In this exclusive session, real estate powerhouses Jay Conner and Joe McCall revealed their secrets to achieving wealth and time freedom through real estate. They discussed the art of attracting Private Money and shared strategies for creative financing and marketing in the lucrative world of vacant land.
With real-life examples and valuable insights, they unveiled the keys to successful deals and navigating the ups and downs of the market. Get ready to revolutionize your real estate game and unlock the potential for financial freedom.
Here are three key takeaways for aspiring real estate investors:
1. Private Money & Creative Financing: Joe McCall’s experience in raising over $100,000 in private money for real estate deals serves as a testament to the power of networking and creating win-win scenarios for private investors. With a focus on owner financing and subject-to-deals, Joe emphasizes the importance of making deals attractive to secure private money and prioritizing investors’ interests over one’s own.
2. Vacant Land & Creative Selling: Joe McCall’s expertise lies in vacant land investment, where he leverages direct seller marketing to buy land at a discount and creatively sell it for profit within months. His strategies for pricing aggressively, using owner financing, and partnering with land investors reveal the potential for lucrative deals in this niche market.
3. Mindset & Resilience: Jay Conner and Joe McCall’s discussion on navigating financial challenges during market downturns highlights the importance of resilience and prioritizing genuine interest in others to attract private money. Their experiences serve as valuable lessons in managing setbacks and prioritizing the interests of investors to sustain long-term success in real estate investing.
If you’re looking to delve into the world of real estate investing, particularly in vacant land and Private Money acquisition, this podcast episode holds a treasure trove of actionable insights and valuable strategies.
Timestamps:
0:01–Raising Private Money Without Asking For It
6:12–Raised funds for real estate through networking.
8:27 – Short sales, foreclosures, bankruptcy scare, investor repayment.
13:11–Real estate investment conversation engagement and takeaway.
14:15 – Show interest, practice elevator pitch, land investing.
17:41 – High demand for scarce land with good cash flow.
21:10 –Borrowing for property investment is easy.
24:48 –A Friend’s sudden inheritance leads to a property sale.
29:16 –Filter, zoom, analyze – find ideal property.
32:22–Borrowing money for potential investment plans.
36:27– Florida Scrub Jay nest protection is costly to sell.
38:12 – Seller’s financing for a property development agreement.
41:35 – Negotiating a property sale with an option agreement.
44:24 – Connect With Joe McCall – https://www.SimpleLandContract.com
45:01 – Buy for $5, sell for $15. Easier deals.
46:27–Jay’s Book: Where To Get The Money Now:https://www.JayConner.com/Book
Connect With Jay Conner:
Private Money Academy Conference:
https://www.JaysLiveEvent.com
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #PrivateMoney #FlipYourHouse #RealEstateInvestor
YouTube Channel:
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
https://podcasts.apple.com/us/podcast/private-money-academy-real-estate-investing-with-jay/id1377723034
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https://www.facebook.com/jay.conner.marketing
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Real Estate Mavericks: Joe McCall & Jay Conner’s Favorite Creative Financing Strategies
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, your host. And my guest today is a good friend of mine. We’re in Masterminds together, and he’s raised 100 of 1,000 dollars of Private Money for his deals. He is a real estate investor. He is a creative financing consultant and outsourcing and marketing expert. In addition to that, he’s also an expert on flipping properties remotely. And he’s gonna tell you all about how to virtually lead do land deals as well.
Jay Conner [00:00:35]:
He’s the host of a very, very popular podcast by the name of The Real Estate Investing Mastery Podcast. And he’s also the author of 4 different real estate investing books. Now my friend and guest know what it feels like to be stuck. If like, you know, have you ever felt like you can’t get any traction when it comes to your income or your lifestyle? Well, he was their friend and he knows that there is another way. His life changed completely when he discovered real estate investing and lease options. Now his 3 keys to business success are marketing, automation, and delegation. Like myself, he’s an avid family guy and nothing quite frankly is more important to him than God and family. I had my guest on a few months ago.
Jay Conner [00:01:26]:
We were gonna talk about real estate, but we got so much into talking about spiritual things and, Christianity and God and family that we didn’t ever really get around to real estate. Well, we’re getting into real estate today in the next few moments. In just a moment, you’re going to meet once again my friend and guest, mister Joe Mccall, right after this.
Narrator [00:01:49]:
If you’re a real estate investor and are wondering how to raise and leverage Private Money to make more profit on Every deal, then you’re in the right place. On Raising Private Money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:02:18]:
Well, Joe, welcome back to Raising Private Money.
Joe McCall [00:02:22]:
Hey, Jay. How are you?
Jay Conner [00:02:24]:
I am fantastic. So good to see you again. Thank you. You’re looking fantastic again since you went through your health challenges earlier in the year and all that. And so how are you feeling?
Joe McCall [00:02:36]:
I’m feeling much, much better, Jay. Thank you so much. I am, yeah, feeling great.
Jay Conner [00:02:42]:
Good. Good, good, good. Well, I’m looking forward to seeing you soon, also in one of our upcoming Mastermind Meetings. Well, as I promised in my introduction, let’s go ahead and dive into the show and dig into this thing called real estate investing and how you go about doing it. In the 1st few minutes, I’d like for us to talk about your experience in Raising Private Money. I know you’ve raised 100 of 1,000 in the past in Private Money and what that looked like, what your experience was, and how you went about doing it. And then I want to segue right on over into your expertise piece in what you’ve got going on these days. First of all, Private Money.
