the education and email list and all that stuff. But for a lot of beginner, real estate investors, you don’t need that. You just need to build a handful of relationships and still social media is going to be a faster means to that end. Than going out to your local real estate investing group.

    Jay Conner (25:49):
    That’s awesome! And then to wrap up Matt, I want us to hang out a few minutes on your view and your take on return on time versus return on instead of ROI, et cetera. So what’s your take on return on time and why is that so important?

    Matt McKeever (26:08):
    Yeah, it’s something that I think a lot of investors are looted by at the start. And so in general, I kind of view this evolution of real estate investors and their sophistication based upon the metrics they talk about. So CPA by nature. So kind of a numbers nerd and, you know, a ratio nerd to begin with. But in general, when brand new people come to real estate investing, I find they talk about ROI, you know, return on investment. And they’re really impressed by the return on investment real estate can generate. Then once they get a little bit more sophisticated, they really start appreciating and understanding leverage. And we hear them talking about things like cash on cash returns, and really then it’s about the velocity of their money. Then as people continue to graduate and evolve as investors, maybe they start looking at larger multifamily properties.

    Matt McKeever (26:55):
    At which point in time, they usually start talking about cap rates or IRR. The internal rate of return. And again, all of these metrics are useful, but at the end of the day, what really draws us to real estate investing in my opinion, is the ability to have a high return on time. And that’s what I’m really focused on these days as an investor and I’d encourage anyone else that’s in real estate investing to start viewing things through that lens. And so one of the best examples I can give is wholesaling real estate. Here in Canada, it’s still a relatively new concept. It’s maybe only five years old that people have really been doing it to any serious capacity. And so it’s got a little bit of a negative stigma still here in Canada. However, if you look at what you can accomplish with say, wholesaling versus flipping a property, usually the return on time, even if the total profit is lower on that wholesale deal, let’s say you can wholesale a deal for $10,000, or you could flip the same property and make $50,000.

    Matt McKeever (27:52):
    Well, the bigger question to me is how long does it take to wholesale assign that piece of paper versus actually flipping it. Well for the average person here in Canada, assigning it, you’re probably going to assign it in one to two weeks. So your return on time, let’s say it took you even a month. Well, your return on time is $10,000 per month. Whereas if we’re going to flip the property, well again, we have to tie up the property. We have to wait for it to close. Then we close on it. Then we have to do our renovations, fix it up. Then we have to put it up for sale. Then we have to sell it. Then we have to wait for it to close. Well, oftentimes even if you’re going to make $50,000, that entire process from start to finish, it might be five or six months.

    Matt McKeever (28:31):
    Well, at that point in time, you’re looking at very similar return on time, but your perception of risk is higher as well because with the wholesale deal, we make the money before ever even closing on the deal. While we’re flipping there’s a speculative piece to it because we don’t really know what’s going to sell for, until it sells. So for myself and a lot of people that I’m trying to help level up as real estate investors these days. I really want them to focus on the highest return on time investments. And this is also really important because a lot of us, when we first get started as investors, a lot of us swing the hammers ourselves. We clean up the units ourselves. We paint the units ourselves. But oftentimes those are the lowest value skills, right? Like you could probably find someone to pay $10, $15, $20 an hour to clean up or paint the unit. Whereas you, as the investor would likely be better served going and finding the next deal or going and talking with your next private money partner. And really building those relationships and send yourself up to do more deals rather than trying to squeeze every deal for every penny. We’re better off to go find more deals. So this idea of return on time is just really being cognizant and not getting distracted by one piece of the puzzle, but really looking at the puzzle as a whole, When it comes to our investing and investment strategies.

    Jay Conner (29:46):
    Excellent! Thank you, Matt. Well, folks, go ahead and check out and subscribe to Matt’s YouTube channel at YouTube/MattMcKeever and that’s M A T T M C K E E V E R. Matt. Thank you so much for coming on the show today. I really enjoyed having you.

    Matt McKeever (30:07):
    Thanks, Jay. Really appreciate it.

    Jay Conner (30:09):
    Alright! There you have it folks. Another show. 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. Bye for now.

  • Joanne Musa, Tax Liens and Private Money

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    Jay Conner (00:05):
    Well, hello everybody there! And welcome to another episode of real estate investing with Jay Conner. I’m Jay Conner. Your Private Money Authority and the host of the show. And welcome! If this is your very first time, a very special welcome to you. You may be watching on the iTunes or listening on iTunes or Google Play. You may be watching live right now. If your live stream on mobile Youtube channel or on facebook. Or wherever you’re coming in from, we’re glad to hear or have you. If this is your first time here on Real Estate Investing with Jay Conner, we’ve talked about everything that relates to real estate from finding deal to funding deal. To automating your business. To all kinds of real estate. Single family houses, self storage, land, commercial deals. You name it. So today, for the first time since we launched the podcast. And my lands! We’ve now exceeded probably over 300,000 downloads and listens since we’ve launched. Got a subject today that we have not talked about on the show.

    Jay Conner (01:26):
    So I’m very excited to have my special guest. And if you’ve been following me, you know, that I have the best amazing guests and experts as it relates to real estate investing. Well, today is no different. I’m so excited to have my special guest who is known online as The Tax Lien Lady. And she’s the author of the books, “The Truth About Tax Lien Investing” and the Amazon best seller, “Tax Lien Investing Secrets: How You Can Get 8% to 36% Return on Your Money Without The Typical Risk of Real Estate Investing or The Uncertainty”. And we know about that folks! The uncertainty of the stock market. And she’s also a contributing author to the Amazon best seller, “Trust Your Heart: Transform Your Ideas Into Income” Now, my special guest, she’s been featured in the online magazine, NuWire Investor and Foreclosure News Report. She’s also been on real estate investing website, www.REIWired.com and for ForeClosure.com and addition to that, REIBluePrints.com. And she was mentioned in the January 2013 issue of Forbes Magazine. Our special guest, also known online as Tax Lien Lady, her articles on Tax Lien and Tax Deed Investing appear all over the internet. Her easy to follow step-by-step guide – nonsense approach and to investing in tax lien certificates and tax deeds.

    Jay Conner (03:05):
    And it earned her the reputation of being the most trusted authority on tax lien investing in the United States. Now her website is www.TaxLienLady.com. She has actually helped thousands and thousands of investors around the world answering their questions about tax lien investing and tax lien certificates and tax deeds. And has helped her subscribers and students to profit from this little nutting and misunderstood real estate investing strategy. Now, when you stay on here to the end of the show, you’re actually, we’re going to tell you, she’s going to give away for free her Amazon bestseller book, and you’ll learn how to get that. So with that, I’m so excited to introduce everyone here to Joanne Musa! Joanne, welcome to the show!

    Joanne Musa (03:56):
    Hey Jay! Thanks for having me. I’m honored to be here today.

    Jay Conner (04:01):
    Absolutely. I’m excited to have you on Joanne. And by the way, we’ve got live participants right now that have already tuned in. So everybody, if you are watching the live stream, of course, this isn’t going to work. If you’re listening on iTunes or Google play, but if you are on the live stream right now, we welcome your questions about tax lien investing. So right now, if you’re on the live stream, go ahead and say, hello and where you are tuning in from. I see we’ve got Lori and we’ve got Paula on so far. So everybody say hello as you’re coming in. So gentlemen, before we dive in to this tack this world of tax lanes, how’d you get started in real estate?

    Joanne Musa (04:43):
    Oh, well, you know, I always wanted to be a real estate investor, but the one thing that I didn’t know how to do, I don’t have a, I didn’t have a background in finance or real estate. And I, I didn’t know how to negotiate. So one thing I didn’t like to do is negotiate. Back in 2000, I was reading books by, I was reading books by Robert Allen about, you know, no money down and real estate investing and multiple streams of income. And I tried go into foreclosure sales and sending out pre-foreclosure letters. And this was at a time when people could get loans easily and pay off what they owed. And I just back then, I didn’t know how to do it. Now, since then, I’ve learned how to do it. But what I found out was that I could invest in tax liens and go to these tax lien sales, and I didn’t have to negotiate with anybody. And I didn’t need a lot of money because back then, I didn’t know how to use other people’s money. I didn’t have good credit and I didn’t do deals. You have to have cash. And of course, if you know how to get back, then I didn’t know how to do that. So one thing I did know is that I had enough money. I could go to these tax sales and buy these tax lien certificates. And that they had a high rate of return, no matter what the market did. I still got the same rate of return on my investment and it was backed by real estate. So it was a safe investment, as long as I did my homework, which I learned in the very beginning. You do have to make sure that it’s good real estate that you’re buying a lien on.

    Jay Conner (06:45):
    I got you! So you started doing the tax lien business in what year?

    Joanne Musa (06:51):
    Oh, 2002.

    Jay Conner (06:53):
    Oh, wow!

    Joanne Musa (06:54):
    Yeah. It’s been a little while.

    Jay Conner (06:58):
    So let’s first be clear and let everybody make sure we’re on the same page. Exactly. What is a real estate tax lien?

    Joanne Musa (07:11):
    Oh, good question. Good question. Well, you know that your property taxes are depended on by the County or municipality where you live, who collects your property taxes. They need them to pay school teachers, build roads, pay other civil servants, like firemen and policemen. So what do they do if people don’t pay their taxes? Because they need that money to meet their budget. So in some States, I live in Pennsylvania now. When I started this, I lived in New Jersey. But in Pennsylvania, if I don’t pay my taxes, the next year my property will be sold out from under me in a tax sale. They’ll just sell the property. Okay, well, they’ll let you go a year delinquent. And after that, they’re gonna, they will, they are going to try to get you to pay it. But if you don’t, they’re going to put your property in a tax sale.

    Joanne Musa (08:09):
    But some States, when I lived in New Jersey, they don’t sell your property. They give you a little bit more time to come up with the money. So what they do after your year delinquent, they sell your taxes to investors. They have an auction. Where they auction your taxes and different States do it different ways. Some they bid down the interest rate because in New Jersey, the penalty, if I don’t pay my taxes, if I went up property in New Jersey, there is a penalty that I will pay when I finally pay it, which is 2% to 6% penalty. And there’s also an interest per annum interest rate of 18% per annum. That I will have to pay. When I finally do pay those taxes. Well, guess what? The investor gets that. So that’s why they are so willing to buy those taxes because where else are they going to get that kind of investment return on their money?

    Joanne Musa (09:07):
    Not in the bank today. Not, years ago, you used to be able to get that in a CD, but not anymore. They can maybe get that in the stock market, but look, what’s been going on lately. It’s a little bit risky to do that. Now, but when you buy somebody’s taxes, if they don’t pay you in a certain amount of time, that’s called the redemption period. Then what happens is the investor gets to foreclose on that property. Now that is their leverage that they’re going to get paid. So you have that property is your guarantee that you’re going to get paid. Okay. So that’s why it’s very important to do your research and make sure it’s a good piece of property because there’s a lot of reasons why people don’t pay their taxes. If I have an unbuildable lot next to my house, that I know that I can’t build on, can’t do anything with, and maybe it’s not next to my house.

    Joanne Musa (10:02):
    Maybe it’s, you know, a block away or a town away or a state away, but it’s not buildable. Why do I want to keep paying taxes on it? Well, I’m going to get tired of that after a while. So I’ll just stop paying. So you don’t want to come along and pay those type of taxes. You want to pay taxes on a property that is useful in some way. You know, it doesn’t have to be a three bath, two bedroom house. If it’s a buildable lot, that’s good commercial property is good, but it’s just something that you’d be able to sell or something that has value.

    Jay Conner (10:37):
    I got you! So comparing tax lien investing to other types of real estate investing, why is, why have you chosen tax lien investing? Why is it a good investment versus say, other strategies?

    Joanne Musa (10:56):
    Well, it’s easy to get into because you don’t need a lot of money. You don’t need good credit. It is a real asset that it’s backed by a real asset, which is the property. And it’s in the state that I lived in, in New Jersey, there were tax sales all the time that I could go to. So that’s how, it was an easy entry. It’s an easy entry point for most people to get in.

    Jay Conner (11:28):
    Right! So is it correct in saying, when a real estate investor invest in a tax lien, they’re either going to earn the interest or they’re going to be able to claim the property and do whatever with the property that they want to, is that right?

    Joanne Musa (11:49):
    Yeah. And I just want to let everybody know that, I know years ago there were these infomercials and people think that you could buy a lien for maybe a couple hundred dollars and then get a hundred thousand dollar house. It doesn’t usually work that way. Think about it, if you own, let’s say you own a house you know, that’s a $150,000 or $200,000 house, and you have you know, maybe $5,000 of back taxes that you owe. Are you going to let that property go for those back taxes? If it’s a decent property? Probably not. It doesn’t happen very often. So it’s not really a way, buying tax liens is not a way to get property for pennies on the dollar. There are some States like my state, where they actually sell the deed in the sale. And those are the sales where you could actually get the property, but are you only going to pay the back taxes? Probably not because these are auctions and the price of the deed gets spit up at the sale. So can you buy it for less than you would pay if you went through the normal channels? Yes, you can. But it’s more like 50 cents on the dollar, not pennies on the dollar anymore.

    Jay Conner (13:17):
    Well, I’d tell you 50 cents on the dollar. You know, if it’s a good property, is a fantastic deal. I mean, I buy a lot of, a lot of single family houses and those that we rehab, which were most of them we buy them at 30 to 40 to 50 cents on the dollar. So that’s, it may not be pennies, but it’s, you know, 50 cents is 50 cents. Right?

    Joanne Musa (13:41):
    Yeah. And also these, like you alluded to, when you say most of the time we have to rehab them. Most of these properties have been neglected. Some of them are even knocked down. So, and you know what I’m talking about when you buy stuff for 30, 40 cents on the dollar, you know, you kind of get what you pay for.

    Jay Conner (14:03):
    That’s right!

    Joanne Musa (14:03):
    Yeah. So you just have to think about how much more money you got to put into it before you can turn around and make a profit when you’re buying a tax deed. But what I use tax liens for is a way to invest my money at high return. Without, as my, the title of my book says without the typical risk of real estate investing or the uncertainty of the stock market.

    Jay Conner (14:26):
    Right. Right. Well, now you’ve already mentioned it, then you sort of chuckled when you said it and that was you found out early on that you really need to investigate the property to make sure it’s a good property. And that’s probably the biggest mistake that new people in the tax lien investing do is not checking it out. So what’s your process on investigating property to see if it is a good property and what’s the definition of a good property?

    Joanne Musa (14:57):
    Yeah. Good question. What’s the definition of a good property? Well, that kind of depends on what you’re after. As I mentioned before, I like building lots. Remember you’re paying the taxes on a property. So, and the taxes on a building lot are typically lower than they would be on a lot with a building on it. And anything that could be resold, anything that has value to another buyer is something that I would consider a good property. So commercial properties can be good properties. Residential properties can be good properties. And sometimes vacant land. If it’s buildable. Especially building lots can be good properties. But what you have to check is what I like to check is the assessment value. I check the assessment of the property. And then I will check the market value of the property. So you might want to check comps on the property. And then another thing that I like to check, especially if I’m investing in a place that I’m not familiar with is I want to check the crime rate in the area. So you’re not only checking out the property, you’re checking out the area. And Jay, you’re shaking your head. Cause this sounds just like real estate investing. Doesn’t it?

    Jay Conner (16:22):
    It sure does! Now, do you invest in the tax liens, just right around in your area where you can drive by the house or do you invest in areas that are outside of your area?

    Joanne Musa (16:37):
    Well, I’ve done both, but I will say I do. I always recommend. And I do like to look before you buy. Whether it’s just a tax lien you’re buying or whether it’s a house, you know, a deed that you’re actually buying the house. And the reason is because if you look at pictures online, you might see a house there, but when you drive by it, that house might be gone. There I’ve been, I’ve been there, done that. And a good thing, I looked first because the house wasn’t, that was supposed to be there. That was there in the picture wasn’t there. Maybe it burnt down, maybe it got knocked down.

    Jay Conner (17:16):
    Maybe that’s, maybe that’s probably stop paying taxes.

    Joanne Musa (17:22):
    Well, exactly, exactly. So you don’t, and with land, you always have to look at it first because you can’t tell what it looks like from a picture or a map. You don’t know what the grade is. You don’t know how wet it is, how Rocky it is. You don’t know if it’s buildable and sometimes you don’t even know if you look at it, if it’s buildable. So you have to check with land. I also recommend checking with the zoning officer. To make sure that it’s buildable. And you also want to look for things like road access. You want to make sure it passes zoning regulations, that you have the right road access, that it has a utility access. That utilities are there or where the property is. It’s different things that you look for.

    Jay Conner (18:18):
    I know, I know you’ve got a ton of students. I mean, how long have you been teaching what you do?

    Joanne Musa (18:26):
    Well, I’ve been doing this since 2002 and in 2004, I started, how I got started was I was investing in New Jersey and I ran into somebody else who was trying to figure this out the same time I was. Well he asked me if I would work for him and he had a lot more money than I did to invest. And he was after the larger liens and I was after the smaller one. So I said, yeah, sure. If I could buy liens for me while I’m buying them for you, I’ll do that. And in New Jersey, unlike it is in some other parts of the country, the tax liens are not big County tax liens. They’re small municipal liens. Municipal sales. So there are over 550 municipalities in New Jersey and each one has a tax sale once a year. So on any given day, there could be a few tax sales all the same time on the same day.

