Jay Conner

Category: Success Mindset

  • Chris Prefontaine – Scale and Automate Real Estate Investing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Chris Prefontaine (23:21):
    Exactly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Jay Conner – Real Estate Investing Successes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Jay Conner – Members Site Invite

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay shares a recent deal and why he walked away!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Dave Seymour – Unlocking the Code to Multi Family Investing

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    Jay Conner (00:07):
    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner. The Private Money Authority. And the host of our show. If you’re brand new to Real Estate Investing with Jay Conner, whether you’re listening in on iTunes or Google play, or following us on one of our YouTube channels or Facebook live streaming, we’re glad you’re here. If this is your first time, we talk all about different kinds of real estate. Single family houses, commercial, land deals, self storage, anything to do with real estate investing. And again, if you’re brand new, I’m known as The Private Money Authority because from 2003 to 2009, I was relying on local banks and mortgage companies to fund my deals. And I got cut off like the rest of the world did in 2008, 2009. And I learned about this wonderful world of private money.

    Jay Conner (01:07):
    So I haven’t missed out on a deal since 2009 for not having the funding. And so if you would like to get plugged in to funding for your single family houses, I’ve got a free online training waiting for you to go to, so check it out after the show is over. Go on over to www.JayConner.com/MoneyPodcast. That’s JayConner.com/MoneyPodcast. And there I’ll be teaching you the five easy and quick steps from having no funding for your deals to, into the millions of funding. Again, without relying on banks or mortgage companies. Well, also here on Real Estate Investing with Jay Conner, since we launched in June of 2018, I’ve had some amazing guests here on the show, share their secrets and strategies as to what they’re doing.

    Jay Conner (02:03):
    And today is no exception. So my guest today after 16 years as a firefighter and a paramedic, he launched his career rapidly becoming one of the nation’s top real estate investors. So within his first few years, he had transacted millions of dollars of real estate and have become one of the nation’s leading experts in both residential and commercial transactions. Well, his passion for business and real estate put him on the radar of A&E television network, as well as multiple news organizations like CBS, ABC, CNBC, Fox news, and CNN. In addition to that, the New York times reported that his series titled Flipping Boston posted the highest ratings ever for the A&E network at the time of its airing. His greatest joy comes from being a husband and a father to three boys. And so with that, I’m so excited to have your own the show with us today, Mr. Dave Seymour! So Dave, welcome to the show.

    Dave Seymour (03:09):
    Hey Jay! How are you, man? I tell you, it’s funny. I listened to the, I listened to that intro and I’m, man, I sound pretty cool.

    Jay Conner (03:15):
    And Scott, I will need for you to do a little edit right here because my internet has stopped working. So I’ve got a sign out and sign back in. So if you would, Scott, come to the forefront and keep Dave alive and I will be right back,

    Dave Seymour (03:30):
    Oh, Man! I miss him already. So I got to do the show without Jay. Is that what you’re telling me, Scott?

    Scott Paton (03:36):
    That’s right! That’s right! It’s just you and me. So,

    Dave Seymour (03:39):
    That’s all right. It’s all good, man. I can play this game. No worries.

    Scott Paton (03:45):
    What part of the country are you in?

    Dave Seymour (03:47):
    Oh yeah, we’re up in Boston. Boston, Massachusetts. It’s where they threw the tea in the Harbor. We’ve been going through a little bit of a heat wave up here right now. So it’s an interesting time, man. I mean the real estate game in Boston has always been incredibly fluid and it continues to be. And I gotta be honest, man. I’m questioning some of the common sense that people use in the real estate marketplace right now. So I’m a super conservative investor.

    Scott Paton (04:14):
    So you think people are being too aggressive?

    Dave Seymour (04:17):
    Yeah, man! I mean, look! People sometimes forget. I mean, I listened to Jay’s intro and he had his own challenges in 2007, 2008, 2009, 2010, which we all did. And you know, there were investors that folded up their tent and never came back out to play after that. And Hey man! Welcome back!

    Jay Conner (04:39):
    I got kicked off the internet for some strange reason. And so, ever since you started talking, I haven’t heard a word, you said.