Jay Conner [00:03:22]:
It’s been my experience, Joe, with myself, and many of my other guests that have raised Private Money, that what happened was they just fit and wake up one day and say, you know, I think I’ll go raise me some Private Money. Typically, there was an event. Friend. There was something that happened in their business that caused the real estate investor to say to go learn about Private Money because there was a need there. What’s your story as to what it was that triggered you to raise Private Money in the past?
Joe McCall [00:03:59]:
Well, before I forget, I was thinking of this while you were saying this. It’s always important to dig your well before you’re thirsty. Right. And so it’s so important to get a book like yours or to get a program like yours that teaches people how to dig their well to get their Private Money before they need it. Right? So that’s an important thing to understand, dig your well before you’re thirsty. But at the time, I was, man, I was doing a lot of owner financing deals and subject 2 deals. Now subject to deal is a thing where you’re taking over an existing mortgage. Okay? Hopefully, there’s not a delay on my microphone.
Joe McCall [00:04:44]:
It looks to me, but that’s alright. No big deal. I’ll just talk.
Jay Conner [00:04:47]:
No. You sound great. You sound great.
Joe McCall [00:04:48]:
Okay. Alright. Good. Then, I was doing a lot of subject twos where I was bringing mortgages current. So in other words, the mortgage might have been behind 3 months. They’re about to go into foreclosure, and I needed to bring in $5,000 to get the loan current. I needed to bring in There was some equity in the deal. The seller wanted $5,000 to walk away from the deal, and it needed about $5,000 in repairs.
Joe McCall [00:05:17]:
So I had to bring in $15,000. And so, at the time, I had a coach who was talking about, Listen. If you get a good deal, the money will come. The money is easy if you have a good deal. And so I realized that the most important part of this was finding a good deal where it made sense. And so at the time, when I was borrowing Private Money, I made sure my private investors In okay. Because I hope I’m not getting too technical here, but the mortgage that was already existing is in the first position. Right? And so when I put in a private investor into the deal, they were in 2nd position.
Jay Conner [00:05:55]:
That’s right.
Joe McCall [00:05:56]:
Now I always made sure that my private investors Never, I never borrowed more than 80% of the total value of the home.
Joe McCall [00:06:05]:
So I still had 20% equity in there to protect my private investor. Okay?
Joe McCall [00:06:12]:
So I had a good deal, and, I needed $15,000 to get the loan current, to give the seller some cash so they could walk away, and to put into some minor repairs into the house. And, then I would do the repairs, and I would put a tenant buyer in the house, and I would do what’s called a lease option. And so, you know, I just you know, my first few private investors was just through networking, I call it the flap your lips method. I just started talking to people. Not asking for money, but talking to people about what I did and how I did it. And, I think this 1 guy in particular I’m thinking of came from a friend that was doing deals with me, and he said, hey. I know I’ve been talking friend. He’s interested in investing in some real estate with us.
Joe McCall [00:07:03]:
And so I just put together a little package explaining this deal, what it was worth, how much equity was in it, how much we wanted to borrow, what we were going to do with the money. And then I was an open book and shared everything exactly what we’re doing. I think we paid 12% interest. And, I did make some mistakes early on, because this was 2006 and 7. And back then, it was easy to borrow Private Money, because real estate was always going up. And so I put a clause in my contract at the time that said, hey. If you want your investment back, just give me a 90-day advance notice.
Jay Conner [00:07:47]:
I do the same today. Money with another investor’s money. Right?
Joe McCall [00:07:51]:
So, fast forward a couple of years, when the market tanked in 2008 and 9, all of a sudden, all my private investors, wanted their money back, and they started saying, hey. We have 90 days now. And then 90 days come, And, like, I can’t find another private investor to replace their money because the value started plummeting. Right? So I didn’t have enough equity. So it was scary for some time. I paid all of my private investors back. Some of them, it took me about 4 or 5 years to pay them back. Even after I lost the house.
Joe McCall [00:08:27]:
We did a short sale on the house or a couple of them. We had some foreclosures, and I almost went bankrupt during this whole time, but I didn’t. And every private investor that I had, I paid back even after I lost the house. And I just told them, you know, I can’t give you any security for this debt, but you’re just gonna have to take my word for it, and I will pay you back. Some of them, said, if you can just pay us back the principal of what you owe and not don’t we won’t worry about interest. Some of them said, I still want my interest, buddy. You know? And, where before I had maybe a balloon of 5 years, they said just put they I put them on like a 15-year amortization.
Joe McCall [00:09:10]:
And I just paid them every single month, And they all got paid back. So anyway, when I needed the money, the first lesson was I made I had to make sure it was a good deal, and I made the deal sell itself, Which was make it e make made it easy to get the Private Money. Now nobody could have predicted that the market was gonna crash like it did, But I think what’s important to understand, and and now when I’m talking to private investors, I tell them my story. I’m completely honest with what happened before.
Joe McCall [00:09:40]:
And, but I tell them I paid every single one of my private investors back. And when I do my podcast or when I’m teaching real estate, I tell everybody that Your private investors, always get profit first before you get any profit out of a deal. They always get paid first before you ever get Paid anything out of a deal. You need to make sure their interest is protected more and above yours. That’s my, philosophy on that. So, anyway, I think if people listening to this learn how to become good at getting deals, the money will take care of itself. It really will. If you get a good deal, you will find the money.
