Jay Conner

Category: Success Mindset

  • Marcus Crigler on Improving Businesses and Profitability

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    Jay Conner (00:07):
    Well, welcome to another episode of Real Estate investing with Jay Conner. I’m Jay Conner, the private money authority. Your host, and a special welcome to you. If this is your first time to be tuning in to the show, we talk about all things real estate investing here. And if you’ve been tuning in over the last year and a half or so, you know I’ve had some amazing guests here on the show and today is no different. But before I introduce you to my special guest, this is going to tell you how to save a bunch of money on your taxes and how to increase your cashflow in your business, which I know you’re interested in. I’ve got a free online class that will plug you in to getting funding for your deals. Regardless of what your mortgage broker, your hard money lender, or any of your other funding sources will tell you.

    Jay Conner (00:57):
    So if you’re interested in getting more money to fund your real estate deals, I’m going to reveal to you the five easy steps as to how you can get funding. So when I started out in 2003 I was relying on the local banks to fund my deals. And then in 2009 I got cut off with no notice and I was introduced to this wonderful world of private money and I haven’t missed out on a deal since for not having the funding. So head on over after the show to www.JayConner.com/MoneyPodcast. That’s JayConner.com/MoneyPodcast. I’m so excited to have as my guest on today’s show, my good friend and fellow mastermind member, Mr. Marcus Crigler. Before I bring Marcus on, let me tell you a little bit about him.

    Jay Conner (01:50):
    So after developing relationships with some of the biggest leaders in the United States in real estate investing, Marcus began to notice something that was rather problematic. And it was a trend in many of the real estate investing portfolios. And that was accounting and taxes. Our favorite subjects, right? We’re being approached reactively. Listen carefully. Reactively instead of proactively. So Marcus said it out as his mission in the firm where he’s at. Duckett ladd is the name of their company. So he set out on a mission. So using his firm’s extensive experience in real estate as the platform. And by the way, these people, Marcus and his partners, he’s a partner in the firm. They specialize in working directly with real estate investors. So he and the team have developed a very, very strategic approach to increasing cash flow. And as I said, reducing tax liability for their clients. And that’s representing over $500 million in assets. So they’ve got a very partner focused approached to help their real estate investing clients make quicker, more accurate financial decisions. So the business owners, CEOs, what have you, can spend their time doing what they’re most passionate about. And of course, as you all have heard me teach and coach, I say to automate the business, do what you’re passionate about, dictate, delegate everything else. So with that, Marcus, welcome to the show, my friend.

    Marcus Crigler (03:32):
    Hey Jay! I appreciate you having me. I’ve been able to listen to the show several times and just getting to know you over the past couple of years, it’s just been an honor to meet such a guy like you. It’s been a blessing.

    Jay Conner (03:43):
    Well, same here man. I love your heart. I love you have a servant’s heart. I believe that birds of the same feather flock together. So that’s why we hit it off right after meeting each other a couple of years ago. And of course, as I mentioned, we’re in a mastermind together and get to see each other four times a year. But first let’s start with this, Marcus. How is it that you’re qualified to talk about what you’re going to be talking about on today’s show?

    Marcus Crigler (04:09):
    Yeah, that’s a great question. So first and foremost, I’m a CPA and that just means I went through and studied really hard and passed the test. That’s pretty much what that means. But more than that. And the thing that probably qualifies me more than passing a test is what I’ve done to study this industry. And study how people in this industry can not only save money in taxes but save a generic cashflow in their business and become more profitable. And so I get the luxury and I say luxury and I mean luxury of working with some great, great real estate investors. And so I kind of get a cheat sheet, if you will, to see what are the really, really solid real estate investors doing it. And how can I help real estate investors all over the country, you know, take in some of those concepts and really grow their portfolio and grow their business with that knowledge.

    Jay Conner (05:02):
    Well, you know, one thing that really stood out to me about you, Marcus, is when we first got to know each other. Is you and your partners have got a very, very unique approach and perspective when it comes to how you view your real estate investing clients. And really what the relationship should look like and what your relationship looks like with your clients. So, you know, most people that you know are using a CPA or an accountant, most of the time it’s, you see them one time a year, you’re doing the tax return, et cetera. So what is it about you and your partners that is so different from the traditional relationship that a CPA would have with their real estate investing client?

    Marcus Crigler (05:58):
    Yeah, it’s a great question. So one of the things that, when we set out to do something a little different in the CPA profession, we’re all younger guys and you know, we all have kind of a mission behind us. And when we set out to kind of make a change in this industry, one of the changes we wanted to make was the ability in the common nature, I guess, for our business owners to come to us and ask us questions about how to make their business better, how to make their business stronger, not only saving taxes. We can do that and, and most CPAs that know the industry can help you in that realm. But where we differ a little bit and where I think we have a little bit of a better opportunity to serve is that we don’t care just about how much money you’re saving in taxes, but we want you to make more money as an individual, as a business.

    Marcus Crigler (06:46):
    And so we want to see you at a minimum quarterly. And go over your books, make sure they’re correct, make sure you’re able to make decisions on those books or records that you have. Because if you’re not, if you’re not basing decisions in your business, off of data, it’s just simply a guess. And if you’re guessing at your business, eventually it’s going to hurt you. You may be able to get by with it for so long. Once you get to a size and business where you are, you’re a full time in this industry. Having somebody with a financial background that can analyze your books and give you an idea of, Hey, this is what’s going right in your business and this, this isn’t, you know, this is really, you’re struggling here. Either need to focus on this a little bit more, maybe drop, maybe this is a piece of your business that you need to focus on.

    Marcus Crigler (07:30):
    And so those are the kinds of conversations that I’m having on a daily, weekly, monthly, and quarterly basis. As a matter of fact, just yesterday I spent a full eight hours with a group in setting up a plan for their 2020 goals and how to get them, how to achieve them. Not only set, you know, everybody goes and sets goals. You can set these big enormous goals and you’re never going to hit them. What we look at doing is setting these goals, but then backing into, okay, strategically, how can we actually manage to hit these things? And now we can hold them accountable to those goals throughout the entire year. So that’s just a completely different relationship than just going in and seeing your tax guy once a year and hoping that, you know, at the end of the year you don’t have a big tax bill or you know, finding out at the end of the year. Oh wow. I didn’t make any money.

    Jay Conner (08:18):
    It sounds like part of your relationship is being an accountability partner.

    Marcus Crigler (08:24):
    It absolutely is. Yeah. I, you know, it’s funny, you know, we call it sometimes, we call it CFO, fractional CFO type work. Almost every single client that we have is on some sort of fractional CFO type level. But you know, and the reality is, some of it is being a psychologist. Some of it’s being a coach. Some of it’s being kind of a mediator between partners. All of those things kind of play in because we’re so hands on business and we allow the business owner to have a really a third party representation in their business that most businesses don’t have. But they, but they really need,

    Jay Conner (08:59):
    Yeah. Well, you know, most entrepreneurs, most, not all, but most from my observation lane towards being the visionary, being the creative type and us people, I’m one of those, we really need somebody to help us have the discipline of looking at the books, looking at the numbers, looking at the balance sheet, looking at the year to date profit and loss and comparing those line items. I mean, you know, last year through the first three months we spent X number of marketing dollars in these different areas. Well, you know, is that stuff being tracked and measured and can you really measure effectively, you know, your costs to conversion, your cost of lead and really be able to see you. What are you getting a return on your money? Right?