    Joanne Musa (19:20):
    So I hired five other people and taught them how to find out about the tax sales, how to do the due diligence, how to bid at the tax sale. And I even helped the person I was working for develop a software program to manage the liens. And so after doing that, I realized there were people all over the country and even all over the world that wanted to learn how to do this. And so that’s when I, I started my website around 2005. I started teaching around 2004, but I started my website in 2005.

    Jay Conner (19:58):
    Okay. Wow! Well so you’re like me, I do the business. I coach. I teach, and I teach the business. And I’ve read. And I don’t know if we have time for you to go through it here on the show, but I’ll ask you about how much time it takes you, but I’ve read where you actually have five steps to, for people to take, to buying a profitable tax lien. Can you give us the 30,000 foot view of each of those five steps?

    Joanne Musa (20:30):
    Sure. You could use the acronym steps. S T E P S. Let me see if I can remember them first though. Since I did this. But they’re, they’re also all in my book. I actually have seven steps for the complete process because after you buy the liens, there are other things that you have to do to make sure that you’re profitable. Okay. Once you buy liens.

    Jay Conner (20:56):
    You said thos steps are in your book, is that in the book that you’re going to give away here at the end of the show?

    Joanne Musa (21:01):
    Actually, you know what I’m going to give away. I’m not going to give away the book that’s on Amazon because I don’t have enough of those to give to everybody. But I have a, I have a special report called the seven steps to building your profitable tax lien portfolio. And those seven steps are all outlined in there.

    Jay Conner (21:23):
    Okay! Great!

    Joanne Musa (21:23):
    And the first one is, I could give you the first one and that is, Select The Right Place To Invest. That is, that is the first S in the steps, five steps process.

    Jay Conner (21:35):
    That’s awesome! That’s awesome! So, I know it’s all over the board, but you know, you got it. You got started in this strategy because you know, it’s a low entry, doesn’t take much money. So what’s the definition of not much money? I mean, I know that depends, but like, what are some examples of like real amounts of money people need? You know, what’s an example of being able to get started, you know, doing this?

    Joanne Musa (22:05):
    Okay. I’ll give you an example. One of the real profitable liens, I did back in 2002. My original lien was for less than $500.

    Jay Conner (22:19):
    Okay.

    Joanne Musa (22:19):
    And it was in New Jersey where I invest, they don’t just sell taxes in these sales. They will also sell utilities. Anything that you owe to the municipality and don’t pay can go into this tax sale. You get a tax lien certificate, and it’s just as good as, you know, a regular tax as the taxes. So this was for the water and soar amount, I believe for this property. And it was for 400 and change was the first amount that I paid. And then every, the next year I got to pay the subsequent taxes. And I paid them for the next few years. And then when this thing finally redeemed, and then I stopped paying, I think after seven years. Now, you can’t let all your liens go that long, but in New Jersey you can.

    Joanne Musa (23:08):
    And so that’s like being able to put money away at anywhere from 8% to 18%. And without having to go to a sale and bid, once you have that lien, you could just keep paying those subsequent taxes. And then years later, I made over 40% on my money. I think in seven years that it finally redeemed and I made you know, almost doubled my money and that, it’s not the only incidence where I did that. As a of fact, I have another secondary lien that I bought where I put up a little bit more money and made about 30% on my money in 18 months. So it, and that, that lien was you know, was a couple thousand dollars.

    Jay Conner (24:06):
    Okay. So yeah. We’re not talking anything about huge amounts of money.

    Joanne Musa (24:10):
    No, yeah. That’s the, see, small investors can do this when you’re doing it on your own. When you, when you have somebody else do it for you, you have to come up with a lot more money, but when you’re doing it on your own, you could start with smaller amounts.

    Jay Conner (24:26):
    Excellent! And the free report that you’re going to give away, and we’ll give out the website here in just a second, but does it like tell, does it tell people how to get started and like where to go? I mean, you know, where do you go in your local area to find out where the sales are? And when the sales are?

    Joanne Musa (24:44):
    Well, here’s the problem with that. It’s different for every state. I do have, I’ll tell you what, I do have another program that I could give to your listeners. And it’s called the Sweet 16 Tax Sale website, swipe file. And that’ll give them 16 places they could go to find out about tax sales. 16 different tax sale websites, because that changes. Now I have a special tool that I use to find out what tax sales are coming up around the country that, that I give to my members. But they can not, they can find out about that after they get the basics, you know, and I doubt if it’s the right thing for them or not.

    Jay Conner (25:36):
    Well, I’ll tell you what, Joanne, let’s not hold it back anymore. Let’s go here and put up on the screen and those that are listening, write it down. Here’s the website where you can go to get Joanne’s free gifts that she just mentioned. To get you started to learning about tax liens. You go to www.JayConner.com/TaxLien And just to make sure you got that straight tax lien is T A X L I E N. That URL one more time. It’s www.JayConnner.com/TaxLien Joanne, final words of advice here on this show for our listeners and followers who want to learn about getting higher returns on their money without the risk of the stock market. Final words and thoughts.

    Joanne Musa (26:35):
    Well, I believe the best place to invest is in your own backyard where you know, what the property values are. And you just need to check out what happens in your state, in your County or in your town, depending on what state you’re in, because it is different in every area of the country. So you want to find out what happens in your particular area of the country.

    Jay Conner (27:03):
    Wonderful! Joanne, thank you so much for taking the time to come on the show and for offering your wonderful, valuable, free gifts to my folks. Thank you!

    Joanne Musa (27:14):
    You’re welcome. Thank you for having me on your show!

    Jay Conner (27:17):
    You bet it Joanne! Well, there you have it folks! Another episode of real estate investing with Jay Conner, 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!

  • Jim Sheils and 18 Summers

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    Jay Conner (00:02):
    Alright, Scott! It looks like we are live streaming right now. So come on up here up front Scott and join me for a moment and we’ll hang out before we officially start. So what’s going on in Metagene Columbia right now?

    Scott Paton (00:23):
    Well, it’s another beautiful day. We’re having a, it’s, we’re excited because in a few days the quarantine is over and it will be replaced by who knows what it’s not going to be like everybody opening up and dancing and sightseeing, and eating and drinking like they did before. But it’s easing off, which is really good. We’re very fortunate here compared to Peru and Ecuador, and certainly Brazil in that we’ve had a lot lower number of people who have died and a lot lower number of people who have been sick. So they’re a little concerned that if they open it up too fast, everyone will be, will get ill. But I’m suspecting if we’ve been pretty much alone for a month and a half or two months to the corona virus has done its thing and it’s time to get out and get some fresh air and be out in the mountains. So…

    Jay Conner (01:13):
    Yeah. Well, my lands! I’ve heard you say over the last few weeks that they don’t let you go outside for one hour a day.

    Scott Paton (01:22):
    Only one hour a day. Two to three, and you have to be under 60 years old. So I’ve cheated on that one. But I don’t get away with it because I look 25. So…

    Jay Conner (01:34):
    You definitely look less than 60 that’s for sure. I was going to say, though, they like to do different hours for different. Like, if your name ends in a P like Paton, you got a certain hour, you go out or they just let the whole world up for an hour.

    Scott Paton (01:48):
    Well, isn’t that weird, right? The whole world comes out from an hour. Now they pick two to three, which is the hottest time. So most people don’t want to go out and you have one day a week where we’re based on the last number of your like driver’s license. You can go shopping in the big stores, but the little shops like around me, they are just happy to see me. They don’t care what they have of the week. It is. And so it’s kind of a little bit loosey goosey that way,

    Jay Conner (02:14):
    Mercy. So if you’re just now coming into the live stream, go ahead and type in the comments section and let us know what’s, where you are tuning in from. Cause we always like to know. And I got a really special guest that I’m going to be introducing to you in just a moment. But before I do, I want to let everybody know what we’ve got going on for the next two Fridays, I’ve got two free trainings. And you can go learn all about it. And these are actually free. This coming Friday, May 29th. And then again on June 5th, Friday, you can go to www.JayConner.com/fortune. And one, we’ll be talking about the next two Fridays, this coming Friday, it’s going to be a position or teaching you the 30,000 foot view of my foreclosure system, how it is that we you know, locate foreclosures before other real estate investors know about them.

    Jay Conner (03:19):
    And as pertains to COVID-19 I had to learn how to do this virtually. So again, that’s 9:00 AM Eastern to 5:00 PM Eastern, this coming Friday. And then again on June 5th I call it, I’m gonna be teaching how to get what I call free private money. And that is of course you all know I’m known as the private money authority, but how you can actually get your deals funded without even having to raise private money. So again, you can go over to JayConner.com/fortune and learn. And get registered. Okay. Get registered to attend for these two upcoming Fridays.

    Scott Paton (04:04):
    So Jay I just want to cut you off just for a second, and just say that we had our first Friday last Friday, it was awesome. We had over 2,500 attendees for the, throughout the eight hours. Pretty amazing. And when you go to JayConner.com/fortune at Jay is talking about private money, he’s the private money authority last Friday. And I put the embed of that full eight hours of training on that same page. So you can watch it, whether you register or not. But if you want to see the next step, like these all fit together very nicely, then make sure you go, you register, see what happened last week, and then you’ll be prepared, really prepared for what’s going to happen this coming Friday. And we’re really excited about what we’re going to be sharing with you.

    Jay Conner (04:50):
    And there is Dan! Hello, Dan Mewhorter. A mastermind member. Jay, these free sessions are incredible packed full of content. Anyone enters through the learning how to get into real estate investing or need to up their game need to be on this. Awesome. Dan! Thank you for the shout out. Alright, well, Scott, I’m ready to officially start this show and podcast. How about that?

    Scott Paton (05:16):
    Alright, here we go.

    Jay Conner (05:17):
    Alright. I’m going to give you three seconds of silence and here we go.

    Jay Conner (05:31):
    Well, hello everybody. And welcome to another episode of real estate investing with Jay Conner. I’m your host, Jay Conner. Known as “The Private Money Authority”. And I’m just so glad you’re here. So you may be viewing live on the stream yard right now, or you may be listening to our podcast. It’s on iTunes and Google play. Or you may be watching on YouTube or et cetera. Regardless as to whether you’re watching or listening live, or you are listening or watching the replay, we’re glad you’re here. And, you know, we launched my podcast, we’ve launched the show. My lands! It was June, 2018. I can’t believe that much time has gone by. Anyway, we have another show today and I’ve got a very special guest we’re in a high end mastermind meeting together, and his name is Jim Sheils. Let me tell you a little bit about Jim and then we’re going to bring him in from the green room.

    Jay Conner (06:27):
    So Jim has been a full time real estate investor all the way back since 1999. So Jim’s been doing it longer than me. I went full time in 2003 and Jim’s ventures have done over 1000 acquisitions and rehabs. That’s a lot of properties. So, getting a star in the Bakersfield, California, a left there in 2005, headed over to Northeast Florida. That’s where he is now. So thought of the longterm growth patterns that were predicted for that area. So after 2008, and of course it was your recall. It was because of 2008 and 2009. That’s how I became known as the private money authority. I was cut off from the banks and learn how to get a lot of private money fast. Nonetheless, after 2008 Jim’s company did a bulk of foreclosure properties until switching their model to new construction, to adapt to the changing market conditions and needs.

    Jay Conner (07:29):
    So Jim, forming a very dynamic of building partnership called Jack’s wealth investments. They now focus on catering to investors in single family and small multiunit development in Jacksonville, Ocala, Palm coast and Atlanta, Georgia as well. Now, the big reason that I’ve got Jim here on the show today is because he runs a family education company called 18 summers. And I can’t wait to hear the story behind him naming it that. But what this education company does it specialize in talks, workshops and retreats for entrepreneur families. They all, Jim also wrote his bestselling book titled the family board meeting that went to number one and categories of relationships, parenting and entrepreneurship. So Jim is an expert in training and teaching on how to have balance in your life and in your business. In addition to that, Jim is also an avid surfer. Andrew was traveling with his family, particularly when we come out of COVID-19, the travel will be turned back on and especially loves traveling with his beautiful wife, Jamie. And their four children. So anyway, what an adventurous guy and Jim’s greatest adventure today was donating a kidney to the greatest guy on this planet from his perspective. And that of course, was his father. So with that, Jim, welcome to the show.

    Jim Sheils (09:06):
    Hey Jay, good to see you! Good to be here,

    Jay Conner (09:09):
    Great to see you fellow CG member. Great to have you here on the show, Jim. So I’m just so excited to have this conversation with you about balancing life, balancing business, and to learn more about your workshops and your, and your retreats that you do. But I gave, I gave the folks part of your background, but you started back in 1999. How did you start? What got you into it?

    Jim Sheils (09:35):
    Yeah, I had always wanted to do something on my own and like most entrepreneurs, I started delving into everything from franchises to other business opportunities and I kept falling back on real estate and I like the tangibility of it. It made sense to me, you know, how to, how to take something and pull the levers to add cash flow, to add equity. That made sense. And so I just slowly started going into real estate investments out in central California, where it was where, Bakersfield, California was the blood of Johnny Carson’s jokes for years, but it was an investor’s playground where property started at 40 to $50,000, which is a lot better than you know, Santa Barbara County to two hours over the medium price is 900,000. So I just I had always had, yeah, it was crazy, crazy, crazy. So, yeah, that’s how I got my start. I knew I wanted to do something on my own. I just started getting training in real estate and pulling the trigger, you know, and I always joke, what’s your, what’s the best real estate class you ever took? And I say 432 North M street. That was the first property I ever bought 21 years ago. So that was my best lesson ever.

    Jay Conner (10:49):
    Wow! That’s an amazing story. So, in your introduction that I was sharing with folks you did like over a thousand acquisitions and rehabs and et cetera, but what was it that caused you to switch over to your new model and tell everybody more about what your new model is?

    Jim Sheils (11:12):
    Yeah, well, I guess I always wore that badge on my shoulder, right? I’m a rehabber! I’m a rehabber! And you know, it’s tough to teach the old dog new tricks and I was the old dog by then. You got used to something and we did really well coming out of 2008 here, you know, when there was all that bank inventory, we got really good at finding foreclosures and renovating them and putting them in our own portfolio or working with other investors to build theirs. And the problem was Jay, about five years ago, man, those numbers started to change. You know, they were getting bid up. The numbers weren’t making sense. You’d have to cut corners if you really want to make the numbers work. And I don’t like to cut corners. So my now building partner who I had done deals with before said, you know, we should try some new construction.

    Jim Sheils (11:59):
    And that was almost like, wow! What are you saying? Don’t, Those are, that’s a terrible word. We’re rehabbers. And sure enough, it was the right thing to do because we weren’t able to find old house inventory anymore where the numbers worked, but although new construction, so we basically do build a rent. Now we build new construction homes that are designed just for investment property and we focused on single family, duplexes and quads. But what we’ve been able to find is better inventory. It takes longer, there’s more effort to it, Jay, you know, so we had to, you know, learn some new muscles with developing and zoning and longer timeframes, but overall for ourselves and our clients, it’s more predictable, better areas, better properties, better longevity just a stronger overall investment. So it’s, it was a big jump five years ago, but I’m really glad to the point now where I used to have that big rehab badge on my shoulder. I refuse to do rehabs anymore. I just won’t do. I’ve just completely switched over to the other side.

    Jay Conner (12:59):
    Okay. Excellent. Excellent. Well, let’s dive right on in to 18 summers. And what that is? How you got the name? And why you started doing it?

    Jim Sheils (13:14):
    Yeah. So 18 summers was a lesson that a mentor of mine taught me. I first started doing family talks and I had written my book, you know, a bunch of years ago. And he said to me, Jim, you’re really onto something because there’s so much out there that’s available for the entrepreneur to grow their business, but not to keep their family intact. And what I always wanted to see, and I saw this at a young age, I got, I was able to get on stages at a young age at different events. Cause I had some success in real estate, but I saw some people who were highly successful in business and they were completely failing at home. And frankly Jay, that scared me. I didn’t want that to be me. So this was out of my own necessity and need to make sure that I stayed in that success in business and success at home combination.

    Jim Sheils (13:58):
    And so my mentor was talking about that and he said, look, the years are not all created equal. You’ve got 18 summers. And he’s like, and I looked it up. The stats show 85% of quality time people. The average person ever gets with their family. Their children occurs by the end of the 18th summer because then they start to go off and the amount of timeframe goes down and that just gave me a positive motivation. And now when I went into my talks and workshops that gave the same positive motivation to others, how do we make the most of that time without taking away ambition? Cause I’m very ambitious, you know, being an entrepreneur, but I want to have that double success, Jay success in work and success at home. So 18 summers became, I believe the only family education outlet designed specifically for entrepreneur families to make sure that you can have the best of both worlds.

    Jay Conner (14:46):
    I got you. That’s fantastic. So let me let you put on your training hat on your coaching hat right now and share with our audience, what are some of the strategies that you, that you teach and train at your workshops on how to achieve that kind of balance.

    Jim Sheils (15:12):
    Sure. Let’s go through a couple of principles that I think will stick with people. One of the best compliments I get is what we teach is very, stickable, it’s easy to understand, easy to buy into, easy to apply and see results. So let’s give a couple of those today. You know, going through our world changed as you know, Jay post COVID, you know, it’s, everything got brought home work, family school, you know, everything’s happening from home. So couple of things came into life. And one of the things is the importance that you have in the position of your family, of setting the leadership tone, you know, focus, breeds, increase, and people were talking about toddler meltdowns and teen grumpiness. Can those things be eliminated? No, but they can be minimized. And I believe a lot of it has to do with how are you handling your self in front of your family?

