Welcome back to Raising Private Money! I’d like to take the time to focus on a few real estate success stories to explore some of the ways we can navigate transactions to get better deals.
Jump in with me and some of my students as we discuss and celebrate a couple of our recent real estate transactions, and gain some insight into how you can create favorable outcomes for your investing business.
Key Takeaways:
- You have no idea what a seller will take until you take the offer.
- Making better offers, like having no contingencies and fast closing, can help you get a better deal.
- Justifying your offer based on the risk you’re taking on the home.
- Just because a seller said no yesterday doesn’t mean they won’t say yes today.
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Timestamps:
0:01 – Raising Private Money with Jay Conner
0:42 – Important Lessons
1:40 – Jay’s Latest Real Estate Deal
3:30 – How To Justify Your Offer
6:20 – Eric & Erica’s Latest Real Estate Deal
7:11 -Jay Conner’s Private Money Academy: https://www.JaysLiveEvent.com
8:00 – Jay’s Free Money Guide: https://www.JayConner.com/MoneyGuide
Real Estate Success Stories – Real Estate Investing Minus the Bank
[00:00:00] Eric Camardelle:
And we got two offers in two days, and we accepted one and we’re under contract.
[00:00:05] Narrator:
If you are a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal then you are 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.
[00:00:41] Jay Conner:
We just went under contract yesterday on 27 70 Highway 24 Newport, North Carolina. I know how you all are. Don’t try and steal my deal. I’m already under contract. All right there are a couple of lessons from going under contract on this deal. The first lesson is, and this is a write or downer, you have no idea what a seller will take until you make the offer, period.
[00:01:11] Jay Conner:
Some of you have heard me say that 102 times a seller has no. And you have no idea. The seller has no idea really what they will accept until you make the offer. And it also depends on how clean your offer is, meaning no contingencies, and how fast can you close. So let me give you the details. I went and looked at this house and this property last Thursday, a week ago tomorrow.
[00:01:46] Jay Conner:
This house has got 800 and square feet, two beds, one bath. Seldom do I ever buy two beds and one bath, but there’s no inventory in Carter County? I went and looked at it after. Repaired value is somewhere around $175,000. Believe it or not, it’s way off the highway. The access to this property is gravel slash dirt.
[00:02:12] Jay Conner:
With no easement granted to the subject property owners, the easement is actually going across the neighbor’s property behind their backyard, which means their fence would’ve to be taken down to get over to Kegel Road instead of Highway 24. So when looked at it, figured up the repair cost, their $48,000, call it.
[00:02:39] Jay Conner:
The seller is the daughter and the granddaughter or heirs of the owner of the property. So it’s an inherited property and so neither one of ’em is gonna live in it. So there’s one motivation inherited. They told Kim my acquisition is they would not take a penny less than $75,000. So we ran the numbers.
[00:03:04] Jay Conner:
And so I’m gonna offer, and I did offer $50,000. Kim reminded me they were gonna take less than 75. I said that’s what they said. I need you to offer 50,000 and write this down. Justify the offer. So how do we justify the offer? Three points. Number one, the access that you’re using has no legal easement.
[00:03:32] Jay Conner:
Grant. Frank, the owner of the property where the road is going into, the house. We don’t know if he’ll grant an easement. We don’t know if he’ll even sell an easement to get access to the subject property. If we put in a, if we use the legal easement of the property, I gotta pay to put a road in. So number one, there’s a big unknown.
[00:03:58] Jay Conner:
Number two. In the septic tank that you had put in for your mother five years ago, the drain lines are surveyed to go towards the property. You tell me they’re going towards the neighbor’s house. If that’s the case, they’re underneath the easement of where I might have to put the road, which means I might have to put in a new separate tank of drain lines.
[00:04:18] Jay Conner:
And if anybody else buys it, they can’t get a mortgage because of these two reasons. And number three, there’s a question mark on your foundation. So with that, we’ll pay 50. Kim put the offer in yesterday. Talked to the mother and the mother. Oh, by the way, we said to be closing in two weeks, all cash, two weeks, all cash and I’ll take the risk.
[00:04:42] Jay Conner:
I’ll take the risk on the easement. I’ll take the risk on the separate tank and the drain lines, and I’ll take the risk on the foundation. You can walk away. By the way, I did ask Ms. Laura while I was with her last Thursday. I said, Ms. Laura, I said, is this a matter of the fact of if we can just get the cash as soon as possible, is that what you want?
[00:05:01] Jay Conner:
She says, yeah, I want the cash as soon as possible. Kim made the offer yesterday, 50,000 justified the offer, and the mother said, my daughter, ‘s already received an offer of 50,000 and turned it down. Kim says, have you told your daughter that we can close all cash? Don’t need a mortgage, closing two weeks with the private money, and does your daughter know about the easement issue and the septic tank issue, and the foundation issue?
[00:05:33] Jay Conner:
The mother had a conversation with the daughter and in one hour, and 20 minutes came back and accepted the $50,000 offer. We are now under contract to buy that house. For $50,000. So lessons learned. You want the house, make the offer justify the offer. And just because a seller said no yesterday doesn’t mean a seller won’t say yes today.
[00:05:58] Jay Conner:
All right, so that’s my win. Who wants to share a win?
[00:06:11] Eric Camardelle:
I’ll share a win Jay, we got done with rehab in a town that’s not known for being a sought-after town. And, but it’s a low-priced house comparatively speaking to the surroundings. So it’s 130,000 we listed it at, and we got two offers in two days. And we accepted one and we’re under contract days after we finish.
[00:06:32] Jay Conner:
Yes. Give Eric and Eric the very sophisticated golf clap right here. That’s awesome. So how much are you under contract for?
[00:06:35] Eric Camardelle:
We are under contract for 129, but they’re asking for 7,300 in concessions
[00:06:38] Jay Conner:
And how much have you got in it?
[00:06:40] Eric Camardelle:
Less than 60.
[00:06:42] Jay Conner:
Congratulations there, Erica. Banjo, Fantastic.
[00:06:56] Jay Conner:
As you know I helped real estate investors raise a lot of private money for their real estate deals. You may not know that I have an exclusive private Money Academy membership. That’s right, a monthly membership where we spend time together twice a month on Zoom. That’s the second and fourth Wednesdays of each month, and I invite you to come to check it out.
[00:07:19] Jay Conner:
We have hundreds and hundreds of members that always share their deals, how they’re finding deals, and of course how we get all of our deals funded. I wanna give you a four-week trial to just come to check it out free, and you can do that in the description. Go check out the URL, the website below, right here in the description, and I’ll see you at the Private Money Academy membership.
[00:07:45] Narrator:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.