    Marcus Crigler (09:52):
    Absolutely. Yeah, that’s a great point. And you know, reviewing your books and really getting an understanding. What do they mean, what’s on the balance sheet that should be important to you? What are the things that you should be looking at and analyzing? What are the things on the PNL that you should be looking at and analyzing? And what’s the difference between the two? And what’s the cash flow statement? And why should I look at that? Those are all the things that we talk about, but you know, you made a good point there. You know, I went through an exercise and you know, two weeks ago or something like that on a marketing. And you know, we dove into this, this company’s marketing budget and where they were spending their money and it was interesting, they were in a bigger metropolitan area and they were spending all of these direct mail money in a zip codes that they were, they weren’t making any money in those zip codes.

    Marcus Crigler (10:42):
    So they were just throwing bad money, good money and bad over and over and over again instead of dialing it in, using analytics to drive your decisions, not just go out and plaster, you know, direct mail everywhere. In that situation we were able to take 80% of their deals and narrow it down to half of their zip codes and now they have the decision to, okay, do I want to have the same budget for direct mail and hit those zip codes harder? What do I want to reduce my drag mail budget? Now they’ve got the ability to make that right decision for what they’re, what they want to do. And so those are the kinds of things that we try and dive in and help our clients become better that way.

    Jay Conner (11:21):
    That’s great. Now your firm, particularly you. You focus on real estate investing clients. So you probably, since you, you know, served quite a few real estate investors as clients, you have probably noticed a trend of commonalities of to where, there’s just some, some common missed opportunities if you will, that real estate investors through using their local accountant. That doesn’t specialize in, you know, like you all specialize. What are some of the areas or items that real estate investors could be taking advantage of that they maybe are not taking advantage of? And, or you know, errors.

    Marcus Crigler (12:09):
    Yeah, absolutely. So I’ll tell you the biggest mistake that I see and the one that causes the most surprises is incorrect entity structuring. And when I say an incorrect entity structuring, that has everything to do with knowing when to have a disregarded entity. Knowing when to have an S corporation. And knowing when to have a C corporation. And know when to have a partnership. And those are all taxed a little differently. And so the IRS has different rules for all of those. So if you don’t mind, I’ll just kind of give a couple of quick examples of how people can use those types of entities to benefit them.

    Marcus Crigler (12:45):
    So in S Corp, and I’ll just to kind of talk about the two main, which is an S Corp or partnership. So an S Corp is where you want to house your active income business. So this is a business that, you know, if you’re a flipping company, that’s where you house your flipping company. If you’re a wholesaler, that’s where you, house your wholesale. It’s active. You’re out actually out there, you’re physically doing work or you’ve got a team physically doing work and you’re generating income from them. Now, that’s an S Corp. Now if you have rental properties, this is very, very different. This is where I see the big, big mistakes happen. If you have rental properties and you have those inside of an S corp, it could cause you a huge, huge heartache as far as hidden taxes that you don’t know about. I won’t go into those because they’re kind of complicated and we don’t have enough time on this podcast to do that.

    Marcus Crigler (13:37):
    But what I will tell you is anytime you’re on a rental property, you’re most likely going to want to have that into what’s called a disregarded entity, which is an LLC that you own 100% yourself or in a partnership. And again, we’re all speaking in generalities here cause I don’t know anybody’s specific situation in that kind of stuff. I got to get my disclaimers there as an accountant. Right. But, but generally speaking, you’re going to want to have those rental properties in a partnership because it gives you more flexibility and it eliminates a lot of the tax traps that you’ve seen in S-corporation with real estate. So just by doing those two things right off the bat, that probably is going to eliminate, I’d say 50% of the mistakes that I’ve seen, especially hidden mistakes that I’ve seen that, you know, I hate to say this, but last year I had a new client come to me this year and just because they didn’t follow those rules, that cost them $200,000 in additional taxes. It is just entity structure, right?

    Marcus Crigler (14:34):
    And just knowing where to put the right things in your business. And so that was not a fun conversation for me to have. And unfortunately there wasn’t anything we could undo about it. But that’s how important it is. Right. So other things that I see quite often, you know, we talk about this QBI deduction and if you’ve been an entrepreneur, and over the last year you’ve probably heard of that. That came in with a new tax code changes. Well, once you reach a certain threshold and get on and go into the details too much here, but once you reach a certain threshold, you have to pay out salaries in your business in order to maximize that QBI deduction, which is 20% deduction for you of all your income. So that’s a huge deal. But if you’re not paying out salaries, if all your, your employees are 1099 and you’re not paying yourself out of salary, you’ve lost that opportunity. And so that’s a huge mistake and it’s a simple mistake to fix. That’s the great thing about it. Those two things are both really, really simple things that can save a ton of money on your textbooks.

    Jay Conner (15:38):
    I got you. So in addition to that, I know you’ve got a free report that you’re going to offer of the audience here in a moment. And that free report I think is titled the three biggest mistakes in 2019 that real estate investors either guilty of or whatever,

    Marcus Crigler (15:59):
    Yeah, the three mistakes real estate investors make on their taxes is, is, and it’s from 2019 I wrote this right after the 2019 tax season was over with and just kind of compiled three big things that I saw real estate investors mistake. Both of those things that we just talked about are all in there. It goes into a little bit more detail about what you need to know about those and how that kind of fix those problems going forward.

    Jay Conner (16:21):
    Alright, well before I ask you another question, let’s go ahead and give out your contact information mortgage as to how people can go get a copy of that report and how they can continue the conversation with you.

    Marcus Crigler (16:33):
    Yeah, absolutely. So the easiest way to reach out to us is Duckettladd.com it’s our website. On the website you’ll have a little button that says, are you a real estate investor? You push that, it’s going to take you to our real estate investment page. And you can see everything you want to know about us as a firm, as far as real estate investors. And on that page you also get the opportunity to get that free guide throw in your email address. We’re not going to spam you with a bunch of stuff. We don’t actually even have an email campaign going, but it’s just so opportunity for us to kind of get ahold of you and reach out to you if we have some cool things going on.

    Jay Conner (17:08):
    Alright, so we’ve got viewers and we got listeners here on the show. So let me make sure I got this right. So your website is www.DuckettLadd.com. Correct?

    Marcus Crigler (17:26):
    You got it.

    Jay Conner (17:27):
    Alright! Super! Well everybody, you definitely want to take advantage of getting on over there to that website and getting that free report. So Marcus, so you’ve got real estate investors as clients, pretty much all over the nation, right?

    Marcus Crigler (17:41):
    Yes. That’s accurate.

    Jay Conner (17:42):
    Right. And so tell everybody where are you located?

    Marcus Crigler (17:45):
    Yeah, I’m in Springfield, Missouri. Which, you know, most people probably have heard of Kansas city, no not there. No where near Kansas city’s at. We’re about two and a half hours South of Kansas city. We’re an MSA of about half a million or so.