    Jim Sheils (16:02):
    You are setting the tone. And sometimes we forget that. That it’s, that trickle down effect. And so I always try to remind people what tone are you setting at home? You know what tone are you setting? And one of the worst tones that you can set when you’re having a bad business deal, when everyone’s pulled up onto the sidelines, by something like a COVID-19 is, do you have the awareness to step back and say, Hey, this is not my family’s fault. Now, a lot of people don’t even think about that, but that’s really important because you get wrapped up in a deal going wrong, or you’re taking a call in your living room, which you shouldn’t be, you should be separated and your kids act like a kid and yell and you get upset, you know, or you say, well, no, I’m not taking it out on them.

    Jim Sheils (16:47):
    But when you stop and think, if we’re showing shortness, anxiety, a little bitterness and our family’s feeling the brunt, and it has something to do with business and not them, that’s not a good tone to set. We got to remember, it’s not our family’s fault when these big things happen. And also we set the leadership tone. And if we can show ourselves to be stronger leaders, more calm, more playful, more not, I’m not saying overly optimistic, you know, like purple, you know, the Rose colored glasses, but that sets a tone that will trickle down to your spouse and children. So one of the most important jobs is as the leaders, that…

    Jay Conner (17:25):
    What I love about that principle and I’m glad you call that principle because what you just said is so foundational. What I love about it, it reminds me of a Jack Canfield’s very first principle in his book, success principles, which is, I am 100% responsible. Right? And what you just went over is you are bringing to light there that what we’re experiencing in our home life is a manifestation of us. That’s excellent. Excellent! Very foundational.

    Jim Sheils (18:07):
    Then it gets us back to the foundation back to the core. And that’s really important, especially when you’re thrown into a bunch of deals or you’re thrown into a pandemic, we all get shook up. So then we have to breathe in and reground our feet. And that’s one of the best things to remember. I set the tone. And I’m not going to set it perfectly, but the better I set it, the better things are going to be. So that’s a big one. A second one Jay, that I love is, we all heard about in COVID again, not to keep going back to COVID COVID about social distancing, right? That’s I get it. That’s, that made sense. But what about tech distancing? The principle of tech distancing, Jay is absolutely essential right now essential. And it’s got two parts to it. First, if your home don’t be worked puking in your living room.

    Jim Sheils (18:58):
    So let’s say you’re standing there, your family’s having a great family moment that buzz in your pocket happens with a text where you’re taking a phone call. And then all of a sudden you’re getting heated in front of them, or you get off the phone and you’re standing there with a scalp because something didn’t go right. You’ve now just mixed over the lines. And that’s just not fair. It’s your, we call it half in parenting. You’re trying to be part of the family. Take the tough work call and especially through pandemic or something. They might have been some pretty heavy conversations and maybe it’s not something our younger kids needed to hear. I always say first step in tech distancing is you gotta distance yourself from your family to take calls, emails, and then before you step in and take a few deep breaths, and then you go back again.

    Jim Sheils (19:42):
    But I can tell you the day two of the pandemic, Jay, I was helping someone who was in a bad real estate way. And they were in commercial. They had a bunch of lease stores. It was heavy. And I was feeling like they’re getting taken advantage of, and I was, I was passionate. I cared about this person and their deal. Well, I’m texting, I’d put the thing away. And I’m kind of talking to myself like the crazy entrepreneur I am. My little five-year-old standing in front of me. And she goes, daddy, why are you so mad at me?

    Jim Sheils (20:08):
    I didn’t even see her standing there. And so it’s like, wow! Again, talking about setting the leadership tone. I said, there’s a time and a place for these calls. And it’s not right in the kitchen with my kids around me. So the first step of tech distancing have a time and a place. Whether if you couldn’t get to your office, I don’t care if it’s a closet or your car, we’re going to take those emails. You’re going to take those calls. You’re going to find a quiet place. Even though I have four loud kids to do a podcast, right? So that we can talk and we can do this. And then the second side of tech distancing, Jay, is you have to have times of being completely and totally unavailable to work, to be with the people in front of you.

    Jim Sheils (20:44):
    If you’re always snagging that text or that Facebook thread or that call or email, you’ll never truly be present. You’ll always be getting pulled out of things and then you’ll be going, geez, we don’t really seem that connected. And we’ve all tried that where we fake, like we’re listening to our spouse or one of our children. And they notice, we think maybe they didn’t notice that we didn’t hear what the hell they said, but it just sets a really bad tone. So you gotta have times where you’re completely and totally unavailable. Shut off. We do a shut off every day at our house, Jay 5:30 to 7:30. It is the tech fast tech distancing. There’s no phone, no laptop, no TV. Everyone is just, we’re not sitting there staring at each other, but all tech is off. So that way, you know, the people right in front of us. So the conversation can flow without an interruption.

    Jay Conner (21:34):
    That is an excellent suggestion. I mean, what I do to where I’m not even tempted to, you know, respond to this, right? I can put it in another room. Where I can’t see it. I can’t hear it vibrate. And I love this again, principle that you’re sharing and it, you were explaining it. It reminds me of a mentor that I had decades ago. And he used to tell me all the time. He said, Jay, wherever you are, be there!

    Jim Sheils (22:15):
    I’ll tell you real estate investors. We wear this badge. Like I’m always available. I gotta work this deal. Almost anything can wait two hours. Almost anything. And there is nothing more rude. We say, well, we got to provide, we’ve got to protect. We’ve got to get the deal through. I get it. I’ve been a real estate investor 20 years. But to jump up from the dinner table for a mundane detail is setting a really bad example for what matters most. And for, would you want your kids doing that down the road? The answer is probably no. So a little bit…

    Jay Conner (22:49):
    Again, you’re setting the example. I love it.

    Jim Sheils (22:53):
    Exactly. It’ll go down. It’s tech distancing is a very powerful and simple. When people think about it, it’s okay to turn off and recharge. Even as a real estate investor, you know, a one hour a day can do wonders if you’re doing it during the things during, during certain hours where you’re around your family, you’ll start to see, wow, we’re having a deeper conversation. I actually am seeing things I’m actually listening. This is incredible. But even if that phone just on, you’re waiting for that “zzt-zzt”, you know, in that pocket, your brain goes out the window. So practice tech distancing, Jay, it works huge. Another thing that’s really important right now, especially this is good. Especially you being the private money guy, you know, non QM money went away.

    Jim Sheils (23:33):
    You know what I mean? There’s lots of stuff that’s changed. I believe certain real estate is going to do phenomenal. Others are going to be challenged, but Jay, if I learned anything in 2008 and we survived 2008, we were heavily invested in California, in Florida at the time, that was not a pretty sight to go through 2008. You know, values dropped 60% wrench dropped 40% a totally different time. And I’m more excited now, obviously then I wasn’t no wait, but let me tell you, Jay, there’s two things people have to look for right now. This is going to be good for real estate investors. You should get support, but there’s two types of support out there. There’s moral support and there’s technical support. Now in 2008, I would take as much moral support as I could get. You should be given some of your friends and family coming through the pandemic or a challenge, moral support, but you might not be in the position to give technical support.

    Jim Sheils (24:24):
    And there’s a big difference. I remember in ’08, people were wanting to help me, you know, through the real estate things. They wanted to give me technical support and they weren’t really in the position to do so. Where I’m sure Jay you’ve had the same thing where, you know private money. But there’s sometimes you see that out there. It’s almost like the Baker’s trying to teach you how to cut meat. It doesn’t go together. Right? If you go to the butcher to learn how to cut meat, not the Baker, go to the Baker for baking the bread, but there’s always that crossover. So I always encourage people to save efficiency and effectiveness, to have more time with your family. There’s two types of support out there. There’s moral support take as much as you can and give as much as you can. There’s technical support, technical support, Jay.

    Jim Sheils (25:09):
    There’s probably, I bet you you’d say there’s probably maybe three, four people in the world. You’d feel comfortable talking on your niche and that’s it. And that’s what I’ve learned. There’s only about two to three groups that I go to for overall, what’s the economy going to do real estate wise. And I go to people who have a track record, people who called things for many more years than I’ve been even investing. And have real teams set up that show track record. And I think that’s really important right now in today’s day and age, you want to get the best results, like exactly what you’re doing. You’re giving technical support. Cause you’ve been there done that, but the problem is sometimes we still go for technical support to people who aren’t really in the position to give it, if that makes sense.

    Jay Conner (25:48):
    Yeah. What does giving moral support mean to you? What does giving moral support look like or sound like?

    Jim Sheils (26:00):
    So for example, I had friends that really struggled in retail post COVID. I could give them moral support, Jay. I’ve never done large retail. I’ve never had thousands of employees. That just wasn’t my thing. So there was a fringe type of technical, but for the most part of saying, Hey, I’m thinking about you, you know, hang in there, you know, there’s, there’s gotta be other guys going through this, find out what they’re doing, but I wasn’t going to be the one to stand up on the lifeguard chair and point for where they should go. Cause frankly, I didn’t know. So, the advice is more to tell him, to keep going to hang in there. Call if you need anything, don’t get too down on yourself. Remember self-worth and network’s got nothing to do with each other. Your family is still gonna be there no matter what happens, your real friends will be there. That’s that’s moral support. Technical support is saying, look, here’s how you renegotiate a, you know, a multi package lease. Here are the groups that are holding off on inventory control, where you could get your inventory paid down to a third of what they would have charged you. I don’t know how to do that. I’m no, it has to. So I’d be, I’d be faking it and that wouldn’t be right to do to them.

    Jay Conner (27:15):
    Yeah. Yeah. I believe I agree with everything you just said. And in addition to that, sometimes the best moral support that we can give people is a sincere listening ear.

    Jim Sheils (27:31):
    That’s a lot. Sometimes you don’t have to say anything, they just get it off their chest, you release it. I remember I had a lot of releasing conversations in 2008, Jay. And people just listened and that’s sometimes that, it clears your head just to get it out. And that’s really powerful.

    Jay Conner (27:51):
    Dan Mewhorter is here with us live. He just come in one of the great things about Jay Conner’s masterminds that we give and get moral support and technical support. Well, that’s so true. And that’s a great thing about masterminds. You know, the mastermind that you and I are in Jim. That’s all about giving and receiving the technical support and the moral support, you know, and plus another thing that I’ve discovered over the years when it comes to us entrepreneurs and I’m, my experience has been this relates to men and women. There’s just not the majority of the people walking around. Don’t understand us, does not understand balls. So it’s like, you know, like a lot of people don’t understand on people that are listening to this podcast, they get it because people listening to this show have an entrepreneur spirit, or they’re interested in entrepreneurial things. But now we have this thing called it’s hard to turn this real estate off in between our ears. Right? And you know, people accused us of being workaholics. Well you know, it’s really a challenge not to do what I did because I don’t even view it as work. It’s just what we do. But anyway, these are great strategies. If you have one more strategy you want to share with us or did you, or do you keep it to three?

    Jim Sheils (29:26):
    Yeah, I do keep it to threes, but let me, let me give you a bonus one that’s been really powerful for people. And this is like the cheat of cheats. You know, if, if you want a healthy shortcut, this is one of them, your spouse, your children. If you want to have a good relationship with each of them or up the odds of that. You gotta have one on one time, one on one time, this is something I learned in our retreats. Cause we would do whole family retreats and just two retreats with one parent, one child. The potency of one on one time, like a date with your spouse a day with your phone off. And just one of your children, let’s say you’re crazy like me and have four. It just, it puts the magnifying glass on the relationship in a positive way.

    Jim Sheils (30:10):
    And it opens up new conversations and attention that, you know, big family gatherings won’t. Like I come from an Irish Catholic family, which means I have like 7,000 cousins, you know, and that’s, that’s great, but those big, those big events are great, but it’s the one on one time that had the biggest effect on my marriage and on the relationship with my kids. So I would say just like, you’re going to schedule with your biggest investors to find your deals, schedule one on one time with your spouse and your children. And you’ll be amazed the difference and the depth that you get to just by those deposits of one on one time. It works.

    Jay Conner (30:48):
    I love it. I love it. But Jim, I can tell you what I also know, just in our visit here on the show, you’ve got a servant’s heart. I pick up on it. And I appreciate you coming on here and sharing just fantastic information on how people to really take care of themselves, grow their relationships, nurture the relationships that they have. So let’s give out your website, Jim, because I know our listeners and audience would really like to continue to connect with you.

    Jim Sheils (31:21):
    Yeah. If you’re interested in our build to rent model, you just go to JaxWealthInvestments.com And if you want a little help on the family side, making sure that your family is successful as your business grows just go visit us at 18summers.com. That’s 18Summers.com

    Jay Conner (31:42):
    That’s awesome. Jim, thank you so much. I appreciate you brother.

    Jim Sheils (31:46):
    Thank you, Jay. Good to be here.

    Jay Conner (31:48):
    Okay, everybody there, you have another show. I’m Jay Conner, “The Private Money Authority”. Everybody stay safe. You’re in the midst of a COVID-19 as we come out on the other side and I’m 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. Bye for now.

    To listen to our Podcast, click here:

    https://realestateinvestingdeals.mypodcastworld.com/10662/jim-shiels-and-18-summers-part-one

    https://realestateinvestingdeals.mypodcastworld.com/10664/jim-shiels-and-18-summers-parttwo

  • Gary Boomershine and The CoronaVirus Crisis

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    Jay Conner (00:12):
    Hey, here we are, Scott Paton. I believe we are live today.

    Scott Paton (00:16):
    We are you live!

    Jay Conner (00:17):
    Alright, well let me know when we have some live human beings starting to show up here with us.

    Scott Paton (00:25):
    Three people already! Jay we’re popular.

    Jay Conner (00:28):
    How do they do that?

    Scott Paton (00:29):
    I don’t know. How did you find this everybody? Give us something in the comments.

    Jay Conner (00:37):
    It’s like we’ve been live for like 8 seconds and people are here. Maybe people are like waiting. I don’t know. So everybody say hello. So obviously we know your name when you comment, but type in your city and state as to where you are tuning in from. We’ve got a fantastic guest today. Some of you may have heard from him before. Gary Boomershine is in the green room right now waiting for us to bring him back or bring him back out here. But we’re going to be focusing today when we officially launched this show here in just a couple of minutes, we’re going to be focusing in on obviously Corona virus, how things are different, what’s different, how you need to be different.

    Jay Conner (01:27):
    And Gary’s going to be talking to us today about what he’s doing different in his business, what his team is doing different. So as y’all are coming in to the live stream right now in the comments section right now below, doesn’t matter if you’re on Facebook or you’re on YouTube, everybody say hello and where you are coming in from. And there you are. There’s Paul from South Dakota. It says email and waiting. There we go. Scott. They saw the email and here is Stephen from Nashville, Tennessee. The first two year on YouTube we got Harold all the way from New York on my lands. Harold. So Harold there in from Facebook Harold in the comments section, let us know how things are with corona virus up there where you are in New York. I’m interested to know. So again, as you all are coming in either from YouTube or you are coming in from Facebook, everybody say hello and you’re city and state that you’re coming in.

    Jay Conner (02:34):
    We’re going to bring Gary Boomershine out here in just a second and talk about how things are different and how we can actually embrace this corona virus thing that’s going on and how we can serve a lot of people and profit from it greatly as well. So we haven’t officially started for those of y’all that have started, I’m going to give you a little sneak peek now. And that is, I am going to be putting on three free events and y’all should write this down. Three free events May 15th, 22nd and 29th. Those are Fridays. All three Fridays. I’m going to be teaching all day long. They’re going to be absolutely free and you can go over right now to get free tickets for those three free fridays at JayConner.com/Fortune and get registered on that site. Hey Scott, did we get that fixed? We had one participant last hour that said that they could only register for the first Friday or were they confused?

    Scott Paton (03:47):
    They were confused. Once you sign up, like we’re making this as we’re talking and so we don’t have yet a sort of a thank you email that’s going to go out, but we’ll get that done today. And so when you sign up, you’ll get emails telling you where to go so you can watch each of the three days as we set them up.

    Jay Conner (04:08):
    Excellent. So yeah, those three free days, in fact, Gary Boomershine is going to be a part of it, but on those three free days, the first Friday May 15th is going to be all day long on private money. How you can raise a lot, not even raise, I mean, how to get it without even asking for it. How to get a ton of private money here in the midst of corona virus and have that at your disposal to buy houses, to buy commercial properties. I’ve got more private money coming at me right now than I have in forever. I mean, look what’s happened in the stock market. People, they don’t want to be investing in the stock market. They got money sitting on the sidelines. So that’s Friday, May 15th, then we got Friday, May 22nd. That’s going to be all day long. How do I make a fortune in foreclosures, right here in the midst of Corona virus?

    Jay Conner (05:05):
    How to be getting ready for that, how to learn, how to be able to purchase those foreclosures, serve a ton of people while getting high profits yourself. There’s gonna be an avalanche of foreclosures when we come out on the other side of coronavirus. I want to position you to be ready for that. That’s the second free Friday, May 22nd. And then the third free Friday, May 29th I’m actually going to be teaching a strategy called how to locate and get free private money. So that’s gonna be a strategy I’ll be teaching as to another way that you can own properties without even having to raise any private money to do that. So get right on over to JayConner.com/Fortune and get registered for those three free Fridays. We got hellos from Nathan in Texas. And yes, Harold says up there in New York says, well, my wife and kids have me on lock down.

    Jay Conner (06:06):
    I bet so Harold. Just had two casualties here in Erie County. And…

    Scott Paton (06:12):
    Sorry to hear that.