Joe McCall [00:10:20]:
There may be somebody in a Facebook group. You know, a lot of the places I borrow Private Money from now on my vacant land deals are from other people that are doing vacant land themselves. But they’re busy. They have a full-time job. They don’t wanna do the work of doing the marketing and finding the deals, so I find the deals. And I talk about my deals and I say, hey. Does anybody want to partner with me on this deal? I’ll either give you 10 15% of the profits Or I’ll pay you 10% interest. And, I get people out of the woodwork.
Joe McCall [00:10:50]:
Like, oh my gosh. That’s a good deal. Yeah. I’d love to partner with you on that deal. And you can find those kinds of folks in Facebook groups and real estate investment clubs and things like that. So
Jay Conner [00:11:01]:
You said something, you said something a few minutes ago. You said you like the flap-your-lips method. Flapped lips method. Let’s drill down on that for a moment. So how did I flap my lips as recently as yesterday? And, you know, I know you believe the same thing I do, Joe. Money’s all around us. When you’ve got an abundant mindset and you do not have a scarcity mindset, f money’s all around you.
Jay Conner [00:11:30]:
So, just this, past weekend, my wife, Carol Joy, and I flew out to Texas for our niece’s wedding, and it was absolutely beautiful. And so yesterday, we got on the airplane in Dallas Fort Worth to fly back here to North Carolina. And so I sit down in my seat, a very nice gentleman sitting next to me. And, so anyway, after a sentence or two of, you know, getting settled in and talking about the weather, I introduced myself, and, and I said, well, what keeps you busy? What do you do? And so he told me. And so we had an interesting conversation about that. And by the way, I never lead with what I do because in this world of attracting Private Money, there’s no pitching, there’s no selling, there’s no persuading, there’s no chasing. It’s all about attracting the money. Here’s an example of attracting.
Jay Conner [00:12:32]:
So ask him what he did. So it’s all about leading with being interested in the other person. You know, when I’m at a networking group, Jay, I tell you what just absolutely drives me bonkers. I can’t stand it when somebody gives me a business card, and I don’t ask for the business card. Why are you giving me your business card? Or, you know, whatever. And I don’t even express interest. Anyway, so I’m sitting next to this gentleman on the airplane, and he’s talking about what he does. And I’m genuinely interested, there’s a keyword, genuinely interested with childlike curiosity about this guy that I never met before.
Jay Conner [00:13:11]:
So we’re talking about him. And so we’re talking along. And then, I don’t know, 5 or 10 minutes into it, we had a 2-hour flight, what does he say to me? He says, well, what do you do? And here was my exact answer. My answer was, well, I’ve been investing in real estate for 20 years now, and starting back in two thousand nine. I started putting together these lucrative real estate deals to where I have investors invest in my deals, and I pay them insane high rates of return. Well, guess what we talked about for the next half hour to 45 minutes was what Private Money is and private lending, and how you an individual can use self-directed IRAs to, you know, use their retirement funds along with their investment capital. So what’s the takeaway from that little story? I became interested in the other person by flapping my lips, by asking them about themselves, and then there went the conversation.
Joe McCall [00:14:15]:
Yeah. That’s so good. Very, very simple, and it’s just talking I love how you genuinely express interest in what they do. And when you do that, they’re gonna ask you, what do you do? And so you just need to practice a little 32nd elevator pitch on what you do. I’d probably say something like, yeah. You know, I do a lot of vacant land investing, and we buy and sell a lot of lands, And we partner with private investors, and we, pay them secured returns on their money, returns, secured by real estate. And we’ve been doing this a long time, and it’s it’s a lot of fun. And you could just leave it at that.
Jay Conner [00:14:54]:
And leave it at that. And if they’re interested, they’re gonna explore. What does that mean? Friend. Right? Yeah. It’s just like there’s no sales pitch here. It’s genuinely interested in other people, and you’re just sharing. And I tell you one thing that I didn’t wake up and smell the roses about, I realized, until a few years ago. And that was whenever I feel myself, whether it’s selling, selling or closing anything, whether it’s attracting Private Money or talking to a seller or whatever, whenever I feel like I’m trying to persuade or I’m trying to sell or I’m trying to talk somebody into something, I back off.
Jay Conner [00:15:38]:
Because it’s not about talking about or trying to talk somebody else into doing something. It’s about providing value and how they can be a win in this whole win-win scenario.
Joe McCall [00:15:51]:
Yeah. Exactly right. So we never I always say, you know, the harder you chase people, the faster they run. Mhmm. So we’re not about chasing or selling anything. We just talk about what we do.
Jay Conner [00:16:05]:
Absolutely. So with that, let’s talk about what you do, Joe. So you’ve got many, many years, of real estate investing and entrepreneurial finance, and I mean, you’re known in the industry as a lease option expert. You’ve been doing lease options, you know, for years. And in addition to that, you’ve become an expert in the land. Right? In that asset class. So let’s talk about that. What are you doing with the land? What does that look like? I mean, there are all kinds of ways you can do land.
Jay Conner [00:16:43]:
But tell us about what you’ve got going on right now that you’re excited about.
Joe McCall [00:16:48]:
Well, I love vacant land. I’ve been doing houses for a long time And still like houses. Nothing wrong with houses, but I just find vacant land is a lot easier in a lot of ways. It’s not as competitive. It’s easier to find bigger discounts in deals because it’s not as competitive. And because with vacant land, the sellers are much more detached from the property. It’s like it’s further away. They haven’t been there in years.