    Jay Conner (17:58):
    Gotcha. So let me be the devil’s advocate for a second. So you got clients all over the nation, so clearly you’re going to be able to help people with the federal return. And of course you can coach them and consult them on, you know, the cash flow and saving taxes. But how do you work it when they’re needing to file their state taxes? How does that work?

    Marcus Crigler (18:23):
    Yeah, that’s a great question. So, just as you kind of alluded to, we do have real estate investors all over the, all over the country. So we do have to file a number of state returns. Matter of fact, I believe we have a state return in every state except Hawaii and Alaska, which I wouldn’t mind doing one at Hawaii. I’ll specifically go to that client to see them. But yes, so we have experienced in just about every single state. If we don’t for whatever reason or if we need to learn a little bit more about it, we’ve got a great group of tax professionals that can do a little dig and do a little research plus, you know, to be honest with you, we have a, we pay a good amount of money for our tax software that also helps guide us through these States and these various States in the intricacies of every state, that kind of stuff.

    Jay Conner (19:10):
    Gotcha. Now when you’re working with your clients, you know, with you being there in Springfield, your, you know, your meetings that you have with them, I mean, did you all get together in person or do you have throughout the years, zoom conference meetings or you know, how do you communicate with your clients?

    Marcus Crigler (19:28):
    Yeah, it all depends. Mostly zoom, video conferencing, very similar to what we’re doing here. Most people, that’s their preference anyways. Even if I was in their town, they would rather you kind of sit in their office, in their, you know, in their location that they’re comfortable with. And be on a zoom and we can pretty much accomplish everything possible on that. Longer meetings. When I do strategic planning full days, one, two day meetings, we usually do that in person and that can either be in our, in Springfield, Missouri, we have the ability to host that or sometimes I go out to clients. It just kind of depends on the situation.

    Jay Conner (20:04):
    Excellent. Excellent. Alright Marcus, well we’re out of time for this show, but any parting comments you’d like to share with the audience?

    Marcus Crigler (20:12):
    Yeah, Jay. Well, I just appreciate you having me on here and I hope that you know, we’re in, we’re in 2020 now tax season is here. I hope everybody has been able to do a little bit of tax planning and you know, they don’t have any surprises on their tax bill. And then like I said, I just appreciate you having us on here and I really appreciate what you do for your audience. I think it’s just fantastic that kind of value you give out for free, which is even more incredible. The kind of free value that you give out. I just have certainly respected that

    Jay Conner (20:40):
    You bet, you Marcus. Well, I appreciate you, Marcus. I appreciate our friendship and our time that we have together the mastermind. So everybody, again, take advantage of that free report and reach out to Marcus at www.DuckettLadd.com Well, I’m Jay Conner, the private money authority. Thank you for tuning in. Be sure and not miss out anymore of the episodes we have coming up. So if you’re on iTunes, be sure to rate or subscribe, rate and review. If you’re on one of our YouTube channels, be sure and subscribe there as well. So we look forward to seeing you on the next show. And here’s to taking your real estate investing business to the next level. Bye for now.

  • FAST TRACK TO PASSIVE WEALTH WITH KARL PIERRE

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    Karl Pierre joins Jay Conner to talk Real Estate.

    In 2006 Karl participated in his first real estate transaction and had been growing his portfolio as an investor every since.

    Karl earns over 1,000,000 every month, manages more than 400 workers, and he owns and controls over 15,000,000 in real estate assets.

    To listen to our Podcast, click here:

    Karl Pierre, One Million a Month in Real Estate Part One

    Karl Pierre, One Million a Month in Real Estate Part Two

    ——————————————————-

    Jay Conner (00:10):

    Alright! Hello folks! And welcome as you are coming into another episode of Real Estate Investing with Jay Conner. Apologize, we’re getting started just a little bit late here from when we normally do here today, but we had a little bit of technical issues on getting started up, but as you’re coming in, my special guest today, Karl Pierre. You’re going to love to hear from, he’s going to share with you some insights and strategies that you haven’t heard before. He’s got a very interesting backstory. He’s going to talk with you as my guests about how you can control properties without actually having to raise money. Of course, raising money is near and dear to his heart as well. He raises private money as I do. So as you are coming in, as you normally do on Tuesday afternoons. We love to know who you are and where you are tuning in from.

    Jay Conner (01:05):

    So right below the video in the comment bar, whether you’re on Facebook or you’re on YouTube, go ahead and type in right now, say hello to everybody and where you are tuning in from city and state. I see that we’ve got Paul here saying good afternoon Jay, all the way from Milwaukee. So hello Paul. Hope you’re having a good day and welcome here to the show. And yes, please leave a comment or ask a question as we get kicked off with my special guest. Karl here in a few moments. As we’re waiting for folks to come in. Scott, how about join me here on the forefront here for a moment.

    Scott Paton (01:42):

    Hey Jay.

    Jay Conner (01:44):

    Hello Scott. How’s your day today?

    Scott Paton (01:46):

    It’s another beautiful day in paradise.

    Jay Conner (01:49):

    In paradise, also known as?

    Scott Paton (01:52):

    Metagene Columbia.

    Jay Conner (01:55):

    You know, you’ve been out there for so long now. I can actually, I think I can actually pronounce Metagene.

    Jay Conner (02:01):

    Did I say that correctly?

    Scott Paton (02:02):

    You did indeed.

    Jay Conner (02:04):

    I love it. So what’s the weather like down there, man?

    Scott Paton (02:08):

    It’s a beautiful spring day everyday here. And today is no different. The sun is shining. It rains either at night or early in the evening. So for a very short period of time, so everything is green and clean. And I got a hammock. So on my deck at the back, I now have a hammock that I can be in. So I’m really excited about that.

    Scott Paton (02:30):

    I’m pretty jealous there, Scott. I don’t have a hammock. What do I need to do to get a hammock? Is Amazon still delivering these days?

    Scott Paton (02:36):

    I don’t know. That’s where you can go and get a hammock.

    Jay Conner (02:40):

    Welcome to the show Chris from Salt Lake City. We also have Jameson joining us from Sunny California. Hello Jameson. Welcome to the show coming all the way in there from YouTube. And we’ve got Miss Paula saying “Good afternoon Jay” from Palm Beach, Florida. Hello Paula. Soon as y’all are coming in, go ahead and just comment in the video below and let us know what city and state you’re tuning in from are going to be going officially starting the show here with my special guest, Karl Pierre here in just a moment. So we want you to get your questions ready. Scott, what’s the latest on the Corona’s shut down in Metagene?

    Scott Paton (03:25):

    Well, everything’s closed down. We have one day a week we can go to the grocery store, the pharmacy and the bank. And at from 2 until 3 in other words right now we’re allowed to go for a walk for an hour and I’m giving up my walk to be with you and everybody else and it’s a pleasure to be here.

    Jay Conner (03:47):

    Well, I’m glad to hear that. Yeah, that’s sort of took me back. I was visiting with you yesterday. Yeah. And we were texting or Skyping or whatever and you said. Sorry, this is my one hour that I get to go to the grocery store for the entire week. And I thought to myself, my mother would lose her mind if she could only go to the grocery store one day a week. She goes to Walmart like every day just to get out of the house.