    Jay Conner (06:13):
    Our thoughts and prayers are for sure out to the families on that. And Fuquan! Fuquan’s been on my show here before, I love that! Fuquan says, free Fridays. I love it. You gotta keep going, get right on over there and get registered at JayConner.com/Fortune and y’all can take advantage of that. Okay. Again, if you’ve just come in and you’ve not said hello yet, it doesn’t matter if you’re on Facebook or on YouTube right now. In the comment bar below the video we want to hear from you, tell us hello, what city and state you’re from. And of course we appreciate you subscribing, rating and reviewing as well. So Scott, let’s kick this show off officially so I can bring Gary. Oh there’s, Greg, Uhmer. Hello, Greg from Durham, North Carolina, one of my mastermind members. Hey Greg. You know Greg from being at my live events.

    Scott Paton (07:13):
    Yeah. I was going to say, Paulina just joined us from Syracuse. Hi. Hey Paulina.

    Jay Conner (07:23):
    Glad to have you, Paulina. Alright! I’m ready. Scott, let’s go officially live on this show.

    Scott Paton (07:29):
    All right!

    Jay Conner (07:30):
    And I’m not gonna, I’m not going to do my shameless plug. I’m going to get right on and let it be all about Gary.

    Scott Paton (07:37):
    Alright! I will disappear and put you in place and here we go.

    Jay Conner (07:55):
    Well, hello 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 you may be tuning in now, live on YouTube or Facebook, or you could be listening to the official podcast show on iTunes or on Google play. No matter where you’re turning in from or when. And we’re glad you’re here. If you’re tuning in from iTunes, be sure to subscribe, rate and review. We love the five stars that you give us and your testimonials. We’re hitting right on now, right quickly at 300,000 downloads and listens here on the real estate investing with Jay Conner and we’re glad to have you back now if you’re tuning in on YouTube or Facebook, we need your help. We need your questions and your comments for our special guests today. I’m so excited to have him out or have him back and I’m going to bring him out here in just a second.

    Jay Conner (08:58):
    I’m excited to have Gary Boomershine back here on the show. I had him here on the show just a couple of weeks ago and you know, due to Corona virus going on and all the ramifications of that and how things are different. We like, I told Gary, I said we got to have you back on the show. You’re just as soon as possible and thankfully he’s agreed to come back. So for those of you who have not been introduced to Gary Boomershine, let me just tell you a little bit about him. At first of all, Gary’s been around the block more than a year or two. He’s got a knack, a big time knack for actually staying ahead of the curve, staying in front of the emerging real estate trends. That’s why I wanted to have Gary back here on the show just as soon as possible.

    Jay Conner (09:49):
    I mean, folks, have we got a new and emerging real estate trend going on right now? Absolutely! You know, with Corona virus going on right now, the way we’re doing the real estate investing business has changed. We’re doing a lot of things virtually that we weren’t doing virtual before. And even more so of a longterm consequence when we come out on the other side of Corona virus, things are going to be different, right? So that’s one thing I’m gonna want to drill down with Gary because he did. He’s got a, he’s been through more than one or two cycles. He knows what to be looking at in his crystal ball and he’s going to be sharing that with us. Well, back in 2004 Gary actually started his real estate investing career. So he and I started right at the same time and very quickly he built a direct mail software that was called sales team live and today it’s grown into a much bigger service that is an amazing service.

    Jay Conner (11:00):
    That’s called RealEstateInvestor.com. RealEstateInvestor.com. So this company that Gary founded and started with the vision and what a team has put together, they’ve sent out over well over 40 million pieces of direct mail. They’ve made more than 2 million outbound seller calls. And Gary and his company have now been named in the fastest growing companies according to inks, five hundreds lists. And that’s three years in a row. Another thing I love about Gary is his heart. Gary is a servant by nature. He’s a servant first and everything that he does, and we’re going to talk right now with Gary about what’s different and what we can be expecting on the horizon. With that, Gary Boomershine my friend, welcome to the show.

    Gary Boomershine (11:55):
    It is an absolute pleasure. What a wonderful introduction. I actually am. I can tell you I’m getting a little goose pimples on. What a fantastic introduction that is. Thank you Jay. We go back, we’ve got a long history of you and me. It seems like we’re always running into each other. We’ll be at speaking events or you and I were in Tampa and it’s like, Oh my gosh, bear hug to Jay Conner. Even though, even though we’re on the opposite sides of the Island, I’m in California and you’re on the other side of the country and you’ve got the area where we’re at, the $2 million price tag and 200,000 I’d actually prefer not to be in California right now because buying real estate and about what, what’s to happen right now is what we’ve been looking for. If you’ve been around the block for awhile.

    Jay Conner (12:41):
    Yeah. So yeah, you’re in California. So folks here, here’s the perspective. So I’m here in Eastern North Carolina, this little teeny tiny town called Morehead city, North Carolina population 8,000 my entire target market is only 40,000 people, but we still do two to three deals a month. On average profit of $67,000 but here’s the point I wanted to bring out based on what Gary just said. Our median price point is 225,000. What’s your median price point in your market there where you live, Gary?

    Gary Boomershine (13:15):
    Well, in where I’m at, it’s probably 1.5 million and I would say the median in this sort of Val you know, California where we’re living, San Francisco Bay area is closer to about 770. It’s insane.

    Jay Conner (13:29):
    Yeah. Yeah. So, you know, my medium price here is $225,000. I mean, folks, you can’t even buy an outhouse in Gary’s backyard for $225,000. And if you don’t know what an outhouse is, well my granddaddy could tell you that’s where he used to go get private time from my grandmother.

    Gary Boomershine (13:51):
    Yeah. You know, what we just came out of was the end of the cycle, a typical real estate cycle. We can talk about that, but yeah, it’s a seven year cycle. It’s euphoric, which means everybody, you know, it’s like that’s the time you don’t, you don’t want to buy, you want to prepare. And there were, there was a tear down down the street from me, a literally a tear down of a house that sold for 1.35 million. 1.35 million and somebody paid cash.

    Jay Conner (14:21):
    They paid 1.35 million and tore the house down. So they’d bought it for the dirt and now they’re, they’re building whatever.

    Gary Boomershine (14:29):
    Yeah. Complete insanity.

    Jay Conner (14:32):
    Wow! So, Gary, just so our viewers and attendees here don’t have to wait to the very end of the show. How about going and, because I want us to dive in here on your perspective, your crystal ball about where you see this thing going and the ramifications and consequences and opportunities from Corona virus. Then before I can get you to dive in on that, just go ahead and tell everybody a little overview about your amazing company, RealEstateInvestor.com and the kind of services that you and your company provide.

    Gary Boomershine (15:10):
    Okay. I’d love to do that. So there is, one of the biggest holes in real estate. Historically, we’ve been, a lot of us have been targeting off market deals. That means go direct to the seller. They’re not on the MLS. It’s how do we get in front of, you know, the hot and motivated sellers that are ready, willing and able to sell and but nobody else is targeting them. And that’s off market. So there’s a couple of ways to do it. The ones that are most proven is direct mail sending out text messages, right? Legally. Ringless voicemail, which means dropping a voicemail to them where the phone doesn’t even ring and then cold calling. So number of ways just to, you know, you gotta buy the list of names and addresses correctly, and then you’ve got to market to those people.

    Gary Boomershine (16:00):
    And with the output of being, you know, qualified sellers that you can go meet with and close and it’s a lot more of a daunting task than most people think. And so we perfected it. I started this from my background in 2005 and today, fast forward, we’ve done over 50 million pieces of direct mail. I do it for a handful of people around the country, about 1200 active investors that are actively buying. So over 50 million pieces of direct mail. I’ve got every response rate, which means every metric around what’s working in what part of the country. And on top of that, I have a phone team that does, and a system. A proprietary follow-up system that does all of the follow-ups so that we can generate the leads unless our some of our clients have their own, but we put those into a proprietary system. And I can talk about that does automated follow-up. It’s almost like a little engine that basically says, Oh, this, this person needs to get an email. Oh, this person needs to get a text message with the exactly the right word. So most of us as real estate investors, we don’t have to do any of the thinking. And then on top of that, I have a phone team. Those are called inside sales agents or lead processors. Somebody that’s dialing for dollars. That’s calling those and following up on all those seller leads at the right time with the right message. And then the output of that is an appointment. A scheduled qualified appointment that can be passed over to a real estate investor or agent to go and make offers and close deals. And so we’ve done about, I think we’re at about 3.5 million outbound phone calls on behalf of our members.

    Gary Boomershine (17:56):
    And so we’ve got lots of different services and offerings with RealEstateInvestor.com we’ve got lots of free stuff. But yeah, you check us out if you’re, if you’re new or you’re super, super experienced RealEstateInvestor.com may have something for you. And we’d love talking to real estate professionals. And you know, we’re super passionate about it. I have about 115 people on staff all over the world. And I, we recently we did an inc 500 fastest growing company three years in a row. And recently we used to be called REI vault. You can actually see that behind me, but we recently merged, acquired a couple of software companies and have merged into RealEstateInvestor.com which is a brand that I’ve owned for a long time. So RealEstateInvestor.com is a place to, you know, help real estate investors and especially being able to get out of the busy work. The $10 an hour work, that is such a booby trap for most of us, right? We get into real estate for having a life and financial freedom and many people get stuck doing $10 an hour work and wonder why they still have a $10 bank account. And so we’re really passionate about helping people kind of jump the line in real estate, whether they’re new and they’re trying to actually make it real. And have a new lifestyle. And a new life around real estate is the vehicle or people that have been doing this for decades and they’re looking to scale and go even even higher. So…

    Jay Conner (19:36):
    if you’re just joining us, my special guest today is Gary Boomershine of coming all the way with us from California. And he has an amazing company that he has created. RealEstateInvestor.com with fantastic sources and automated services for locating motivated sellers and having the follow-up process totally automated. So Gary, let’s dive in right now to what we got going on with corona virus as far as a real estate investor goes and how you and your team are supporting real estate investors right now to locate motivated sellers and do business. What’s different today? What, how are we, how are we going about, how are you going about doing deals differently than product corona virus?

    Gary Boomershine (20:30):
    Yeah, great question. So I want us, I think a great way to start. Number one, we’ve never been in exactly this situation before. This is new for all of us. In fact, it’s new for the entire world. And what we can do though is can use history as a guide in a crystal ball for part of the future. And one of the things I’ve had a podcast for the last two years and almost every podcast I’ve been talking about this coming downturn. And I also saw it back in about 2006, 2007 real real estate is a seven year cycle. It has been a seven year cycle for a hundred years and it just happens that this last cycle has been the longest that we’ve actually had in a hundred years. It was, it got, you know, it went seven years, eight years, nine years.

    Gary Boomershine (21:24):
    We were actually almost at year 11 depending upon where you start and, and those cycles there is a massive transformation of wealth at each of those cycles. And so the hardest part for most real estate investors, especially a full time active real estate investors is actually at the end of the cycle. And so where you really, you know, you would go back to Warren Bufet, you want to buy low, you want to sell high, you also want to buy when there’s panic, not when there’s euphoria, right? Warren Bufet, one of the smartest, richest guys in the world. I was actually at a shareholder meeting and one of my favorite quotes actually came from his really as COO, CEO, the guy, the brains behind Warren buffet Berkshire Hathaway as Charlie Munger. And he said, his success formula is what’s called K. I. S. S. Keep it simple, stupid.

    Gary Boomershine (22:21):
    He goes, you know, you buy. Real estate is a simple game. Nothing new under the sun, right? You don’t have to reinvent any wheels. You basically find what works in the current market and replicate it. And then once you, once you make it work, you can make it better for yourself. But a lot of people make the mistake of trying to reinvent the wheel. So we’re coming out of a time where we’re going to see probably one of the greatest transformations of wealth in history. Real estate investors that are properly prepared and positioned and trained are going to do incredibly well. And I can kind of tell you what we’re preparing for a lot of us. I’ve been interviewing some top, top, top performers around the country. We have Facebook, private, we’re basically calling it the beacon of light for real estate investors.

    Gary Boomershine (23:15):
    It’s real estate investor. It’s basically called real estate investor beacon. We can post that you know, at some point that’s it’s a private Facebook group we’re delivering lots of content there in interviews with people around the country. But what we’re finding is most of us that are active are actually excited about this market. This is not a time to be watching the TV. Most of us, there’s a lot of people on the sidelines right now. They’re watching the TV. I call that fear porn. It’s a lot of people, like, my daughter hates me using the last word. She’s like, Oh dad, you got to come up. But it really is right. It’s panic and a lot of people are frozen and this is not the time to freeze up. We call it the 3PS. This is a time to protect, which is to get your house in order. This is a time to start to pivot and into the moneybmaking activities so that as soon as the market’s ready to go, and then the third P is to profit. And…

    Jay Conner (24:15):
    Hey Gary, do you know how many new Netflix subscribers there are in the past six weeks since we’ve been in Corona virus?

    Gary Boomershine (24:24):
    It’s incredible! It’s incredible! You know, I, I came alive, I have videos all over Facebook and I talk about social distancing, all these new acronyms too that I don’t even want to go down because that becomes like, you know where they’re coming from. It’s like all of a sudden everybody’s parroting these new, you know, these acronyms that had been created by, you know, the guys up on top. But social distancing for me means I am social distancing myself from watching any of the TV. Social distancing myself for being in the house. I can’t tell you I’m out hiking, I’m walking, I’m getting a new perspective. This is a really an opportunity of a really reflection, right? And being thankful but also preparing up and people have been asking me like, we’re as a family, I’ve got two daughters and we’re having a blast.

    Gary Boomershine (25:15):
    And a lot of us on the real estate side are starting to pivot and we can talk about sort of where I see the market going. But this, there is a lot of money to be made right now around what I consider virtual wholesaling. Especially for people that are fairly new. It’s an opportunity. While you know, there’s a massive panic, a lot of people aren’t paying rents, right? So a lot of these, what we call burned out landlords are not getting the rents and they’re realizing, wow, this is an opportunity for me to sell and unload. That’s one huge opportunity. There’s, there was $3 trillion of money in what’s called the i-buyer network. The i-buyer model, instant buyer, that’s like Zillow and open door and offer pad. Basically institutional investors. There was $3 trillion available to these sellers where they could sell that.

    Gary Boomershine (26:12):
    Those were competing with us, Jay and myself, and a lot of you, hopefully all of you. And that money is gone. That money literally disappeared off of the streets. And so now all of a sudden we’ve got this great opportunity where people are panicking and this is an opportunity where you can make money literally without ever going and seeing the house. So a lot of us are doing that. I do think that the market’s gonna shift over the next 12 to 24 months where there’s going to be an incredible opportunity or an incredible buy opportunity of buying foreclosures, specifically the ones that go back to the bank. And an incredible opportunity to pick up longterm, appreciating assets in the right market at a great price and buying them creatively with cash that you raise, but also create a financing that you can get from the seller and these types of markets.

    Gary Boomershine (27:10):
    So I’m super excited. I, you know, obviously we’re locked down. There’s a lot of unknown. There’s a lot of misinformation. There’s a lot of sequestering of information, right? In fact, you can’t even be on YouTube now and quote the C word. That sounds, I call it the cerveza bug by the way, you know, correctly the cerveza bug because if you actually use the acronym they will take you down. The YouTube CEO basically said, if it doesn’t support the narrative of the world health organization, they’re, they’re basically pulling all those videos. And so just an interesting time, but this is an opportunity to really connect with other investors. And if you’re an agent, other agents and a lot of us are preparing and not stopping what we’re doing, this is not a time to stop the business because if you don’t have marketing and you don’t have sales, then your business is toast. And this is an opportunity, a lot of us, I’ll tell you, like a lot of us that have been doing this business, we’re doubling up on marketing right now because this is the time.

    Gary Boomershine (28:17):
    There’s a lot of people that are not doing it. Our competitors are not doing it. And this is a time to take those old leads. If you’ve been doing this business for a while, we’re actually going back to all those old leads and with the right system and following up and getting them on the phone and finding that, Hey, there, now all of a sudden they’re interested people that said, you know, they were hanging up and said, don’t bother me. Or they said, Hey, I’m not interested in selling. All of a sudden they’re starting to open up again. It’s really awesome.

    Jay Conner (28:44):
    Yeah. So are you advising your clients now to until we come out of corona virus to back off of their marketing? Any looking for motivated sellers or to stay consistent or to increase their budget?

    Gary Boomershine (29:00):
    Yeah, well it’s, there’s a lot of components around that. So this is first and foremost, if this is really a time to double up on marketing and this is definitely time to double up on your follow-up specifically following up. And I can go through the math on that, but you got to have, marketing is not the end all be all. Okay. You have to, you use marketing to generate leads and then there’s a sales component that is to convert those leads into dollars. And you have to have both working. So a lot of us are making sure that, you know, the marketing is fairly easy. You can use a company like RealEstateInvestor.com if you want. It’s basically, it’s a numbers game. It’s really a numbers game. It’s like I have to spend a dollar to make $5.

    Gary Boomershine (29:50):
    It’s a return on investment. And knowing the math around, you know, what market you’re in and how much do you have to spend to get enough leads that then you can get on the phone and then convert. And so this is a time but you have to have the sales piece in place as well. And what I found is that the, you gotta have marketing to generate leads. You have to have a system to automate the follow-up. And because there’s massive amounts of follow-up required to close a deal, it’s just the way it works. And then you need a phone team that also is actually talking to the sellers. And then preferably if you’re a real estate professional, all you want is the good ones. You want the ones that are saying, yes, I got a three bedroom, two bath house, I’m interested in selling properties currently vacant. And so as long as you’ve got both marketing and sales working, this is a time to double up in my opinion.

