Jay Conner

Tag: Hard Money

  • Update on Jay’s Latest Real Estate Deal

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

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

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

    What is a Bird Dog?

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

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

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

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

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

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

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

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

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

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

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

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

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

    Real Estate Cashflow Conference:

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

    Free Webinar:

    http://bit.ly/jaymoneypodcast

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

    #RealEstate #PrivateMoney #FlipYourHouse

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (00:04):

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

    Jay Conner (00:45):

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

    Jay Conner (01:43):

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

    Jeremy (02:48):

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

    Jay Conner (02:49):

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

    Jay Conner (03:00):

    There we are. Jeremy, can you hear me?

    Jeremy (03:02):

    I can hear you.

    Jay Conner (03:03):

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

    Jeremy (03:10):

    Thank you. It’s my pleasure.

    Jay Conner (03:11):

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

    Jeremy Knauff (03:44):

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

    Jay Conner (04:52):

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

    Jeremy Knauff (05:04):

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

    Jeremy Knauff (05:58):

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

    Jeremy Knauff (06:49):

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

    Jay Conner (07:31):

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

    Jeremy Knauff (07:38):

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

    Jay Conner (08:06):

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

    Jeremy (08:13):

    Yeah.

    Jay Conner (08:13):

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

    Jeremy Knauff (08:19):

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

    Jeremy Knauff (09:13):

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

    Jeremy Knauff (09:58):

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

    Jeremy Knauff (10:39):

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

    Jeremy Knauff (11:18):

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

    Jeremy Knauff (12:22):

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

    Jeremy Knauff (13:20):

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

    Jeremy Knauff (14:06):

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

    Jeremy Knauff (14:45):

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

    Jay Conner (15:28):

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

    Jeremy Knauff (16:42):

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

    Jay Conner (16:47):

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

    Jeremy Knauff (17:02):

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

    Jeremy Knauff (18:22):

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

    Jeremy Knauff (19:04):

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

    Jeremy Knauff (19:51):

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

    Jeremy Knauff (20:32):

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

    Jay Conner (21:06):

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

    Jeremy Knauff (21:23):

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

    Jay Conner (21:36):

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

    Jeremy Knauff (21:57):

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

    Jay Conner (22:03):

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

    Jeremy Knauff (22:35):

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

    Jay Conner (23:10):

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

    Jeremy Knauff (24:17):

    This is very true.

    Jay Conner (24:20):

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

    Jeremy Knauff (24:32):

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

    Jay Conner (24:57):

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

     

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

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

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

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

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

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

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

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

    But how much did he actually pay?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Real Estate Investing with Jay Conner

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    Once again, in today’s episode, Jay Conner is joined by a power couple in real estate investing, Crystal and Dan Mewhorter.

    Crystal and Dan are back once more to talk about their recent deal. Just like their previous deals, this one is funded without using any of their own money. What’s more exciting about this is the profit of over $100,000 just on this one deal!

    The couple is going to talk about how they found the deal, what kind of marketing they used to find the deal, the purchase price, estimated profit, and everything that you need to learn to be successful in Real Estate Investing.

    ————————————————

    Jay Conner (00:05):
    Well, hello there my friend? This is Jay Conner, the Private Money Authority, and welcome to another show and episode of Real State Investing with Jay Conner here on the show. We talk about all things real estate, from how to find deals, how to get them funded, how to sell them fast, how to automate your business. And we talk all we talk about all kinds of real estate deals, single family houses, commercial deals self storage land, et cetera. However, most of the time we do talk about single family houses and how to do the business. So, first of all, if you’re brand new to the show, a very special welcome why in the world am I called the Private Money Authority? Well, back in 2009, after I had been investing in a single family houses here in Eastern North Carolina, for 6 years, I got cut off from the banks with no notice.

    Jay Conner (01:04):
    And I knew I had to find a better and quicker way to get my deals done. So when I say private money, I’m not talking hard money. I’m talking about not relying on banks, mortgage, mortgage companies, traditional lenders for any of our funding for our deals. So not hard money, hard money is typically a brokerage. Private money is doing business with individuals, just like you or me. Borrowing money from them from their investment capital or, and or their retirement accounts. And if you haven’t heard about self-directed IRAs, you definitely want to learn about that because my wife, Carol Joy and I, we right now have 40 some private lenders loaning money to us on our deals. And over half of them are using their retirement accounts to fund our deals. So whether you are a seasoned real estate investor, or a brand new real estate investor, and you have never done a deal before in either case, I know you can use more funding for your deals.