    Scott Paton (04:06):

    I’m the same way. If I had my way, I would go 4 times. Because, well, I grew up working in a grocery store. So the idea of buying all your groceries for a week is totally foreign because I would just pick up a couple of bucks worth of stuff on my way home every day. So this is quite a change for me.

    Jay Conner (04:29):

    Wow. So is there any talk down there in Metagene about them starting to open up things anytime soon?

    Scott Paton (04:36):

    The president started to talk about it and the mayors of all the city said no. And the mayor controls the police. So we kind of do what the mayor says, not what the president says.

    Jay Conner (04:48):

    Oh my lands! Mercy! Alright y’all, we’re getting ready here in just a moment to officially go live with this show and we really want to see where you’re tuning in from. So whether you’re on Facebook or you are on YouTube, go ahead and type in right below the video where you are tuning in from. Doesn’t matter if you’re Facebook or YouTube. Type in. Say hello to us. We’ve got Paul, Chris Jameson, Paula. Yes, Paula, I appreciate you too. And if y’all would do us a great big favor and subscribe to the show here. So that you don’t miss out on future notifications. All right, Scott I’m going to go officially live here as you get us going and I’ll bring our guest in.

    Scott Paton (05:36):

    All ready! Here we go.

    Jay Conner (05:50):

    Well, hello everyone and welcome to another episode here, Jay Conner on The Private Money Authority. I’m your host. And welcome to the real estate investing show where we talk about how to get funding for your deals. How to find deals. How to sell them fast. How to automate your business. And we talk about all things that relate to real estate investing from single family houses to commercial deals, to self storage, to land, to creative ways to buy and control houses by using terms as I said the using private money. And I got a free gift for everybody before I bring in our special guest today. And that is if you, whether you’re brand new or you are a seasoned investor, I’ve got a free online on demand class. It’s less than an hour long, about 15 minutes long and it will teach you and show you and take you step by step how to go from zero funding for your deals to having literally in the millions of dollars available for funding your deals.

    Jay Conner (07:01):

    And as you know, the majority of the real estate deals out there, regardless of how skilled you are with creativity and controlling on terms, the majority of the sellers require all the money and all the cash. So if you want more funding for your deals, yes, right here in the midst of Corona virus. I’ve got more new funding coming to me on my desk than I’ve had in a very, very long time because quite frankly, people are apprehensive and they’re skittish about having or keeping their money in the stock market. And in this world or private money. It’s a safe, reliable, and secure way for people to get high rates of return. So I want you to go right after the show. Get on over to this website and I’m going to show you and teach you the five steps to getting funding for your deals without relying on banks, mortgage brokers, or hard money lenders.

    Jay Conner (07:56):

    And it’s www.JayConner.com/MoneyPodcast. Again, that’s www.JayConner.com/MoneyPodcast. Well folks, I’m excited to have on the show today and by the way, as you’re coming into the show, go ahead and type in your name, your city and state that you are coming in from. We’ve got T Rowe from Florida. We got Greg Ulmer, Hey Greg! Right up the road, mastermind member in Durham, North Carolina. Hello Greg, and welcome to the show. So my special guest from Fort Lauderdale, Florida, and we’ve got folks tuning in today from Florida, Karl Pierre is from Fort Lauderdale. His background is in the healthcare industry. He’s got 20 years of leadership expertise, founding numerous companies in different marketplaces and fields of healthcare, staffing, radiology, home health care, hospitality, and he’s been an entrepreneur. And he’s been a driven chief executive for those number of years.

    Jay Conner (09:10):

    But in addition to that, and why I have Karl here on the show is because back in 2006, Karl participated in his very first real estate transaction. He’s been growing his portfolio as an investor ever since 2006. He really likes the moment family part of the business, 1 – 4 units. He’s getting ready to expand beyond that. But right now Karl earns and grosses over a million dollars every month of revenue coming in. He’s now managing more than 400 workers and he owns and controls over $15 million in real estate assets. So folks, get your questions ready for Karl as I bring Karl Pierre right here on the show. Karl, welcome to the show, my friend.

    Karl Pierre (10:01):

    How are you? Thank you for having me.

    Jay Conner (10:03):

    Oh, well you’re welcome, Karl. I’m glad to have you on and I appreciate you reaching out to my producer there. Scott Paton and as getting you scheduled on here. So your background is in health care. You got a lot of experience in that. But what is it that got you started in real estate investing and got you interested?

    Karl Pierre (10:24):

    Actually, I got started in 2006 out of need. The program that I was in, which was the, I went to Stony Brook university school of health, technology and management. And my concentration was in radiological studies. So that was X-ray CT, MRI, and it was a newer program in the university. And as a result of that, it wasn’t accredited by the university yet. So me and my buddies that were in the school weren’t guaranteed housing once we graduated and we had to do a post-back clinical year just to get our specialty or expertise in the field that we’re going down. And fortunately for us, one of the guys was a loan officer and in those days anybody with a heartbeat could get a mortgage. And we were able to…

    Jay Conner (11:09):

    I remember those days.

    Karl Pierre (11:12):

    We were able to qualify for a single family home. It was $410,000, hundred percent financing, plus 6% for closing costs and all the incidentals. On our student income which was absolutely crazy, but our idea was very simple. It was just to occupy the property. You know, it was a four bedroom, three bath house with a full finished basement and the living room, dining room done. So with all the extra space that we could convert into bedrooms. We did. And then we started renting out those additional rooms, to our classmates. And that first property we’re able to collect just a little over $6,000 a month in income and realize that, you know, there’s some money to be made here cause we weren’t the only ones. So we started to buy additional properties immediately adjacent to the university within walking distance and…

    Jay Conner (12:15):

    now if you had been renting that single family house out traditionally as a traditional landlord tenant relationship and you rented it out by the month just to a family, what would the monthly income have been instead of 6,000, whereas you rented it out by the room?

    Karl Pierre (12:35):

    At that time about 3000 – 3500.

    Jay Conner (12:40):

    So you’re able to double. At somewhere around double your revenue by renting out the rooms instead of renting out the house, right? How did you come up with that idea?

    Karl Pierre (12:49):

    It wasn’t an idea. It’s how are we going to pay for the mortgage?

    Jay Conner (12:55):

    In other words, necessity’s the mother of invention, right?

    Karl Pierre (12:58):

    Yeah. It wasn’t like this brain child. At that point, I already had my staffing firm and I got pulled into the deal that way because I had enough cash on hand to put down the binder requirement, which was 8,500. So I had the need for housing. Everybody had the need for housing. The loan officer came with the idea and even came with the house and said, Hey, you know, I think this house would work. So the only thing was that we were missing that binder amount to actually lock up the property and binding contract, even though we were closing with, you know, 106% financing. So that was my contribution at that point. And I also had some experience working in construction. One of my best friends, his father was a contractor. He’s the buildup Abercrombie and Fitch stores.

