Jay Conner

Category: Success Mindset

  • Update on Jay’s Latest Real Estate Deal

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    Jay is right in the middle of his recent deal at 109 Broad Street in Beaufort, North Carolina.

    In this video, he will tell you how he found this deal, how it is funded, and all the numbers that made this deal possible.

    First lesson: How to find this type of deal? You need to have a Bird Dog.

    What is a Bird Dog?

    A Bird Dog is someone that you have who rides around town looking for sale by owner sign or signs of distressed property. They then take a picture of the sign, the property, and take notes of the address and other important details.

    Through that, you can now find out the information about the property such as the name of the owner then start reaching out to them.

    In this particular story, Jay’s bird dog sent him a picture of this property with a phone number on the for sale sign. Then, Jay forwards the details of the property to his “acquisitionist”.

    An acquisitionist is in charge of talking, negotiating, and getting information on the properties initially before Jay gets involved in looking at the numbers.

    Through Jay’s acquisitionist, they learned that the selling price of the owner for this property is $299,999. In addition, the owner specifically said that she will not take any offer that is less than the said amount.

    Next step, get your realtor to calculate the after repaired value of the house. Now, Jay’s realtor prepared the Comparable Analysis of this property and the after repaired value that came out is $350,000. The difference between the seller’s asking price and the ARV is only $50,000.

    What comes next? When they make the calculations of the rehab to make this house a beautiful property the number is $20,000.

    Now, what in the world is Jay going to do to make this deal possible?

    Watch the full video and discover all the lessons that you need to learn on how to make over $100K profit on a deal just like this.

    What can Jay Conner and The Private Money can do for you?

    First of all, Jay has got a new book entitled “Where to Get the Money Now?” You can get the book at www.JayConner.com/Book and learn the step by step process on how to get all the private money that you ever need for your deals.

    Secondly, Jay has got a monthly membership called The Private Money Academy. He is there, live twice a month for at least one hour of zoom coaching for all the Private Academy members. You are invited to join for a free two-week trial at www.JayConner.com/Trial

    Lastly, sign up for free at his upcoming live event. If you want to know what is happening in this live event then check out this link. www.JayConner.com/LearnRealEstate

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnreales…

    Free Webinar:

    http://bit.ly/jaymoneypodcast

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

    #RealEstate #PrivateMoney #FlipYourHouse

    I’m right in the middle of this deal at 109 broad street that just started a week and a half ago. And in just a moment, I’m going to tell you how I found it, how it’s being funded, all the numbers, how I structured it and how you too can make over $100,000 in profit on a deal just like this.

    Well, hello there I’m Jay Conner, the Private Money Authority. And welcome back to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner your host of the show. And as I said, the Private Money Authority, if you’re new to the show, a very special welcome. We talk here on the show, all things real estate. We talk about how to find deals, how to fund deals, how to get them rehabbed. If rehabbing is involved, how to get them so quickly and how to automate the entire process to where you really can make realistically a six figure income or more, and working less than 10 hours per week. I started in this business back in 2003, investing in single family houses. And since that time we’ve rehabbed over 400 of them done a lot more deals than that. But as far as rehabs go, we’ve done over 400.

    Well on today’s show. I want to share with you this deal, that I’m in the middle of right now, and I tell you I haven’t even closed on it. And there are so many lessons to learn from this one deal. So again, it’s located at 109 broad street, right over here in Beaufort, North Carolina. And so, first of all, let me just go through the steps as to what happened first and the kind of profits that are taking place on this deal and the lessons that you can learn from this, that you can apply into your real estate investing business as well. So about a week and a half ago, I got a text right here on my cell phone. I got a picture of a for sale by owner, also known as a FSBO sign in front of a house over here in Beaufort.

    Well, the text came in from what I call one of my bird dogs. So what in the world is a bird dog in the real estate investing world? What a bird dog is someone that you have as they ride around about town. When they see a for sale by owner sign or signs of a distressed property. Alright, it may look vacant, may have newspapers on the front porch may have grown up, you know, grass, et cetera, either FSBO signs or distress properties. And you have your friend or hired bird dog. You have them take a picture of the FSBO sign and the address of the property. Now, if there’s no FSBO sign and it’s a distressed property, just have them take a picture of the house and text you the physical address, you can then skip, trace that information and find out who the owner is.

    And then start reaching out to them either by direct mail, outbound phone calling, et cetera, on this particular story. I want to tell you exactly what happens. So one of my bird dogs took a picture of this FSBO sign. It’s going to have the phone number of the cell phone number of the owner that was selling it. And they also sent me a picture of the house. So I received the text, looked at it and I forwarded the text on to my acquisitionist right? And so acquisitionist what’s an acquisitionists. This is Kim in our world, mine and Carol Joy’s world. And Kim’s been with us since 2004. She’s in charge of talking and negotiating and getting information on properties. Initially, before I get involved in looking at the numbers. So Kim got that text from me, and she called up the cell number.

    Got the owner on the phone, and got the initial information on the property. So first lesson learned is I would not have gotten this late at all. I would not have this house from the contract, which I now do. I would not have it under contract unless I had my bird dogs in place, because I’m not riding around myself, looking for FSBO signs or distress properties. I have other people. So first lesson gotta have a bird dog, or I would’ve missed out on this deal. Now, Kim calls up the owner, gets the information on the property. This house was built in 1910. So this is in the historical district. It’s only one block from the water fantastic location. So she gets all the information on the property, sends it to me. I look at it and yes, I want our realtor to calculate the after repaired value of the house.

    Now let’s just see if there’s any kind of spread, between what the seller is asking and what the actual repaired value is. Bear in mind at this point in time in the timeline, we do not know what the repair estimate is yet. So we know what the seller’s toes, but of course, we’re not going to know what it is until we actually go look. But first we want to see if there’s some kind of spread between after repaired value, also known as ARV and the seller was asking price. The sellers asking price is $299,900. And make note, the seller said, do not call me back and offer anything less because I’m not going to take one penny less than $299,900. So we have our realtor go ahead and calculate the after repaired value. This is based on sold comps that are near the property.

    So, our realtors figures it up in less than 24 hours, we get a complete CMA also known as like comparable market analysis, emailed to us from our realtor that knows this area, like the back of his hand and the after repaired value comes back in at $350,000. Sounds like a pretty good spread so far, but what are the repairs? Well, there’s been 299,900 and 350 is only $50,000, right? So there’s any kind of repairs whatsoever. Then I know those numbers aren’t going to work. So anyway, we want to go take a look at the house. We’d go to $50,000, spread, less repairs. So I have Kim our acquisition get back in touch with the seller. We found out that the seller and her brother are the heirs of this property, the house is vacant. Nobody’s living in it. It’s free and clear.

    There’s no mortgages there’s no liens attached to it that we know of. Of course, we’ll have a title search done by our attorney before we closed. Always get a title search done before you close. And so we want to go take a look well, in just that short two day period between getting the lead from a bird dog, sending it to Kim the acquisitionist getting the seller on the phone, getting the information, getting our realtor to give us the ARV in that two day period of time Kim calls up the seller and we find out that the seller has already listed the property with their real estate agent. No problem. It’s listed with a realtor. That’s fine. I’m planning on buying it with private money anyway. So, when heirs are involved, it’s going to be very, very difficult to negotiate any kind of buying a property on terms with creative financing, with seller financing or what have you.

    So I don’t want to use private money, paying all cash. And I’ll make my offer with all cash and no contingencies. So we set the appointment and my realtor and my contractor go out to the house to take a look and estimate repairs. I’m out of town, I was visiting family. So I’m not even here. Another lesson learned you don’t have to be looking at houses yourself, but you must have trustworthy boots on the ground. They can be your eyes for you. So my realtor and my contractor to go and take a look. I get a complete budget sheet sent to me. Repairs are coming in at about $20,000 in repairs to make this home look absolutely beautiful. And it’s all cosmetic.It’s only got 891 heated square feet, It’s a little cottage there in 1910.

    Why is it so valuable at $350,000? Number one, location, one block from the water. Number two, these historical houses are hotter than pancakes. So location the attraction of this 1910 cottage, all the stars are lining up. So let’s run the numbers. So remember, in order to calculate your maximum allowable offer also known as MAO, your maximum allowable offer. When the after repaired value is above $300,000. In this case, 350. We’re going to multiply times 80%. Now I will tell you, I believe the 350,000 is very conservative because my real estate agent, our realtor is very conservative. I believe in this hot market. When I fixed it up, I will be able to sell this house for 375. I really do. Let’s run the calculations both ways. If we use the ultra conservative figure of $350,000 and above 300,000, we’re going to multiply times 80%, that equals $280,000.

    So let’s run that again, just to make sure $350,000 times .80, we’re leading up to figuring our maximum allowable offer is $280,000. Now repairs are how much $20,000. I’m not going to subtract $20,000 from the $280,000 figure. That gives me a MAO, a maximum allowable offer of 260,000, a thousand dollars. Now, do I ever offer MAO? of two or you know of what it comes up to? Excuse me. And the answer is no. I always throw in at least a $10,000 buffer below the maximum allowable offer to account for who we call Murphy, right? Murphy is the unexpected evil one that might show up with unexpected repairs, Murphy lives in every house, right? So I’m going to subtract an additional $10,000 from the $260,000. So now my offer to the seller is $250,000. Now, do you remember what I said a moment ago?

    When my acquisition is Kim talked with the, the sister, she said, don’t call me back unless you’re and try to offer one penny less than $299,900. Well, we’re not calling her back, right? I can’t call her back. Now. Maybe I could, but there’s no need to call her back because she now has the property listed with a realtor. So all communication now is going through my realtor to their realtor, bear in mind. And remember whenever I’m making offers through my real estate agent to another real estate agent, that’s got the listing. Well guess who is paying my real estate agent to represent me. If I get the offer accepted, not me. The seller is paying all the realtors for when are acquiring and purchasing a property. So I communicate back to my real estate agent and his name is Chris. Make the call offer for $250,000.

    And here’s how I want you to know, make the offer. Lots of lessons here. First of all, tell them it’s going to be all cash with no loan contingencies , all cash, no loan contingencies. That’s very important. This is called the and this is a writer down right here. The cleaner your offer, the more offers get accepted. In other words, don’t put conditions. Don’t put contingencies on your offer. If you wanted to get accepted, right? Now, when I say no lung contingencies, can I still buy the house with private money? Absolutely. Yes. When I say I’m making the offer with no loan contingencies, all that means is I’m not making the offer conditional upon me having to go get approved for a loan. Right? So, I told my real estate agent made the offer all cash $250,000, no loan contingencies, even though I’m gonna use private money to pay for it.

    And I’ll close within two weeks. I also instructed my real estate agent to make the offer and tell them this is a maximum offer, one time only offer. This is a maximum one time only offer. In other words, here’s my all cash offer, take it or leave it, you ain’t getting this offer from me anymore. That’s called fear of loss, right? So remember the seller had told my acquisitionist, they wouldn’t take one penny less than $299,900. And here I’m coming with an offer all clean at 250. Guess what? The same day the offer was made, they accepted the offer $250,000 just as we presented the offer big lesson right here folks, huge lesson. And that is, and you wanna write this down, seller of a property does not know what they will accept from you went from your, with your offer until you make the offer.

    That’s huge. The sale. I don’t care what and I’m not saying the seller lied. When the seller, at that point in time said, we won’t take one penny less than what we’re asking, but there’s a big difference. There’s a whole different paradigm going on here between the seller saying, I won’t take less than X and you actually making the offer. So what’s the lesson learned on that piece of this deal. If there’s a property you’re interested in, make the offer and let the math make the decision, make the offer, regardless of what the seller said they would take or wouldn’t take. And let me tell you this as just another side important lesson, if you’re a real estate agent says they won’t accept that they didn’t accept that two weeks ago or whatever. I’m not even making the offer. You tell your real estate agent and by law.

    They’re required. If you make an offer, if you give them an offer, they’re required by law to make the offer. You tell them to make the offer. So I’m scheduled the close on this property. We’re under contract, I’m scheduled to close he’s on it next week and let’s review the lessons learned lots of lessons here. Number one, if I didn’t have a bird dog in place to take pictures of FSBO signs and send in to me and us, I wouldn’t have gotten this deal. Number two lesson, if I didn’t have private money lined up, ready to fund this deal to where I could close in two weeks. I wouldn’t have got this deal. Number three, I didn’t listen to what the seller said and said, don’t make me an offer. Listen 299,900. We offered 250,000, 50,000 less than they said they’d take.

    And they took it. Next lesson. I had my contractor had a relationship with my contractor to where the contractor could get out there within 24 hours and estimate repairs. So the contractor relationship was very important. Number the next lesson, my real estate agent, my relationship with my realtor. If I didn’t have a relationship with Chris that can get out there right away and also look at the property. And also in less than 24 hours, get me the after repaired value as to what that property would be worth after it’s all fixed up, I would have missed out. Another important relationship is the relationship with my real estate attorney. You say, I can’t make an offer that I’ll close within two weeks, unless I’ve got a relationship with a real estate attorney that can actually get it done in today’s hot market. If just somebody off the street called up my real estate attorneys and say, I’ve got a property that I want to buy.

    They are booked out at least four weeks before they can do any closings. But since I’ve got the relationship and you should as well, you got the relationship with the real estate attorney. They can get the title search done quickly, never buy a house without a title search, never buy a house without title insurance, and we can get it done. Also another relationship, a home inspection company, when you’re doing a rehab like this and this kind of money, you never buy a house without a home inspection and make sure that you, you know, you don’t have a big old Murphy showing up that you didn’t expect. So you want to have the relationship in place with your home inspection company as well. So there you have it. Now, I’m going to tell you in an upcoming episode, very shortly after this, when I’m actually going to be on location with my videographer taking me through the house and you actually seeing what we are doing in this house.