    Dave Seymour (04:47):
    Don’t worry. Nobody listens to me, including my wife, Jay. So it’s all good, man. No worries.

    Jay Conner (04:55):
    Scott can edit this for us anyway, but so let’s pretend like I just said welcome to the show and you picked it off from there.

    Dave Seymour (05:03):
    All right, man. Well, I appreciate you having me on the show, Jay. Thank you for having me. It’s a beautiful day in the neighborhood, even with all of the chaos and the craziness going on in the world, for sure.

    Jay Conner (05:13):
    That’s for sure, Dave. Well now I’m really curious about how you got on the A&E network and got your show started. What was it called? Flipping Boston?

    Dave Seymour (05:27):
    Flipping Boston. Yeah. So I was listening to your intro, Jay. It was kind of interesting that you developed a new source of capital for your deals because the market kind of went sideways and I went through that same experience myself. I got, I started investing. I was a firefighter, like you said on the intro there for 16 years. But unfortunately I had the financial intelligence of a donkey and I did not, I didn’t understand capital. I didn’t understand how it worked. And I’m just following the same plan that everybody else is. And I went to a seminar to learn real estate and I’m a product of that seminar world. And the funny thing is, man, is I invested the last couple of thousand dollars that I didn’t have. Well, my wife did. I didn’t, it was her credit cards.

    Dave Seymour (06:14):
    I was maxed out with a credit score of two. So nobody was giving me credit. But it’s kind of interesting. I did what my mentors and coaches told me, like, you know, I listened to you again at your intro, talk about the newer investors, or maybe you got some seasoned investors listening to us today, or watching us. But I just followed what worked. And next thing you know, I’ve done one deal, two deals, three deals, four deals. I’m actually doing a little teaching myself and somebody in the marketing world reached out to me and said they were looking for teams to start another show. And I was still firefighting. So I was like, firefight in 42 hours a week. And real estate invest in every other hour I was awake. And I sent in an application to New York and no offense to anybody, but I loaded it with profanity cause I wanted to make sure they paid attention to what I wrote on my little application.

    Dave Seymour (07:09):
    Yeah. They came, they picked up the phone and the guy was kind of laughing. And he said, you’re either a lunatic or a genius. I said, is there a difference? And we started filming a little sizzle reel and we did four episodes and like you said, in the intro, their ratings were the highest they ever had for that time slot. And they said, well, people like you. And I’m like, I was just doing it for fun. I didn’t think it would ever go anywhere. And you can actually see the episodes on Amazon right now, Amazon prime in the video section. Yeah. So me and Jeff Bezos struck a deal. No, we didn’t. You can find the episodes on there. And you know, I got that reputation as an expert in the marketplace and with that comes a, you know, some really good relationships and you have to find yourself sitting on Squawk Box and Fox News and all of that silliness. So it’s kinda, it’s kinda cool, man. It was a cool journey.

    Jay Conner (08:04):
    That is really cool! So let me give you the 30,000 foot view question and that is, why did you choose real estate for yourself?

    Dave Seymour (08:13):
    Yeah. Look man, it’s, like I said, I was good at working, you know, and trading time for money. I’m kind of like a blue collar guy in a white collar world when it comes to that stuff, you know? I was instilled with some good solid core values, you know, don’t lie, don’t cheat, don’t steal, work hard, respect your fellow man, you know, have a little faith and do the right thing. And that’s great. Don’t get me wrong, but it doesn’t give you any financial freedom because the income potential is capt. And you know, I was working construction on my days off from the firehouse and I was watching these investors like popping up. And I’m thinking to myself, hold on a second, I’m building a deck, digging a ditch. I’m sitting on a post hole Digger with a bunch of friends here and this guy’s coming in and you don’t look too sweaty and he don’t look too dirty.