    Karl Pierre (13:44):

    So I was able to kind of say, all right, well this room could be sectioned off into a bedroom by just adding a door and it’ll cost X amount of dollars. So that was my input. And then in exchange for that input, I got free rent for the year. And then it just kind of evolved out of there. It’s like, alright, well initially we had seven bedrooms before we did the basement, it was seven. So that was 4,200, cause we were doing $600 per room. And once we added the additional three bedrooms we now got 10 rooms out of the house. And that’s how we got it up to 6,000.

    Jay Conner (14:23):

    You know what marketing principle you started applying when your first real estate investing project, right?

    Karl Pierre (14:29):

    No clue.

    Jay Conner (14:30):

    Yeah. You were buying it by the gallon and selling it by the squirt. I love it man. So I’m intrigued with that business model. I’ve got a couple of other friends that do that model on a consistent basis, but I don’t know many that actually focus on it. So how did you manage that? Did you collect from all different tenants? Or did you have one person that was responsible for the utilities and all the rent and then they had to collect from everybody else?

    Karl Pierre (15:07):

    No, we would collect from the tenants and manage all utilities and all.

    Jay Conner (15:11):

    Because you were living there, right?

    Karl Pierre (15:13):

    Yeah, we were living there and then when we started getting the other properties, it was three of us that were instrumental into the management of the properties. So my area was always the maintenance side of things. So there was damage or anything that needed to be built out or adjusted. I took care of that. One of our friends who’s like a stickler for, he’s like, just like the cheapest guy on the planet. He was responsible for all collections and payments and another one that was responsible for showings and building the interest in marketing the properties. So we each took our respective roles and just manage everything and we made it in a way where, you know, Internet’s included. A lot of students would leave behind their furniture. So furniture was included as long as they wanted to use the furniture that was there. Electricity is subdivided by the room so everybody pays their equal share of electricity and we cover like heat and water.

    Jay Conner (16:08):

    How did you find your tenants for that first property?

    Karl Pierre (16:12):

    The first it was mostly myself, my fraternity brothers. And then..

    Jay Conner (16:19):

    So it was word of mouth because you were there living on the campus, right? [Yeah]

    Karl Pierre (16:24):

    Word of mouth at first and then it moved to Craigslist after that.

    Jay Conner (16:27):

    Aha! So that was your first property, you know, renting it out by the room. So what happened next in your story of growth in real estate investing?

    Karl Pierre (16:39):

    The market crashed. And anybody who’s been investing for the past 15 years. They know that pain. The market crash and these loans stopped, they stopped existing. And you know, fortunately since I was already investing, my ears were open to any kind of opportunity that existed. And I went to one of these like a flip that house seminars, I forgot which guy, I think it was Tim Merrill. I went, I went to that seminar. And you know, those are really, I don’t like them too much. And because their format is the kind of get you excited. And then up-sell you. And then up-sell you again. Until they milk you for all your capital. So I got upsold once to the weekend program and that didn’t work out. And then I was just kind of touring seminars to kind of get information cause everybody was, you could buy properties with no money.

    Karl Pierre (17:39):

    Right? You don’t need any money, you don’t need anything. It will teach you how, and we no longer had money because all of the lending facilities that were used to, dried up. But I did go to one conference that was held by National Grant Conferences. I’m not sure if you’re familiar with them. Cause they’re pretty scammy as well. But I did get some useful information. So their package was, what they did was that they actually condensed every state and federal loan and grant into one book. And they sold you the book plus I guess like a consultant that will teach you how to fill out the applications. So I said, okay, I have this healthcare company, I have a nonprofit as like, and I’m interested in real estate. So there’s going to be something in this book, this magical book that they were selling for $2,000.

    Karl Pierre (18:28):

    So there’s something in this book that I’m going to learn that I can apply. And in that book I came across the FHA 2O3K loan program and this was in the fall of 2008. Obama had just gotten elected. And I came across this loan program. Now remember everybody else who was doing mortgages prior to them had all, you know, so many different programs out there that when I started contacting banks, they were telling me that they’ve never heard of this FHA 2O3K loan program. Until I came across Wells Fargo and someone there was, knew that they were offering it and they were the ones who originated the debt.

    Jay Conner (19:08):

    Go ahead and tell it about what that program is?

    Karl Pierre (19:11):

    Okay. So the FHA 2O3K loan program is a federally backed mortgage program that allows you to purchase real estate as a first time home buyer. And that’s like a flexible term. But a first time home buyer with only 3.5% down. And right now the minimum credit score is 640. Pre-corona virus was 620. And they’ll let you finance the entire renovations of that project. So you’re able to get those distressed, you know, foreclosures, short sales, things that traditional lenders won’t lend on. You’re able to use this program with 3.5% down to buy these dilapidated properties and price in your renovations. And there is not many programs out there like that because the cash requirement to start is so low and also the credit requirements. And they also include, they force you to use a consultant. Who’s there to kind of mitigate between you and the contractor to protect you from getting burned. And the really cool part about it is that a lot of the hard money lenders function almost in the same way. So it really prepped me for moving into hard money, which is how I finance most of my purchases today.

    Jay Conner (20:26):

    Right. So did you get an FHA 2O3K loan on a property?

    Karl Pierre (20:31):

    Yes, I did.

    Jay Conner (20:33):

    Alright, well tell us how that went.

    Karl Pierre (20:35):

    So in 2009, the reason I segue into the Obama election is that 2009 was the low of the market. And at the same time they were announcing a first time home buyers tax credit, which was $8,000. And the property that I purchased was 300,000 I bought it from an older couple that was retiring and moving South. It was 300,000 and the property’s value was around 420 when renovated. And I priced out that it would cost me about 70,000 to fix. So I got that property, my 3.5% was just a little over $10,000. And after I closed, within a few weeks, I got $8,000 back in the form of a tax credit. And I rolled into my closing costs. So like my out of pocket cost to get that property was around $5,000. And then I was able to do the renovations with our property and then get it rented out to college students once again. And I remember when I bought that program, telling myself, you know, I felt like an idiot cause I felt scammy and I was like, I’m going to find something in here that I recouped my $2,000 on. And by July of that year of 2009, that property was already obviously fully occupied and cash flowing. And I also own that one until this day. So I’ve recovered way more than $2,000 on that little bit of information that I got out of that book.

    Karl Pierre (22:03):

    Oh-oh…

    Karl Pierre (22:35):

    Well, I still seem to be in the show according to this. But it looks like Jay has cutout. You got me, Scott? I don’t, you know.

    Scott Paton (22:52):

    You’re still in the show. Jay is gone. I muted myself and I always talk when I’m muted.

    Karl Pierre (22:58):

    Okay. So you want me to hold tight for him or I can continue with that story at least to give him some time to get.

    Scott Paton (23:05):

    Yeah! Let’s finished that story off.

    Karl Pierre (23:07):

    Okay. Sorry about that. So essentially with that program, I’ve been able to, you know, pay down that house now for 11 years. So on a 30 year mortgage. I lived there for a year because that’s one of the requirements of the FHA 2O3K loan program is that it has to be owner occupied. So I was right out of college. I didn’t care living with the college students. I had a room in the basement. And lived there until I got another property. And then moved into that one.