    So there you have it folks, 109 broad street, and a lot of lessons learned that you can put to use as a real estate investor. So let me ask you a question. What can Jay Conner and private money do for you? Well, there’s a few things that private money and Jay Conner can do for you. And here’s how you can get plugged in. First of all, I’ve got my new book, which is called where to get the money now, and you can go get the book at www.JayConner.com/Book and get that downloaded and, or get it shipped to you. And you can learn step by step on how to get all the private money you’d ever need for your deals. So you don’t miss out.

    Number two way how to get plugged into private money. And Jay Conner, is I’ve got a monthly membership called the Private Money Academy and I’m on there live twice a month for at least one hour of Zoom coaching for all the Private Money Academy members. And you can come join the party at, for free for a two week trial at www.JayConner.com/Trial and come check us out. And I’m telling you, it’s just amazing the interaction that we have with all the Academy members. And then thirdly, come on over and get involved and sign up for free in my upcoming live event. If you want to learn what goes on at the live event, you can check it all www.JayConner.com/LearnRealEstate.

    Again, that’s www.JayConner.com/LearnRealEstate. And I see Cynthia has commented in here, Cynthia, thank you so much for saying hello. Yes. Being new to real estate, investing in Charlotte, North Carolina, looking on mastering subject two deals. As a matter of fact, Charlotte, I mean Cynthia and my upcoming live event, I teach the subject to strategy so you can get to the upcoming live event for free again, www.JayConner.com/LearnRealEstate. Well, I’m so glad you joined us here for 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 business to the next level. We’ll see you on the inside on the next show.

  • Jeremy Knauff – His Inspiring Story of Surviving A Health Crisis

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    If you are interested in hearing and learning the most inspiring story that Jay Conner heard this year, stay tuned and watch this video.

    Jay is in the Mastermind group with a gentleman who is phenomenal. His special guest today has experienced a health crisis and survived it.

    In today’s episode, they are going to dive deep into the inspiring story of Jeremy Knauff.

    Jeremy has become successful not because of brilliance, charm, or a superpower, but rather because he’s always learning and refuses to give up. He is a speaker, author, and founder of the digital marketing agency Spartan Media.

    He is an entrepreneur, digital marketer, author, proud father, husband, and a US Marine Corps veteran. Today, he runs Spartan Media, a digital marketing agency where they provide web design, SEO, social media, and PPC marketing services.

    “A lot of the people I work with come to me because they have a website but they aren’t getting enough new business out of it. Other people come to me because they’re losing business to competitors, or because they don’t think their website presents their company to potential customers very well, or even because they’re starting a company from scratch and they don’t want to screw it up and waste a ton of money. If that describes you or sounds like anyone you know, let’s connect.” – Jeremy Knauff – https://www.linkedin.com/in/jeremyknauff 

    Jay Conner (00:04):

    If you are interested in learning and hearing one of the most inspiring stories that I’ve heard this year, I want you to stay tuned. I’m in a Mastermind group where the gentleman that is just phenomenal, he has taken his filter off totally. And he has made it through and survive on the other side, just a very serious health crisis. And so if you are going through a health crisis or, you know someone that is going through a health crisis, stay tuned right now, you’re about to be inspired.

    Jay Conner (00:45):

    Well, welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner also known as the Private Money Authority. And on today’s show, we’re going to take a little bit of a detour. We’re not going to dive deep into real estate per se, but we are going to dive deep into a very inspiring story that can change your life and make a difference. But before we get to my guest, I have got a gift for you. And that is if you’re interested in getting funding for your real estate deals, without relying on banks, mortgage companies, any kind of institutional lenders, then here’s my gift. I launched earlier this year, it’s called the Private Money Academy membership. And twice a month, I go live on a private Zoom coaching call, and I interview successful students. We taught deals. Talk about how we’re finding real estate deals, how we’re getting them funded with private money.

    Jay Conner (01:43):

    Again, without relying on banks and institutional lenders. We talk about all kinds of real estate, but I want to give you a free gift. Come join us and check us out at www.JayConner.com/Trial, after the show, get right on over to www.JayConner.com/Trial, And again, if you’re on a YouTube or iTunes or Google play, we really appreciate it for you to like share subscribe, rate, and review and on YouTube, be sure and tap that little bell. So you’ll be notified. So you don’t miss out on any of these fantastic shows and guests that I have on here. Well, as I mentioned or alluded to a moment ago, I’m so excited to have a friend, and fellow mastermind brother, come on here to the show to tell his story and make a difference in your life. So let’s bring out of the green room or right on here up front. Mr. Jeremy, Jeremy, are you there?

    Jeremy (02:48):

    I am here. How are you doing today, man?

    Jay Conner (02:49):

    Scott, I lost connection. So I’m going to sign out real quick and hop right back in. I’ll be right back.

    Jay Conner (03:00):

    There we are. Jeremy, can you hear me?

    Jeremy (03:02):

    I can hear you.

    Jay Conner (03:03):

    All right. Well, welcome to the show, Jeremy. I appreciate so much. You’ve taken the time to come on and join me.

    Jeremy (03:10):

    Thank you. It’s my pleasure.

    Jay Conner (03:11):

    You bet you. Well, as I mentioned to everybody here in the opening you and I are in a Mastermind together and a few weeks ago, I heard you speak on stage and I just really appreciated your authenticity and et cetera. But before we jump into your story of breaking through and living through the health crisis tell her about your background story and how you gotten to where you are today and tell a little bit about Spartan Media.

    Jeremy Knauff (03:44):

    Yeah, so I’ve had kind of a, an interesting ride. You know, I finished high school joined the Marine Corps, bounced all over the world there for a while. And then started my first business, which was a colossal failure. Pretty much lost everything went into massive debt from there. Spent a few years kind of rebuilding started my second company an agency, and ran that successfully for many years until the episode that you had briefly hinted at in the beginning here, when I had a health crisis that almost killed me. And then, you know, racked up hundreds of thousands of dollars of medical expenses and bills and burn through all of our savings. Basically had to start over from zero, well from less than zero, really because we had racked up debt and, you know, then I had the additional challenge of starting over, which in the marketing world, you know, at that point, I was pretty much on my death bed for about two years. So there was no case studies, there was no examples, there was no clients. So I had to start over from less than zero at that point. And now here I am today.

    Jay Conner (04:52):

    Wow. So I want us to get into your health crisis story and lessons. We can learn from that, but before we do tell everybody about Spartan Media and what your company does.

    Jeremy Knauff (05:04):

    So Spartan media is a, basically it’s a full service digital marketing agency, but what we’ve been focusing on lately is taking people and turning them into an authority within their industry. Right now the website doesn’t really reflect that because the cobbler’s kids always gets shoes last, but what we’ve been doing lately is taking people and turning them into an authority within their industry. So there’s a particular example that I like to use. And that’s this example was kind of the pivot point for me. At one point in time, me and a good friend of mine, I ran my marketing agency, he ran a printing company, a particular client together. You know, he did all the printing stuff, we did all the marketing design and all of that. Well, at some point in that relationship, he decided to sell his printing business and go work for client.

    Jeremy Knauff (05:58):

    And he quickly moved up to become the Chief operating officer. But then because of some things that happened with the founder the company was kind of in turmoil. And they got to a point where I think it was 19 franchisees were walking away from the organization. They were trying to organize a class action lawsuit. They had all kinds of online reputation management problems to deal with. It was just, it was a complete toxic mess from top to bottom, but what happened was because of all the things we were doing for them with the search engine optimization, the social media, the PR, all of the various marketing components. He went from basically having no experience, being nobody in the industry. I left out a piece. He, the founder had to step down and he had to step up and become the CEO because at that point, the relationships were just destroyed.

    Jeremy Knauff (06:49):

    So as a result of all of the things that we were doing for them, he ended up becoming so recognized. And so authoritative within his industry that last year, before all this COVID stuff happened, I was actually in DC with him. He was lobbying Congress on behalf of his industry. So he went from basically being nobody in that industry to now he’s up here talking with congressmen and senators about the laws that affect that industry. So we develop that into a front end service where we basically take someone and turn them into an authority within their industry so that they can get more media coverage, get in front of more people charge more money and you know, make more profit.

    Jay Conner (07:31):

    So what is your like ideal client? Like what type of industries does your service work well for?

    Jeremy Knauff (07:38):

    Generally, it comes down to somebody in a, like a professional business services, right? So it wouldn’t be necessarily good for a restaurant owner. I mean, although it, theoretically it could help them in some ways it’s not going to have the same impact that it might for somebody like you, where you want to be recognized as the person to talk to when it comes to this kind of stuff, private money, hard money lending, stuff like that. So generally somebody that’s in a professional business service is going to see the most impact from this.

    Jay Conner (08:06):

    Okay. That makes sense. Well, let’s let’s dive into your personal experience and your personal story.

    Jeremy (08:13):

    Yeah.

    Jay Conner (08:13):

    So I’m going to turn it over to you to tell that story, Jeremy, and I’ll interrupt you when I think I need to.

    Jeremy Knauff (08:19):

    Okay. All right. So this one was a, this was an interesting ride. I touched briefly on the crisis itself, but basically what happened was I was kind of on top of the world, had plenty of clients had plenty of money. Everything was going great. And then out of the blue, I get hit with this, with this health crisis. And, you know, I went to every doctor under the sun. I was going to the emergency room three to five times a week. I was trying to figure this out. Nobody had any answers and it just kept getting worse and worse and worse. So, I was pretty much on my bed for the first two years of this. You know, we did all kinds of things from a pharmaceutical perspective, from a diet perspective, I was seeing all kinds of specialists. I was seeing, you know, things I would have never considered like, you know, energy healers and acupuncturists and all kinds of non-traditional approaches.

    Jeremy Knauff (09:13):

    And throughout the beginning of this, it was incredibly frustrating because the doctors didn’t know what it was. So they just dismissed it. It was, Oh, well, you’re having a, you’re having a panic attack. You’re having an anxiety attack. Well, I knew that wasn’t the case, right? Because I had this pain from basically head to toe from the skin down to the bone and it was constant. It was 24 seven. And it was a level of pain that I have never felt in my life. It was a 10 on my chart. And to put that in perspective, I took a tattoo off with a drum sander once. All right. So I have an abnormally high pain tolerance. So I’ve got this excruciating pain in basically every cell of my body, no doctors have any answers. There’s no idea as to when it’s going to end.

    Jeremy Knauff (09:58):

    And there was a point where I’m walking around my house, as you know, as this stuff is going on. And I didn’t mention this on stage, but I have a lot of weapons in my house. A lot of firearms I’m Marine, this shouldn’t surprise anybody, but I remember walking around and I would see these weapons in various rooms. And I would be feeling this incredible pain. And I knew that there was no answer. There was no idea as to when it was going to end, how it was going to be solved? And I got to a point where I actually understood how people got to a point where they chose to take their life.

    Jeremy Knauff (10:39):

    And it got to the point where I actually took everything, disassembled, everything tossed in a duffel bags. And I called a friend and I was like, look, I, we don’t really have anything to worry about yet, but I’m just letting you know that I may ask you to come pick these up and store them at your house for a little while. Right. So I’ve got all these thoughts that are just like, absolutely outrageous. Like I’ve never had these kinds of thoughts before. And then right around that time, one of the toughest guys I’ve ever met, a guy I served with, his name was Todd Grant ended up taking his life.

    Jeremy Knauff (11:18):

    And as Terrible as that situation was, I also feel like it was a sign, right? Like I’m going through this, this happens. And I figured at that point, this is going to be, it’s a sign. And we’re going to find a silver lining in this situation. And where I saw from that was, this is an opportunity to help fellow veterans. I don’t know if you’re aware of this, but within the veteran community, we’re losing 22 roughly per day to suicide. So from that point, I made it my mission to, despite going through this insane health crisis, despite being in massive pain with no idea what the hell is causing it, or when it’s going to end, or if it, if we even could fix it. I’m going to get out there. I’m going to get back on top. I’m going to serve as an example to the other veterans, to the other people who are struggling. Even non-veterans everybody, people who are struggling, people who don’t know what they’re going to do, they don’t see a solution to their problem.

    Jeremy Knauff (12:22):

    And, you know, I began being very vocal about the challenges I was going through. I was very vocal about what’s going on, what you know, how to overcome these things. I was just completely transparent in all of this. And at the same time, I started reaching out to people who I knew were struggling, fellow veterans, as well as civilians. And it got to a point where my number was just freely passed around. And pretty much everybody knew that if somebody was struggling, they could give out my number freely to anybody. And as a result of that, I, there are several people that I’ve talked to. I’ve probably counseled hundreds of veterans over the several years that this health crisis has gone on. I remember one particular one that was really moving for me. And that was a buddy of mine from high school, reached out to me one night and he’s like, Hey, we’ve got this guy.

    Jeremy Knauff (13:20):

    You know, he just got back from Iraq. He’s going through all these issues. We’ve sent him everywhere. He’s gone to all the counselors. He’s gone to all the, you know, the doctors he’s done everything and nothing’s working. And he’s like, do you mind if I give him your phone number? I was like, absolutely, have him call me. So the kid called me we were out of town visiting a friend of my wife’s. And so I take the call. I go outside and I’m talking to this kid for, I don’t know, probably two, three hours, get him to a point where I think he’s in a good spot. Come back in the house now because of my health crisis, I’ve got my phone set to where at a certain time in the evening, it goes into do not disturb mode. So it’s not going to ring things will still show up on the screen, but it’s not going to make any noise.