    Dave Seymour (09:07):
    He looks like he’s had himself a good old time. At his back bone aching. I think his wife is probably happy as well. Right? It was the investors. And I found myself in a position where I was losing my house, man, because I made some bad decisions. And I always knew there was money in real estate. I never understood the stock market investing in something that was imaginary. And I just went for it. I went to a seminar and my wife invested in me and I started doing what they said I should do. And the results followed afterwards. So real estate has been the biggest wealth builder in the history of animation period. And why should I reinvent the wheel? Why don’t I just learn the processes and get in the game? And that’s when I took her like a duck to water, man. I’m passionate about it. I love it. I dream about it all the time. So yeah.

    Jay Conner (10:03):
    What year did you go to that first real estate investing seminar?

    Dave Seymour (10:07):
    Yeah, I went in early 2000. And late 2007. Early 2008. I came out just as the crap hit the fan, man!

    Jay Conner (10:21):
    No, I tell you, you know, here in the midst of COVID-19 reminds me somewhat of what was going on in 2008, 2009, as far as, you know, banks tightening up and et cetera. And it was a blessing in disguise for me back in 2008, 2009, because that’s when I learned about private money and when the banks cut me off within three months, I had more money at my disposal. When I went out to raise money. Than I had, when I had a line of credit at the bank And I’m experiencing somewhat the same thing going on right now. I mean, I just had a phone call last week from four guys that have a private equity fund that want to give me $5 million just to start doing business with them. Right? They called me, they called me, I didn’t call them. Right. I have someone listening to my podcast here, not too long ago. They were laid up in the hospital for three days, listening to the podcast, they call my office and they want to lend me money.

    Dave Seymour (11:23):
    What a terrible problem to have, Jay.

    Jay Conner (11:29):
    So, now, how quick were you able to move once you got your education and start enjoying some success?

    Dave Seymour (11:34):
    Yeah, that’s a great question, man. You know, I’d love to tell you. You know, 30 days and it was all fixed. I mean, that would just be a flat out lie. You know wealth creation is a process. It’s not an event. For me it took me, it took me 12 months to 18 months to be what I call financially free. And what I meant by that was, was that I was able to sleep eight hours. You know, I wasn’t waking up at three o’clock in the morning, you know, riddled with fear, doubt, and insecurity. So it took some time it took a commitment and some traction. But to your point, about 2008, I mean, I was telling people, cause that’s what my mentors told me to do was to tell everybody what I was doing. And I was telling people, you know, I’m a real estate investor, I’m investing, I can buy distressed assets and you know, I can put them back on the market and I’m giving them the whole elevator pitch.

    Dave Seymour (12:26):
    And back then a lot of people were like, Ooh, Oh, I’m so sorry that that’s what you have to do for work. Like, you know, it was like a disease that we had as real estate investors in 2008, 2009. But like you, sir, I created an opportunity out of it, I can’t, you know, I became proficient at short sales. I became profecient at loan modifications. I became proficient at private lenders. I became proficient in helping people. And I found in my career and I’m sure you’ll testify to it as well as the fact that the more time I spend helping somebody else, the better it ends up being for me, you know, that and that. I mean, you know, God is good all the time and it’s like a real good friend of mine is down in Florida right now.

    Dave Seymour (13:13):
    And his faith is something to be admired. And he just says to me, he just says to me, David, just ask the right questions, man. Am I doing His work or my work? Right. Is it all about the almighty buck? He said, because if you find yourself just chasing the almighty buck and you’re not doing His work and taking good care of people, he said, you might find yourself facing a little bit of resistance. That’s how he puts it. And then there’d be a little bit of scripture to support it. But, you know, I love that about it. It’s like there’s nothing better than those families that we helped, you know, during the transference of wealth in this country, which is what we show in 2008, nine, 10, 11, 12, you know, to help families who were foreclosed on them and put them in a lease option. Where they could stay in the same neighborhoods, right? The kids could go to the same school. They couldn’t afford the crazy mortgages that reset, but they could afford a good decent lease option and a beautiful home to live in. And all we were doing was moving them from house to house in the same neighborhoods, you know? So you know, with some education, you can serve this stuff around pretty fast. And I’m no better than anybody else. I just did what I learned. Rather than finding excuses, I found answers. Does that make sense?