    Karl Pierre (23:38):

    So I think for people who are interested in investing in 1 to 4 family homes, especially like 3 and 4 family homes and you haven’t gotten started before and you have a limited amount of money, be FHA, 2O3K loan program or even the FHA programs are great because with the FHA program, you can get in for that 3.5% down and if you have a four family, you’re able to live in one unit and in most cases the revenue from the other three units would fully pay for your asset and allow you to cash flow. I used it in a single family home scenario where I was still living there and renting out to college students, but for someone who’s like not quite ready to live with college students, cause that’s a different way of living. If you’re not ready for that, I highly recommend that program on like the triplexes and fourplexes out there because you can buy up to four families with 3.5% down. To me that there’s, I know there’s some VA loans that you get in for 0%, but if you’re not a veteran or you’re not working for the armed forces, I think that’s one of the best programs you can get yourself. Get yourself into to get started.

    Jay Conner (24:52):

    Karl, thank you for keeping the show going. I lost internet connection but it looks like I’m back now. Everything good on my end right?

    Karl Pierre (25:00):

    Yep. I hear you loud and clear.

    Jay Conner (25:02):

    Excellent. Well thank you for getting the story going. So did you just share with everyone about how you got into multifamily and how you funded that?

    Karl Pierre (25:11):

    Into, actually I don’t get into more than one to four units, but what I do get into like twos and fours and singles. So that’s, my portfolio is mostly single family homes. I do also have a coworking space, which is commercial. And that was born out of need once again. And it’s kind of the pattern that I follow is create what I need. So a big piece of my portfolio is that, I have a 11,000 square foot space in New York, New York right across the street from the iconic Macy’s building. And that started out as just a small project getting office space because I was in a coworking space and I didn’t like the landlord and I felt, you know, I have enough experience. I have a little money behind me, I might as well do this myself. But I’m looking personally to get into multifamily development because that to me, that’s the natural next step for me to start accelerating my portfolio beyond what it is now.

    Jay Conner (26:19):

    I got you! Now I know you’re into raising private money like I am. You were sharing your story about the crash 2008, 2009. That was actually my biggest blessing in disguise, was getting cut off from the banks with no notice in January of 2009 and like you out of necessity, I had to find a better way and quicker way to get my deals funded. I learned about this wonderful world of private money and since that experience in the third week of January, 2009 I’ve never missed out on a deal because I did not have the funding. So I’ve got one last question for you before we call it a wrap on the show and then we’ll let everybody know how to continue the conversation with you and to get in contact with you. But in your experience of raising funding for your deals, what do you consider to be the most consistent problem that people run into when they are looking to raise money for projects?

    Karl Pierre (27:18):

    Lack of experience and a lack of being able to get investor confidence, I would say is the biggest issue.

    Jay Conner (27:26):

    And how have you fixed those two problems in your experience?

    Karl Pierre (27:30):

    With me was, really just talking to more people, right? And waiting until somebody was either interested in supporting, you know, what I had going on, cause I already had a few properties. So I was able to show, look, this is one college property, that’s how much it costs, how much it rents for. This is the spread that I make. I haven’t had a vacancy in X amount of time. I’m going to repeat the same, you know, up the street. So I had some traction already that made it easier and made it more palpable for people to be interested in. But for someone who is completely green, you’re going to have to be able to communicate that you know what you’re doing and that you’re going to be able to execute some way somehow. Either you have relevant experience cause you’re a contractor or you’ve been in property management or you’re a real estate agent and you’re very familiar and you’ve negotiated a great deal. You’re going to need to be able to present to your investors that you’re the person to execute. And you’re the person to not lose money. Right? If you can’t do that, you’re never going to raise, you’re never going to raise or unless you keep working and you find someone who just doesn’t know better, but chances are they don’t have much money if they don’t really know how to assess good from bad.

    Jay Conner (28:50):

    Yeah. So given your expertise and your experience so far as a real estate investor, what would you say in this world of real estate investor you are really, really good at and set you apart?

    Karl Pierre (29:05):

    I think I’m really good at kind of seeing the realistic need that exists in an area. I remember like in 2012 the market was just starting to turn in New York and people start to get a little more confident. And I started looking at where can I invest that isn’t as costly as Brooklyn and Manhattan, but offers the same value as Brooklyn and Manhattan for people who are commuting. And so I started just following the train lines into the Bronx, into New Jersey, Northern New Jersey, Newark. And I started to see that, you know, prices were like, you know, in New York city to get property for like a hundred thousand dollars per unit just doesn’t quite exist anymore. But then you could in the Bronx, meanwhile, something in Harlem, which is in the North side of Manhattan, which is demographically the same as the Bronx, same commuting time properties were selling for anywhere between $400,000 and $700,000 per unit.

    Karl Pierre (30:08):

    So it’s like, just take a different train for the same amount of time and it’s, you know, 17 minutes to Grand Central Station. Why is this property only value at a hundred thousand dollars per unit? It doesn’t make any sense. So for me, I can kind of look at an area and make sense of where’s the value for the people who are gonna be occupying the space. And how much are people going to be willing to have that access to the highways, those sorts of things. Access to public transportation. So I could kind of look at an area and know that it has that upward potential or people will start to kind of relocate from the more expensive side of town to the more affordable side of town because it offers similar, you know, amenities or similar access to their workplace. So I think that’s where I excel.

    Jay Conner (31:02):

    Excellent. Well, Karl, thank you so much for taking the time to be with us. We’ve had more people join us you know, starting to show we got Derek from Maryland. Welcome to the show, Derek! Karl I’m sure we got some folks that would like to continue the conversation with you and what is the best way for folks to be in contact with you and reach out to you?

    Karl Pierre (31:25):

    I would say the best way would be my YouTube channel, which is ENTPlife. Which ENTP is my personality type. It’s not the entrepreneur’s life. People think that. But it’s my Myers-Briggs personality type. And there I mostly talk about real estate business and all the other things that I’m interested in, but it’s heavily focused on how to create a business. How to organize your business. How to approach real estate investing from the newbie to maybe even the more seasoned investor. And I also am launching a program called Killing the American Dream, which allows people to get, you know, 14 hours of direct education and the opportunity to invest in learn so you would invest alongside me in a deal. I think that’s the best way to learn how to invest in real estate is actually to participate in the deal. So rather than pay for education, you get your education for free and we both make money. It’s not just kind of this money grab that I was used to experiencing when I went to seminars. I designed it that way just to, to actually offer something that was different.

    Jay Conner (32:31):

    That’s fantastic. Now do you have a URL that’s www.entplife.com

    Karl Pierre (32:38):

    yes, I do.

    Jay Conner (32:40):

    Excellent. So that’s your URL and you also have your YouTube channel.

    Karl Pierre (32:43):

    Yep! Same handle.

    Jay Conner (32:46):

    That’s excellent. That’s excellent. So Chris just tuned in and said “Thank you Karl” he has subscribed to your YouTube channel. So that’s awesome. Alright, Karl one last comment and I’ll let you go. What’s the number one best piece of advice you can give to a brand new real estate investor?