Joe McCall [00:17:13]:
They don’t have any mortgages or debt on the property. It’s just sitting out there not being used, and they’re just done with it, and they went out of it. So we buy our vacant land for 35.40¢ on the dollar. We sell a lot of it with cash, and we sell a lot of it with owner financing. So with owner financing, you don’t have to worry about Dodd-Frank because it’s not anybody’s residence. It’s just vacant land. It’s dirt. You can’t do anything to destroy it.
Joe McCall [00:17:41]:
God’s not making any more of it. There’s still a high demand for dirt because we buy it so cheap in very high-demand areas where there’s a lot of people wanting to buy land, We can sell it very quickly. And it’s a great way to get the monthly cash flow without their typical landlord headaches of dealing with repairs and maintenance and tenants and all of that stuff. So, I love vacant land. You know, we can You can buy a deal for an example deal might be I’ll just get my calculator out here real quick. An example deal, let’s say a property is a word. They’re selling for $35,000. Okay?
Jay Conner [00:18:20]:
Now you’re talking about a lot. Right? Or is this or is this farmland? Or is it a lot?
Joe McCall [00:18:26]:
It doesn’t matter. Okay. So we do, like, small little quarter acre infill lots in Mhmm. Florida or we’ll do ten-acre recreational lots in North Carolina. Okay. Alright. So let’s say whatever it is, it sells for sometimes the further away it is, the cheaper it is per acre.
Joe McCall [00:18:46]:
Sometimes the closer And when you say
Jay Conner [00:18:47]:
the further away, the further away from what?
Joe McCall [00:18:50]:
A city. A big city. Okay.
Jay Conner [00:18:52]:
Got you.
Joe McCall [00:18:53]:
Yeah. So, you know, like well, let me just I’ll kind of explain the numbers. Like, I don’t almost I almost don’t care if it’s a little quarter acre lot or if it’s a 20 acre lot. I go into markets where there’s high demand. So there I go into areas where there’s a lot of people buying land. That’s all I care about. I wanna follow the money. Success leaves clues.
Joe McCall [00:19:16]:
And I know that in the last 90 days, 500 people have bought vacant land in this county. Guess what? I’m gonna go into that county, and I’m gonna target with my direct-to-seller marketing. So I send letters and postcards to people who have owned land for over 10 years who don’t live in that county. And I send them a letter. I sent them a postcard. Hey. Do you wanna sell your land? I’ll buy it. Call my 24-hour recorded voice mail.
Joe McCall [00:19:42]:
Text or call my 24-hour recorded voice They call it voice mail. Sometimes we call them back. Sometimes we just send them an offer. Mhmm. So let’s say we think we could sell. We could resell that lot for $35,000. I always price my properties aggressively so I can sell them in, like, 1 or 2 months.
Joe McCall [00:19:59]:
And so if I’m looking at another 10-acre lots I see that they’re selling for $40,000. I’m gonna sell mine for 35. I’m gonna list mine for 35. So then from there, I just subtract my costs. I wanna make a minimum of $10,000 wholesale fee, so I’m gonna subtract $10,000. Brings it down to $25. I’m gonna pay a realtor 10% to resell my property, so I’m gonna subtract another 35100. I’m gonna subtract a couple of 1,000 for closing costs, and I’m gonna subtract, you know, $500 for a photographer to go take drone footage.
Joe McCall [00:20:37]:
I’m gonna subtract $1,000 from my oops factor. I call it oops.
Jay Conner [00:20:42]:
Yeah. I call it my Murphy factor.
Joe McCall [00:20:44]:
Yeah. Murphy factor. Well, okay. That brings me down to $18. I’ll offer $18,000 $18,000 on this property that’s worth $35,000. So 18,000 divided by 35,000 is 51%. I usually never offer more than 50% of what a property’s worth, so I would probably offer If it’s worth if I can sell it for $35, I’m not gonna offer more than 17,500. Gotcha.
Joe McCall [00:21:10]:
And that’s what I offer. Right? And so think about this when you’re talking about Private Money. Now I’m gonna need $17,500 To buy this property that’s worth $35,000. How hard do you think it is to borrow money at 50% loan to value? It’s like the easiest thing in the world. Right? All you gotta do is flap your lips, and my private investor is protected in the first position at 50% loan to value. The worst thing that can happen to them is I don’t pay them back. They take the property over, and then they sell it. They could sell it for I’m I’m borrowing 17,000.
Joe McCall [00:21:50]:
They sell it for 30,000, and they get their principal back plus a bunch more. So, with vacant land, I find it’s easier in some ways to lend to borrow money from private investors if I need to. Many times, I don’t. But if I needed to because The private investor’s in 1st position. They’re not in 2nd position, and they’re well protected by no more than 50% of the value of that property. Mhmm.
Jay Conner [00:22:19]:
So when you talk about the value of a piece of property, it’s pretty easy to know the value of a lot, you know, quarter acre lot or whatever that’s in a subdivision. Right.
Joe McCall [00:22:34]:
Right.
Jay Conner [00:22:34]:
But when you get into acreage and you don’t, like, have as many comps or recent comps, of course, there’s tax value. Friend. So, Joe, I got a great idea. Let’s pretend that I have hired you to be my land investing coach. Okay. I’m gonna tell you a real deal that was just presented to me this past weekend. And let’s say I don’t have a clue as to how to start analyzing this deal as to what I should do. Fight.
Jay Conner [00:23:10]:
So for for all of our listeners here in the audience, this is a real deal going on right now. So here’s the facts. The owner of this property. It’s a 33-acre tract of property.