    Jay Conner (02:07):
    So I have got a free that’s right, free offer for you to come join me for the first 30 days to check out what we call the Private Money Authority, or rather the yes, the Private Money Academy membership and at the Private Money Academy membership here, we I’m live at least twice a month doing training on how to get funding for your deals and finding deals and et cetera. So here’s how you can take advantage of signing up for free for the first 30 days, just to check it out and see how you like it. Come on over to Real Estate Investing with Jay Conner 2 PM. Again, that’s www.JayConner.com/Trial.

    Jay Conner (03:02):
    And Hey, if you are tuning in with us from iTunes or any of the other platforms, we really appreciate for you to subscribe and rate and review and like, and share we’re on YouTube, Facebook, and all the podcasts. Well, as like many other shows, since we launched the show, I’ve got some very special guests today that are going to talk about one of their recent deals without using any of their own money to fund the deal. And we’re talking profits of over $100,000, just on this one deal. We’re going to talk here in a second. We’re going to just like carve this deal up. We’re going to talk about how they found the deal. So what kind of marketing did they use? We’re going to talk about the purchase price that does have rehab what the profit is looking like what kind of marketing that they use to find this deal and everything about it so that you can learn how to duplicate deals, just like this in your own home market, wherever you invest. So with that, let’s bring onto the show right here, right now, Crystal and Dan Mewhorter. Hey crystal. Hey Dan. Welcome to the show.

    Crystal Mewhorter (04:13):
    Hey Jay.

    Dan Mewhorter (04:13):
    Hey Jay.

    Jay Conner (04:13):
    Hello. Hello. Tell everybody where you all are located.

    New Speaker (04:17):
    We’re in Virginia, near Virginia Beach Chesapeake, Norfolk out that way,

    Jay Conner (04:22):
    Right? And your total area that you invest in is about what size population?

    Crystal Mewhorter (04:30):
    Oh gosh. We’ve, adjusted over time. So I guess it’s it’s up around 860,000

    Jay Conner (04:38):
    Good size, So let’s let everybody know. Crystal and Dan that we met each other a few years ago and in fact met at each other at a real estate investing conference. And at that conference you enrolled into my, Where To Get The Money Now System. And from there y’all came to one of my live events. You all became one of my Platinum coaching clients, Mastermind students. And since that time in a very short period of time, y’all have a mass like about a hundred houses in your inventory. Right?

    Crystal Mewhorter (05:16):
    That’s correct.

    Jay Conner (05:17):
    That’s all awesome. So you keep some and you flip some, right?

    Crystal Mewhorter (05:21):
    Absolutely. Yeah. So our inventory ranges anywhere from 80 and 90 plus that we sell on rent to own. Am I echoing on your end? Okay, perfect. And then the other portion is fixed and flipped, so that can vary anytime. So anywhere from 10 to 20% go through fix and flip process where we, we moved them out of the inventory quickly.

    Jay Conner (05:45):
    Right. So just in this past 12 month period, or so how many deals are you doing? How many houses?

    Crystal Mewhorter (05:56):
    In the last 12 we did? We did 60.

    New Speaker (06:04):
    62 63. Something like that. 62 or 63 deals.

    Crystal Mewhorter (06:09):
    About 63. Yeah.

    Jay Conner (06:10):
    So over 60 deals over 60 houses and in the past year. So to do that number of houses, you must have like a really large payroll and team. And a lot of people working with you, what’s your what’s your payroll look like? Or how many people, you know, you got on your payroll?

    Crystal Mewhorter (06:30):
    Well, technically on our payroll, if you will, we really only have one person that works directly with us. Of course, the two of us were full-time. We both left our careers. So we’re, full-time in the business. We don’t work that business full-time by any means, but so we have one person that does the majority of things, and then we have a variety of other services that we employ. But we’re pretty lean. We don’t have a whole lot going on out there.

    Jay Conner (06:58):
    You can make over a million dollars a year with a very small staff.

    Crystal Mewhorter (07:02):
    Absolutely. As long as you know what to do and you have the right tools. Right. And that what you taught us.

    Jay Conner (07:08):
    Something like that. So just to let everybody know, you’re on the show. Crystal and Dan both worked with me in the business on the coaching end and also on service deliverables. Crystal helps me with coaching calls, accountability calls. And so we worked together on coaching real estate, investing students who are either brand new or they want to take their business to the next level. And so the reason, as I said, we’ve got crystal and Dan on is I want them to talk about one of their recent deals that they got in the works. So I’ll turn it over to you y’all, tell us about this deal.