    Jay Conner (30:48):
    Yeah. So Gary, in your opinion and what you’ve observed, where do you think real estate investors missed the ball in their follow-up or lack of follow-up?

    Gary Boomershine (31:02):
    Yeah, great question. Number one, not doing it. Not doing it. Most. What we saw as the difference between success and failure was really those that did it consistently. We’re actually converting and those that didn’t complaint and they basically said, okay,

    Jay Conner (31:20):
    How often should you, how often should a real estate investor follow up? And who should they follow up with? I mean, should they follow up with the people that said, you know, don’t you ever call me again?

    Gary Boomershine (31:32):
    Here’s the number. This is a Harvard review. And by the way, this is not just real estate. This is almost any type of direct response marketing, direct mail being one of them. Cold calling be another. Leads coming in from Facebook or you know, Google pay per click is what they call it. 90% of the profits come from the sixth contact and after. 90% come from the sixth interaction. Okay. Interaction with the seller. Like they’re actually interacting with you. Less than 10% of all investors and real estate agents in the entire country follow up more than twice. Okay. And why? Because it’s a massive amount of work. I mean, so that’s number one. Number two is trying to do it yourself is like. I use the concept of opening up a pizza parlor. Imagine if we’re going to be a business owner.

    Gary Boomershine (32:38):
    Okay, that’s what we are. If we’re actually doing full time real estate and trying to buy and flip properties kind of full time, that’s a business operator. You’re a real estate business operator, not a true real estate investor. A true real estate investor according to Warren Bufet. Not Gary Boomershine. But Warren Bufet says you have money, you buy a physical asset, which is a real estate property, whatever kind it is, that’s the asset. And then you hold it and you take all the benefits of real estate over the long haul, right? And the tax advantages and the appreciation. So a real estate business operator. Imagine if you’re, imagine that you have a pizza company and you decide to invest in a pizza company and imagine you don’t have that much money. So you, you’re the cook and you’re making the pizzas, you’re taking the phone calls, you know, you’re putting up the advertising and handing out all the flyers. And then you’re taking the orders when people come in. Or taking the phone calls for their pizza and then you’re flying back to the back of the kitchen and you’re making the pizzas and then you get in the delivery truck and you go deliver them.

    Gary Boomershine (33:43):
    And that’s that. It’s impossible. It’s not a business, right? That is a job and a really terrible job cause you’re not going to make that much money, right? So really what you want to do is you want to leverage, just like we leverage money, right? OPM, which is using other people’s money. That’s the whole game of real estate is you leverage money to borrow money at one rate, make money than another, and take the spread. You want to leverage people, other people. And there are time, experience and resources. And you know, and you get a massive return on investment. So as a real estate investor, a real estate operator, our time is really worth somewhere. If you do the real calculation, if we want to make a half a million to a million dollars or whatever the number is, typically your time value of your time is worth between 250 and a thousand dollars an hour.

    Gary Boomershine (34:38):
    So if you’re doing $5 or $10 an hour work, like pulling mailing lists and sending out licking stamps and talking to sellers and doing all the text follow up, you know, you don’t have enough time in the day to actually go and raise money and close deals. You’re doing one or the other. So you want to leverage people at a fraction of the cost. That’s how you get a massive return. So that’s like a lot of people come to RealEstateInvestor.com to say, Hey, how do I get the maximum bang for my buck? By spend a dollar, how do I actually make five with as little work as possible? And then we say, Oh, let’s set up your marketing if you want, let’s set up your followup system in 24 hours. It’s all automated. You don’t have to do a darn thing except, you know, do a little bit of training on how to use it.

    Gary Boomershine (35:23):
    And then if you want to use our phone team to actually do all the work, we can do that. And then we do it for them. In any parts of that, a lot of people have said, Hey, can we just use your follow-up system? Or, Hey, can I just use your phone team? And so we have those capabilities. So the follow-up is absolutely key. The phone team have actually, there’s one thing that you cannot automate in this business. For all of you that are fairly new people that have been doing it will totally get this. But you cannot automate the talking to people. You have to do. There’s a live human interaction with the seller and with the buyer that you cannot have a system that automatically does it for you. Down the road maybe artificial intelligence, right? 10 or 20 years. There’s a live interaction because when you’re buying a physical property from a seller, there’s a relationship. There’s some trust building and there’s coming up with an offer or a solution to their problem.

    Gary Boomershine (36:23):
    Okay? And that can’t be automated. You can automate everything else. And those that do it right and automate all of that work, the $10 an hour work so that they can just get, you know, 10 appointments a week. Five appointments a week. Two appointments a week. Whatever the number is, right? Then it becomes a numbers game. And when you get good at this business, you can then hire a sales person, right? And leverage them to do that work for you. So you’re really standing back and just collecting a piece of big, a nice piece of the pie.

    Jay Conner (36:58):
    My special guest today is Gary Boomershine, creator and founder of RealEstateInvestor.com has amazing service for helping you as a real estate investor, locate motivated sellers and has a way to completely automate the process when it comes to follow-up. Gary, is, we are about to wrap up the show. Tell our audience and viewers at what point in RealEstateInvestor.com automation process does either the real estate investor or the real estate investors acquisitionist as you just said, who actually is going to be talking to the seller? At what point in the process do they become involved?

    Gary Boomershine (37:40):
    Yeah. It’s so funny. A lot of people come in and they’re like, so you do all this stuff. What’s left for us to do? And I hear it, we hear that. And Julia who talks to most of our, she’s an investor herself out of Dallas, but she says, you do have to close the deals. You do have to, we’re going to tee up these deals for you via with a, here’s the script, here’s exactly what the seller said. You’re going to have to go out and make the offers to them. And negotiate a great deal and close it and profit from it. So, you know, we’re going to be on the front end, really is your team is your expert resource team that are experts. But we’re not stealing your pencils and drinking your coffee, right? We’re not sitting in your office.

    Gary Boomershine (38:26):
    You don’t have to train us to do anything. You don’t have to hire somebody in the Philippines to, and keep them motivated and manage them and make sure that they’re moonlighting with like 10 other clients. Like that’s what we do. And our team will manage that for you. And it’s pretty awesome. So you do have to close the deals. There’s a lot of, you know, we love, you know, we love, we don’t provide the training. We typically the training of real estate. There’s some great people, like you guys have an incredible three day free event. We’re actually promoting your upcoming event here because we’ve got some great people and we know exactly what you teach is congruent to, you know, what we think the market’s going to be doing. And so you go to, you know, you got to JayConner.com and do that training.

    Gary Boomershine (39:21):
    And then if you’ve got the training, you combine it with what we have and it’s like, it’s like peanut butter and chocolate, right? You got the great training and the great coaching and then you got the great system and boom should, should work. But there is work. You know, anybody that thinks that you can truly just make money in your underwear and go to bed you know, broke and wake up rich. That’s not real estate. That’s not anything that I’ve ever seen. And anytime I hear somebody talk about that, I say run away from it quickly. Right? Cause it’s, I’m 51 years old and I’ve spent hundreds and hundreds of hundreds of thousands of dollars on pretty much every training known to mankind and I’ve never seen anything that just pops out of a box and works perfectly. There is some stuff that you have to do.

    Jay Conner (40:06):
    Yeah. But money still does not grow on trees for sure. Thank you so much for coming on for the show today. Parting comments?

    Gary Boomershine (40:16):
    You know, I think this is a I know in the crazy time that we have right now this is a crazy time and I just think that I always go back, I’m a faith based guy and I go back to first Timothy one seven, which is God did not give us a spirit of fear but that of love and self-discipline. Right? And so I really embrace that fear is false evidence appearing real and right. And so I just think this is a time to, again, the 3PS. And this is, you know, this is going to be an interesting this week, the next 12 months are really going to be around taking advantage of the current market. But what we’re going to see is we’re going to see an opportunity for a massive, you know, buying opportunity because there is inflation coming, which means assets, physical properties are going to skyrocket.

    Gary Boomershine (41:15):
    And I anticipate that being in the, really around the 24 month timeframe. So using that as an opportunity to learn from guys like Jay and be prepared, right? You’re gonna want to learn how to raise money. You’re gonna want to learn how to do the virtual real estate. You want to learn how to do creative deals, raise money, et cetera, as I said, and be surrounding yourself with the people that are doing this business today and that are abundance mentality and willing to teach you. That’s my, that’s my take. Long winded, but that’s my take.

    Jay Conner (41:49):
    I’m right there with your brother. There you have it folks, my good friend and special guest and expert, Gary Boomershine. Gary, thank you for coming on. And again, thank you to everyone tuning in. We had a bunch more people tune in here. We’ve got Paula. We got Jermone. We got heroine. We got Javier. And we’ve got the whole crowd here. So thank you for joining folks. I’m Jay Conner, “The Private Money Authority”. Be sure and connect with Gary boomershine at www.RealEstateInvestor.com. And here’s to taking your real estate investing business to the next level. We’ll see all of y’all on the next show. Bye for now.

    Scott Paton (42:40):
    Okay, well I didn’t hang up. We’re still live. It’s the after show. It’s the after party after show where all the really good stuff gets talked about.

    Jay Conner (42:48):
    And then we’ve got a bunch of people still here on live. So again, thanks to everyone for tuning in. Just a real quick plug since we’ve finished the actual show being turned into the podcast. You’re welcome, Harold. Thank you for coming and y’all stay safe up there in New York. But for those of y’all that came in after we got started, I got three free days, May 15th, 22nd and 29th. These are going to be all day trainings, free virtual that I’ll be conducting. That’s Friday, May 15th, Friday, May 22nd and 29th and the first Friday so you can get registered for free at www.JayConner.com/fortune. The first Friday May 15th is going to be all about private money.

    Jay Conner (43:38):
    How to get a bunch of private money right here in the midst of Corona virus. I got more private money coming on my shelf than I’ve had in a long time. The second Friday, May 22nd is going to be how to serve a ton of people in foreclosure and make a fortune in foreclosures, particularly when they come on the other side of the Corona virus. I want to get you all prepared for it. That’s what we’re going to do on Friday, May 29th I’m, excuse me, Friday May 22nd and then Friday May 29th is going to be how to locate and get a bunch of free private money. I’m not going to tell you what free private money is until that Friday, but I got a strategy to teach you is that how you can buy a bunch of property without even having to raise any private money as well. So you all get on over there to JayConner.com/fortune and get registered for that. Think Gary Boomershine is participating those three free Fridays, so we’re looking forward to Gary being a part of it as well.

    Scott Paton (44:37):
    What else, Scott, before we let all these people go?

    Scott Paton (44:41):
    I was trying to think of one last sort of deep question to ask Gary and about real estate. And I was just coming to blank because you really covered everything that I was curious about. But one thing that comes to mind. Gary, is there anything that you do that keeps your attitude and your mindset in the right place? Because I know that, you know, I’m sure that there’s, well, suicide rates are going through the roof. Alcohol and marijuana are going through the roof. So obviously a lot of people are having a hard time dealing with this situation. It’s not an easy situation. So what are some of the things that you would recommend people do?

    Gary Boomershine (45:20):
    Yeah. Well, what one is, I am a, gosh, I’ve been where almost all of us have been. I come from being a crazy workaholic and it’s very easy to be a workaholic and then repeating the same cycle over and over again. It’s the Albert Einstein quote of insanity, right? Of doing the same thing over and over again expecting a different result. So you have to change. If you want a different outcome, you have to change what you do. Mindset, the most expensive real estate is the six inches between here and here. It is really all about our mindset. I do what’s called habit stacking. And these are creating new habits. Typically 2200. So you want a new habit.

    Scott Paton (46:06):
    2200 new habits?

    Gary Boomershine (46:08):
    It’s 20 slash 200. If you want a new habit, it’s really 20 days is 20 days or 200 times. And so when I stack habits, I actually, I’ve got multiple coaches. I always have a, like I have, I have four CEO coaches in my life, one of them being a personal trainer. So whenever I want to perfect something and improve something, I always go get a coach. That’s a been a life changer. Number two is I associate myself with likeminded people. I do masterminds, the huge mastermind proponent. The third is I always follow a best practice. I go and I find something that’s already working and I just, I just grab it as my own. But habit stacking. So let me walk through one of the habits I do. I have a 5, 10, 3 rule. All right. I wake up and this actually came from a coach of mine years ago. I wake up at five, we all have the same 24 hour day. So how can somebody I used to use bill Gates’s name, but I don’t really like to refer to him anymore.

    Gary Boomershine (47:25):
    I’ll just leave it at that. But anyway people can read into that however you want, but you know, how, how do you take somebody like Warren Bufet, right? Or somebody like Jack Welch who ran general electric or, or those guys have the same 24 hours and how are they able to do what they do within the same hours? Cause the time is the, is the most precious commodity on this planet. It’s our time. And when you do the exercise, I’m 51, when I actually look at the number of really hours that I have, it’s actually pretty limited. And then I look at, I look at the number of hours that I want to have a life and how do I fit? How do I fit my work time into all the other stuff that I want to do. Skiing and fly fishing and hiking and biking and spending time with my family.

    Gary Boomershine (48:14):
    So here’s what I do. I go to bed earlier and I wake up at five in the morning. I push out my Workday actually till 10. So that gives me five hours of personal time. And I’ve found that I don’t actually have any time issues anymore because I have, I have five hours. And then during those five hours I work out, I exercise. I actually have dropped like 40 pounds in the last couple of years by doing that. And I journal. And I do prayer. And I read scripture. This is my morning time. That’s my time. I always make coffee for my wife and clean the kitchen too. That’s actually that by so many dividends I’ve been doing that.

    Scott Paton (49:00):
    That’s a way, great way of being in service to your relationship.

    Gary Boomershine (49:04):
    Absolutely. Amazing. And then I follow a, the one thing that Dr. Gary Keller, Keller Williams, right? The founder. He’s got 2 million realtors, realtor teams around the country. He has the one thing. So I actually will go in and put my one thing that I’m going to do to move the marker. There you go! I actually interviewed his business partner. Jay. I actually just did a podcast with him. It was amazing. But the one thing, and now I’m able to sometimes do as many as three. What’s the one thing that I’m going to do as a CEO to move the marker today and then the 3, 5, 10. The three is the three hours that I work in my businesses not just business. I actually have three businesses that I’m going to move the marker and then I focus on that one thing. And I do that before going to social media, responding to email, returning phone calls.

    Gary Boomershine (50:04):
    I do the one thing that’s going to be the money making activity to move the marker my business. And that’s really changed my life. That’s the mindset. I am very optimistic and thankful. Like I lived in a world of being thankful for what we have. And what we have the freedom, the, you know, I told my daughters, I’m like, there’s, you know, with all the stuff going on, why do we pray at night? And it’s to be thankful for what we have because we don’t know what tomorrow’s going to bring. And it gives me a mad amazing knowing that allows me to live in the present and not about the future. Cause we really don’t know what the future is. And I can tell you that gives me an amazing amount of peace and then I, and then I can, I can deliver that same amount to my team. And let’s see, what else? I would say being a servant leader, this is not like being Caesar. It is the servant leader is the triangle, except upside down. I’m the servant for my team. It’s not the other way around. And I can’t tell you how the team will run through walls if you have a servant heart in all you do.

    Scott Paton (51:13):
    Awesome. Well thanks for sharing that Gary. Really appreciate it.

    Jay Conner (51:16):
    Thank you so much Gary. Well look, Scott I’m gonna jump off. And Scott, I guess you are taking care of Gary and his team with everything that they need for our joint venture.

    Scott Paton (51:30):
    Yeah, I’m working on that right now. So in the next day or two I’ll be reaching out to everybody.

    Gary Boomershine (51:35):
    Awesome. I’m really excited. I’ve been, we’ve been putting together all the special training that we want to do for your three day events and I’m really excited of being able to share with everybody who’s signing up with JayConner.com/fortune. Correct?

    Jay Conner (51:57):
    There you go! Don’t let your people push that out because we’ve got to get your affiliate in place to cookie all of your people.

    Gary Boomershine (52:05):
    Okay. Love it.

    Scott Paton (52:07):
    I’m gonna be working with Jay’s on that today and tomorrow.

    Scott Paton (52:10):
    Thank you so much, Garry. Scott, I’ll see you in 55 minutes. Yep, right. Bye bye.

  • Scott Meyers Jay Conner Real Estate Investing Minus the Bank

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    Scott Meyers (00:01):
    Hey storage nation. Scott here, I’ve got an exciting announcement that I want to make to all of you and an offer that I want to share with you. So, my good friend Jay Conner and I are going to be doing a special series of training events that are coming up here. And so, I’m going to bring in Jay right now if the technology works. So Jay, are you there?

    Jay Conner (00:23):
    Hello there Scott! Yes, I’m here and thank you for having me come on for a couple of quick minutes, Scott. I appreciate it.

    Scott Meyers (00:29):
    Oh my pleasure. My pleasure. And thank you. So listen, let’s, we all know that, these are interesting times that we’re in right now and you know, immediately when once we headed into Covid19, the pandemic, whatever you want to call this. You know, the challenging times that we’re in right now. In the real estate sector, you know, the immediate need was for private money because the banks have shut their doors in some cases and they’ve shut down certain parts of their funding. Some things are funding, some things are not. And we had to get really good at raising private capital and we had to get really good at how we present a pitch to folks on seller financing. And so, again, Jay and I got together because Jay is one of the masters on raising private equity.

    Scott Meyers (01:10):
    He does a whole lot of different things on the private money side, different than what I do. We do a lot of things similar. And so we joined forces. And Jay kind of beat me to the punch, but the good news is he did all the heavy lifting so I didn’t have to. So he is really set up the framework for a training that we’re going to be doing. And that’s coming up really quickly here at the end of May. So Jay, if you wouldn’t mind us since you set all this up, why don’t you share with everybody here just exactly what we’re going to be talking about and the training that’s upcoming.