Joe McCall [00:23:25]:
Where is it? What county?
Jay Conner [00:23:26]:
It’s in Carteret County, North Carolina, and Carteret County, North Carolina. The township is Newport. There’s 33 acres, friend. And for decades, maybe 100 years, but at least for 70 years, this 38-acre track of land has been farmed. It’s still being farmed, friend, and it’s located here in an area where there are 0 lots available to build on. We have a high demand for lots and a high demand for houses. There’s no inventory in the multiple listing service. There’s nothing for rent.
Jay Conner [00:24:13]:
And you know, people are dying. And so builders, and developers are dying for land. So how did I come across this 33-acre, parcel of land? Well, my mother’s first cousin passed away about a month ago. A friend and my mother’s first cousin left everything to her stepchildren. Friend. So there’s there’s 2 stepchildren. Both of these stepchildren do not live anywhere around here in this area.
Jay Conner [00:24:48]:
Friend. They didn’t even know they were inheriting the property until they were at the graveside, and so more or less within a day or 2. And so what we have here is we have this 33-acre tract of land. So the executor f of the estate, because that stepson has now been named as the executor. The executor of that estate reached out to me. I met him at the services, and we had a chat, and I and I told him that, you know, I could be interested in property whenever they decided to sell. They may not even wanna sell, but anyway, here I am if you wanna reach out. So he called me up, and, and so he wants to sell.
Jay Conner [00:25:33]:
Here’s the facts. He has no idea what the property is worth, and he wants to know what I will pay him. That’s Where We Are. So what would you do? I mean, you know, it’s farmland. I haven’t even looked it up yet. My best guess is the tax value on that farmland is much lower than it would be if it was repurposed into being able to be developed. It’s being farmed. Has it got any wetlands on it? Who knows? I don’t know.
Jay Conner [00:26:04]:
But those are the facts. How what would you do?
Joe McCall [00:26:07]:
How close is it then, to the ocean, the coast?
Jay Conner [00:26:11]:
10 minutes.
Joe McCall [00:26:13]:
So it’s not on the water?
Jay Conner [00:26:14]:
No. 10:10 minutes.
Joe McCall [00:26:16]:
Yep. Because that makes a big difference. Right? I’m looking here, like so it’s gonna be under $1,000,000 in my opinion. Friend. Right? Because properties that are over $1,000,000
Jay Conner [00:26:25]:
I can tell you you cannot buy a lot that’s in a developed piece of property. Friend. You cannot buy a lot in a developed piece of property for less. A builder can’t buy 1 for less than $50. I mean, I think an old rule of thumb is, you know, you got a 3rd for infrastructure and a 3rd, I mean, your streets and whatever. And then, I don’t know. Maybe a 3rd you can build. It’s like so the question is what’s your exit strategy? I mean, what’s my exit strategy? I mean, do I wanna be talking, you know, a percentage of tax value? Do I wanna be talking to realtors? Yeah.
Jay Conner [00:26:58]:
You know, you know, how do I even determine what could be the exit strategy value?
Joe McCall [00:27:05]:
Well, a couple of things I’m looking at is I’m at Redfin right now, and I’m looking at Carteret County. And I’m looking at just the activities Under contractor pending vacant land that’s for sale that’s over 10 acres right now in that county. Okay? And I see about 19 properties that are under $1,000,000, that are 10 acres or more, that are currently for sale in Carteret County. Carteret County isn’t that big. It’s pretty small.
Jay Conner [00:27:34]:
Pretty small.
Joe McCall [00:27:35]:
And there are 19 properties, and I have this little tool that I use., if I look at the average price per acre, there’s a median price per acre and the average price per acre. I always look at whatever is the fewest. It’s about $13,000 an acre. So that’s what the current list price is. Right? 13,000 times 33 acres. Right? Yep. That puts the value maybe just based on the list price At about $429,000.
Joe McCall [00:28:07]:
Right? Mhmm. Now I can let’s look at selling. Let’s see if there’s anything that is sold in the last year because it’s too hard to get comps. If I look at the past year, 29 vacant lots over 10 acres have sold in that county. So I do I have this little scraper tool again, and I’m at about $10,800 an acre.
Jay Conner [00:28:37]:
Okay. So $10,800 are the sold comps. How many sold comps do you have on acreage? 28. Oh, wow. That’s good. Alright. Is any of that
Joe McCall [00:28:47]:
is any of that waterfront? Some of it is. Mhmm. Some of it is. So, like, not knowing where exactly your property is, what I like to do is go into Redfin, and I wanna zoom in to where your property is and then kind of zoom out from there.
Jay Conner [00:29:02]:
Okay. Now tell all of our listeners, what is this Redfin Redfin tool thing you’re using?
Joe McCall [00:29:07]:
Redfin.com. It’s just like Zillow, but I like Redfin better because it gives you more options and filtering when you’re looking for properties.
Joe McCall [00:29:16]:
So you wanna find your property and put it in the center of the Redfin map, and then you wanna set your filters. You wanna look at only land, Only 10 acres or more. And, and then you start zooming out, and then you can see, alright, all of the vacant land that is old or is for sale in that area. Mhmm. And then you wanna look at the average or the median. I like the median because it removes the outliers. Right? It removes the cheapest ones. It removes the most expensive ones.
Joe McCall [00:29:47]:
So for the active listings, the median price per acre is about $13.