    Jeremy Knauff (14:06):

    So, I come back in the house just a few minutes after he and I had talked and I got this little thing that dings up on the phone, no noise, just notification on the screen, it’s a voicemail. So I pick it up and listen to it. Cause it was, it was him. And I’m like, well, maybe, maybe something went wrong. Maybe he’s still got a problem, whatever. I listened to the voicemail and he’s just sobbing uncontrollably. And he’s like, I just, like, I don’t know what to say. I’ve talked to all these counselors, nobody’s had any answers. And like, I talked to you and you just, you get it. And now I’m like, I’m in a place where I see a light at the end of the tunnel and I see what’s possible. And like I’m in a, such a different place than I was even before I was in the military.

    Jeremy Knauff (14:45):

    And he’s like, you know, just thank you. And it was just such an emotional message. And that’s the kind of thing that I took out of this whole experience is the silver lining here is had I not gone through this? Had I not had this pain, had this health crisis, had all this stuff happened to me, lose everything, start over and get to a point where I understood how people could take their lives. I may not have ended up on this path where I started helping other veterans and helping other people who are struggling. So that was something that I think I took out of that whole experience, just, you know, to be able to give back into the world in that way and, you know, save people who are struggling in that regard.

    Jay Conner (15:28):

    Wow. That’s amazing. So I know you can’t summarize a three hour conversation in three minutes, but what I mean? So you’ve council just, you know, a lot of people that have had suicidal thoughts and, you know, really, I mean, one of my best friends in the world is I mean, he actually speaks at my live events and a few years ago he took his filter off. And I mean, he had actually gotten to the point of, you know, Googling, you know, how to commit suicide. He’d actually figured out how he was gonna do it. And so he’s got his story, but for people that are out there and you know, when the times are going on now, average suicide rates are just out the ceiling before, you know, as compared to historically. But what are some strategies or some therapies that you could share that maybe you have as a common thread when you’re talking to people?

    Jeremy Knauff (16:42):

    From what perspective, as far as like somebody, for somebody who’s trying to,

    Jay Conner (16:47):

    Yeah. Obviously you listened to them in every story is different because every person is different. But is there a way you can share, what are some ways that you get into think about to get into a better place as you?

    Jeremy Knauff (17:02):

    Yeah. So ultimately you have to look at the situation as an opportunity because every situation is an opportunity provided that you can allow yourself to see it that way. You know, and this was what I went through in the beginning of mine. It was like, well, why me? Why this, this is. Why should this, why should I have to deal with this? But the reality is things happen. The why doesn’t really matter. It’s up to us to figure out what value we can take from a situation. So what value I took from this, you know, I’m going through this particular thing. And then on top of it, a guy that I served with took his life. Well, I had to find some kind of value in that. And that was how I was able to get through this because now, I mean, think about it, what the hell happens if I decide to take my life? All these hundreds or thousands of people who have been looking up and I’ve got this thing, I call it the cookie jar, and this is something we’ll actually touch on here shortly. Cause this is another way that can help get through these. But like, I’ve got various messages that I got from people over the years of, you know, how my posts have inspired them or motivated them to push through this particular challenge or that challenge or whatever. So that’s a good way to do that is, is having that, what we call it cookie jar, but, had I not done this, had I not found that value in it.

    Jeremy Knauff (18:22):

    I would not have gone down this path. And I know I don’t have the exact count in my head, but I know there’s a certain number of people who would not be here today. So, let’s say that I didn’t, let’s say that I got to a point where I took my life. What the hell is that going to show to those people? So now that that meeting is there. That’s something to carry me through no matter how bad things get. So as long as we have a strong, why we’re going to be able to get through anything, that’s why you see, you know, the military doing things that ordinary people can’t do. It’s because they have a mission and it’s not just the mission on paper. It’s not, Hey, go kill these guys or blow that up or whatever. It’s their mission is the guy to their left and their right in combat.

    Jeremy Knauff (19:04):

    It’s their brothers and their sisters. So when we have a strong, why we have a powerful mission behind what we’re doing, that allows us to go through something. And that’s why people in general don’t accomplish their goals because they want to do it. If it’s convenient, they don’t want to do it no matter what, they just want to do it when it’s nice and simple. So that’s, that’s one aspect is having a really strong why. The second aspect is the cookie jar thing that I talked about, where you basically take things that you’ve overcome in your life, right? Like we’ve all had some pretty terrible things happen to us. So if you can go back and look at those significant challenges, those difficult times and use those as motivation. It’s like, Hey, I got through this, I got through that, I got through this.

    Jeremy Knauff (19:51):

    Then you can use that as fuel. Well, that’s just another case of this, right? So now you just, you have that, it’s like, I’ve already done this. Let’s just do it again. And the cookie jar, you can look at it in a number of ways. You can have it be something in your head. You could have it be something tangible, like the collection of messages that I’ve got from various people. It could be, you know, maybe you’ve got a what a buddy of mine in the military used to call his, I love me wall, all the awards and the recognition and the things he had accomplished. When we have this kind of thing that shows us that what we’ve done has prepared us for what we’re going through now. And I mean, you can even purely look at that from a physical perspective, right?

    Jeremy Knauff (20:32):

    You know, you look at what we do in the military, or you look at what an elite athlete does, and they’re not, let’s say you’re going to go run a three mile race. You’re not going to go run three miles. Your training is going to consist of you running, you know, six, nine, maybe twelve miles. You might do a series of sprints. You might do all these different things that are larger than what you’re actually trying to accomplish. So when we look back at the things that we’ve actually done to prepare for what we’re doing in the totality, we’ve already overcome the thing that we’re facing. We just haven’t put all the pieces together to realize that.

    Jay Conner (21:06):

    That is wonderful. Now, you mentioned a moment ago that people you get feedback from people really being inspired and helped with your post. Where could people see your posts and, you know, the types of things that you’re posting?

    Jeremy Knauff (21:23):

    I mean, I’m pretty active on especially on Facebook, but I’m active on most of the social media platforms. I’m not a hard guy to find considering what I do. I’m pretty public and pretty out there. So Yeah.

    Jay Conner (21:36):

    So Scott, let’s put Jeremy’s name up there. And so folks, the spelling there is, and if in case you’re just listening is Jeremy, J E R E M Y. And his last name is K N A U F F as in farmer farmer. And I guess it’s okay to give out your email since we’ve got it up there on the screen.

    Jeremy Knauff (21:57):

    Already out there now. It’s all over the place anyway. So it’s all good.

    Jay Conner (22:03):

    There you go. So Jeremy says it’s pretty easy to find him folks if you want to start following him, I’ve got one curious question I have is you’ve talked with all these people. You’ve helped a lot of people that have considered taking their life. Do you think, or have you heard back and I think I know the answer to this question. Have you heard back, or do you think some of those people that you helped are now out there doing the same thing you’re doing and that is helping other people with that situation?

    Jeremy Knauff (22:35):

    You know, that’s a good question. I stay in touch with a lot of them. I don’t know if anyone’s doing that, but I would hope so. Right. Like, I think that that’s something we all should be doing, not just this particular topic, but whatever the topic, right? Like I think we all should be putting value back into the world. And if you know that you’ve already struggled with the thing and overcome it, then you’ve got that knowledge, you’ve got that empathy. You can deal with it in a way that others can’t. So I hope, I certainly hope they are. It’s. I mean, if you’ve already got the background, we need to be adding value back to the world in that way. So yes, I hope they are.

    Jay Conner (23:10):

    Well, you know, it all comes down to serving and I mean, clearly Jeremy, you have got a servant’s heart and you said it beautifully, you go through this thing, you overcame the thing and now you can help others do the same thing. I mean, in my education business, the Private Money Authority, it’s the same thing I was, no, it’s not the same thing. You’re not the same thing. The concept is the same. I was, I mean, I’ve been relying on local banks to fund my deals for the first six years of investing. And this story pales in comparison to yours as far as its importance. But I was cut off from the banks. Then every way to fund my deals, I found a great way to get my deals funding with private money. And then what I started doing two years after that is just teaching other people what I know to do. So, you know, or how to fix the problem now, a mentor mindset years ago, I said, you know, Jay, if people didn’t have problems, they wouldn’t need us.

    Jeremy Knauff (24:17):

    This is very true.

    Jay Conner (24:20):

    And guess what? the world is your oyster because everybody’s, got problems. So as we wrap up here on the show final comments Jeremy.

    Jeremy Knauff (24:32):

    Final comments, I just, I guess, look for ways to add value back into the world. You know, too far, far too often people look at, Hey, what can I get out of this situation or this deal, or this person or whatever. When we look at how we can make something, a win for everybody involved, it creates more value as a whole, and we all rise. So I just think more of us need to take that approach.

    Jay Conner (24:57):

    Excellent. So one more time folks. Jeremy’s very, very easy to find all the social media and all the platforms. Again, you spell his name, J E R E M Y. Last name K N A U F F as in farmer and his company, www.jlknauff@SpartanMedia.com If you are any type of professional and you’re looking to be known as the authority and expert in your space, then you definitely want to check out Jeremy and his team it’s www.jlknauff@SpartanMedia.com. There you have it. Folks, another show, Real Estate Investing with Jay Conner. I’m the Private Money Authority, and I’m wishing you all the best and here’s to taking your business to the next level. We’ll see you on the next show.

     

  • Step By Step Guide to $89,000 Deal With Jay Conner

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    For today’s episode of Real Estate Investing with Jay Conner, he will teach his viewers and listeners the step by step process of how to make a profit of $89,000 that he actually earned on his recent deal.

    For this specific deal, the house is located at 108 Fern Court. It’s a beautiful home over in the resort area. Jay bought this house 3 weeks ago and they are already finishing the rehab next week.

    First the numbers: he bought this house for $266,000, with a rehab cost of $20,000.

    The After Repair Value (ARV) is $375,000.

    Let us pretend that Jay did not buy this house yet. Here is the possible Maximum Allowable Offer (MAO) for this house, $300,000.00 minus repairs of $20,000 that will be a total of $280,000 for MAO.

    But sometimes there are also some unexpected repairs that you did not count on. So to cover this Jay always prepares a buffer of $10,000. By doing this, it will give him the most decent amount that he will pay.

    So the amount now that Jay would almost pay is $270,000.

    But how much did he actually pay?

    Yes, $266,000! He actually paid less than $4000 than what his formula for getting the MAO calls for.

    But this is not the end yet, If you want to know the full details of this deal, and want to learn how he earned $89,000 on this deal, just watch the video.

    If you’re interested in learning, step-by-step how I made $89,000 profit on my most recent real estate deal. Stay tuned.

    Well, all right folks, I have got a present for you. That’s right. Just for tuning in ere you may be watching on the live stream, or you may be watching us on YouTube, or you may be listening to us on iTunes, Google play, whatever. Doesn’t matter how you’re tuning in I’m Jay Conner the Private Money Authority, and I’ve got a gift for you. And that is as, if you are interested in getting funding for your deals without relying on banks, without relying on any kind of institutional money, then I have got a free two week trial for you to come check me out at the Private Money Academy membership. And at the Academy membership, we go live twice a month on Zoom coaching calls. And we’ve got right now almost 200 Private Money Academy members. And we interview my successful students. Talk about how we find deals, how we got our deals funded and et cetera.

    So here’s how you can come join the party. In fact, if you’re watching live, the very next one is tomorrow afternoon, Wednesday at 4:00 PM Eastern time. And here’s how you can get invited get right on over folks to after finished to www.JayConner.com/Trial. If you’re brand new to the show Real Estate Investing with Jay Conner, we talk about all things that relate to real estate investing. We talked about single family deals, commercial deals, self storage land, and all the above and all the below. So listen folks, if you’re brand new and we really appreciate it for you to subscribe, rate and review, like and share if you’re on YouTube, be sure to subscribe and hit that little ring, that little bell button so that when we go live, you don’t miss out on all this Real Estate Investing education.

    Again, if you’re new, the reason I’m known as the Private Money Authority is because from 2003 to 2009, when Carol joy and I started investing in single family houses, we’ve rehabbed over 400 of them now, here in Eastern North Carolina, I relied on local banks and mortgage companies to fund our deals for the first six years. And in January, 2009, I got cut off from the banks with no notice along with the rest of the world. So I had to find a better way. And I was introduced to this wonderful world of Private Money, which again, it’s got nothing to do with banks, nothing to do with any kind of institutional money. It’s got nothing to do with hard money. I’m not talking hard money. I’m talking private, private money, which is very, very different. So I’ve got Carol Joy, I’ve got 40 some private lenders right now funding our deals.

    And we always come home with a big check. When we buy a house, we never have to take any of our own money to closing. So again, if you want to learn those types of techniques and strategies, when we finish, get and come on over to the free trial again at www.JayConner.com/Trial. What’s on today’s show? We are talking deals to be specific. We’re talking about a specific deal. So when I opened up, I said to stay tuned. If you’re interested in learning how I am making I’m in the process of making $89,000 profit, less carrying cost on this particular house. So first I want to give you the numbers on this deal. So the house is located right here in Pando Shores at 108 Fern court, So let’s go over the numbers first.