    Jay Conner (01:38):
    Exactly. So here it is folks, because you are in Scott Myers world. I love the storage nation there. Scott. But because you all are in Scott’s world, you get to attend absolutely for free. Three full day trainings and it’s three Fridays back to back. The first one is Friday, May 22nd. The next one is Friday, May 29th. And then the one after that is Friday, June 5th. Now these are not 90 minute two hour webinars. This is all day folks! Starting at 9:00 AM each Friday morning, 9:00 AM Eastern time. Yes folks for you in a specific time, that’ll be 6:00 AM that you need to start. We’re going to be going all day. Now, what this is really focusing on folks, and Scott’s going to be there with me. What this is focusing on is converting your real estate investing business to being able to do it totally virtually. And here’s what’s really cool.

    Jay Conner (02:36):
    Even when we come out on the other side of Covid19, well first of all, things will never be the same. Things are going to be different forever, but even when we come out on the other side, how can you do your real estate investing business virtually actually from your desks, right? So it’s going to, this training’s going to open up even more avenues and ways for you to do the business. Now, the first Friday, May 22nd it’s going to be focused on private money. So I’m not talking hard money, I’m not talking mortgages or mortgage lenders, I’m not talking bankers. I’m talking about how to get a lot of funding for your deals, getting money and doing business with individuals from their investment capital. They’re self directed IRAs and being positioned to serve a lot of people and have your funding in place immediately when we were coming out on the other side of Covid19.

    Jay Conner (03:26):
    The second Friday is going to be focused on foreclosures. As you all know, due to Covid19 foreclosures have got to stay on them, but there’s an avalanche. It’s going to be opening up a foreclosures and a 36 million plus people laid off and furloughed are going to have even more foreclosure. So here’s the thing, how to have a servant’s heart. Create win-win scenarios. Be able to reach these people in foreclosure before other real estate investors even know they exist. And structure opportunities and deals to where you can help them with their crisis. And in return you will greatly profit as well. And again, it’ll be a win win for everybody.

    Jay Conner (04:11):
    The third Friday, June 5th is what I call how to get free private money. In other words, how to get funding for your real estate deals without having to raise any private money whatsoever. So here’s how you take advantage of attending for free in Scott’s world. You want me to go right on over right now to www.JayConner.com/storage. You’ve got to put storage after JayConner.com or you will not be able to find how to get to this free event. Scott, I’m looking forward to having you in the free event and thank you so much for having me on here to invite your folks.

    Scott Meyers (04:50):
    Well my partner Jay, and once again, I thank you for doing all the heavy lifting and I’m looking forward to this. We got a panel of other folks that are doing some really great things alongside of us. That are going to be assisting in this training. So, folks, this is the time as we’ve been talking for several weeks now. This is not the time to put your head in the sand. This is going to be the greatest opportunity that we have to be able to not take advantage, as you said, of what is going on in people’s lives right now, but to take advantage of this gift that we were giving during this recession. And that is an opportunity to go out and transact a lot of deals and help a lot of people. So it starts with learning about the private money, where to find some of these foreclosures and the distressed sellers across all asset classes in real estate.

    Scott Meyers (05:32):
    And then again, how to find out their free private money. So I’m looking forward to working alongside of Jay. I’ve known Jay for a number of years now, and he and I have collaborated on a few things in the past and thankful that we can come together and once again, help you as well as many other folks that are going to be struggling when these foreclosures begin to come out into the marketplace. So with that sign up now and then we look forward to seeing you and over the next three Fridays where Jay’s going to teach you the ins and outs of the area, in the areas we just discussed. But most importantly on the panel discussions and talking about how to get private equity. All right, we’ll see you there again.

  • How to Build a Passive Rental Portfolio with Lane Kawaoka

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    Jay Conner (00:09):
    Well hello and welcome back to another exciting episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host and The Private Money Authority. And if this is your first time to the show, I want to give you a special welcome here on the show. We talk about everything related to real estate investing. We talk about all kinds of deals, we talk about single family houses, apartments, commercial land, sell storage and on and on and on. And if you’ve been following and listening in for a little while, you know I’ve had just some amazing guests and experts here on the show and today is no exception. But before I bring on my special guests today, I’ve got a free gift for everybody and that is if you are looking for more funding for your deals, regardless of what your mortgage broker or your hard money lender or such my site, I’ve got a free on demand online class that gives you the 5 steps that shows you exactly how I went from having no funding to over $2 million in funding in less than 90 days.

    Jay Conner (01:12):
    So you can check it out and get right on over to www.JayConner.com/MoneyPodcast. So with that, I am so excited to have as my guest today, a good friend of mine also, we’re in a mastermind group. His name is Lane Kawaoka and he currently owns 2,600 units as in apartments and et cetera across the United States. What you’re going to love about listening to Lane today is that he is truly a virtual investor, meaning he lives in Hawaii, but all of his investments are in elsewhere in the United States. So we recently quit his day job as a professional engineer and he is now enjoying the wealth and the freedom that I know all of you all are looking for.

    Jay Conner (02:11):
    So what Lane does is he partners with investors who want to build a portfolio but are too busy to mess with the tenants and the toilets and the termites, et cetera, by curating opportunities. And his company, which was called the HUI Deal Pipeline Club. Whereas investors have personal access to him and know that Lane is perfectly putting his money on the line too as well. Well, his pipeline club has acquired over $155 million of real estate and it’s acquired by syndicating over $15 million of private equity just since 2016 so he’s also another great connection as I am in this world of private money. So what Lane does is he reverse engineers the wealth building strategies that the rich use to the middle class via the 50 investing podcast, which you can check out. It’s SimplePassiveCashflow.com and Lane’s mission is to help hardworking professionals out of the rat race one free strategy call at a time. So with that, Lane welcome to the show!

    Lane Kawaoka (03:15):
    Hey, thanks for having me, Jay. Aloha!

    Jay Conner (03:17):
    Aloha. I love it. I love it. Like what’s that thing you call when you put them around the neck and they welcome you to Hawaii, a lei. There you go. There you go. Yeah, well, as I said about Lane and I are in a high end mastermind group and we’ve gotten to know each other and in fact we were in the same focus group at our last mastermind meeting and I was just very, very intrigued with Lane and what he’s got going on and it’s therefore invited him here to the show. So whether you are a investor with capital or if you are a real estate investor and you’re just sort of tired of going to the local REIA club, hanging around some broke people and you actually want to change what that looks like, you’re definitely going to want to tune in today closely and learn how to connect with Lane. So Lane, give us your background story. How did you get, well, first of all, before you give us your background story, give us an overview of what you’ve got going on in this world of real estate investing. I mean, you’ve got over 2,600 units. What does that look like?

    Lane Kawaoka (04:23):
    Yeah. So I’m kind of more evolved buy and hold investor instead of buying one of single family homes these days, I get sent apartment deals that get syndicated and I get to know the operators and sponsors and I do my due diligence, run the numbers, get the PNLs and rent rolls. Then I see if I want to invest and to bring along my investors with me.

    Jay Conner (04:45):
    I got you. So you just said through syndication, just to make sure everybody understands what we’re talking about. What do you mean when you say syndication?

    Lane Kawaoka (04:56):
    Yeah, so a lot of these properties that, you know, say you’re buying a hundred unit building, you know, you’re going to need a couple of million dollars with down payment and you know, potentially funding from someone like yourself. But you know, you’re going to get that private equity raise to get the big loan with the bank who controls 80% of it and you’re going to pick up a $5 million property. Most people don’t have $2 million lying around, nor is it very smart to you know, most of my investors, we go by this principle, we don’t put any more than 5% of our net worth and to any one deal, [right?] So we diversify it over multitude of these types of syndications.

    Jay Conner (05:38):
    So really what we’re saying, when you say syndication, what we’re talking about is using other people’s money, private money, and having them invest into the deals with you. Right?

    Lane Kawaoka (05:46):
    Right, right. So we create a couple of asset classes for general partners and limited partners, you know, limit partners, very little liability. They don’t do anything other than bring your money in and check some monthly statements and hopefully we all get to the destination. Right?

    Jay Conner (06:05):
    Exactly. Exactly. So you’re living in Hawaii, none of your investments are there. All of your commercial properties are elsewhere in the United States. So how do you decide where you want to invest and where to go look for deals?

    Lane Kawaoka (06:23):
    Yeah, I mean, my first criteria is cash flow. So the rent to value ratio is kind of what governs where I even start looking. So just like when I was buying single family homes, you know, I’m looking for a hundred thousand dollar house that rents for at least a thousand dollars a month. Because at that point I know I can pay all my expenses, all my mortgage expenses, and have a little bit buffer there to be able to cash flow because let’s face it, I think over sessions coming up in the future and you know, even if the price goes down a little bit, I still want to be able to cash flow

    Jay Conner (06:59):
    sure. That makes sense. So is there any particular area of the country or cities that you are focusing on or not focusing on?

    Lane Kawaoka (07:09):
    Yeah, I mean most of the deals that I kind of look at are in the Southeast. More of the red States with very landlord friendly and a lot of blue color job force growth out there. A lot of manufacturing. Some of these places might be more tertiary market settlers. People hear less about, you know, like a Huntsville, Alabama, Birmingham, Alabama, Gulf port, Mississippi, Lake Charles, Louisiana. You know, those are typical markets that we like to target as emerging markets.

    Jay Conner (07:43):
    I got ya. So let’s say you know, you’ve determined a particular city or area or the Southeast that you want to focus on. So where do you go find the deals? I mean there’s other websites that you use. Do you use direct mail campaigns? I mean, if somebody is starting out, where do they go to look?

    Lane Kawaoka (08:01):
    Yeah, I mean if you’re starting out, I mean, I hate to say this, but you don’t have a shot. I mean, I think in single family homes, we can all agree, most deals, 80% of them are found off market in the commercial realm, over 50 units, 80% of deals are controlled by brokers. Unless you close a hundred or 200 units before, he ain’t going to get a shot at closing. This next one, people are saying, well, what about the other 20% that are out there? It’s like, yeah, you can direct market a sophisticated seller who owns an apartment, but unless that property is some huge issues and you know, I target properties that are 90% occupied or more, so I can get that qualified for them. Fannie Mae, Freddie Mac, non-recourse Monday, I won’t really want to deal with those 20% problem property even though they’re out there. So it’s an unfair game.

    Jay Conner (08:54):
    Yeah. So you

    Jay Conner (08:56):
    say if you’ve never done one of these deals is going to be very hard for you to break in. So how does somebody start?

    Lane Kawaoka (09:04):
    Well, I mean that’s where most of our investors, they’ve done a bunch of single family homes. They fill up their net worth to be half a million dollars or more. They’ve gotten sophisticated in terms of they know the risks of real estate and they know how it works. But then they come into deals as a passive investor and they invest anywhere from $30,000 to $50,000 into a deal. And it’s kind of buying your way into a big company. But it’s, you know, you know the operators,

    Jay Conner (09:36):
    right? So in other words, to really get started in this game, you need to be partnering up someone starting out. It needs to be like partnering up with someone like you that’s already got the relationships that already knows the ropes that already knows how to do the workings of the deal. Right?

    Lane Kawaoka (09:52):
    Right! And because we follow, we follow SPC protocol and there’s a big thing about mass smart it being out there. So a lot of it, is you have to have a preexisting relationship with the sponsor you’re going to work with. [Right] Most deals out there, 90 to 97% of deals are for non-acute investors, but you need to have a preexisting relationship.

    Jay Conner (10:18):
    Exactly. I got you. So what’s a realistic ride-over return that people can anticipate to get in these types of deals?

    Lane Kawaoka (10:26):
    You know, from the get go, a lot of these properties with prudent leverage on it, your cash line, you know, high single digits, you know, maybe 8% that’s usually, but these properties along of course cap rate compression has kind of taken over and it’s hard to find these properties, which is why you’ve got to get about a thousand properties to find one that actually works. But the kind of deals that we kind of folk it’s on or actually today, but there’s some kind of value add opportunity. For example, putting about $4,000 into every unit with new paint, new flooring. And then it’s just like on a pig. So they, we can raise those rents. 50 a hundred dollars if you get that bump in net operating income, which in commercial real estate, that’s your operating income divided by your cap rate equals your, market place.

    Jay Conner (11:22):
    Okay. So lane, you know, we hear people in your space and apartments talking about primary, you know, secondary, you know, other types of markets. So what’s your comment and thought about, you know, should you invest in particular kinds of markets or not invest in particular kinds of markets?

    Lane Kawaoka (11:42):
    Yeah, so I mean just to kind of define it for folks who don’t know what primary, secondary, tertiary markets are. Primary markets are your top tier markets like Los Angeles, Hawaii, York, San Francisco, Seattle. You’re not going to find the rent to value ratios out there to be able to cash flow. Now you know, I’m not going to knock anybody strategy in terms of investing, but my strategy is I want to cash flow on the property because my number one was not to lose money. You know, [that’s a good rule.] You know that whole, you know, investing in those kinds of markets. Yeah. Everybody wants to live in a place like Seattle or San Francisco and generally the prices are going to be going up. But you know, we all seen what happened in the past and there’s always going to be another recession where the prices kind of tank.

    Lane Kawaoka (12:36):
    Again, I would rather skew my portfolio to more of, Hey, the property creates more rental income than it has an expenses and it can support itself. You regardless of what the market price is and when I can do that, I can sell at the right time whenever I want, at my price I want to be in. So to do that you need to go to a little bit off the beaten path to secondary markets like Birmingham, Atlanta, Indianapolis, Kansas City, Memphis, Little Rock or tertiary markets, which are about 50 a hundred thousand in population. Like you know, I guess El Paso is probably a larger Trisha market, but a Lake, Charles, Louisiana, Huntsville, Alabama would be good examples of tertiary markets.

    Jay Conner (13:24):
    All right, I got you now. So that’s the markets. So let’s talk about for a moment the different kinds of properties or assets. So you know, in the commercial world you hear people talking about class A, assets class B, assets, class C assets. First of all, define for everybody what are these different types of classes of assets and what should you invest in?

    Lane Kawaoka (13:48):
    Yeah, so the A-class or your brand new properties, these are the luxury assets that you know are usually brand new builds built anywhere from the last 20 years till now. The class B assets are kind of your 1980s 1990s vintage, a little bit older. And then the class C assets are like your 1950s to 1970s it doesn’t go by age. There’s no hard and fast rule, but you know, you talk to a broker, of course they’re gonna bump up the rating on you for one grade, right? But you know, investors, you know, kinda know this lingo and they can kind of know what kind of class of building it is. But you know, just like how I said you don’t invest in primary markets, you don’t really want to be investing for class a luxury. We kind of target class B and C because that’s where we can get a bargain. And we’re not competing with unsophisticated investors just looking for a choppy asset. Right.

    Jay Conner (14:45):
    That makes sense. Now you’ve mentioned a couple of times, you know there’s another recession coming and of there always is. Nobody knows when for sure, but I know that you practice what you preach and you invest in what you would call recession proof assets. So other than say apartments or rentals, I have you got any other, of course nothing’s guaranteed, but anything, any other what you would refer to as recession? Proof of assets?

    Lane Kawaoka (15:15):
    Yeah, I mean another option are like mobile home parks. You know, I think when you talk about mobile home parks, people think about trailer homes, which that scares a lot of people off and that’s a good sign. When people are scared on sophisticated, dumb money doesn’t follow. So mobile home parks in a recession, if what you’re thinking is people are going to the A class, people are going to move to the Bs, the Bs, they’re going to move to the Cs and move into mobile home parks. It’s an asset class that they aren’t going to build any more of because of late on, no politician wants the responsible for permitting a mobile home park and also mobile home parks. Don’t generate revenue for the city. So cities and counties don’t want them, so they’re, you know, most people in America believe it or not make under $30,000 and they need good housing like mobile home parks. That’s one form. I’m, you know, I’m kind of getting into that a little bit. I know apartments the best, but I understand it’s smart to invest in different asset classes. It’s still sort of impacted by the economy. If you want to really go to the deep end and get totally non for later with the economy, I would say like settlement investing would be another good one. You know, investing off people’s life insurances when they die, you get paid. Is that Saint out there? Nothing guaranteed more than death and taxes. Right?

    Jay Conner (16:38):
    Right! Interesting. Interesting. Now I heard you mentioned this a few minutes ago, but I want to drill down on it. You referred to the rent to value ratio and that’s you know, a common phrase in the broader commercial. So first of all, explain to everybody what do you mean by rent to value ratio and then what is your rule of thumb on what the ratio needs to be for the deal to make sense?

    Lane Kawaoka (17:00):
    Yeah, so you know, just a quick example, some of the first properties when I was purchasing rental properties was a hundred thousand dollar house that rented for a thousand dollars a month. Threats evaluation. As you take the monthly rent divided by the purchase price, and that’s the rent to value ratio, you’re looking for something 1% or higher, 2% awesome. But it’s sort of hard to find good areas. That’s not a war zone, but you know, you’re going to have to put it into the spreadsheet and go down. But line by line and every expense and income, but from a quick and dirty way of doing this, that the rent to value ratio above 1% is a good indicator that shows good cash flow, now I invest off cash flow. That may not be your, your listeners personal strategy. But when I’m investing off cash, I look for that 1% indicator. You know, like here in Hawaii, you know, this million dollar house rents for $3,000 a month. That’s a 0.3%

    Jay Conner (18:04):
    that works doesn’t fit your formula, does it?