Joe McCall [00:29:53]:
For the sold, the median sold price per acre is about 10,800. Mhmm. So I kinda start with whatever one is cheaper. Mhmm. Right? So let’s say I’m gonna list it. I’m gonna sell it for $10,800 an acre. Mhmm. So that would be 10,800 Times 33 acres.
Joe McCall [00:30:17]:
I’m gonna sell it for maybe about $356,000.
Joe McCall [00:30:24]:
Now you gotta what I like to do this is a more premium property, so There are a lot of things you could do with this. And probably what I would do is I would find somebody else in that county who has done Some development in the past who has Mhmm. Done subdividing. I would find an active land investor who does bigger deals like this.
Joe McCall [00:30:49]:
And I would probably bring the deal to them and offer to partner, see if they wanted to partner with me on the deal. Mhmm. I would I’ll try to get under contract 1st, so if I think I can sell it for $356,000, well, you wanna subtract maybe 6% for commissions. You wanna make at least a $50,000 profit, so I would subtract $50. Let me just do that right now. So I take 356,000 Times 0.94. That takes out its commissions. Or I wanna make at least $50.
Joe McCall [00:31:22]:
So I subtract $50 wholesale profit. It’s kinda what the way I look at it. I’m gonna subtract maybe $5,000 in closing costs.
Joe McCall [00:31:30]:
And you’re gonna need to get a survey maybe and stuff like to get it. I don’t know. That’s and then I’m gonna subtract, maybe $1,000 for a photographer to take pictures and drone footage.
Joe McCall [00:31:39]:
I’m going to subtract let’s see. I subtract realtor commissions, my profit, closing costs, and photography. So that brings me down to maybe 378?
Jay Conner [00:31:55]:
No. You started at you started at 356.
Joe McCall [00:31:59]:
Yeah. So if I take 356 times 94%, because that’s taken out realtor commissions of 6%. Subtract $50 for just my profit. Like, I’m just thinking wholesale profit. I wanna make $50 on it. Subtract $5 for closing costs. Subtract $1,000 for photography. And I’m also gonna I’m gonna borrow some money from a private investor.
Joe McCall [00:32:19]:
I’m gonna need to pay them some interest.
Joe McCall [00:32:22]:
So I don’t know how you’d work that out. Maybe you pay, 5 points, or 10 points, depending on how long you borrow the money. I’m probably gonna borrow some money, expecting to maybe hold it for, 6 months to a year Mhmm. Well, I work on flipping it. Maybe I’m gonna subdivide it. Maybe I’m going to do some entitlements and get it rezoned. I don’t know yet, but I might. That process might take a year.
Joe McCall [00:32:50]:
So I don’t know. I’ll subtract I’m just gonna subtract 10% of what I might borrow. I’m gonna subtract $30,000 for Mhmm. Paying a private investor. That’s pretty generous. I don’t know. Alright. So that gets me at about $250,000, and that’s probably kinda where I would start.
Joe McCall [00:33:07]:
I would probably wanna offer 250 grand, and see if I’m even in the ballpark with the seller.
Jay Conner [00:33:16]:
Right. How much would you how much would you push for some kind of ballpark figure that they would, you know, that they would be happy and happy with. And given he doesn’t know anything, I mean, for all I know, the tax value is only $100,000. I haven’t looked at
Joe McCall [00:33:32]:
it yet. That’s a good point. I would go find out what the tax value is because sometimes you can just say to the seller, Well, what if I just pay you whatever the county assesses it for? Would that be fair?
Joe McCall [00:33:42]:
And they may say, yeah. That’d be great. Well, what if the county-assessed value comes in less than what you were gonna offer to begin with? So Sure. Yeah. Maybe start with the county-assessed value
Joe McCall [00:33:52]:
Alright? And, also, when I buy land, I always get 3 months of 3 months for due diligence. And for bigger lots like this, you might wanna get 6 months. Right. Because that gives you time, I call it, to verify taxes, title, and value.
Jay Conner [00:34:11]:
Well, there’s a writer’s downer, taxes, title, and value.
Joe McCall [00:34:16]:
Yeah. That’s my due diligence. And that’s completely wide open to whatever I want it to be. Right? Like, I just wanna verify that it’s a good deal. You know, there might be environmental impact studies you have to do. There may be surveys you have to do. You may have to do a perk test to determine if you can put septic systems on it or not. Man.
Joe McCall [00:34:37]:
Now being close to the ocean, there are probably a lot of environmental regulations
Jay Conner [00:34:40]:
that you
Joe McCall [00:34:40]:
need to be concerned about.
Jay Conner [00:34:42]:
Right.
Joe McCall [00:34:42]:
So there you need that kind of stuff takes a lot longer than houses. Right. The final thing I’ll do is, I’m gonna talk to a realtor who does a lot of land out there. Mhmm. I’m gonna find the biggest so just go into Redfin or Zillow and find the ones who have sold land in that area, And you can find them on Zillow and Redfin and just give them a call. Yeah. Talk to them. Say, hey.
Joe McCall [00:35:07]:
I’m an investor, and I think I got There’s a guy here that just sold, 15 acres for $135,000 in that county, and I’m just pulling it up here. So I would call the realtor, and I would sell them. I think I have a good deal here. I don’t know. I don’t have an agent representing me. And, I’m looking for somebody to help me sell this. You wouldn’t be interested in it, would you? So I told them about the deal. I tell them I’m an investor.