    So if we’re watching there on the video, Scott, I’m gonna let you put the numbers up in the order that we went over them. So I want you all to be taking notes and writing this down. So I bought this house beautiful home over in the resort area over on the Island. I just purchased it and listen, folks. I just bought this house three weeks ago tomorrow. I’ve had it less than three weeks and we’re going to be finishing the rehab. My crew leader just told me next week. So we bought it for 266,000, the rehab right around $20,000. So this is not a big, huge, you know, I mean, this is all cosmetic. We’re putting down brand new luxury vinyl plank flooring throughout the house. No carpet, no carpet whatsoever, all new luxury vinyl plank there’s beautiful tile in the kitchen that we’re going to keep.

    The home is not that old. It was recently just built a few years ago. It’s got really, really high end granite countertops that we don’t have to touch. So we’re doing only flooring throughout. The square footage on this home is right around 1600 square feet or so. We’re doing all new interior paint my lands! they did have some outlandish colors going on in this house. So we’re doing only paint. And of course I don’t pick out the paint, Carol Joy don’t pick out the paint. We got Beth Garner, our interior designer. That’s been with us ever since 2004. She picks out all the colors. The cabinets are really nice, high-end cabinets in this house. But the, it looked like the paint had faded. I mean, the canbinets almost looked like a little dingy yellow. I don’t know what was going on.

    So we’re just painting those cabinets, white. And again the, I mean, those are the major items we’re doing all new light fixtures, all new switch plates, new vent covers, we’re painting the garage floor. We paint all of our garage floors and they look brand new. So again, it’s gonna be a quick rehab, bought it for 266. Rehab is right around 20. In fact, it could end up being closer to 15. I don’t think we’re going to hit 20, but Murphy shows up in every house, right? The after repaired value, the ARD, the after repaired value on this house is $375,000. So let’s run these numbers and see what it looks like. So our next numbers, let’s just pretend that I hadn’t bought this house yet. So let’s go over what the maximum allowable offer would be on this house.

    So remember you’re using, we only use Mayo maximum level of offer when you are paying all cash for a house. So the maximum allowable offer to figure out what’s the most you would pay for this house. You take the ARD the after repaired value. And when the ARD is over $300,000, we multiply times 80%. Now, when the ARD is under 300,000, we multiply times 70 percent, right? So we take 375,000, that’s the after repaired value. And you know, our definition of after repaired value is this home is going to look brand new. We’re going to have new landscaping upfront, absolutely beautiful. So you take 375,000 multiply that time 80% because the ARD the 375 is higher than 300, that equals $300,000. Now we’re figuring up what would be our maximum offer on this house. Then we take the 300,000 and you subtract the repairs.

    So our repairs on the high end are going to be around 20. So we subtract 20 away from the previous number. Now, the maximum allowable offer is $280,000, but we’re not finished. I never offer Mayo. Does Murphy live in every house? Yes, Murphy lives in every house. Sometimes Murphy’s cousins, grandparents show up. And you know what I’m talking about, I’m talking about the unexpected repairs that you didn’t count on. So I was buffering at least an additional $10,000 on any house that I’m buying to make sure I’m covering the unexpected. Then that actually gives me what’s the most I would pay. So the most I would pay would be 270,000. Remember that Mayo maximum level offer was 280,000, less than additional 10 to 70 would be the most I’d pay. And how much did I pay? 266,000. So I actually paid $4,000 less than what my formula calls for.

    So I actually have $14,000 built in here in this deal for the unexpected. So there’s the numbers. So now let’s talk, talk about how so that’s right. $89,000 is the profit. And of course, do you have to subtract carrying costs, which are private lender, you know, interest, insurance taxes, I don’t know, number to put in exactly procuring cost. Cause I don’t know exactly how long I’m going to have this house, but my exit strategy is I’m going to put her in the multiple listing service and sell it like that. In this hot market. My lands inventory is so, so scarce, I mean, I just put a house on the market last week, over here in Beaufort, small house, 1,350 square feet. I put it in the market for 239,900 in two hours. We had four showings already scheduled, lined up. And the offer that I got was actually more than the list price.

    In fact, I never had an offer like this. They said, I you’ll accepted our offer. When we get the home inspection done anything that costs less than a thousand dollars, we want to ask you to fix it or do anything. Well, they shouldn’t find much of anything cause it was a complete rehab. Back to Fern Court. How did I find deal? Using my Foreclosure System, using my Foreclosure System? What in the world is that? my Foreclosure System is a system that Carol Joy and I started putting together back in 2004 where we track every foreclosure open file in our target market, here in Eastern North Carolina. Well, this we were tracking, this is one of the open files. And so the people there was another bid. So the bank had an opening bid, then somebody else bid and they won the bid. Well, here in North Carolina, we have this thing called the 10 day upset period.

    And so that means anybody within 10 calendar days can come in, upset the bid by at least 5%. And that just goes on to infinity until everybody stops bidding. So I upset their bid and I’m sure it made them upset, right? So anyway, I upset their bid and they did not come back and upset my bid. So we were the winning bidder on this house. So again, using my Foreclosure System, we were able to track all that and not miss out on any opportunities. Now, how did I fund this deal? Private money. You see you may be familiar with buying a house subject to the existing note. Couldn’t buy this house subject to the existing note because it was vacant. It’s already gone through the foreclosure process. And the only way that you can buy the foreclosures like this is you’ve got to have all the cash lined up, ready to buy.

    So if I didn’t have private money sitting on the shelf ready to go from one of my private lenders, I would have missed out on this deal. So I had to close within 10 days. And of course that’s more than plenty of time when you’re working in this world of private money to get your deal funded. So lessons learned had to have private money ready to go. I used my tracking system, the Foreclosure System, not to miss out on this deal. And then when it comes to the rehab, if you’re going to be doing any rehabbing, you’ve got to have a relationship with fantastic general contractor or general contractors. Now in mine Carol Joy’s world, we work with general contractors and we have our own crews as well that have been working with us. This particular house is being rehabbed by one of our crews.

    But if you’re just starting out, don’t get your own crew. You want to do business with a general contractor. That’s proven to have an excellent reputation. So there you have it folks, 108 Fern Court, $89,000, profit, less the carrying costs. And I see we’ve had a question come in here from, hello, Jesse. So glad to have you here on the show. Jesse says, have you ever used Fund and Grow zero interest business credit cards and Jesse, Yes. A long time ago. In fact, I know the founder of that company, Mike Banks, he and I are in a Mastermind group together. And they really are a good company. They’re a good company to work with. One downside is, is there is going to be a limit to the amount of money Jessie that you can get. Here in this world of Private Money, there is no limit to the number of lenders you can do business with.

    There’s no limit to the amount of money that you can borrow. So, excellent question, Jesse. Thank you for chiming in there. There you have it folks. 108 Fern Court, $89,000, profit, less carrying costs. And again, I’d love for you all to come join me a couple of times a month in the Private Money Academy membership. And you can get right on right where they are right now. Since we’re wrapping up this show right now to www.JayConner.com/Trial. You all have a good one. I’m Jay Conner, the Private Money Authority wishing you all the best and here’s to taking your Real Estate Investing business to the next level. I’ll see you on the next Zoom coaching call for Private Money Academy membership attendees. See you there on the inside.

  • Student Successes! – Real Estate Investing with Jay Conner

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    Jay Conner is joined today by a young couple. They have only been working with Jay’s team for only 3 weeks and they have already raised $400K in private money lined up, ready to go and they are already making deals. Their names are Eric and Erica Camardelle.

    Eric, also known as Banjo, is a former United States Marine and started his investment experience by turning his first house into a rental and from there, his love for real estate continued to grow.

    His wife, Erica, is a former school teacher and has a master’s degree in Educational Leadership. They are doing the business of real estate together.

    In today’s show, we are going to learn what the couple has been implementing for them to experience success in such a short period of time.

    “ I will utilize the people that God has put around in my life and follow their instructions until I reached my goal. The key is following instructions, taking actions.” – Eric Camardelle.

    ————————————————————–

    Jay Conner (00:01):
    Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner your host of the show, also known as the Private Money Authority. And while you all are part of a movement, we have blown right on through 300,000 downloads and listens since we launched the show. And if you’ve been tuning into the show, you know, I’ve had some amazing guests. Now I’m going to go and tell you right now, before I get them introduced on the show today, I’m interviewing a young couple has only been working with me and my team for less than three weeks. They’ve already got what looks like $400,000 in private money, lined up, ready to go, and they’re already doing deals. So we’re going to be finding out here on the show exactly what it is that they’d been implementing to already be enjoying so much success in such a short period of time.

    Jay Conner (01:02):
    For those of you that are brand new to the show, a very special welcome to you here on the show. We talk all things that relate to real estate investing. We talk about all kinds of real estate deals. We talk about single-family houses, commercial deals, apartment self storage, land deals. But primarily we talk about single family houses. We talk about how to find deeply discounted deals, how to get them funded without relying on any of your own money, none of your own credits got anything to do with it. So finding and funding, if you’re into rehabbing, we talk a lot about rehabbing houses. We talk about how my average profits are almost $70,000 per house here in a small area of Eastern North Carolina population. Only 40,000 people. We do two to three deals a month, but the average profits, as I said are almost $70,000 per deal.

    Jay Conner (01:54):
    So private money, what are we talking about when we say private money? Well, it’s got nothing to do with banks, traditional lenders or mortgage companies. It’s got nothing to do with hard money, private money to get your real estate deals funded is all about doing business with individuals that loan us money from their investment capital or from their retirement accounts. Yes, there is a way for people to learn to you as a real estate investor money from their retirement accounts legally, and either tax deferred or tax free with no limit to the income that they can earn per year. So we talk about all these items. Well, when I first started investing back in 2003, the first six years, I did rely on traditional funding sources. I got cut off from all the banks, like the rest of the real estate investors did in January of 2000 or January, 2009.

    Jay Conner (02:45):
    I learned about private money. I was able to attract over $2 million in private funding in less than 90 days. Looks like my guest right here might be beating my record. If they keep up the pace like they are. And since that time I’ve never out on a deal for not having the funding. Well, my guess is whether you are a seasoned real estate investor, or you’re a brand new real estate investor, and you haven’t even done your first deal yet. There’s a good chance that you’re looking for more funding, particularly in the last few months with traditional funding and hard money lenders shutting down and being tight. Well, I’ve got a free gift for you for simply being here on the show with me today. And that is in the past few months, I’ve launched, what’s called the Private Money Academy membership. And in that membership, I am live at least twice a month where I’m doing live Zoom coaching calls with the members of the Private Money Academy.

    Jay Conner (03:46):
    In those calls, we talk about how to get funding for your deals using private money and also these other topics such as finding deals. Well, I got a free gift for you. I’m going to give all of you right now. I’m going to give you right now, 30 days free access to the private money Academy. And here’s how you get in. Go over to www.JayConner.com/Trial, Get on over there after the show and get your access. I’ve got a ton of content in the membership site that teaches you from A to Z all about real estate investing. I’d love to have you come join for free for the first 30 days to come check us out.

    Jay Conner (04:39):
    Now, in addition to that, we love to get your feedback. We love for you to like share comment, subscribe to to the show we’re on iTunes, Google play two different YouTube channels and Facebook. But if you’re listening to the podcast, we really love your feedback and the five stars and the reviews. So please give us that feedback if you will. Well, it’s time to bring on my guests today before I bring them on. Let me tell you just a little bit about them. So this is Eric and Erica. Now Eric is also known as Banjo and he is a former United States Marine and started his investment experience along ago by turning his first house into a rental. Now, from there, his love of real estate investing continued to grow and along with his experience now, since then his wife, Erica is a former school teacher who also holds a master’s degree in educational leadership, entered into the business. So they are doing the real estate investing business together. They make an exceptional team and they are real difference makers. That’s for sure they were with me less than four weeks ago at our most recent live event. And I’m so excited to have them on let’s bring on right now, Banjo and Erica.

    Banjo (06:01):
    Hey, was going on Jay.

    Jay Conner (06:05):
    Welcome to the show, Erica, welcome to the show. My dear. How are you today?

    Erica (06:11):
    Doing good.

    Jay Conner (06:11):
    You’re doing good? Awesome.

    Erica (06:11):
    Yes Sir.

    Jay Conner (06:11):
    Now, I also wanted to bring on a, another guest here to the show. Her name is Crystal, and Crystal came into mine and my wife’s Carol Joy’s world, I guess about four or five years ago. I lose track of time and she also liked Banjo and Erica attended one of my live events and Crystal and her husband, Dan. They became platinum members in the coaching program, mastermind members, and they now have millions of dollars in private money and millions and millions in profits and equity with a portfolio of houses of right at 100 houses and growing very, very quickly. So Crystal, welcome to the show.

    Crystal Mewhorter (06:56):
    Hey Jay, good to see you all.

    Jay Conner (06:59):
    Good to see you. I thank all of you for taking the time out of your schedules today to join me on the show. So, as I said, at the very beginning, the reason I wanted to have Banjo and Erica on here is because you all came to my live event less than four weeks ago. And at the live event you enrolled in the Platinum Coaching Program, the Platinum Plus also the Mastermind Program. And I want to have Crystal on here because Crystal, for those of you that don’t know Crystal assist me and coaching our students and our clients with weekly accountability calls our powers, group zoom coaching. And so Crystal and myself, we’ve been working with Banjo and Erica over the telephone and and on Zoom over the past few weeks. And as I mentioned, y’all have got already what looks like $400,000 in private money. It looks like that’s lined up. You’re all already doing deals. So let me start with you there Banjo. So what would you say has attributed itself or what is lended itself that you all have already started enjoying success so quickly? What is it that you put into action

    Banjo (08:22):
    And you said the word action, really, You have to we were basically just trying to make sure that we’re following the instructions that Crystal gives us to the T. In fact, I have a little motto that I repeat to myself every morning. And in that motto, there’s a little section that says I have I will utilize the people that God has put around me in my life and follow their instructions to the T to reach my goals. So I think the key is following instructions. Take an action.