    Karl Pierre (33:10):

    Do a deal. That’s the best advice I can give you is do a deal whether the deal works out and you were lucky and you made money on that deal. Awesome. You made money and you got your feet wet. If the deal is a horrible deal and you just didn’t take the proper precautions. You’re gonna learn a painful lesson, but you’re gonna also still see that there’s immense value there and what you could do better.

    Jay Conner (33:38):

    Yeah, I would compliment your advice for one piece. Do a deal with a seasoned investor that’s already been through the mines, hence what you all for what you offer Karl where someone could work with you. Karl, thank you so much. I appreciate you being on the show. My friend.

    Karl Pierre (33:59):

    Not a problem. Thank you Jay.

    Jay Conner (34:01):

    And thanks to everyone. Thanks everyone for joining. Be sure and subscribe, rate and review. If you are tuning in now from iTunes, you may be on iTunes listening to the podcast or you maybe listening to Google play. If you’re watching on one of our YouTube channels or Facebook, be sure to subscribe and like and review and leave a comment. 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.

  • How to Build a Passive Rental Portfolio with Lane Kawaoka

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (22:17):
    You got it. Lane, thank you so much for coming on and I’ll see you soon. Well there you have it folks. Thank you for joining in for another episode. I’m Jay Conner, The Private Money Authority, wishing you all the best and here’s to taking your real estate investing business to the next level. We’ll see you on the next show. Bye for now.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Fred Rewey on Real Estate Investing Minus the Bank

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (11:29):
    All right.

  • Cory Boatright on Real Estate Investing Minus the Bank

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Cory Boatright (10:10):
    Awesome.

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

    Jay Conner (10:17):
    Okay.

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

    Jay Conner (10:23):
    Okay.

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

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

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

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

  • Jim Zaspel on Real Estate Investing Minus the Bank

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jim Zaspel (08:03):
    Yes.

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

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

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

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

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

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

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

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

     

  • Nate Hare on Real Estate Investing Minus the Bank

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    Nate Hare (00:00):
    So, back to what I was saying, if there’s any Quest clients out there or potential Quest clients you know, I’ll say this about the gentlemen on the call here is that ever since I moved to Texas about eight years ago and started working for quest dress company, I’ve run into, you know, a lot of different people, a lot of different educators and talk about all different types of ways to invest your money in your retirement money, real estate, non real estate notes, all sorts of things. And I think I met Jay, gosh! Probably it year two into the, into my move. So we’ve known each other for I would say probably six years ran into each other at other people’s events. And we’re familiar with each other. Jay used another self directed IRA company that shall not be named back in the day.

    Nate Hare (00:52):
    But it was only always friendly, always cordial. And one thing that stood out to me about Jay is that he brought so much energy into the room when he came in to talk about using private money with retirement accounts. And even today when I go to events, there’s nobody that comes in with the amount of energy to talk specifically about that topic. And obviously that means a lot to us because we’re self directed IRA company. We have a lot of people that like to use their retirement accounts to land. And we have a lot of people that like to borrow private money from our clients accounts. So I knew right from the get go that at some point me and Jay would cross paths and hopefully work together. And ever since we’ve started working together, I’ve had a phenomenal time, you know, coming to your events, I got to say, I look forward to going to your events getting me out of the city of Houston and going out to MRI and is just a wonderful experience.

    Nate Hare (01:56):
    And every time I go out there, I meet not only new investors but repeat students of Jay’s that continually go to his events because they know they’re going to get great content. They know they’re gonna have great networking and if the atmosphere is just second to none. So if you are looking for another opportunity to network with a group of investors, I think Jay Conner’s group is one of the best out there. Very caring people, very knowledgeable. And they speak the same language of all of us at Quest. So if you have not been to one of his events, I highly urge you to come to his events. We’ve got the free events that are coming up. I’m sure you’ll share some details on that. We’ve got three live events that are coming up and they all lead to a three day event. You know, not too long after that, but hopefully we’ll get back to the days where we can meet face to face and do some events. But Hey, it is what it is. And if you can

    Jay Conner (03:00):
    take part in Jay’s free education and you know, the three day event, I would highly urge you guys to take part of that. Well, I’ll tell you, Nate I mean data is right back to you. I love you all the quest people, you all come from that space of having a servant’s heart. And I know that’s why you know, we hit it off, you know, ever since day one you know, you’re at all of my live events. These three free events that we’ve got coming up are all virtual and it’s going to be for your people, all of your Quests subscribers and followers, they get to come absolutely for free. And these are all big advanced virtually, you know, right here on the internet. We’ll be live streaming them just like we are here. But the first Friday is going to be Friday, May 22nd.

    Jay Conner (03:51):
    The second Friday is going to be May 29th and the third Friday is going to be June the 5th. Now, all of this training all day long from nine to five. Of course you’re going to be joining me there as well. You’re going to be there on the virtual events. I’m sorry, [I wouldn’t miss it]. There you go. And so all of this training folks is going to be centered around how to not only survive, but how to thrive in the midst of uncertain times. And I’ll tell you folks, whether it’s Corona virus or something else, there’s always going to be uncertain times coming around the corner. So how can you thrive in the midst of Corona virus? And even more importantly on the other side of the Corona virus. Because even though our country is starting to open up to some degree, the effects of what we’ve gone through here are going to be lasting for quite a while.

    Jay Conner (04:53):
    So let me tell you about these three free Fridays. So the first Friday is going to be centered around private money. How to get funding for your deals, working with people that have self directed IRA accounts or we’re teaching people about self directed IRA accounts. Y’all got 48 individuals, over half of them use their retirement funds at Quest. And none of them knew about self directed IRAs until I told them about it. And so I’ll be showing you how to put your teacher hat on and educate people about how they can use their retirement funds to actually invest into real estate. And if not, get you know, tax-free at least get tax deferred returns and do all this with no penalties but the IRS. So anyway, not only self directed IRAs using private money, but how to work with other people and locate people that have existing investment capital to fund your deals.

    Jay Conner (05:56):
    It’s got nothing to do with your credit, nothing to do with your verification of income, nothing to do with your experience. These three Fridays night are going to be for people that are either new real estate investors or seasoned real estate investors that are looking for more funding for their deals. So again, that’s the first Friday where we focused on private money and I’ve got even more private money coming to my desk right now in the midst of coronavirus. And shut down the people who lost a lot of money in the stock market and they’re looking for a safe, reliable, and secure way to get high rates of return safely and securely. The second Friday, again, all free for the quest followers, IRA. The second Friday is going to be focused on foreclosures. Now, as you all know, foreclosures have been put on a stay they’ve been shutting down as well, but as my grandmother would say, all they’re doing is saving up spit.

    Jay Conner (06:56):
    That stuff is not going away, and when they open it up, there’s going to be a way of not only foreclosures of people that were already in it prior to Corona virus, but you’ve got all these millions of people that have been laid off, they’re unemployed, and so now that’s going to be even more foreclosures. Well, I’m going to be teaching all day how to locate these deals. These are these people that are going through this time and serve them, how to help them in the midst of their crisis and also how to profit from that as well and create win-win scenarios. The third free Friday on June 5th is going to be about what I call, how to locate free private money. Some of the teaching, a strategy that day on how you can fund your deals without actually having to borrow any money. So anyway, those are the three Fridays. And Nate, I’m looking forward to you being there with me during this training and we’re going to get a ton of value, a lot of content to your Quest followers and subscribers. And we’re going to have a great time.