    Crystal Mewhorter (07:44):
    Sure. So the deal came to us through our Facebook marketing. So an actual paid ad yeah, this one was one of the paid ads that called into us and, and reach out and said that they needed help. We were originally contacted by it was a couple they divorced many years ago. So the male he had reached out to us and said, you know, they really had to make a decision. There’s been ongoing issues with the house, but at this point it’s progressed and that they were looking for an option to be able to allow her to move on. So a little bit more of the backstory is just that through the divorce process, they have children together. And as we all know, there can be challenges on how all the financials are handled. So they were really struggling as far as having enough finances to be able to maintain the house, take care of all the expenses, obviously raise their kids.

    Crystal Mewhorter (08:41):
    And they, and of course have two separate households. So subsequently I spoke with the the woman who lives in the house and we had a really lovely conversation and she just expressed that at this point, she’s just done too. She, to me, that there was a lot that needed to be done. She wasn’t even sure what all. but she knew that it needed a roof, which was what we understood before we had actually physically seen the house. She didn’t explain a lot of what was going on with the roof, but there’s once we saw it, that’s a pretty major problem. So at this point, her objective was to be able to move on. So both of them to be to eliminate the issue of having to continue to pay for repairs on this house, the inability to maintain it.

    Crystal Mewhorter (09:27):
    Obviously while we all may know that houses can be an appreciating asset, they are not appreciating assets when they’re falling into pieces. So this is one of those, unfortunately, so three to little over 1400 square foot. She, she had just expressed to me that if she could move on, move into an apartment and then she subsequently would like to relocate beyond this time, once her kids are a little bit older. So for her to just get that piece done would really be super helpful. So we did indeed set up a time to go see the house understanding that 60,000 were owed on the house. And at that point, of course, we had no idea for repairs, but we knew these people were really, really flexible cause they need help. So we went to the house unfortunately even from the exterior, it was apparent as to the disrepair. So there were problems with the fascia, the soffit, it was clear that there were issues with the windows and the, and the roof and the landscaping had gotten, you can’t call it landscaping. The yard had gotten out of hand including like a tree growing through the meter pipes. So, you know, somebody that really is a need and just doesn’t have that second, you know, both income and set of hands. Obviously doesn’t have anybody around who’s handy. So just from the exterior, we knew it was in tremendous disrepair

    Jay Conner (10:54):
    had it been vacabte for a while?

    Dan Mewhorter (10:55):
    It’s not, they’re living in it. That’s the really hard part.

    Jay Conner (10:58):
    Are both of them living in it?

    Crystal Mewhorter (11:01):
    No, that’s the challenge. She resides there. She does not have any secondary income, but that she has residually from having been part of the marriage. And then he resides and has another, has sensory married. So he has another household.

    Jay Conner (11:18):
    Okay. Well, let’s back up before we get into the actual all the figures. I mean, I’ve already told everybody up front that profits are going to be over a hundred thousand dollars, but we’ll carve it up here in a second. So let’s go back to step-by-step your all’s criteria for deciding and how you decide and get the information on whether you should even go to look at a house, obviously on this, when you decided to go look at the house, so let’s go back, step one, you got Facebook ads targeted there in your market. And so you have a potential seller that responds to that ad. How do they respond to that? What’s the mechanism that they communicate to you from Facebook?

    Dan Mewhorter (12:06):
    So we have a CRM in place that when they respond to the added directly feeds into this software, that sends us an email message and a text message saying that they’re interested.

    Jay Conner (12:20):
    All right. So they fill out information, contact information, your texted, your emailed and your software automatically responds to them in about a minute or two, right?

    Crystal Mewhorter (12:33):
    Correct.

    Jay Conner (12:33):
    So there’s, nothing falling through there in the cracks that, you know, they don’t feel like they’re being ignored. And so then initially who actually talks to these people or attempts to get them on the phone,

    Crystal Mewhorter (12:46):
    Our acquisitionist actually texts them immediately and calls them, sets up a time to talk to them on the phone.

    Jay Conner (12:52):
    All right. So now what is your what’s the responsibility of your acquisition is, and how far through the negotiation process does your acquisitionist take the negotiation.