    Jay Conner (14:24):
    It makes a lot of sense. You and I have got a lot in common, Dave, because my followers hear me say all the time, this, all the facets of the business is all about serving and helping other people, as you said, because if people didn’t have a problem, we wouldn’t have an opportunity to serve. From the buyers to the sellers, to the private lenders, you know, even when it comes to raising money. And we’re going to hear your story here shortly in the next minute or two, about how you’ve gotten into raising a lot of capitals, but, you know, I’ve never asked anybody for money. They say, Jay, how in the world are you raise all those millions of dollars without asking for money? It’s real simple. I put on my teacher cap, I teach people what private money is. I teach them what self directed IRAs are. Cause they never heard of that stuff. And, you know, the light bulbs go off. And if they’ve got investment capital or retirement funds, they’re not happy with what they’re doing. They’re going to, they’re going to want to do business with you, right?

    Dave Seymour (15:24):
    Correct. Correct. It amazes me how many intelligent accredited investors I sit down with and communicate with. And I start giving them a breakdown of the tax advantages of using a solo, 401k as a retirement vehicle to invest in my fund, into a piece of sticks and bricks, a syndicated deal. And it’s like these light bulbs go off in their head. And I don’t know about you. You tell me this. I found that, you know, high finance on occasion, it kind of brings an air of you know, like it’s almost pretentious at times, like you’ve got this additional vocabulary than they tend to use in high finance. And I was talking to a local guy, a friend of mine, a neighbor in fact, and he’s an injury attorney, very successful. And I’m in the middle of my, you know, my conversations through teaching.

    Dave Seymour (16:19):
    Obviously I’m raising capital with salesman. We’re good at what we do, but he’s, he stops me in the middle of it. And he says, David, David, you’ve got to stop. I go, what, he goes. I just figured out what you’re doing because I applied a logic commercial assets, you know, 60 to 150 unit apartment complexes, not just one of them, but 30, 40, 50 of them. And then I fixed them up. I get the rents up and I create a better asset. And I’m trying to give him the delivery, Jay. He says to me, David, stop it. I go, what, what what’s up? Did I offend you? He goes, no, no, no, no. He goes, I think I understand what you’re saying. He said, all you’re talking about is flipping Boston on steroids. Instead of just taking a little single family house and make it that pretty.

    Dave Seymour (17:02):
    He said, you’re doing 5,000 units and making them pretty correct? I said, yeah, that’s right, Kevin. He said, okay, how do I subscribe? Let me see if I can get some capital into the fund, you know? And it’s amazing because it’s, you know, my trajectory, it’s interesting. We were in a marketing meeting a couple of weeks back and I had a young intern in our marketing meeting. And what we’re doing right now is we have a private equity fund and we raise capital. We invest in multifamily assets, primarily in the Gulf region of Florida, but other markets. I mean, you guys in the Carolinas in such a great position there, I mean, it’s fantastic the opportunities there. So maybe we should talk offline, Jay, but you know, these assets allow us to go in there with what’s called a core plus asset class.

    Dave Seymour (17:52):
    What we do just like I said, we take these settings and we make them pretty, but it never was that way. I mean, the first deal I did was a $5,000 wholesale transaction on a single family home. And I felt to myself what I’d had to do in the past to make $5,000. And then when I stepped out of the attorney’s office, I’m waiting for the five votes to pull up and take me to jail. Cause I felt, it felt so bizarre to have a check for a house that I’d never owned, but I’ve learned along the way to your point to simplify it. You know, you, you lead by attraction, not by promotion. I turn away capital, Jay, because it’s not a good fit. And you know, again, the universe works in a wonderful way if it’s of service, which is, is for us because we help people with the longterm retirements. They get to invest in our fund, and they get a preferred rate of return, targeted rates of return in double digits.

    Dave Seymour (18:46):
    And then for the life of the time that their capital was working with us, you know, then now that targeted 20% returns on their money. So it’s a, it’s a real, it’s a real good asset class. And unfortunately COVID has all, fortunately, depending on what side of the equation you choose to put yourself on. COVID has given us a massive opportunity because the buying is already there. The buying opportunities are right in front of us right now. We’re just hungry to take these assets down, help the sellers, help the tenants, help our investors. I get warmed up, man. I get on a roll. You don’t. You got to stop me and ask me questions. Otherwise I just keep going.