    Nate Hare (08:08):
    Well, and can I add something? Is there’s a lot of people that have offered free days and free education and even do it, you know, over a three day period. I was actually surprised when Jay said that it was a different topic each day. So that’s something that’s a value to anybody out there. Because if you watch day one, day two’s going to be different and day three is going to be different and everything has its own educational component to it. So, and I’m sure absolutely sure that if you join in on any of those days or all three, you’ll walk away with some golden nugget or some learning, token that you didn’t know beforehand. So you know, why not? It’s free. Great people, great education and the content going to be different each time. So I think it’s awesome.

    Jay Conner (08:56):
    So folks, if you have not registered yet, go ahead and get registered. You may be watching the, in fact here is the registration link right now. You can go right now to www.JayConner.com/Quest2020. Getting right on over there. You want to get registered now because I know we will fill up. Nate,Thank you so much for having me here on this on this short video to talk about what we got coming up. And I always look forward and love doing events and now virtual events with you. Well, thank you and appreciate all the support and I look forward to the events. Can’t wait. All right, man. Thank you.

  • Foreclosure Training Real Estate Investing

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    Jay Conner (00:00):
    Hello, I’m Jay Conner, known as The Private Money Authority and I want to let you know about this absolutely free, one day training that we’ve got coming up. It’s called “How to Make a Fortune in Foreclosures?” And here’s what it’s all about. Well, you’ve got 2 audiences out there that really need our help. We got 30 million people that have you know closed the small businesses. It’s not essential. I got over 30 million people that are on unemployment and there’s a huge opportunity to make a fortune in foreclosures. First of all, there’s going to be a ton of people that since they are used to living paycheck to paycheck, they’re not able to make their mortgage payments. Well, the mortgage companies are going to be calling the bill due and the people are not going to have the money to make the payment. Therefore, there is my crystal ball.

    Jay Conner (00:50):
    We’re going to be an avalanche of foreclosures coming up. That’s going to be a huge opportunity for you to help a lot of people that are facing foreclosure and get paid a lot of money to do it. I’m going to show you step by step exactly how you can do that and serve a lot of people and make a lot of money. Secondly, we’ve got people that are going to be looking for a home after this Corona virus is over, and I’ll show you how to be able to help them people creatively, so it’s absolutely free all day training. You want to get right on over to JayConner.com/Fortune. That’s JayConner.com/Fortune and learn when the training is and how you can register absolutely free! I’m Jay Conner, the Private Money Authority. Looking forward to seeing you on the all day free training.

  • Case Study: The Tom Mann Road Deal

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    Scott Paton (00:00):
    So in 4 minutes, are you going to tell us about a deal that you’ve closed recently?

    Jay Conner (00:06):
    I hope you and your editor can go in and like snag these little stories, right?

    Scott Paton (00:12):
    This is why I’m asking you these things.

    Jay Conner (00:16):
    So let’s see here. A recent deal. Well, let me put on my thinking cap. Let’s see here. Well the crew and the contractors working on, a yes! So okay, so we just started rehabbing this house last week, small house in a Newport and it’s probably only got like barely a thousand square feet. So this was how I found the deal was an ad, an actually I paid ad on Facebook that I was running. And it’s a picture of the ad is a picture of me where they yellow bandit sign in front of me, in front of my picture and I’m holding this bandit sign and it says, full price for your house.

    Jay Conner (01:02):
    [Wow!] And the phone number. Right? And so, there’s a picture behind me or I’m standing in front of, you know, some houses, et cetera. So the daughter of the elderly lady that was living in this home contacted me from this Facebook app and I was contacting my acquisitionist. And so the story is this lady that was living in the house, she had been living in this home for like over 30 years, maybe 40 years long time. And she gotten to the point that she just could not keep it in the house anymore and she was needing to go move into an assisted living somewhere. Which of course, thank goodness when I bought the house corona virus has not shut everything down. And so she contacted us and the after repaired value on this home is approximately $140,000. I bought it for $52,000.

    Jay Conner (02:11):
    But it is about a $30,000 rehab. So $52,000 purchase, $30,000 rehab. We’ll have between purchase and rehab. 82,000, but still, yeah. The after repaired value right over 140,000. The reason the rehab is so much is because we’re actually moving rolls around and opening up the kitchen. And making it larger. But here is the interesting part of this story as to why I got the deal. An actual competing real estate investor, and there aren’t many of them around here, a small area, but an actual competing real estate investor offered five more thousand dollars than I did. So how is it that I got the deal? Two ways you see, as long as you can understand where the seller is coming from and what their motivation is, you’ll get more of your offers accepted. You see, I knew this lady had no where to move.

    Jay Conner (03:12):
    She was going to need to move, but she hadn’t even gotten any plans together on where to move. So here was my offer. I pay her all cash. I was free and clear so there was no way to buy such do the existing note. So I paid her all cash with private money, closed on the deal, and my offer was, I’ll pay you $52,000 but you can go ahead and get all your money now and you can live in the home for free for two months after we closed. And give yourself plenty of time to find, you know, somewhere that you would want to move to. So that gave her the cash flow, gave her the money and cash in her pocket so she could, you know, move on with you know the rest of her life and still stay there in her home for a couple of months. It was because of that offer we got the deal accepted.

    Scott Paton (04:12):
    Yeah. So it’s not always only about the money?

    Jay Conner (04:16):
    That’s right. That’s right. In this case it was getting the money quicker cause I told her she could have all of her money in seven days. [Right.] So getting all the money, getting it very, very quick, and then allowing her to live there for a couple of months.

    Scott Paton (04:31):
    And what was the after repaired value again, Jay?

    Jay Conner (04:39):
    140,000.

    Scott Paton (04:39):
    Cool! So 52 for the house, 30,000 to fix it up and you’re going to sell it for 140. [Correct!] So you can make your usual profit.

    Jay Conner (04:51):
    Exactly! On a small house [on a small house.] And of course we were able to buy it. So such an undiscounted process where there was no mortgage. It was free and clear, no mortgages on it.

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

    Jay Conner (05:15):
    Yep. Yeah. This is the Tom Mann Road House, the Tom Mann Road House.

    Scott Paton (05:33):
    Just to make sure I got that right.

    Jay Conner (05:35):
    Two Ns, sorry, M A N N to be exact. That account will shoot Corey a text and tell him we are ready when he is.

    Scott Paton (05:53):
    So Jay, it would seem, you would seem pretty obvious that housing prices are not going to be going up for the next little while.

    Scott Paton (06:06):
    Well actually they are! According to a Wall Street Journal that article I read last week and here’s why. You got a lot of people that had their home in the middle of a listing service for sale and now a share of those people are fearful and don’t want people in their house. They take their house off the market and now you have a smaller supply and when you got smaller supply of houses, prices goes up.