    Lane Kawaoka (18:06):
    Yeah. Yeah. You know, it’s the California will say no one all, you know, that doesn’t work.

    Jay Conner (18:12):
    Right. I got you. And you know I know this about you Lane, and that is, you know, it wasn’t too long ago that you retired from your day job as an engineer, but you’ve been building this empire of real estate assets while doing a day job. How in the world do you do that? How do you find the time to do the, you know, actionable items that you gotta do in order to build this kind of investment company while you’re working full time?

    Lane Kawaoka (18:45):
    Yeah, I mean when I was just picking up single family homes my first five, seven years, you know, I use property management companies, you know, they’re well worth, but 10% of your income that you bring in. Someone told me that you know, you don’t do things unless you can scale it to seven acres and a single family homes are a great way to get started. Especially turnkey rentals. You know, like my first 20 podcasts were all about turnkey rentals, how I started. But as your network grows, you kind of drift into more syndications and private placements like all I have. And yes we use property managers, but there’s also asset managers who are another layer of managers who kind of make sure we’re doing the right thing with the asset and they are partners aligned with the passive investors. So everybody has skin in the game. And that’s a key component that I don’t invest without.

    Jay Conner (19:40):
    Well that makes sense. That makes sense. Well, Lane, I know we put together a special URL for my listeners, which is www.jayconner.com/Lane, and tell our audience what is that URL address and why would they want to go there?

    Lane Kawaoka (20:01):
    Yeah, so one thing that I’ve kind of, pretty much the only product I’ve made is, you know, your network is your net worth is what they say. And I work with high paid professionals who have money, most of which are accredited and you know, to get access to these deals, you’ve got to build up your network. Unfortunately, the worst place to go is these pre internet forums and the local real estate club because let’s face it, they’re just a bunch of broke people, you know, how do you prefer, you know they’re not going out to be skiing scrapyard or whatnot. Use my podcast, which attracts passive investors and created this little mastermind.

    Jay Conner (20:45):
    Excellent. So folks go to www.JayConner.com/Lane, and that will get you in contact with Lane and have a strategy session with them and have the opportunity to work together with him on commercial projects and invest if you like, and get connected and truly learn what passive income is about. So Lane, parting comments? Last piece of advice for our listeners and audience.

    Lane Kawaoka (21:15):
    Yeah, I mean if people want to book a call, my email is lane@simplepassivecashflow. Just to make sure you tell me that Jay sent you because, and I think that’s a big thing. That’s why you and I joined these different masterminds, right? Jay like it’s all about like it’s a small world out there and you know, you never really want to work with some random person, so at least know they came from you. You know, I know that they’re, you know, I can kind of follow the breadcrumbs, what kind of, what they’re all about.

    Jay Conner (21:45):
    You know, so our viewers have definitely heard me say this before, but I don’t know who came up with the phrase that opposites attract. That’s stupid. I mean, I want to hang around people that are like me, right? So yes, birds of the same feather do flock together. So anyway, Lane, I’m sure you’ll be hearing from a good number of our, audience members Lane. Thank you so much, man, for taking the time to come here on the show and tell folks what you got going on.

    Lane Kawaoka (22:12):
    Yeah, yeah, we’ll catch up in a couple months there in San Diego. Good to see you again.

    Jay Conner (22:17):
    You got it. Lane, thank you so much for coming on and I’ll see you soon. Well there you have it folks. Thank you for joining in for another 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. Bye for now.

  • Tom Mann Road House Deal – Real Estate Investing Minus the Bank

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    Scott Paton (00:54):
    So in four minutes, are you going to tell us about a deal that you’ve closed recently?

    Jay Conner (01:01):
    I hope you and your editor can go in and like snag these little stories, right?

    Scott Paton (01:06):
    This is why I’m asking you these things.

    Jay Conner (01:10):
    So let’s see here. A recent deal. Well, let me put on my thinking cap. Let’s see here. One of the guys, one of the crew and the contractors working on. Yes. So okay so we just started rehabbing this house last week, small house in a Newport and it’s probably only got like barely a thousand square feet. So this was how I found the deal was it was an ad, an actual payday ad on Facebook that I was running. And it’s a picture of the ad is a picture of me where they yellow bandit sign in front of me in front of my picture and I’m holding this bandit sign and it says, full price for your house.

    Jay Conner (01:57):
    [Wow!] And the phone number. Right? And so, and there’s a picture behind me or I’m standing in front of, you know, some houses, et cetera. So the daughter of the elderly lady that was living in this home contacted me from this Facebook app and I were contacting my acquisitionist. And so the story is, the lady that was living in the house, she had been living in this home for like over 30 years, maybe 40 years long time. And she got into the point that she just could not keep it the house anymore and she was needing to go move into an assisted living somewhere. Which of course, thank goodness when I bought the house corona virus and not shut everything down. And so she contacted us and the after repaired value on this home is approximately $140,000 I bought it for $52,000.

    Jay Conner (03:05):
    But it is about a $30,000 rehab. So $52,000 purchase, $30,000 rehab we’ll have between purchase and rehab 82,000, but still, yeah. The after repaired value is right 140,000. The reason that rehab is so much is because we’re actually moving rolls around and opening up the kitchen and making it larger. But here is the interesting part of this story as to why I got the deal. An actual competing real estate investor, and there aren’t many of them around here in a small area, but an actual competing real estate investor offered five more thousand dollars than I did. So how is it that I got the deal? Two ways you see, as long as you can understand where the seller is coming from and what their motivation is? You’ll get more of your offers accepted. You see, I knew this lady had no where to move.

    Jay Conner (04:07):
    She was going to need to move, but she hadn’t even gotten any plans together on where to move. So here was my offer. I pay her all cash. I was free and clear so there was no way to buy such do the existing notes. So we paid her all cash, I plaid all cash with private money, closed on the deal. And my offer was, I’ll pay you $52,000, but you can go ahead and get all your money now and you can live in the home for free for two months after we closed and give yourself plenty of time to find, you know, somewhere that you would want to move to. So that gave her the cash flow, gave her the money and cash in her pocket so she could, you know, move on with you know the rest of her life. And still stay there in our home for a couple of months. It was because of that offer we got the deal accepted.

    Scott Paton (05:07):
    Yeah. So it’s not always only about the money?

    Jay Conner (05:11):
    That’s right! That’s right! In this case it was getting the money quicker, cause I told her she got, have all of her money in seven days. [Right]. So getting all the money, getting it very, very quick, and then allowing her to live there for a couple of months.

    Scott Paton (05:26):
    And what was the after repaired value again, Jay? [140,000].

    Scott Paton (05:34):
    So 52 for the house, 30,000 to fix it up. And you’re going to sell it for 140, [correct!] So you can make your usual profits. [Exactly! On a small house] on a small house.

    Jay Conner (05:49):
    And of course we were able to buy it in such a discounted price as there was no mortgage. It was free and clear, no mortgages on it.

    Scott Paton (05:59):
    Right. So there’s the details 52 to buy it, 30 to fix it and sell it between 130 and 150.

    Jay Conner (06:10):
    Yep. Yeah. This is the Tom Mann Road House.

    Scott Paton (06:27):
    Just to make sure I got that right.

    Jay Conner (06:29):
    Two Ns sorry MANN to be exact. That account will shoot Corey a text and tell him we are ready when he is.

    Scott Paton (06:48):
    So Jay, you would seem pretty obvious that housing prices are not going to be going up for the next little while.

    Jay Conner (07:01):
    Well, actually they are according to a wall street journal that article I read last week and here’s why. You got a lot of people that had their home in the middle of a listing service for sale and now. A share of those people are fearful and don’t want people in their house. So they take their house off the market and now you have a smaller supply and when you got smaller supply of houses, prices goes up.

  • Fred Rewey on Real Estate Investing Minus the Bank

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    Fred Rewey (00:00):
    I guess we can get started. I guess we’re live. We’re live right now. We’re, we’re like, people can talk to you. Talk to us. You know, that was behind the scenes folks. That’s what happens in the high tech world of doing interviews. I forgot about that. I forgot. We’re completely live.

    Jay Conner (00:12):
    Well yeah, I just don’t know. I don’t know where we’re streaming to to tell you the truth. I have no idea.

    Fred Rewey (00:20):
    Bu all right, well let’s go and get started then. I’ll just take a break and then I’ll just roll into it and we’ll just ask some questions and if there’s anything you want to say, we’ll figure however long it goes, whether it’s five minutes, 15 minutes, whatever it works out to be. We’ll go with that. That work.

    Jay Conner (00:33):
    That sounds good to me.

    Fred Rewey (00:35):
    All right. Everybody had some time here and cornered the man himself kind of cornered Jay Conner here about the boot camps and you probably started to hear about these. So I wanted to kind of get them on the zoom cause we can’t, you know, get together right now. And actually this is a little bit about what your whole event’s about, but before we talk about your events I actually wanted to have everybody kinda maybe, you know, tell a little bit about yourself and who you are and what your background is, for anybody that may have not either seen you yet or didn’t catch your cash flow expo this year, which by the way, if you haven’t seen that session, go back and look at it. But just tell us you’re welcome and tell everybody a little bit about yourself.

    Jay Conner (01:13):
    Sure. Well, thank you Fred. I appreciate you having me on here for a few minutes. So I’m here in Eastern North Carolina in a really, really small town called Morehead City North Carolina population, only 8,000 people. And my wife Carol Joy and I started investing in single family houses back in 2003 and the first six years we were in the business from 2003 to 2009. January, 2009, Fred, I relied on the local banks and mortgage companies to fund all of our deals. And I called up my banker the third week of January of 2009, I had two houses under contract to purchase earnest money back then that I couldn’t get back. And I called my banker to tell him about the deals. I’d had this kind of conversation many times from my banker for the first six years, told him how much money was, to fund the deals from the club was my banker went silent on me, which was never a good sign.

    Jay Conner (02:17):
    And I learned in that conversation that all my funding and lines of credit had been closed with no notice. So myself and the rest of the world investors, I was cut off. Well, within two weeks of being cut off from the banks, I was introduced to this wonderful world of private money. And so I put my Private Money program on Steroids and I was able to raise $2,150,000 in less than 90 days. I learned it about private money. So since February, 2009, I haven’t missed out on a deal because I didn’t have the funding. I don’t do a lot of deals. I’ll do 2-3 deals a month here in our local market, total target market is only 40,000 people, but our average profit, Fred per deal is $67,000 per single family house. And we’re doing that with a median price point of only 225,000. So obviously we have to find these very attractive deals and we have to have the funding ready to go.

    Fred Rewey (03:24):
    Right, right. So how with us all filtered in place and you know, I guess this is going to be a two part question cause I’m gonna talk about really what are you doing now? Cause we know what you were doing before all this started. So how has this affected your business in the last, say three, four months and also then, you know, are you still able to do it business and then also what about going forward, what are you seeing for the rest of 2020?

    Jay Conner (03:50):
    Yeah. So a two part answer to how it’s affected the business. As far as the private money and the funding. I actually have more funding for my deals chasing me than I did prior to Corona virus. I mean, people have lost a lot of money in the stock market and they’re looking for a site place to put it. And real estate has got that answer. As far as the amount of transactions we’re doing, it’s not going up, it’s not going down. We’re getting just as many. Actually I’m getting a few more motivated seller lists and it’s all off market, off market for sale by owners. Most of the people still want us to come take a look at the house. And so in our area, you know, we’re not in like total shutdown mode where we can’t go to houses. However, I’ve got a number of students across the nation that are doing virtual showings. They’re used to know Google, duo app they’re using face time for the virtual showings. So our business has not slowed down one bit.

    Fred Rewey (04:58):
    So what I mean going forward, you know, the rest of 2020, I mean, obviously everybody’s worried about, you know, the economy people were worried about potential of the real estate market. What do you kind of, you know, and I know there’s no magic crystal ball, but we all agree on one thing and you and I have talked about this before. We all agree that there is an unprecedented opportunity or a rare opportunity going forward, like every decade, every two decades. You know, when something happens this much of a significant economic shift only happens once in a while. How do you see that playing out for you in the rest of the year with the potential of, you know, unemployment or you know what real estate pricing may be?

    Jay Conner (05:34):
    There’s going to be a huge opportunity to serve a lot of people in foreclosure for two reasons. Number one as we know, foreclosures you know, have been shut down for a while. They put a stop on that. But as my grandmother would say, Fred, all they’re doing is saving up spit. That stuff ain’t going away. Right? So we’ve got this buildup of foreclosures that are people that are already in foreclosure. And then on top of that, with the millions of people that have been laid off, there’s going to be even more people going into foreclosure because of that. So there is going to be a way, I don’t know how big, but it’s going to be bigger than it’s been in probably 10 years. There’s going to be a wave of foreclosures coming along and it’s for that reason, it’s one of those free events that we’re going to talk about that I’m spending a whole day on the foreclosure business, how people can get ready to serve a lot of people and to you know, profit as well.

    Fred Rewey (06:42):
    Yep. Now you just, you just led into my next question, which talked about you have three events coming up, three free full day Boot Camps. So when you told me about these and you said you’re doing these free, you know, three Fridays in a row. And I thought, okay, great. You know, what are you going to do an hour or so? I mean these are full days and there’s no cost to go to them. So tell me a little bit about the events and what made you even think of doing it. And certainly, I mean there’s the give back, the guy that donates an hour, there’s another, when you’re talking about three full days, that’s a lot. And they’re not the same thing. Three different days.

    Jay Conner (07:14):
    That’s right. So the first free day, so these are three Fridays in a row, May 22nd May 29th and then June 5th and they are full days. 9:00 AM to 5:00 PM going to be virtual. So you know, your people, as we just said, we’ll be able to register for free the very first Friday on May 22nd all that is. So all three days, Fred are going to be framed around how to not only survive but thrive in the midst of having to stay at home in the midst of Corona virus and all that. So the first Friday is going to be focused on private money, getting funding for your real estate deals, for their single family houses, commercial, et cetera. And how to be positioning yourself to get this funding ready to go. So that when the big opportunities do come right around the corner, you’re going to be able to take care of it.

    Jay Conner (08:10):
    I mean, hard money lenders buy larger, shut down. Banks have tightened up even more so private money. And that is my specialty right there. Private money deals, nothing to do with your credit, nothing to do with your verification of income, et cetera. So that first part is focusing on that. The second, free Friday on May 29th, as I mentioned, I’m going to spend a whole day focusing on the foreclosure business. How to locate these opportunities to serve people before other real estate investors even know that these properties and opportunities exist. How to position yourself to not only find them, but how to have conversations with these people that you know, and just in shutdown mode. And how you can also get your deals funded on these deals without even having to necessarily use private money on these particular foreclosure deals. The third free Friday is going to be focused on what I call free private money, how to find free private money and get more funding for your deals as well.

    Jay Conner (09:18):
    Again, how to do this in the midst of Corona Virus. And even though our country in certain areas is starting to open up and is opening up, in my opinion, we’re not going to be coming out of this as far as the economy goes and et cetera for some time. So how to position yourself. These three Fridays Fred are for brand new real estate investors and also for seasoned real estate investors that are looking for more funding for their deals and as well how to find off market deals of motivated sellers. Again, in the midst of and on the other side of the corona virus.

    Fred Rewey (09:56):
    I like it! And I want to congratulate you for, you know, giving back so much of your time. Like I said, a lot of people are, you know, doing an hour here, webinar and stuff, and we’re all doing what we can, but three, three full days for free is pretty impressive and obviously a lot of content and you can’t, you can’t have a lot of fluff when you’re doing that. So I think it’s going to be pretty neat. I think definitely everybody whether they’re, you know, think they’re in real estate or whether they’re looking at their own strategies going forward, I think everybody’s gonna have a lot of takeaways from it. And that’s really what it is. I mean, I go to a lot of these things. I walked a lot of the things like I can get just one really good idea that I can implement. Then it makes a difference. And if you’ve got three days, well then I’m sure I’m going to have a notebook full at that point though. I know you’re busy. I just wanted to say thanks. I wanted everybody in our audience to kind of know who you are, know about the opportunity to know about the three free days to attend. Is there anything else you wanted to mention before we sign off here?

    Jay Conner (10:47):
    That’s it you know, folks, if you have not gotten registered yet, you want to get registered right now because I know that we will fill up and so you want to go in and take advantage of it right now if you haven’t already. And Fred, I know that you’re going to be participating and joining us on at least one of the Fridays. Tracy, I think Tracy is doing a panel

    Fred Rewey (11:09):
    I think what you guys are looking forward to that look, we’ve been buying notes for over 20 years now, so we see opportunity and we bought real estate before. We see opportunities on all sides of this, so we’re looking forward to it.

    Jay Conner (11:21):
    That’s awesome. I look forward to seeing you and seeing Tracy there and thank you so much for having me on.

    Fred Rewey (11:27):
    All right, thanks.

    Jay Conner (11:29):
    All right.

  • Cory Boatright on Real Estate Investing Minus the Bank

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    Cory Boatright (00:41):
    Jay, my man! How you doing?

    Jay Conner (00:41):
    Hello, Cory! I’m doing fantastic. How about you?

    Cory Boatright (00:47):
    Well, my lands.

    Jay Conner (00:51):
    Oh my lands!

    Cory Boatright (00:55):
    Jay. I know that you are The Private Money Authority, but some people do not know who you are, that are going to be attending here on this event that I’m so excited to bring on these free Fridays. There’s three of them total. Would you mind going ahead and just share in a five second little snippet of kind of who you are, what you are doing right now in the private money space? And I’m going to share about the gift that we’re going to give all the people that are going to attend this special event.