    Jay Conner (08:50):
    That is awesome. Now, Erica, what would you say?

    Erica (08:56):
    I’d go along with that also communication, I think is a big deal. I, so as soon as I got home, actually before I got home I started diving into the systems and just things that we needed to put into place. And even though I’m an introvert and not comfortable with some things I knew that that’s what I needed to do to be successful. So I’m just following what you say to do and getting it done and it’s working.

    Jay Conner (09:26):
    There you go. So Crystal, from your perspective, of course, Crystal, you helped me with coaching, you know, all of our clients in the Platinum Program and Mastermind Programs and some, you know, one of those common questions I get is, well, how fast can I get the money lined up? How fast can I do deals? And some of the coaching, you know, coaching clients, you know get success very, very quickly, some takes a little bit longer, but what would you say makes Banjo and Erica a little bit different to get such quick success you know, so fast.

    Crystal Mewhorter (10:02):
    All of the language-ing that everybody’s used is exactly what I would say. And that is, they are definitely action takers. It takes action to make things happen, and they were willing to do that right off the bat. They asked a lot of questions, which is fantastic and lean on their resources. And when they get those answers, they go ahead and take the next step and to echo what my husband said, listen to what Jay tells you to do and just do it. That’s exactly what this couple does. Eric and Erica are wonderful to work with and that they were just willing to get right out there, take steps and move forward. Erica even went so far as to hear that message, make a phone call to set up with a seller. And that was one of the properties that we reviewed in the first week they were in the program and they have under contractor and working through getting private money on right now.

    Jay Conner (10:56):
    That is awesome. Congratulations on that. Now what about real estate investing experience prior to four weeks ago? So, you know, had you already started investing in real estate prior to us, you know, part of the live event a month ago?

    Banjo (11:15):
    Yes Sir. Yeah. We like you mentioned in the beginning of the show, I started my first rental into, I mean, my first house into a rental while back, about 13 years ago. And we started buying and selling with a partner of mine. It was just me and him. And we started buying and selling houses on a lot of creative financing type situations. We took a break, we both bought multiplexes and kind of got distracted and stopped investing in single family homes a lot during that time. And then we just got fired up recently earlier this year. And all of our deals so far have been along the lines of creative finance type deals. And yeah, we love this fix and flip rehab stuff. So as far as the private lending and the fix and flip type of situation that we’re learning from you brand new to it pretty much.

    Jay Conner (12:13):
    I got you. So had you and Erica been to any other real estate investing seminars prior to coming to mind the last few weeks,

    Banjo (12:26):
    Yes Sir. I’ve been at a Quickstart.

    Jay Conner (12:30):
    Gotcha. So you’ve had some other, you’ve had some other real estate investing training. So what was it about this training and this event and what you saw as, you know, the potential that, you know, you could take your business to the next level? What was it that you saw different?

    Banjo (12:51):
    Well it’s a whole different strategy, a whole, whole different set up and structure of the business actually. And when I met you at one of the reason why I got hooked up with you is because I met you at the Quickstart and I love, it’s just something about the fix and flip strategy and your business model that you got set up that I like. You’re helping you still help them sell their seller house. Then you’re taking, usually the area that you live in, you take beat up houses, you’re making them nice and pretty. So you’re basically helping keeping your area up to date and pretty, and then you’re, you could still sell the houses with some kind of creative finance and helping buyers that would normally be unable to get a mortgage into a house, into a nice pretty house and help them do that too. So, I mean, that’s the biggest part that’s different for me is the whole fix and flip buy for buy with private lending and you can sell either cash or creative financing. So I liked that whole deal.

    Jay Conner (13:59):
    Right. So did I get the $400,000 figure right? That’s about what it’s looking like you got in private money so far.

    Banjo (14:07):
    Yes Sir. We got it was a warm market call. I just followed the opening calls script and learned my program first. You know, that way, when he started asking questions, I’d be able to answer them and sure enough, it was a win-win he was involved in some type of I forgot the name of it, but it’s like an it’s like a big business that pulls all the funds together. And I think he was getting, you know, kind of a low rate of return with it, but so he was already investing in some type of real estate. And I explained to him the difference between what he had going on and the difference between private, my private lending program. And he was all on board. And so he said, yeah, I got 400K they put into the kitty is what he calls it.

    Jay Conner (14:58):
    That’s awesome. Well, you just answered my next question. My next question was going to be how many different private lenders is making up the 400 grand, but it sounds like that’s one so far

    Banjo (15:10):
    One. Yes Sir. We got several in the pipeline, so it’s not going to be long. We try and break your record.

    Jay Conner (15:17):
    You’re like, we’ve been working together less than, I mean, you and Crystal and me, we’ve been working less than three weeks together and yeah, you’re like 400,000 you’re well, on your way, you will break my record if you keep the momentum going. So let’s see here, Crystal. So you’ve been working with them. So you said they’ve been, you know, putting things into action. They’ve been following instructions. Can you give our audience just a couple of examples of, well, what actions did they take in order to get such fast success?

    Crystal Mewhorter (15:54):
    They won. They showed up for the very first call, immediately completed all action items. In fact, they had everything turned in, that’s required for the first it ranges, but we set it up. So they have about 14 to 30 days to complete all those action items. They completed them all within the first week and turned them in. So downloading your PowerPoint, starting to practice it, working through, getting their lists together. So they have people to call and start to set up conversations for private lending all all of the things that, that are required to make you successful. They got these items on their calendar. They’re having conversations with people already. They were already, I have to give Erica kudos. She says, she’s an introvert and I can relate. But at the same time, she’s doing such an awesome job of stepping outside her comfort zone.

    Crystal Mewhorter (16:49):
    They’ve already started reaching out and looking for networking opportunities. So she’s already reached out and identified opportunities to start to be invited. So a lot of those steps that we take they’re already lead sourcing and turning those to me, they’re already setting up calls. They did that the first week set up a call with me to do a lead, a deal review so that we could run the numbers and then assure that their one protecting their private lender and creating that win-win situation that we’re. So emphatic and so proud of being able to do as well as having all the numbers in place to make sure that they’re protecting themselves and really coming out with the best deal possible.

    Jay Conner (17:24):
    That’s awesome. You know, the two most popular questions that I get from folks new real estate investors seasoned real estate investors is, how do I get the funding for the deals and how do I find deals? So you all are doing deals. What’s your favorite way or what it is right now to be locating motivated sellers.

    Banjo (17:48):
    Erica made simple ad, you wanna tell them about it. We stole your idea from the event, actually, a radio ad.

    Erica (18:00):
    While we were at your convention, someone mentioned the radio ad that you had going on. And I was like, Ooh, that’s simple, that’s good. So I hurried up and I wrote it down and made me a Facebook ad and got me a lead before we even left.

    Jay Conner (18:16):
    Oh, that’s great. So your Facebook ad, did you just post posted on organically on your Facebook page or was it a payday ad?

    Erica (18:26):
    It was, it was a paid ad.

    Jay Conner (18:30):
    How so? How much did you spend on the paid ad?

    Banjo (18:32):
    Before we got that lead?

    Jay Conner (18:38):
    Yeah. How much did you spend on the Facebook ad?

    Banjo (18:42):
    For that one good lead. We got that we talked to Crystal about that we’re going to net close to a hudred, probably a hundred grand or around there. We paid seven bucks for it.

    Jay Conner (18:53):
    So that’s a pretty good return.

    Crystal Mewhorter (18:55):
    I don’t even think. and tell him, tell him you got you netted an additional 35,000. How’d you do that Banjo?

    Banjo (19:07):
    Well, I’m a real estate agent and I’m not an active one of them, not really a practicing one. Pretty much I had my real estate license for years now. And just kind of using it to, for a little bit of an advantage as an investor, but I’m in the MLS where we found the deal that so I’m running numbers and I come up with a number and I’m telling Crystal these numbers and she said, okay, how’d you get your numbers?I told her, you know, I did it, I got access to the MLS. And she said, all right, well, I’m not saying that you don’t know how to run numbers. I’m not saying that you are a bad agent, but what I will try and get you to do is possibly get somebody who’s very active in that place. Find a good agent who is super active in that area and get their opinion.

    Banjo (19:56):
    So I tossed it around and a little bit and I’m like, all right, you know what? I’m going to listen to her. That’s what she says to do. That’s why we got her. I’m going to do what the coach says to do. So I reached out to an active agent in the area and the whole time it was kind of funny. Erica was on the phone with me too. And she’s like, Oh man, Oh man, they all like stuck in this area. Oh man, I don’t know if this house was as big as it says. And not the whole time you never goes like, Oh my goodness, I must’ve did these numbers wrong? Well I did, but $35,000 in the wrong direction. So we actually made $35,000 by just listening to that one piece of advice, Crystal, you know, put aside the pride, put aside the ego, listened to the people who you got. Like I said earlier that God put in my life to help me on this journey. And boom! She said, yeah, on the low side it’s 35,000 extra dollars.

    Jay Conner (20:54):
    So where’s the extra 35,000 coming from

    Banjo (20:58):
    The ARV, The After Repaired Value.

    Jay Conner (21:01):
    The ARV was higher than you were originally anticipating.

    Banjo (21:03):
    Yes, Sir.

    Jay Conner (21:06):
    By getting a local real estate investor to, I mean, a local seasoned realtor to actually run the comps for you.

    Banjo (21:14):
    Yes, Sir. So I ran some comps, but I’m not active in that area. And I had some questions, several different factors that were making me second guess myself. But I came up with a decent number. As far as I was concerned. It was a nice conservative number. I knew it wouldn’t lose any money, but I’m glad I listened to Crystal because the other real estate investor, her conservative number was $35,000 higher than my conservative number.

    Jay Conner (21:35):
    All right. Well, let’s write the numbers down. I, and I don’t know. Our podcast producer might be able to put these up. I don’t know how fast he can type. So the ARV which stands for After Repaired Value. What’s the number? What’s the After Repaired value?

    Banjo (21:57):
    315,000

    Jay Conner (21:57):
    315,000. Now this deal came from Erica’s Facebook ad, right?

    Banjo (22:01):
    Yes, Sir. It was pretty simple too. We were kind of surprised it wasn’t anything special.

    Jay Conner (22:08):
    All right. So then you’re buying it for how much? What’s your purchase price?

    Banjo (22:14):
    140.

    Jay Conner (22:14):
    So you’re buying it for 140. Are you using Creative Financing? Are you using Private Money?

    Banjo (22:21):
    Private Money.

    Jay Conner (22:22):
    Private Money. Hallelujah. You got the Private Money. So you got 140. So what are, what’s your estimated repairs?

    Banjo (22:31):
    About 60.

    Jay Conner (22:33):
    About 60. And, yep, that’s looking like just about $115,000 profit, less carrying cost. Right?

    Banjo (22:43):
    Yes, Sir.

    Jay Conner (22:43):
    So yeah, we’ll give a little golf clap, right? That’s nice. So how long you think it’s going to take you to get it rehabbed?

    Banjo (22:55):
    Roughly two months, maybe a little longer, but I’m thinking roughly two months. Give or take.

    Jay Conner (22:59):
    There you go. Awesome. You already talking to contractors or you already got a contractor lined up?

    Banjo (23:05):
    We got them lined up. We’re ready to rock up. We just waiting to close on it sometime this week, actually. And rock and roll.

    Jay Conner (23:13):
    That is awesome. So you found the deal with a Facebook ad. You funded it with Private Money and you always borrow more than you need to buy, right?

    Banjo (23:26):
    Yes, sir.

    Jay Conner (23:27):
    You’re going to get your Private Money. I mean, you’d get your rehab money up front and are up to a maximum 75% of the ARV. So you can borrow, let’s see here, you can borrow up to how much money on this deal? So if you’ve got $315,000 and we can borrow up to 75%. So since my software updated on my iPhone, my calculator doesn’t want to work. So 75%. So you can borrow up to $236,000. So you could borrow $36,000 more than you need to purchase and rehab and and have money leftover by the way. There’s nothing wrong with putting a little bit of equity in your pro in your pocket.

    Jay Conner (24:15):
    When you buy, you may have heard me say in the past, we always bring a big check home when we buy, right?

    Banjo (24:23):
    Yes, sir.

    Jay Conner (24:24):
    Now, as a matter of fact, Crystal’s husband, Dan is actually typing in the chat right now since we’re Facebook live streaming and YouTube-ing. Dan’s got a question for you all. And the question is, how important would you say it is that the two of you are working together on this business and how much do you enjoy being able to do so.

    Banjo (24:50):
    Don’t recommend it, totally hate it. No, I’m just kidding. That one’s was for you Dan, all jokes aside. It is absolutely game changing in my opinion, to work with my wife in this business, to get her more involved in this business and to have this is a game changer. It’s night and day and I 100% absolutely enjoy it.

    Jay Conner (25:23):
    Hey Erica, where you at all? A little bit skeptical four weeks ago, Crystal, could you hear Erica? She broke up on me a little bit.

    Crystal Mewhorter (25:42):
    I missed part of that. She’s something to the effect of, she kind of felt bad and I’m not sure if it’s because she felt like she was being mean to us or because she’s just done the darn well,

    Jay Conner (25:52):
    So so Banjo, when this deal culminates and finishes, is this going to be the most profit you ever made on a real estate deal so far?