    Jay Conner (19:23):
    You remind me of me when I’m on the other side of the microphone. Speaking of COVID, what’s your prediction and what’s your take on what’s the short term outlook from covid and what do you think is the longterm outlook and consequences on any front?

    Dave Seymour (19:41):
    Yeah, it’s, you know, kind of like pull off the bandaid, man. I mean, here’s what I see. We’ve got a short term pain that we’re going to have to, we’re going to have to experience, we’re going to have to experience as a nation. We’re gonna have to experience it together. You know, depends on how you look at it. So we’ve got the full balances where the banks have, you know, allowed tenants to own us to not pay their mortgages. You’ve got a tenancy not paying their rent. We had the PPP, the protection program there for small business. You know, Mr. Trump wrote everybody a check. There’s more, you know, more capital coming out which in its essence sounds great. And it’s a difficult position, Jay. It really is because it’s like, there’s the one side of me that used to live paycheck to paycheck that understands how necessary that is.

    Dave Seymour (20:44):
    But then there’s now the other side of me that the businessman, I look at it and I say, well, there’s no transference of services for that money. And if there isn’t a true transference of services for that capital, it’s almost like a house of cards. It’s, you know, it’s doomed to have a failure point and a stress point. And when we get there you know, we will see an increase in foreclosure. We’ll see these challenges going forward and we’ll get through. We’re America. You know, I’m an immigrant to this country. I came from England and back in 1986, I was born in London. But, you know, I, I came to the greatest country in the world for growth, for economy, for the ability to really be the best we can be. So we’re always going to overcome. So short term, I’m sorry, we’re going to have to feel the pain.

    Dave Seymour (21:34):
    Longterm, there’ll be two kinds of people just like they were in 2008, 2009, 2010, there’ll be victims and there’ll be victors. And, you know, I sense that we will be the victors and that’s not a moral battle. It’s just an intellectual battle of finance and real estate and business. But to be on the other side of it, as a Victor, we have a greater opportunity to help the people who didn’t, who didn’t come along the journey with us on the financial side. That’s kinda my full process on it. And that’s why we’re so bullish on our buying right now, we would invest the capital because everybody else is fearful. We go in there and we just get the good buying opportunities,

    Jay Conner (22:15):
    Take a couple of minutes and tell us in summary, your journey from, I suppose you started with single family houses, you mentioned you’re for real being a wholesale deal. And then you went into commercial and now you are in the capital raising business, and you have a fund that people can take advantage of and invest in. Tell us, give us an overview of that journey of when, what and why.

    Dave Seymour (22:43):
    Yeah, well, we don’t have nearly enough time, Jay. I’ve always tried to say it in three words, but it always comes out in 300 for some reason. It’s like I said, man, I learned the fundamentals of real estate. First transaction was a wholesale transaction for a house I never owned and I made 5,000 bucks. And I thought to myself, if it’s legal, if it’s honest and it’s ethical, I’m not going to do this once. I’m going to do it as many times as I can. And, you know, you slowly get out of debt. And then I stopped doing a little bit of a single family. Then I’m doing a lot of single family. Then I pick up that first two family unit and then a triplex and a fourplex then I’m always like got my eye on the commercial arena.

    Dave Seymour (23:26):
    So I was in a marketing meeting, as I was saying, and I had a young intern in there and they said, why should anybody listen to you as a fund manager with a hundred million dollars invested in commercial real estate throughout the country, primarily in the Gulf coast. Guys says you’re that flipping guy from TV. And I went, Oh, from the mouth of babes. Ok, now, man I’m 21 years old, fresh out of college came in as an internship, fresh out of the mouth of babes. And it’s interesting because I have always been involved in commercial real estate. Had a portfolio of about 110 doors at one time in Sanford, Maine, which is just North of here, you know, a C class property C class neighborhood. I learned very quickly that I just want to be the bank. I don’t want to be property manager.