Joe McCall [00:35:35]:
I’m from out of town. I need some help with this thing. Also when I’m talking to realtors, I always tell them I pay I pay generous commissions. So I’m not looking for them to do a bunch of free work for me. Right. I want them to, you know so a lot of these realtors, Especially these bigger deals, it’s easier to find realtors willing to help you than the normal little $30,000 deals that I do. Right. But these realtors, they’ll go look at the property, You know, and they’ll tell you what it’s like, and they’ll tell you all about the county.
Joe McCall [00:36:02]:
They’ll tell you what the zoning is, what the restrictions are, if there are any. They’ll tell you, My Internet went down. I can’t look this property up anymore. But anyway, they’ll tell you if it’s in an HOA, what the restrictions are. Florida where we do a lot of deals, they’ll tell you, yeah. There are these scrub jays you need to watch out for. And I don’t know what even scrub jays are. They’re some kind of turtle or a bird or
Jay Conner [00:36:25]:
The polar bear. The red-headed woodpecker.
Joe McCall [00:36:27]:
Yeah. But, like, that’s a big deal in parts of Florida, and they’re endangered species. So If you have what looks like a Scrub Jay nest on this vacant lot, you’re gonna have to pay $5,000 or whatever to get it moved and remediated and fixed or whatever. Mhmm. So these kinds of things, that’s why you need at least 3 to 6 months for due diligence to turn. So a Realtor will tell you, and a realtor’s gonna tell you, yeah, we could sell this thing for, you know, 300 to $400,000. So So whenever I’ma talking to realtor, I want them to understand. I wanna sell this thing in, like, 1 or 2 months.
Joe McCall [00:37:04]:
I don’t wanna hold it
Joe McCall [00:37:06]:
For 6 to 12 months. You know? I wanna sell it as fast as possible. So what is the most aggressive price that you can list it for so that I can sell it in 1 or 2 months? Alright. And then finally, I’ll say this. I know North Carolina is a great state, and there are a lot of land investors that are doing deals in North Carolina. And so I would go and I’d start looking for land investors, some of the bigger ones that are doing the subdivides.
Joe McCall [00:37:32]:
Because Sometimes these guys get creative. Let’s say, you know, you’re willing you’re gonna offer the seller 250. And they’re like, no. The I the most The least I would accept would be 400. So you’re way apart. Right? Well, what if you got creative with the seller and said, what if we did this? And I’ve never done this. I just heard of other investors doing this. You offer some kind of offer to the seller Where you buy it at a certain price and then you split you share the profits.
Joe McCall [00:38:04]:
With the seller of anything above that price.
Jay Conner [00:38:07]:
Right.
Joe McCall [00:38:08]:
And if and if I only do this if they carry the financing.
Joe McCall [00:38:12]:
So what if you own set up a make an offer to the seller at their price with owner financing? Payments start in 6 months, in 12 months, or whatever. Okay? And they get a certain percentage of the profits out of the deal. So you do all the work, they carry the financing, and then you do the work of getting it, you know, getting it rezoned, taking it to the county, getting it in adding entitlements, Getting it subdivided, whatever, and then you could sell it possibly by the parcel. Maybe break it up into 8 4-acre parcels or 16 2-acre parcels and sell each parcel 1 at a time. And then just you could work out an agreement where you split the profits with the seller. So, now that’s kind of you know, it’s above my pay grade. I don’t do those bigger deals like that.
Joe McCall [00:39:06]:
But What I’m saying is some people do, and you can go find them just by, you know, looking in county records. Who are the investors that are buying a lot of land In public records there, you know, call these realtors who have sold vacant land recently in that nay in that county
Joe McCall [00:39:23]:
And ask them, hey. Do you know, any investors that do subdividing, you know, that do this kind of stuff? And You can call them and talk to them and bring them the deal and say, hey. I think I got a deal here, but this is outside of my wheelhouse. Do you wanna partner with me on this? Right. And you might that’s that’s that’s what I would do.
Jay Conner [00:39:44]:
I love it. Well, Joe, you didn’t know you were gonna be doing coaching on land on the show, did you?
Joe McCall [00:39:50]:
But I love this kind of stuff. This is
Jay Conner [00:39:54]:
Me too. Me too. Well, again, so just to remind everybody, on the land. Your expertise wheelhouse when it comes to land looks like what? And then I want you to give them the website as to how they can connect with you and learn even more about it.
Joe McCall [00:40:09]:
By the way, I’ll I’ll give you my website in a minute here. I just found a property that sold In January, so about, what is that, 10 or 11 months ago
Joe McCall [00:40:22]:
29 acres for $500,000.
Jay Conner [00:40:25]:
Okay.
Joe McCall [00:40:26]:
So 500,000 divided by 29 which was about $17,000 an acre.
Jay Conner [00:40:31]:
What, township? Stella. Okay. Yes. Stella is even further away, it’s about 20 minutes from the water. But, so I’m looking at
Joe McCall [00:40:43]:
the satellite, and it looks like it’s 80% agricultural.
Jay Conner [00:40:48]:
Yep. There you go. Perfect, good comp.
Joe McCall [00:40:51]:
That may be a good comp, but maybe not. I don’t know. But, the final thing I’ll say about this too, by the way, Is options work great with vacant land when you just don’t know
Jay Conner [00:41:03]:
what Well, let’s talk well, let’s talk about that, Joe. Like, on this deal, You know, let’s say verbally you come to terms with a price, and now you want 6 months of due diligence. Now you’re going to ask them to give you an option to purchase. Would you offer an option fee? Would you offer a different kind of money? How How much money would you offer? And would it be in the form of an option fee? You know, sometimes they talk about, well, the money doesn’t go hard until so many days go by.