    Banjo (26:02):
    Absolutely, 100%.

    Jay Conner (26:02):
    I’m so excited for you, Well, look, thank you all for coming on here, Crystal. Anything else you’d like to share with the audience about Banjo and Erica?

    Crystal Mewhorter (26:15):
    I want to, one congratulate you guys for taking action and being so invested in yourselves and in your business to take this step, but to also point out to anybody that’s listening, just like Dan and I always say about ourselves, anybody can do this. You just have to jump in, get the right coaches, get the right help and move forward. So great job you guys, keep moving forward. I’m super excited to continue to support you through this journey.

    Jay Conner (26:39):
    Thank y’all so much. Well, there you have it folks, another here at Jay Conner Real Estate Investing with Jay Conner. And again if you’d like to get plugged into some of this private money, take advantage of the free 30 day free trial at the Private Money Academy membership at www.JayConner.com/Trial. Well, there you have it. Folks here is to your success and taking your real estate investing business to the next level. I’m Jay Conner, the Private Money Authority, and I’ll see you on the next show.

  • Real Estate Deals With Crystal Mewhorter

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    In Jay Conner’s recent video, he was joined by a dynamic duo Crystal and Dan Mewhorter. They shared their story on how they have raised millions in private money, in equity and from deals that they have done.

    And the couple is back for more!

    They met Jay in a real estate investing event, where the latter is one of the speakers. From there on, Crystal and Dan would leave their full time job and build their own business. In addition to their business the couple also work for Jay, assisting him with their clients and by being part of Mastermind.

    In today’s show, they are talking about real life deals. Discussing how they find and fund the deals. The kind of profits they make, the kind of cash flow that’s involved and what system or procedure that is best used today in the world of real estate business.

    To know more about closing a real deal, just keep watching this video!

    If you wanna learn how to get funding for your deals.
    Get on over www.JayConner.com/trial

    for a 30 days free access to Private Money Academy.

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

    Free Webinar: 

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

    #RealEstate #PrivateMoney #FlipYourHouse

  • Jay Conner Mastermind LIVE!

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    Chaffee-Than Nguwen (00:00):

    We’re streaming live right now on Facebook and YouTube. Hello everyone, I’m Chaffey-Than Nguwen, and I am at the Jay Conner Mastermind, and I’m here with Fred,

     

    Fred Wallace (00:18):

    Wallace.

     

    Chaffee-Than Nguwen (00:20):

    And Fred is going to tell us all the wonderful things that he learned today.

     

    Fred Wallace (00:25):

    Well, what we’ve learned is the Private Money Lending world is great. Helps a lot of people also being able to how to help other people buy. And when they’re in pain with their house and had, it was relief from the pain, and to help them out of trouble.

     

    Chaffee-Than Nguwen (00:46):

    But we can’t tell them specifics about what you learned in here. Cause what happens in the Mastermind stays in the Mastermind. What are some of the general topics that you discussed today that maybe you haven’t discussed before?

     

    Fred Wallace (01:01):

    Your brand building, How to talk to customers, work with customers. It is more of a, the interaction with customers and trying to solve their needs.

     

    Chaffee-Than Nguwen (01:15):

    Andy come on back over here, come on over here. So what’d you think about the first day? This is our first time here, correct?

     

    Fred Wallace (01:26):

    This is our first Mastermind meeting is great. We plan to be beat each one and hope to continue with the Mastermind.

     

    Chaffee-Than Nguwen (01:33):

    Awesome. Any thoughts or comments you want to share with the audience? Final thoughts or comments?

     

    Fred Wallace (01:40):

    You really should check out, Jay Conner and his program it’s been outstanding for us and we look forward to everything in the future with it.

     

    Chaffee-Than Nguwen (01:47):

    And you get, you got fed today.

     

    Fred Wallace (01:49):

    I got fed.

     

    Chaffee-Than Nguwen (01:50):

    And we’re going to go to dinner right now as well.

     

    Fred Wallace (01:52):

    We get fed again.

     

    Chaffee-Than Nguwen (01:52):

    That’s right. Awesome.

     

    Scott Paton (01:56):

    Could you tell us a little bit about your background in real estate?

     

    Fred Wallace (02:01):

    We some, a commercial property right now, we’ve rehabbed a few houses, we built a house. We generally have a few, a licensed general contractor, home inspectors, Mothers. but they real estate broker. The most proud of is a drone pilot. That’s a good one, but we really tried to embrace the real estate world.

     

    Chaffee-Than Nguwen (02:30):

    So, question popped in my head Fred, you got like nine different licenses.

     

    Fred Wallace (02:36):

    Yes.

     

    Chaffee-Than Nguwen (02:36):

    You’ve bought and sold real estate.

     

    Fred Wallace (02:38):

    Yes.

     

    Chaffee-Than Nguwen (02:38):

    You got a multiunit property and Andy is joining us. Thank you for coming. And so with all the experience and everything that you know, why are you here? Why did you come to this event? Why did you feel that you needed to be here? And has it been obviously, has it been worth it?

     

    Fred Wallace (02:55):

    Oh yeah, we took a ton of notes. You can never learn enough. And we’ve looked at other programs, we’ve joined other programs, we’ve got more way far more information out of this one than the other ones, but it’s all a life learning experience and, you know, you never stopped learning.

     

    Chaffee-Than Nguwen (03:13):

    Awesome. Well, thank you very much.

     

    Fred Wallace (03:16):

    Appreciate it, Chaffey

     

    Chaffee-Than Nguwen (03:16):

    We appreciate you guys coming out. Would you like to say a few word Andy?

     

    Andy  (03:22):

    Just knowledge is power.

     

    Chaffee-Than Nguwen (03:24):

    Knowledge is power. So thank you guys for coming out. Thank you for being here. And then we’ll see you guys at dinner tonight. Jay’s going to treat us well as part of the Mastermind group. So we will see you there and I’m going to pull Austin over. Who’s busy typing away on a cell phone, so thank you. And we’ll see you later.

     

    Fred Wallace (03:42):

    Thank you Chaffey.

     

    Chaffee-Than Nguwen (03:43):

    Mr. Austin, come on in.

     

    Austin Steel (03:50):

    Hello, everybody, I’m Austin Steel.

     

    Chaffee-Than Nguwen (03:52):

    Tell them a little bit about your background in real estate.

     

    Austin Steel (03:55):

    So my background, I’m a, I’m still a young guy. I actually graduated a few years ago studying business management and then started working full time for a real estate investor and had a interest, you know, kind of growing up and decided to get involved in real estate after I graduated.

     

    Chaffee-Than Nguwen (04:13):

    So fun fact about you, what’s that fun fact cause when people see you, they might think they’re drunk.

     

    Austin Steel (04:18):

    Yeah. Fun fact, I am an identical triplet, so I have two look-alikes, So.

     

    Chaffee-Than Nguwen (04:26):

    So they can get a lot of real estate done.

     

    Austin Steel (04:27):

    Yeah. So if you happen to see me around and you come up and say, hi, Hey, I saw your testimonial. That may not be me, So.

     

    Chaffee-Than Nguwen (04:35):

    Awesome. So what have you gotten out of this Mastermind so far? And I know you’ve attended before.

     

    Austin Steel (04:42):

    Yeah.

     

    Chaffee-Than Nguwen (04:42):

    And so a little bit about your Mastermind experience without obviously sharing some details. Cause you know, this is an exclusive club to be a part of.

     

    Austin Steel (04:52):

    Yes. a lot of really good things today. You know, honestly, we had some really good ideas for approaching the idea of looking into other markets. Our market’s really hot, and so we’re currently evaluating, looking into some other markets close to us, maybe even farther away. So we’ve got some really good ideas about that. We also got some really good ideas about social media marketing and branding and you know, some of the ideas were ideas that I’ve heard in other places, but they were set in a way that I realized, Oh wow! I’ve always just kind of turned off when they talked about that. But hearing people share about, you know, how they’re implementing these ideas and to see the kind of business that they’re running and how many deals they’re doing, you know, really adds credibility to the ideas that they sharing when you see, Oh, like I thought that didn’t actually work, but I can see that it actually works so.

     

    Chaffee-Than Nguwen (05:43):

    Awesome. So as I said before, this isn’t your first time here.

     

    Austin Steel (05:47):

    Yeah.

     

    Chaffee-Than Nguwen (05:48):

    Go a little bit. Or tell us a little bit about how maybe have you seen progression from the previous times that you have attended, have you tested things out, have you done things and has it helped the business grow a little bit?

     

    Austin Steel (06:01):

    Yeah, absolutely. So we’ve we’ve had this specific marketing like lists and tips that have been given to us and those have worked out well for us. We’re generating more leads than we used to. And you know, we’re on track to generate even more based on the leads that are coming in right now. So also we’ve definitely improved our processes. So we operate more smoothly as a business and definitely have a bigger vision for where we’re headed.

     

    Chaffee-Than Nguwen (06:33):

    Yeah. I know that was a big issue for you guys at the last event, was really just focusing on those processes and everything. And so tomorrow morning we get to share one thing that you got out today, and then we have a full day of sharing and education again tomorrow. So I’m going to be excited to hear what you guys are going to share tomorrow morning, So.

     

    Austin Steel (06:50):

    I’m looking forward to it.

     

    Fred Wallace (06:51):

    Well, that’s what all I got. Scott, you got anything else?

     

    Scott Paton (06:56):

    No, That’s Great. Good to Oh, just a sec. Okay, Good to see you, I wish I could be there. And so that’s day one of the Mastermind is over it’s in the books.

     

    Chaffee-Than Nguwen (07:08):

    Yes.

     

    Scott Paton (07:08):

    And it sounds like it was well worth everybody’s time and everybody learned a lot.

     

    Chaffee-Than Nguwen (07:15):

    Absolutely. And we got a full day tomorrow and hopefully I’ll be able to pull up another, you know, a couple of Mastermind students and do this again at the end of the day and just share again, some concepts and ideas that we were talked about discussed throughout the day, So.

     

    Scott Paton (07:30):

    Awesome. All right, See you tomorrow. Thanks for joining us, everybody.

     

  • The Power of your Own Expert Positioning Book with Max Keller

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    Real estate investing success isn’t just about selling houses. It’s about selling yourself… to sellers and lenders.

    Imagine what your business would look like with a consistent stream of deals… all from motivated sellers and private lenders in your market who… see YOU as the Clear Choice!

    In this episode Jay Conner talks to former math teacher turned real estate investor, Max Keller about how he stopped chasing leads and struggling to compete for deals by positioning himself as the “Trusted Expert” with his own book.

    Max also shares how you can copy his strategy to Stand Out from the competition…even if you’re not a writer.

    You definitely don’t want want to miss this.

    Especially if you are investing in a market packed with flippers and wholesalers… all chasing the same motivated seller leads.

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————

    Jay Conner (00:00):
    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m your host, Jay Conner also known as the Private Money Authority. And what do we do here on the show? Well, we talk all things real estate. We talk about how to find deals, how to fund deals, how to sell properties fast, how to automate your business. And we talk about all kinds of real estate. We talk about single family houses, commercial properties, multifamily, land deals, self storage, and you name it. We talk about it, but if you’ve been tuning into the show, since we launched back in 2018 you know, that I have amazing guests here on the show today is no exception, but before I introduce you to my special guest, what is it about private money? Why am I known as the Private Money Authority?

    Jay Conner (01:02):
    Well, back when I started investing in single family houses back in 2003 here in Eastern North Carolina, the first six years, I’ve relied on local banks and mortgage companies to fund my deals. And I got cut off like the rest of the world did in January of 2009. It’s that time I was introduced and learned about private money. And since that time, and by the way, I’m not talking about hard money. I’m talking about private money doing business with individuals, human beings, borrowing money from their investment capital or their retirement accounts by using self directed IRAs. Well, since that time I’ve starting to use private money back in 2009, I have not missed out on a deal because I did not have the funding. You know, we can talk about terms and creative financing, all we want to, but at the end of the day, most sellers are going to require all the cash.

    Jay Conner (01:56):
    And so when you got money sitting on the shelf, you don’t have to worry about missing out on deals and my special guest today, that’s going to be a big part of our topic to talk about today. And that’s private money, Again, before I introduce him while we’re on the topic of private money, I’ve got a free invitation and gift for all of my viewers and listeners. And that is I just launched what’s called The Private Money Academy membership. And I have got a free 30 days for you to take advantage of that and access. You get me twice a month, live with coaching and training and talking about private money and all aspects of real estate investing. And so if you’d like to check out the membership and come check it out for free for a full 30 days, you can get on over to www.JayConner.com/trial.

    Jay Conner (03:00):
    Well today, my special guest is a very, very good friend. We’ve known each other for quite a while now. And I’ve invited him to come on the show today. And we’re going to be talking about Deals Chasing You ain’t that pretty cool. When the deals are chasing you, you’re not having to chase them. Or also, as I said, we’re going to be talking about private money. Well, as you probably know, when it comes to residential real estate, well, most success for real estate investors are gonna tell you that 80% of their time is focused on two things. In fact, these two things are the most common two questions that I get asked when I’m doing training. And that is Jay, how do I find deals? And how do I get my deals funded? Where do I find the deals? Where do I get the money?