    Jay Conner (01:29):
    Alright! Excellent. So yes. My wife Carol Joy and I, we’ve been investing in single family houses full time since 2003 and the first six years of us doing the business, I relied on local banks to fund our real estate investing deals, right? The 3rd week of January, 2009, Cory. I called on my bank on right here on this telephone where I’m sitting and I learned in that phone call that I had been cut off with no funding, no lines of credit, they were gone. And I had two houses under contract worth over a hundred thousand dollars in profit. So my definition of coincidence, Cory, is God’s way of staying anonymous. So in less than two weeks, I was introduced to this wonderful world of private money, not hard money, not hard money lenders or brokers I’m know about doing business with individuals, human beings.

    Jay Conner (02:30):
    And I learned about how to borrow money from their investment capital. I also learned about self directed IRAs, how people can loan money to my business from their retirement funds. So I learned all about that. [There’s a lot of that out there right now]. Even more now, right? And so I put my program together and without asking for any funding, I was able to raise $2,150,000 in less than, 90 days of being cut off from the banks. And I have a great deal since I started doing that back in 2009. So I’m here in a small town, Cory and my total target Morgan, similarly 40,000 people, I don’t do a lot of deals, I do 2-3 deals a month, but my average profit is $67,000 per deal. So those numbers seem to work out okay.

    Cory Boatright (03:28):
    Absolutely. And so private money right now is needed more than anything really else because of this Covid situation. And there’s all these things that are changing right now, Jay, you have three Fridays that you are going to be giving away information. I know you’re going to be talking about private money, you’re gonna be talking about four closures which are coming. They are going to be coming and you gotta be prepared for what that is going to look like for you and how you can take advantage of that. And then also there’s private money that actually costs money, Jay, but you’re going to be talking about private money that’s free private money too. And so can you just share a little bit about those Fridays?

    Cory Boatright (04:10):
    Absolutely. So the first and, by the way, these are not two hours each day. These are all day for your people in your world. Cory. All they gotta do is register. Y’all just registered. So the first Friday is may the 22nd all right, May 22nd and on that Friday, this is going to be virtual. Of course, it’s going to be right here on the internet. So folks you’re seeing this, you’re going to be able to attend. And so the first Friday is about how to get private money, a lot of private money, very, very quickly. How to attract it without having to chase any of it and get funding for your deals regardless of your credit score, regardless of your verification of income. I mean, you can be laid off right now from your job and get just as much private money funding for real estate deals as I do.

    Jay Conner (05:01):
    All this is going to be framed how to do this and get a lot of funding quickly here in the midst of corona virus and even on the other side, a lot of hard money lenders were shut down right now. They’re not loaning money out and you don’t have to rely on the banks on this. So how did you get a lot of funding for your deals right here in the midst of uncertain times? Friday or May 22nd it’s going to be all about foreclosures. And I’m talking about how to serve a lot of people from the space of a servant’s heart. I mean, you’ve got Corona crisis going on now. I mean, you’re going to have a ton of people where their own crisis. I mean, they’ve got, you know, as, as we know now, foreclosures have got to stay. There’s no new sales going you know, there’s no new files being opened up.

    Jay Conner (05:52):
    But Cory, as my grandmother would say, if she were living, all they’re doing is saving up spit, right? None of that stuff is going away. So we’ll leave when they open it up, we’re going to have this avalanche of foreclosures. And then on top of that, think of all the people over 30 million people that are unemployed, laid off from their jobs. That’s going to create even more foreclosures. And you know, there’s this talk of, Oh well they can put while they’re behind on the back end of their note, that’s not going to be happening in the majority of the cases. So there’s going to be this huge opportunity. I’m talking for the next 24 months, at least in my opinion, to serve a lot of people and to create win win situations, get a lot of profit out of it as well. Then the third Friday on June the 5th I call it how to locate free private money, how to get funding for your deals without having to borrow any money whatsoever or come up with a down payment. So there you have it, Cory. That’s all free for your people.

    Cory Boatright (06:56):
    I love it. So the day is the first Friday starts on what day?

    Jay Conner (07:01):
    Yep. The first fraud is May 22nd

    Cory Boatright (07:02):
    May 22nd the second Friday. And so it’s right along. It’s every single Friday after that. So three Fridays total. [That’s right]. Okay, great. Great. So what I need for you to do, if you want to attend this class, it’s really simple. Just go to PrivateMoneyPlace.com that’s where you go and when you go there you are going to register and Jay you have a free gift that you’re going to give them. What are you going to give them?

    Jay Conner (07:32):
    Absolutely. Besides the free training, just as a thank you for registering a bonus gift for you being in Cory’s world, I’m going to give you for three weeks total 100% access to my own membership site, which is called The Private Money Academy and so you get a whole month of free. I got a ton of training in there and again that’s just going to be a congratulations to you for taking action to register for these three virtual Fridays.

    Cory Boatright (08:01):
    I love it, Jay, I appreciate you! Go to PrivateMoneyPlace.com register and you get the four trainings on top of the three full days! Full day! Of training for private money and you need this right now. If you’re a wholesaler, you need this right now. If you’re a fix and flipper, a buy and holder, I don’t care if you’re involved with short sales or lease options. Whenever you learn about private money, it opens up the world for you to do more deals and serve more people, which both of those things allow you to impact the world and make a bigger chain. So go to Private MoneyPlace.com join me and Jay there. It’s going to be great. So I’ll see you there. Thank you again, Jay!

    Jay Conner (08:45):
    Thank you Cory! And Cory, you’re going to be there with me as well, so you’re not just getting Jay, you’re going to have Cory the virtual event, so getting registered. Thank you Cory. I’ll see you there.

    Cory Boatright (08:56):
    Appreciate you. Thank you guys. Remember, be a servant. Bye now. Bye bye.

    Cory Boatright (09:03):
    Okay, so let’s do a sizzle reel. That is one minute sizzle reel 30 seconds to one minute sizzle reel. And I want to do on this is I want to record this one that I can share on social media prior. As I’m starting to if I don’t have to have a long video, I just want to have a short video or just sit, they just see a quick sizzle reel. Okay.

    Jay Conner (09:28):
    You tell me what you want me to say. In less than 30 seconds

    Cory Boatright (09:33):
    I want you to cover is the what, the three Fridays quickly what they get on each Friday, the start date and then if you can have that thing running at the same time, I start talking to Scott on the bottom. Yep, that’d be great. And I’m just going to come on just real excited about the private money, how you’re going to give away three full days and it’s going to be almost like you’re joining a conversation. So it’s going to be something like, are you kidding me Jay? You are going to give away three full days and then you do it. And we’ll do it for that. And so it’s literally going to be 60 seconds.

    Cory Boatright (10:10):
    Awesome.

    Cory Boatright (10:11):
    That we do it. So it’s literally gonna be just a quick 60 seconds

    Jay Conner (10:17):
    Okay.

    Cory Boatright (10:19):
    And we’ll use this as our sizzle reel.

    Jay Conner (10:23):
    Okay.

    Cory Boatright (10:25):
    So we’ll start here. I’ll just do the countdown for you. Okay. In five, four, three, two, one. Jay, are you kidding me? You’re actually going to give away three full days of private money training?

    Jay Conner (10:48):
    You got it, Cory. Three full days and it’s gonna start the first Friday or May 22nd then May 29th and then June 5th all free. Now, first Friday is going to be how to get funding for your deals. Private money regardless of your experience or your credit or your income. How to get the funding right here in the midst of Corona virus. The second Friday is going to be all about foreclosures. How does serve a lot of people that are going to be in foreclosure right here on the other side of corona virus, how to locate these and create win-win opportunities and make a ton of money while serving a lot of people. And the third free Friday, Cory is going to be all about, I call it, how to locate and get private money, how to get funding for your deals without having to borrow any money whatsoever. So they’re coming up right around the corner.

    Cory Boatright (11:39):
    That’s awesome. Thank you again, Jay. I’m looking forward to this. I’m going to join you on this as well. So this is where we go. You go to PrivateMoneyPlace.com register and Jay is going to give you a free gift just for registering and you got to go check it out. PrivateMoneyPlace.com. Jay, I’m looking forward to it. Go there. I now registered.

    Cory Boatright (12:00):
    Alright, see you there!

  • Jim Zaspel on Real Estate Investing Minus the Bank

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    Jim Zaspel (00:11):
    Yeah, that sounds good. Well, let’s get started, Jay. So Jay, you and I met about 10 years ago, 11 years ago. And you’ve been a real estate a lot longer than I have been. So tell us about yourself, how you got started in real estate investing and Jay Conner in a Nutshell. You got a lot of interesting stories behind you, so let folks get to know you a little bit.

    Jay Conner (00:32):
    Well, you know, I don’t know if I can do Jay Conner in a Nutshell because you just told me last week I can’t manage to say my name. Right? I remember Jim, the very first real estate investing event that you and I met at. I don’t know what brought it on, but I think I was brought up on the platform to I don’t know to talk or something and I sat back down and I was sitting right next to you at the event and you leaned over to me and you said, talk Jay Conner can do [I remember a good yesterday, man]. So who am I and what have I been doing? So, as you said, Jim, I’ve been investing here in Eastern North Carolina since 2003 full time since 2003. And the first six years of the business, I’ve relied on local banks and mortgage companies to fund my deals. And I remember like it was yesterday, it was the third week of January, 2009, six years into the business, I called him a banker on this telephone right here.

    Jay Conner (01:41):
    I called him up, his name was Steve. And I got Steve on the phone and I’d had this conversation with Steve many times. I told him, Steve, I have these two properties on the contract, which by the way, back in 2009, when you put earnest money down in North Carolina, you couldn’t get it back. So I got money tied up in the deals and these two deals representative over a hundred thousand dollars in profit. And so I propose about the deals and when closing was scheduled and the funding that I needed for the deals. And I learned that conversation that I’ve been cut off and my lines of credit are gone from the bank. And I wish I’d known that before I put the money down. Right? And so within two weeks of actually going to this event that I was at with you, learned about private money. I came back home, I put my private money program on steroids and I was able to raise 2 million, $150,000 in funding from individuals, either their investment capital or their retirement funds. And so I was able to close all those two deals that I had. I didn’t lose those. And since that time I’ve not missed out on a deal because I didn’t have the funding. So I’m still full time in the business. I do two to three deals a month. Our average profits are $67,000 per deal.

    Jim Zaspel (03:03):
    I just wanna puke My friend, $67,000 per deal. So you just told me that you work half as hard as I do and get paid twice as much.

    Jay Conner (03:11):
    So anyway, you know, I do the business, I love the business. And I got bored back in 2011 cause they got an amazing team put together for doing the business. So that’s when I started, I put on my teacher hat and I started educating other real estate investors, particularly on how to get a lot of funding for their deals without relying on their credit verification income or experience in real estate.

    Jim Zaspel (03:36):
    That’s awesome! Well, you there’s one thing you, you did a training just a week or two ago that I was on and I went to high level folks and it was like, Holy moly, you know, when you’re in the hands of a professional, and I don’t mean a professional speaker, which you are, but what a few of my friends were talking afterwards is a professional teacher who’s like, wow, this is doable. And it makes it super clear. And of course you’re on his neck to listen to. Besides,

    Jay Conner (04:04):
    I got a little bit of a different accent than the folks up there in PA. Right?

    Jim Zaspel (04:09):
    A little bit, a little bit, a little bit. So Hey man. So we’re doing a couple of things are coming up. You know, these three individual days, tell folks about what’s in the books for how you’re going to help folks out and get some free training coming up.

    Jay Conner (04:26):
    Yep. So for your subscribers, your followers, Jim, you’ve got quite a network. You can invite all your people to come absolutely for free to three Fridays in a row on real estate virtual training right here on the internet. These three free Fridays are, the first one is going to be May 22nd Friday, May 22nd. And folks, this is not a two hour training per Friday. This is all day 9:00 AM to 5:00 PM Friday, May 22nd is the first one, then Friday, May 29th and then Friday, June the fifth, all these three Fridays are going to be not only how to survive, but how to actually thrive when you’re in the midst of uncertain times. And even when we come out on the little side of Corona virus, there’s always going to be those uncertain times that come around the corner. So in the midst Corona virus on the coming out on the other side, how you can be very successful in real estate investing, whether you’re a seasoned real estate investor or you’re brand new and never done a deal the first Friday, Jim on May 22nd, I’m going to be teaching all day long focusing on private money, how to actually locate the private money and the funding, particularly right now front virus and the consequences of it are still going on.

    Jay Conner (05:47):
    I actually have more private money coming to me without me asking for any money. It’s chasing me and I’m going to be sharing with of your folks that come there to the free Friday, how I actually am raising all this money in the millions without ever asking anybody for money, right?

    Jim Zaspel (06:08):
    Jay That’s incredible! And if I can interrupt and just like a plug for you for a second. So I will say that in my experience personally and people I know you know, one of the biggest things that we’re afraid of. Like what do you say? Right? How do you, how do you ask for the money? But you didn’t even get to do that. And so I’m gonna put a bait hook out there for folks that, you know, Jay has this, I’m going to just use the words magical way of talking about not even asking for talking about private money and then getting it. So you’re in for a super treat. I know you’re going to talk about some of the stuff on that Friday on the 22nd, but I just want to stop right there. That alone is just incredible.

    Jay Conner (06:47):
    Yeah. Well, and in fact, Jim I mean, you know what you’re talking about as well and you can speak to it because you’ve raised a ton of private money yourself.

    Jim Zaspel (06:58):
    Yes, yes. We have several million dollars in private capital all using Jay’s processes and systems. There’s one time I raised, it’s just over half a million bucks at one launch in using Jay’s process. And that happened to be brushed by the group to be with the same private lenders to right now it’s over one and a half million dollars of private money from those same people.

    Jay Conner (07:20):
    That’s awesome. That’s awesome. So that’s the first Friday, May 22nd and then the second Friday, May 29th we’ll be focusing on foreclosures. And here’s what I mean when I say foreclosures. So right now I mean you’re, our country’s starting to open up a little bit, but the foreclosures, people that were in foreclosure but hadn’t gone to their houses and not going to sale you know, when Corona virus was come along. So they put a stay on the foreclosures and there’s no new sales going on. You know, right now and won’t leave for the next few weeks. Well, as my grandmother would say, all they’re doing is saving up spit.

    Jim Zaspel (08:03):
    Yes.

    Jay Conner (08:07):
    That’s stuff ain’t going anywhere. I’ll do that. Then she’s going to be more spit all at one time,

    Jim Zaspel (08:11):
    right? I got to get that one down.

    Jay Conner (08:18):
    Well, you can always count on me to give you a nugget Jim. So you got all these people, there’s going to be this wave of new foreclosures just from the pent up demand. And then on top of that, we got all these millions of people over 30 million people unemployed, laid off. Well, that’s going to create even more foreclosures. So here’s the deal. There’s an affinity on an ever met me or heard me speak, you know, I come from a place of a servant’s heart. Look out for the other person first and you’re not going to have to worry about yourself. So there’s going to be a huge opportunity to serve a lot of people that are going to be having their own crisis. I mean, you talk about the Corona virus crisis, there’s going to be the foreclosure crisis that’s coming up. Are you gonna be able to serve a bunch of people, help them out of their crisis.

    Jay Conner (09:13):
    And in return, I’ll teach you how to create win-win scenarios to where you serve these people and you make a ton of money at the same time in serving these people. That’s the second Friday, the third Friday on June, the 5th, I call it how to locate three private money. So I’m going to be teaching a strategy on that Friday as to how you can actually get funding for a lot of your deals without having to borrow any money. So I’m just going with the teaser to get funding for your deals without borrowing any money. I’m not talking about using your own money either. So that’s going to be free private money on a Friday, June the fifth. And so Jim you know, whenever it’s appropriate, I’ll let you tell people how they can register or maybe there’ll be seen it right here. I don’t know. But if you have not registered folks, I never gonna fill up. Because you are in Jim Zaspel world, you get to come for free, get registered right now.

    Jim Zaspel (10:20):
    That is a huge giveaway. So what I’ll tell you folks who are watching this. The first thing I’ll tell you is I think you can tell from watching that, Jay spent 10 minutes to say hello, is that he truly has a servants heart And more honestly, more importantly for your purposes is he knows what the heck he’s talking about and he’s darn good at it. And most importantly, he’s just, he makes it so doable. And you know, I’ve heard, you know, until we learn something new there’s on-boarding process makes the challenge. Jay makes new stuff, seems so easy and so doable. And just cause he’s so good at himself. So you’re a great hand. So if you got emailed a link to this video, then the way it’s going to work is there’ll be a link to register.

    Jim Zaspel (11:03):
    And again, it’s totally free, Jay’s doing, there’ll be a link to register for these free trainings in that email. And then if this video is on a page on one of my social media pages, it’ll be in the description as well. So check the email if you got an email, if you’re watching the social media check the first comment or the description and the link will be there. So go ahead and click it, cause I don’t know what Jay’s limit is, but obviously because of technology and bandwidth, all those things are. There’s so many people who’ve been fit in a class each day.

    Jay Conner (11:30):
    Thank you so much, Jim, for having me on here. And, you’re going to be joining me, I think on a panel. So you all, not only do you get me, but you get the main man himself and these virtual trainings as well. So I look forward to seeing all of you and Jim at the upcoming virtual trainings. We’ll see you there.

    Jim Zaspel (11:50):
    Awesome, Jay, I really appreciate you doing this folks. Get registered now and I’ll see you soon.