    Dave Seymour (24:10):
    So, you know, I’ve learned a lot along the way. I’ve coached people through large commercial transactions of rubbed elbows in the self storage space. I’ve always avoided office and retail. How sad is it right now for you know, leisure, office and retail investing right now? It’s a very hard time. So commercial has always been in my wheelhouse. It’s always been my excitement bottom and friend of mine by the name of Walton Evicky reached out to me, raised about 125 mil and syndicated commercial deals in multifamily assets throughout the Gulf coast. And he said, I want to bring your stop power is what he said. And I always giggle when somebody says that. He’s like, well, you’ve got a national reach. He said, why don’t we combine efforts, your team, my team let’s get together, put the fund together. So the fund is now up. We’re raising capital. We’ve got a couple of acquisitions that we’re about to take down, we’re raising a hundred million dollars, we pay, like I said, a preferred return, double digit target returns to our investors. And it’s an exciting time in the middle of all this chaos, Jay. You know, it really is.

    Jay Conner (25:19):
    That is awesome. Thank you for giving us the overview. Now, you’ve got a free ebook for our audience and listeners. So what’s the ebook that you’re offering to everybody?

    Dave Seymour (25:29):
    Yeah, you can see right on the screen there. FreedomVenture.com that’s our front door to our website spend a little time there. Learn a little while you’re there. Scroll down to the bottom of that page and you’ll be able to download a free ebook that I wrote with my property manager. Guy by the name of John Dessauer. He is out of Chi town, Chicago. John manages approximately 3 million square feet of multifamily real estate. He’s been an active investor himself for over 20, 25 years now. We wrote that book together. It’s called Unlocking The Code To Multifamily Investing. It’s an easy read. It’s not too heavy, but it will give you the high points and it will show why investors want to invest with us. It’s protected, you know, there’s a security there. They don’t take the the liability that most investors who were actually own the assets themselves, they own a piece of the company that owns the assets. So it’s a, it’s a smarter play big picture for a lot of investors who don’t have the time to get, to get their hands dirty like we have in their careers, Jay.

    Jay Conner (26:38):
    That’s awesome! Well, it’s been a pleasure to have you here on the show, Dave. Final parting comments.

    Dave Seymour (26:45):
    Yeah, just know that it’s gotta be okay. It’s gonna take us a little bit of time. And so always educate don’t speculate, right? Work on the education, understand what you’re investing in, but don’t be somebody who just analyzes all the time and doesn’t do anything. All right. Take a little action. Get off the couch and get in the game. Cause there’s the best game there is. I think.

    Jay Conner (27:07):
    That’s great! Well, there you have it folks, Mr. Dave Seymour, again, you can follow him. Get the free ebook and also find out about investing opportunities at www.FreedomVenture.com. Thanks again, Dave. Good to have you on.

    Dave Seymour (27:29):
    Appreciate you man. Thank you. God bless. Have a great day.

    Jay Conner (27:32):
    All right, there, you have another show folks. 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. We’ll see you on the next show.

  • Matt McKeever, BRRRR Investing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (30:09):
    Alright! There you have it folks. Another show. I’m Jay Conner, The Private Money Authority. Wishing you all the best. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show. Bye for now.

  • Joanne Musa, Tax Liens and Private Money

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (22:19):
    Okay.

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

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

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

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

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

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

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

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

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

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

    Jay Conner (27:17):
    You bet it Joanne! Well, there you have it folks! Another episode of real estate investing with Jay Conner, I’m Jay Conner, The Private Money Authority. Wishing you all the best. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show!

  • Jim Sheils and 18 Summers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (31:48):
    Okay, everybody there, you have another show. I’m Jay Conner, “The Private Money Authority”. Everybody stay safe. You’re in the midst of a COVID-19 as we come out on the other side and I’m wishing you all the best here’s to taking your real estate investing business to the next level. We’ll see you on the next show. Bye for now.

    To listen to our Podcast, click here:

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

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

  • Gary Boomershine and The CoronaVirus Crisis

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Scott Paton (07:29):
    All right!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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