    Jay Conner (03:52):
    Well, it’s no secret. Motivated Seller Leads are yes, the life blood of your business. I tell my coaching students and clients all the time, unless you’ve got consistent deal flow, motivated sellers coming into your pipeline in your funnel all the time, every day, you are not in business. So, in addition to that, if you are investing in a highly competitive market with a lot of flippers and a lot of wholesalers, well, competition for the seller leads everybody’s just fighting over those leads. Well, that means that generating motivated seller leads is really the main major part of the equation. You see, you also got to convince those leads to choose you over doing business with your competition. Now, in addition to that, when it comes to raising private money, well, a lot of lenders, especially new private lenders, they can be concerned about picking the right real estate investor to do business with over the right deal. So the question is […] believe it or not, the man himself, Robert Kiyosaki.

    Jay Conner (05:56):
    And my guest was presented with the 2019 industry innovator of the year award. In addition to that, he’s fueled by his passion for real estate, and he’s a, still a teacher at heart, right? He teaches he coaches. And today he’s going on my show to share a strategy that’s working right now in some of the most competitive real estate markets across the country. And this strategy is yes, transforming ordinary real estate investors into being a trusted expert in the eyes of motivated sellers. And, one of my favorite subjects and topics, private lenders. So with that, my good friend, Max Keller, welcome to the show.

    Max Keller (06:45):
    Alright. Hey, glad to be here.

    Jay Conner (06:48):
    Glad to have you Max, and tell everybody, where are you coming from today? Where do you hail from?

    Max Keller (06:54):
    Yeah. Fort Worth, Texas. So, you know, in between Dallas and Fort Worth and starting to cool down and things are going well.

    Jay Conner (07:03):
    Well, here’s where I want to start. We’re going to be talking about deals chasing you. We’re going to be talking about private money, but before we jump in Max, I want people to hear your story because you’ve got quite the fascinating story. I mean, you know, you had some of the same frustrations, challenges and obstacles that a lot of real estate investors, you know, have faced out there and that is looking for and chasing motivated sellers. And, you know, it’s something that all real estate investors at one time or another, particularly when they were starting out can relate to. So we want to hear your story. Tell us about from math teacher to becoming a trusted expert in this lucrative house buying business.

    Max Keller (07:50):
    Sure! Yeah, awesome. So, you know so it’s it’s 2017, well like transport there and things are going okay. You know it’s, I flipped nearly a hundred houses and, you know, I’m making money, but I’m getting the feeling like, you know, I’m only as good as my next deal. I’m in a very competitive market, you know, the Dallas Fort Worth area. And I need a lot of leads to run my business. And if I don’t, you know, have leads for my business, then I don’t have any deals. So, you know, no deals, no business, you know, I’m going back to being a teacher. So I knew that, you know, leads were Motivated Seller Leads, especially with true motivation was the lifeblood of my business. And, you know, Jay in a, probably a two, three hour span or, or two, three years, I had tried nearly everything. You know, I had tried you know, different websites band-it signs. I tried, you know, cold calling.

    Max Keller (08:50):
    I had people in the Philippines cold calling, you know, yellow letters. Every list that I could find. So I worked, you know, pre foreclosure, vacant properties, tax, the link went on and on and on. And, you know, all these things worked, but they were very unpredictable. And I felt like there was a lot of waste. And at the time it wasn’t deals chasing you, you know, that’s what happened now. It was the total opposite. I felt like I was chasing people. And so I wanted to fix this, I wanted to solve it. So, you know, it didn’t actually take very long to figure out what the problem was. You know, Jay, the problem was, is I was basically sending out the same messages and the same mail to all the motivated sellers on these lists that all the other investors, you know, were sending out to.

    Max Keller (09:40):
    So I was basically, you know, another investor in the stack of mail. Sometimes they would pick me, you know, sometimes they wouldn’t and when they didn’t pick me, usually it was because it was either a newer investor that was overpaying, or maybe it was a hedge fund. And so, you know, I’m glad I didn’t get into that trap of paying too much for deals. Cause that’s definitely a way that you can go out of business quickly, but I needed to, you know, I need to buy deals and I needed to play the game in order to, you know, to win. And so I just kinda kept sending out more of the same thing that wasn’t working as well. And my return on my marketing investment just kept going down and just kinda kept getting lower. And so, you know, back then it felt like a total grind and I really didn’t feel like it was that sustainable.

    Max Keller (10:29):
    And you know, the whole reason that I left teaching was because I wanted, you know, more than just a grind, I wanted to get more out of life. I wanted to do big things with my family. And so I kinda, I went on this quest to find a better way and I didn’t want to continue the way that I was going any further. And it took me on this really, really unexpected journey. What happened was, I made a list of all the deals that I had done up to that point. And I was looking for the deals that met these three conditions. So they were, the deals had to be profitable, they had to be the type where the seller didn’t resist my offer. So they were really open to what I was doing. It was, I was like the consultant. That’d be fun.

    Max Keller (11:13):
    You know, I didn’t want to, this is my home buying company, save your home buyers. And, you know, I wanted to have fun. I wanted to help people and I wanted to make money. So there was kind of good and bad news. The good news was, I’ll go with the bad news first, the bad news was is that most of my deals that I had done up to that point did not meet all three criteria. The good news was, is that when I did see the few deals that met all three of those, they were all they all had the same pattern and it was, they weren’t just motivated sellers. They were senior homeowners. And so I went on this quest to find senior homeowners, something kind of unexpected happen again. And then that’s what, that’s how it turned into, you know, having a new tool for private money lenders too.

    Max Keller (12:03):
    So if it’s okay with you, if we have time, let me break down what happened with the motivated sellers and then how it transitioned to this discovery I made in the private lending space. Is that okay with you?

    Jay Conner (12:15):
    Sure. Please tell us about it.

    Max Keller (12:17):
    Yeah. So essentially what happened was I was like, okay, these are the motivated sellers, cause you know, I mean, you know, this well as anybody Jay I mean, you have to have a deal in order to have a private money or hard money or money problem, you know, if you don’t have any deals, so it starts with the deal, so that’s what I was doing, I was starting with the deal. And I saw this group of folks, seniors that were awesome, you know, there, but so I was like, how do I get more of them?

    Max Keller (12:44):
    So I go and look at what list they were on. And what I found was, is that they didn’t fit the typical motivated seller like buy box or category. So they weren’t you know, they weren’t in pre-foreclosure a lot of them didn’t even have mortgages, you know, it wasn’t a vacant house, It wasn’t a tired landlord. A lot of the houses actually were in good shape, they just needed like cosmetic updating. And so I was wholesaling these houses and flipping them for really good profits. And and I was like, okay, well, if I didn’t get them from a list, where did I get them? And I found that most of the folks actually came by accident, either they got my postcard by mistake, or I was trying to buy a house in the neighborhood or I was rehabbing a house in the neighborhood or referral.

    Jay Conner (13:26):
    And I was like, okay, well how do I get more of these folks? now that I know who they are, and why are they most importantly, why are they picking me? So I called one of the sellers, it wasn’t actually the seller she’s in an assisted living facility, but I called her son because I remember this particular deal I had about, I had an offer out. There were other investors they were looking at and one of the investors made an offer that was like 10 grand, more than mine. So I, this was six months after the deal closed. They went with me and at the time I didn’t make a big deal of it, cause I didn’t want to blow the deal up. But after the fact I called up the son, I said, Hey, you know, I’m Max, you know, Save Your Home Buyers.

    Max Keller (14:06):
    Do you remember me? He was like, Oh yeah, I remember you. I said, Hey, at the time you had said like you had gotten a higher offer. I was just wondering like, I’m glad you picked me, but why did go with me and not the higher offer? And he said, you know, Max, when we worked with you, you know, we trusted you, number one. So trust is really key, trust is like the key to marketing. I’m going to teach a couple of things around that, you know, later on and give your audience a free gift that they can use to build trust, cause it’s huge. He said, you know, when I was working with you, there wasn’t pressure. You know, the other place was offering more, but they were just kind of like, you know, when are you going to hurry up and sign when are you gonna move out of the house?

    Max Keller (14:49):
    And he felt like I genuinely cared, you know? And I did, you know, that was a huge eye opener. Like you had mentioned earlier, Jay, you know, I was teacher. So I was at these folks’ homes, I was teaching, I was trying to help them, I was trying to help the families. And you know, I had a really close relationship with my grandma. I took care of her for 15 years of last 15 years of her life. And she helped take care of me when I was little. So, you know, so, I had that bond and I felt like when I was going over to these folks’ homes, you know, it was like I was working with my grandma. So I knew this is who I wanted to work with. I knew why they’re picking me, but the problem is, I couldn’t find a really scalable way to do this, because I’m in these folks living room sometimes for two to four hours, you know, and I had another gentleman who’s helping me buy houses.

    Max Keller (15:41):
    And you know, we’re explaining all these details, cause these folks, there’s a huge education gap and there’s a huge education gap right now for private money lenders too. And I’m gonna share what we’re doing about that. But wherever there’s huge education gaps, I learned this being a school teacher, it’s a huge opportunity, because if you can be the person to fill that education gap, then that person, that student, that motivated seller, that private lender, you know, really is appreciative of what you’re doing, and they, you know, reward you with the business. And so, I remember it very distinctly. I went to it was at a home, I’ was buying it in the evening and it was myself, the mom who lived there by herself and the daughter, she was probably like in her early sixties. And the daughter was like, you know, Max you’ve like helped our family out a ton.

    Max Keller (16:31):
    Actually helped the family find a place for their mom to live in an assisted living facility. And she said, you know, you’ve liked helped us out tremendously. Why don’t you, have you ever thought about writing a book about all the stuff that you know. And I was laughing, I was like, no, I don’t think so, you know, I’m not, I’m a house buyer, I’m not a writer. And, I went back to my car and I thought about it and I was like, you know, that’s actually a pretty good idea. I had spent a lot of time learning about senior housing, cause I was noticing my seniors, even when I would teach them what to do with their house, you know, they still had other things they needed to know before they can move. So I would go and learn and, you know, start talking to people at these facilities and read online and just do my research.

    Max Keller (17:17):
    And I was like, you know, I have, I noticed the more I learned, the more I can help my prospect, the more, you know, they appreciated me. And it was like setting me apart, I’d say 95% from my competition. So I was like, okay, this is a way with a book that I could take this to the next level. So that’s what I did, I basically just sat down. I wrote down a list of all the questions that I keep getting asked and you know, folks living rooms and and then wrote the pros and the cons of different options. And that was my first book, Home to Home The Step-by-Step Senior Housing Guide. And I just printed out a hundred copies of the book. I started giving it away and you know, what it did, Jay is the book became my new business card, but it became a lot more than that.

    Max Keller (18:02):
    You know, it also became my new credibility piece. Now I would give people my book and I would have just like instant credibility. I would have, you know, instant trust with that motivated seller. And and I was really positioned as The Senior Housing Expert. And so, to make a long story short, I used the book, It’s been an amazing way to generate deal flow. How private lending got into the mix is that was around the same time that I started making the transition from hard money to private money. And when I was reaching out to private money lenders at first, it was a lot, you know, just a little background about me. I’m doing, you know, three to four deals a month at this stage. And you know, I need to get these deals funded for short term and for long term stuff.

    Max Keller (18:51):
    I’m reaching kinda my limit at the community banks that I had been using. So I went to hard money and it’s very expensive. And so when I started reaching out to the private money lenders, you know, they saw me as a deal maker, but I was pitching, you know, my deal to them. And I was showing them my deal and why it was a good deal or not a good deal. And sometimes they would be really excited about it, but then sometimes they’d look at me crazy because the house is in rough shape. It’s not the kind of neighborhood that maybe the private money lender would, you know, want to live in. And so I was getting mixed results. And so, at around that time, you know, fast forward about 18 months later, I, the book system that we use for private money lenders got an award at a, like a real estate conference.

    Max Keller (19:36):
    And Robert Kiyosaki was there to give me the award. And he, I gave him a copy of my book and it was a really, really cool moment. And a gentleman in Houston named Brad Philips had been doing the exact same thing with his Private Money Book that I was doing with my Motivated Seller Book. He wrote he was a police officer. You know, I think people who work in public service, you know, they do it more than just for the money, you know? And and so he had taken all the questions that his private money lenders had asked him about and, you know, did the same thing and wrote out pros and cons. And he was using it to source private money in Houston. And so he called me and we met through a mutual friend, somebody, you know very well. And we connected, and now that’s part of part of our licensed content that we have. So, you know, originally when I made my Motivated Seller Book, when my partner Brand made his book for private lending, we never intended for anybody else to use it. And you know, later on, I’ll kind of share some of the ways that we work with you know, real estate investors and how we help them, whether it’s deals or dollars build more of that trust and that credibility, you know, so their prospects see them differently, but that’s in a nutshell, that’s really kind of how it all happened.

    Jay Conner (20:59):
    Well, you know, some people, don’t really feel all that comfortable or really that confident in putting themselves out there as an expert or referring to themselves as an expert.

    Max Keller (21:14):
    Right.

    Jay Conner (21:14):
    So, you know, from the standpoint of somebody selling their house.

    Max Keller (21:18):
    Right.

    Jay Conner (21:18):
    Or standpoint of a private lender, loaning money out, in their mind, really what is it that qualifies somebody to be an expert?

    Max Keller (21:28):
    Yeah. That’s a great question. You know, so, people who are committed to being an educator and an advocate for someone else, that’s truly what an expert is. It’s, you know, that’s actually a requirement that we have for our students that we don’t bend on. You know, being an expert is not a way for, you know, shady, you know, people, real estate investors to, you know, take advantage of people. It’s really about it’s not about celebrity, It’s not about when people hear the word expert.