Joe McCall [00:41:35]:
Well, usually, when I use an option, it’s because, like, I’m offering $250,000, and the seller wants $350,000. But the property is worth 600,000, let’s say. So it’s just outside of my maximum price offer range. So I might say to the seller, listen, and I forget the numbers already, but I might say to them, I can’t pay you $350 for your property. But I might be able to find somebody else who would. So let’s do this. I’m gonna give you a 6-month option agreement, which gives me the option to buy the property in 6 months for $350. Alright? And I tell them Honestly, exactly open book what I’m gonna do.
Joe McCall [00:42:19]:
I’m gonna go out and try to find somebody to sell this option agreement to. I might find somebody else that will be willing to pay 3.50 for it. And if I do, I’m going to sell them my option for an assignment fee of whatever. And so now you’ve locked that property upon an option. So you have the option to buy it. Sometimes I make it a flexible option, which means I tell the seller if they object, I might tell them, well, listen. Let’s do this. If you can find another buyer before I do, you can just cancel my option.
Joe McCall [00:42:52]:
Not a big deal. Don’t worry about it, if they bring up that objection. But now I’ve got some equitable interest in that property under an option contract. And I can now what I would do is I would start calling all of the people who have bought vacant land in that area in the last 6 months or so. And I would call them. I’d skip-trace them. I’d call them. I’d send them letters.
Joe McCall [00:43:13]:
And I would tell them, hey. I have an option to buy this 33-acre lot For $350,000, if you want it, I’ll sell you my option for $20. Would you be interested? Mhmm. And, That’s you know, you just kinda then you use a title company, and they could sell the option to them. For option consideration, I would I would put maybe 500 to $1,000.
Jay Conner [00:43:35]:
Got you. That’s what I was looking for. You’re looking like $500, maybe $1,000 to go along with the option fee to tie that property up for 6 months or up to 6 months.
Joe McCall [00:43:48]:
Yeah. You know, the cool thing though is there are a lot of different options. But If you could get the seller to agree to some kind of seller financing to carry the note on this property, That would give you a lot more time. You don’t have to go borrow Private Money. It gives you time to figure out what to do with the property, and then you could resell it. You could subdivide it and sell it in parcels Mhmm.
Joe McCall [00:44:12]:
And make a lot more money. And, you know, you could just add another line into the agreement with the seller that will give you 10% of any profits we make or there’s a lot of opportunities, a lot of possibilities there.
Jay Conner [00:44:24]:
Right.
Joe McCall [00:44:25]:
Okay. So how do people get ahold of me? Yes. You know, one of the easiest ways is, if you wanna see my contracts, you go to simple land contract .com. This is the same contract I use for all my vacant land deals, And it’s free. Go to simple land contract .com. When you go there to opt in to get that contract, there’ll be an invitation to watch a webinar Where I teach how to use that contract and how to find these vacant lots. And, you know, we don’t do the big $300,000 deals. We’re just doing little small deals that you can buy on credit card.
Joe McCall [00:45:01]:
You know, you buy it for $5, you sell it for $15. Those are great little base hits. You can do 2, 3, or 4 of those a month If you want to, those are the kinds of deals I like to do. They’re just easier. And, if you go to
https://www.SimpleLandContract.com, you can get more information on that contract and then get an invitation to watch a webinar on how to use it. Then it’s one of the best ways to reach me. I also have a YouTube channel. If anybody goes to YouTube and just searches Joe McCall.
Joe McCall [00:45:35]:
Or just go to YouTube and search for Joe McCall, and you’ll see my YouTube channel. I’ve got hundreds of videos on there. A lot of them lately, I’ve been on vacant land and how we find deals and how we buy them and, you know, how we sell them. It’s really good a lot of good free stuff on YouTube there.
Jay Conner [00:45:54]:
Joe, thank you so much for offering that valuable resource at https://www.SimpleLandContract.com. And, what a joy to have you on, Joe. I love hanging around you and talking to you at our Mastermind meetings, but, having you here on the podcast is fantastic as well. Thank you so much.
Joe McCall [00:46:13]:
Thank you, Jay. I appreciate you.
Jay Conner [00:46:16]:
I appreciate you. Well, there you have it. Another amazing episode of Raising Private Money. And speaking of Raising Private Money, You want to do these land deals? If you want to do some bigger land deals, it’s more than, you know, 5,000 or whatever. You can pick up my book, right here, Where to Get the Money Now. Private Money. Right? Well, I’ll autograph this for you and mail it to you in the mail. You can get this at www.JayConner.com/Book and I’ll ship that priority mail to you in the mail.
Jay Conner [00:46:53]:
Thank you for joining me and my friend Joe McCall here on this episode of Raising Private Money. Fan. I appreciate the likes and subscribers. If you have any watching on YouTube, be sure and ring that bell. Follow me. If you’re listening on iTunes, Spotify, and the other platforms. Be sure and follow as well, so you don’t miss out on the next upcoming episode. I’m looking forward to having you join me again right here on the next episode of Raising Private Money with Jay Conner.
Narrator [00:47:26]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s jc0nner.com/moneyguide, and download your free guide that shares seven reasons why Private Money will Skyrocket your real estate investing business right now. Again, that’s Jay Conner .com/moneyguide to get your free guide. We’ll see you next time on Raising Private Money with Conner.