    Max Keller (22:02):
    A lot of times they think, Oh, well, you know, they think about people like Robert Kiyosaki, or they think about people who have done thousands of deals. And they’re like, Oh, I’m not at that level. You know, it’s an expert is not something that a title that we put on ourselves, an expert is something that our prospects see us as. And it’s really about being an educator, being an advocate, and most importantly, putting yourself out there, to be found, you know, the folks that plug into what we do, they want to be out there to be the go to persons of people in their community have questions. They can answer them and they can help. And so it’s really more about being an educator and being an advocate and putting yourself out there. That’s truly what an expert is.

    Jay Conner (22:49):
    So you’ve written a book about, you know, to give yourself credibility when you’re talking to a seller of a property.

    Max Keller (22:58):
    Yes.

    Jay Conner (22:58):
    You also now have another book when you’re talking with a new potential private lender that gives you credibility as a real estate investor to be trusted. So, how powerful would you say it is in having someone having their own book to use as credibility?

    Max Keller (23:17):
    Yeah, so great question. So it’s very, very powerful, you know, I’ll speak from my own example. You know, when I think about all the different ways that I have used my book to get a, you know, return on investment, you know, the first step I did when I got my book was I started giving it away. And a lot of times when people think a book, they think sell the book, and, you know, sure, there’s, you know, folks like you know, Stephen King, I mean, you know, JK Rowling, they sell a lot of books and make money. But for me, you know, that would have been really, really shortsighted. I mean, I did put my book on Amazon and it did hit number one on a couple of bestseller lists, I mean, that was really cool.

    Max Keller (23:57):
    I do get some sales from it, but the biggest thing that I get as a, as a home buyer, as a real estate investor. Is it gives me three things. It gives me expert positioning in the minds of my prospect. It gives me the ability to walk into an appointment and be really prequalified because the prospect has already read and invested four or five hours learning about me and my story. And most importantly, things that are really important for them. And it’s been an ultimate referral tool. You know, I didn’t write a book you know, to have something to sell. You know, I wrote the book in order to have something that, you know, sells me. And so I think that’s a huge, huge difference. And, you know, I’ve been giving it away and it’s helped grow the business.

    Max Keller (24:47):
    And like I said, there’s so many ways, you know, one of them is it’s a referral tool. So, you know, it’s just kinda common sense that if you give somebody a book, you know, they see it as valuable. It’s actually, it has value to us whether they read it or not, because it’s almost like having a band-it sign in their living room, cause when they get the book, they just, they’re not gonna throw it away. So they keep it around. When they read the book, they get to be with us for four or five hours reading it and we’re not there. The other thing is like when their friends, whether their friend needs to sell their house their friend is interested in doing something other than the stock market, you know, when somebody knows the person who wrote the book on a certain topic, It’s just kinda human nature for them to say, Hey, well, I know this, I know the guy who wrote the book on senior housing.

    Max Keller (25:38):
    I know the person who wrote the book on Private Money Lending, here’s his book, you know, and they give it to them and it’s, so it’s a really, really easy way to get referrals. But most importantly, you know, word of mouth, you know, right now we’re, you know, talking to hundreds and thousands of people and the Internet’s amazing tool, but nothing really replaces word of mouth. And I have not found anything that’s been, you know, better when it comes to word of mouth and spreading than a book. So it’s been, I’ll give you another example. Used to be, we went to appointments to buy houses and, you know, we were there, bunch of other investors were there to, kind of felt like we were a dime a dozen, you know, we’re another investor in the stack.

    Max Keller (26:21):
    Now when somebody calls our office, the first thing we do is we say, Hey, do you have a copy of our book? And they’re like, your book? Sometimes they know about it, sometimes they don’t. They say yeah, Max, can you come over? You know, and they book the appointment. Or I, if I talked to them, I book the appointment. I said, but first we want you to read chapter three of the book. It teaches you how to sell your home, you know, pros and cons of each way. If you just still decide that you want to sell it after you read that chapter, you know, then just, no problem, if you decide you don’t, just give us a call and we don’t have to come over. And so we pay a courier to send it over to their house, so they’re getting an autographed copy of our book before we even show up, they read chapter three, but they also read the other chapters.

    Max Keller (27:03):
    You know, now they’re curious, they’re not getting a lot of autographed books from authors. We’re educating them. The book is educational. It’s answering the questions that they have, and they’re having trouble getting the answers from somebody who’s really objective. And so what it does, and the reason we’re getting a lot of exclusive deals is because the people that they call before us, they call them and say, Hey, you don’t need to come over anymore. The people that they were going to call after us that are in the big stack of mail, they don’t call them because why would they call anybody else when they have the person who wrote the book on this subject? And so it’s a really, really big game changer as far as increasing conversions, because when we’re walking in, we’re already presold, and now it’s just sort of like taking the order and just working out the details of the closing and signing the paperwork. And so, I mean, yeah, it cost me a few bucks to send out these books and send a courier, but it’s just so, so worth it. So that’s some of the ways that we get business gains and how some of our students get gains from what we do.

    Jay Conner (28:05):
    Well, no doubt having your own book is hands down a powerful marketing tool for sure. But I can hear our viewers and listeners in their mind right now thinking to themselves, okay, I’m a real estate investor. How in the world am I supposed to write my own book? Like, how do they start?

    Max Keller (28:27):
    Right. Well, the good news about that Jay, is that if you’re thinking that or your audience is thinking of that, imagine what your competition’s thinking, you know, like they’re thinking the exact same thing, which is a good thing because traditionally, you know, writing a book did not have a very low barrier to entry. It was a pretty high bar that you had to clear now, and we’ve made it easy for real estate investors. We think, you know, easier than anybody else ever has, but essentially there’s really two ways to do a book. And it’s really kind of, the breakdown runs along the same lines as there’s really two types of real estate investors that reach out to us. And there’s the, there’s the DIY real estate investor and the ROI. So the DIY real estate investor, you know, those are the folks that like to roll up their sleeves.

    Max Keller (29:16):
    They invest a lot of their own time into the deals, you know, get their hands dirty. And, you know, there’s a lot of trial and error with that method and it takes a little longer to get your return on investment. But if you know, folks enjoy the process and they get satisfaction from that, then there’s like nothing wrong with that at all. So that’s the first kind of person that we help. And I’m going to share here in just a minute specifically, how we help them. The second kind of investor that comes to our Business Deals Chasing You is, I call them the ROI real estate investor. So for them it’s just like, time is money. They don’t want to go to houses. They want to have you know, the acquisitions team go to the house. They don’t work on the rehabs themselves.

    Max Keller (29:59):
    They have teams to do that, and they really leverage a team on all aspects. And so they can focus on just walking down more deals and acquiring more money for their deals. So for the DIY real estate investor, we created the first of its kind, it’s called The Real Estate Investor Book Writing Checklist. And so we sell this, but I’m offering it to your audience, a free copy. So you can go to the links that we’ll have at the end and check it out. And this is a tremendous resource cause what it does is it breaks down, you know, how to pick an audience, how to speak specifically to your motivated sellers, how to structure a book, how to overcome writer’s block. So if you’re DIY for all areas of your business, you can plug into this book that we created that is specifically for real estate investors who want to write their own book to get more deals or dollars. That’s what it is. And so we took all the learnings that, you know, took us hundreds and hundreds of hours to learn and provided a shortcut for you. So that’s one way. And then the other way is we have some licensed content that we allow for some different niches and for the ROI, we allow them to plug into our licensed content.

    Jay Conner (31:17):
    So you got the, do it yourself, people writing their own books, and then you get sort of done for you?

    Max Keller (31:24):
    Yes.

    Jay Conner (31:24):
    Right. So you got both ways. Well Max, why don’t you go ahead and tell everybody how you can help them.

    Max Keller (31:33):
    Sure. Yeah. So just go find out about us just go to DealsChasingYou.com/Conner and that’s with an ER and we’ve got a copy of The REI Book Writing Checklist. They can check it out, get a free copy of it. And then we’ve got some links on the website once they do that, they can go into our portal and they can see what specifically what we’re doing with the different niches. So yeah, just, you know, something to explore some of the checkout and and you can get some value from this book. Like I said, we’re offering it for free for a limited time. And so yeah. Check it out. And we got our contact info on there. If you have any questions about, you know, what it is that we do, and if we can help you, we you know, more than happy to answer any questions that you have

    Jay Conner (32:21):
    For our folks that are listening on our, on the podcast, you may be on Google play or iTunes. Let me spell that website out for you. So it’s www.DealsChasingYou.com, And to get that checklist, is add a /Conner, Is that right, Max?

    Max Keller (32:50):
    That’s correct.

    Jay Conner (32:51):
    So again, let’s put that site up. www.DealsChasingYou.com/Conner, Are there any other ways that a real estate investor can use this book to grow their business?

    Max Keller (33:12):
    Yeah, absolutely. So, you know, I had mentioned earlier about how, you know, this turned into a huge referral tool, you know, for me, it was just easy for people to, you know, connect me to other folks and kind of pass my book around. You know, and another one that’s really, really sort of like a little secret that people know who write books is speaking engagements. So there’s groups of people that are over, you know, your ideal prospect, whether it’s private money lenders or motivated sellers. And and they’re always looking for people to speak, whether it’s virtual or live. And so shortly after I published my first book, I had a church, a local church reach out to me. They had gotten the book from one of their congregation and said, Hey, we got a copy of your book. Would you be interested in speaking at our church?

    Max Keller (34:02):
    And I didn’t. I said, sure. You know, and I didn’t have, you know, presentation, I didn’t have PowerPoint slides or anything. I basically, it was kind of a last minute thing. I just showed up to the church. I had a box of my books and I made sure that everybody got one and I just, you know, basically held up, I got a copy of my book right here. I just held up my book and I just taught out of it. And I taught what I knew. And it was awesome, because the folks were super engaged, you know, they’re just like leaning forward in their seat. And afterwards they came up and told me how much they really appreciated me. And they asked about my services specifically and actually booked a couple appointments that night to go look at houses, which was awesome.

    Max Keller (34:45):
    And, and so, you know, I was really, really blown away that I had given them something that they really wanted and, you know, it was just a small local church, you know, but to me it felt like, you know, I headlined a big stage. I mean, I really wanted to do it again. And so, like I was saying event organizers, you know, they’re always looking for people to speak and being a subject matter expert, being an author makes it really, really easy for them to pick you. You know, I remember one time the organizer asked me what my fee was? And I was like, stuttering, I didn’t even know what to say. I was totally unexpected. And I was like a zero. And they’re like, Oh, okay, well, that’s great. You know, cause we had a budget for a certain amount and I was like, Hey, wait a second thinking about it.

    Max Keller (35:29):
    I mean, honestly I would pay to speak there. You know what I mean? Like when you get a recommendation from the pastor of the church saying, you know, Max is the author, Max is coming to teach about housing. Everybody needs to show up. I had one church that printed out 2000 like flyers and put it in their church bulletin full color 2000 2 weeks in a row. And I didn’t pay for any of that. So that’s a really big deal. And then the other thing is it’s kind of interesting as celebrity, you know, I didn’t write this book to be a celebrity. I’m happy just being a home buyer. And I buy houses here in Fort worth and Dallas. And now I have a group of students that plug into our licensed content, but I didn’t do any of this to become a celebrity, but it’s just sort of part of it.

    Max Keller (36:24):
    When you write a book, people look at you like the other people they know who have written books, like, you know, Dave Ramsey, or like you said, Robert Kiyosaki, I got to meet, you know, recently and you know, Barbara Corcoran and Oprah. I mean, these folks all have books and it is no secret that being a celebrity or being seen as a celebrity, even local celebrity has a lot of power behind it. And folks trust you more. They, they look at you more as the doctor prescribing them the medicine instead of just a salesperson. And so I get folks all the time that asks for a copy of my autograph and they get all excited and I still sort of like bewildered and I just never get used to it. And I say, okay, well, here’s what we’ll do. As soon as you sign the contract over there, you give me your autograph, then I’ll give you my autograph. And we all kind of have a little laugh. So it’s been a really it’s been a really fun journey and it’s been a really different way to buy houses and raise more money for my deals.

    Jay Conner (37:26):
    Well, there you have it folks. I know you’re interested in learning about how to have your own book for your own credibility, for your own story. And you can get the checklist on how to do that yourself, or you can plug into Max and get it done for you. So that website one more time folks is www.DealsChasingYou.com/Conner, Max it’s been fantastic having you on the show, parting comments before we wrap it up.

    Max Keller (38:01):
    Yeah. Just commend everybody for listening to you. You know, you run a really great program and I, you know, I’ve got some time to, we gotten to spend some time together and see your operation and it’s, first-class all the way. So I just commend everybody listening to keep focusing on their education and look forward to checking back in with you in the future and, you know, give you any sort of updates.

    Jay Conner (38:25):
    That’s awesome. Thank you so much, Max. 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. Here’s to taking your real estate investing business to the next level. And we’ll see you on the next show.

  • Andrew Campbell and Multifamily Investments

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    Today, Jay Conner interviews Andrew Campbell about multifamily investments.

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

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

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

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

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

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ———————————————————

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

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

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

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

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

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

    Andrew Campbell (04:19):
    Yes Sir.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Andrew Campbell (09:45):
    Yep.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Dr. Paul White of RealNumberz

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

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

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

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

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

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

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

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

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

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Brad Smotherman on Flipping Real Estate

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

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

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

    The Private Money Academy

    http://www.JayConner.com/Trial

    ———————————————————————-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Brad Smotherman (28:04):
    For sure.

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

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

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

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

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

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

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

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

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

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

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

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

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

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