    Crystal Mewhorter (13:04):
    She’s bit newer to our team than perhaps, like say some others. So she is gathering information. She asks a few key questions just to find out obviously motivation. What’s the situation with the house, et cetera. She has the responsibility of getting some of the early figures, i.e How much do they own the house? What’s your monthly payments look like? What are they willing to take? She takes down all that information. And then of course, she looks up the property to help identify for us before, of course our CMA. Cause we will require a CMA in order to make a final decision. But she early on takes a look at the value of the property with some software that we have for you so that she can identify what potential may be there.

    Jay Conner (13:47):
    Right. And just to make sure everybody knows what we’re talking about, tell everybody what is a CMA?

    Crystal Mewhorter (13:52):
    Comparative market analysis, lets us know what the value of the house is. And in our case, of course it’s actually an ARV or an after repaired value when the house is not in perfect condition. So that would, we’re actually asking the realtor for a value once it’s actually rehabbed and in excellent condition.

    Jay Conner (14:11):
    Right? So your acquisitionist gets the initial information on the property, they get for you. And I guess they’re putting it into your software that you and Dan and the whole team use to communicate with each other as far as what’s going on with a potential deal. Right?

    Crystal Mewhorter (14:30):
    Correct.

    Jay Conner (14:30):
    So at that point, the acquisitionist has gotten all the initial information and what we mean by that is the mortgage information, how much is owed what’s the monthly payment. And so you see that information. So once you get that information, how do you know at what time? Yeah, I need to get my realtor to me. What the after repaired value is assuming it’s all fixed up. When do you do that?

    Crystal Mewhorter (14:56):
    We do at once. We’ve had a conversation with the seller and we determine what’s their motivation. And does it look like we have opportunity for there to be a deal? So we don’t ask our realtor to be running after repaired values on every property that comes across our desk, because until we’ve had that next conversation, I really just don’t know what these people would be willing to consider.

    Jay Conner (15:16):
    Right. So do you go look at the property before you get the CMA from your realtor or after?

    Crystal Mewhorter (15:24):
    We look at it after, we look at the property after we get the CMA, we want to confirm that we’re really all on the same page. I don’t want to run around and look at properties all day. I mean, as much as I sort of enjoy that piece, I don’t have the time for that. So I don’t look at properties until we’re all pretty on the same page. I know what they’re willing to do. I know that we can make this turn into a deal, and we can move forward from there. We may not be at absolute final negotiation, which of course we’re not because we haven’t even gone out and seen it, but I know we’re pretty darn close. We’re all in the same ballpark.

    Jay Conner (16:02):
    So you all are seeing what looks like a potential spread. And when we say spread, okay, depending on what repairs they want to be, looks like what this house could be worth, assuming excellent condition. We know what the payoff is. And they initially tell you that they would sell for payoff.

    Crystal Mewhorter (16:22):
    So dealing with two different people that evidently you have not been in much communication with one another, they both expressed that they don’t converse if you will. So I had to work through one party, determine what they thought they felt like they could, could take payoff, but they weren’t sure. And it’d be nice if they could get a little bit, but they weren’t even sure about that because they aren’t really been aware of really the condition of the property haven’t been there in years. Second person expressed. Absolutely. I would take it. I don’t know what he’d be willing to take, but I have to get out of here. I need to get my kids out of here. I don’t want to keep living like this. So I had a pretty firm idea that we could get pay off or close to pay off.

    Jay Conner (17:06):
    Right. So, you know, in a lot of these such as, not a lot. In all situations when there is a current mortgage, of course I say not current. I mean, it could be behind, were the payments behind or the payments current?

    Crystal Mewhorter (17:18):
    Payments are current.

    Dan Mewhorter (17:20):
    The payments are current.].

    Jay Conner (17:22):
    So whenever, so everybody don’t miss this point, whenever there’s a mortgage that would want to automatically trigger you to talk about and negotiate what we call buying subject to the existing note or mortgage. And if you don’t know what that is, then we got a bunch of shows already previously that talks about buying subject to the existing note. But bottom line is the seller agrees to leave the mortgage in their name. And we agree to make their payments until we find another buyer to cash everybody else out. So how did the conversation go on buying subject to the existing note? Because my best guess is that’s where you started.

    Crystal Mewhorter (18:00):
    That’s exactly where I started. In fact, I just negotiated one of those today. This is not that one. So we had that conversation. The challenge is the mortgage is in both of their names while it remains in place. And the property remains within one of their hands. You know, the party that’s supposed to occupy, they are equally responsible for repairs. So the burden, even just to know that it’s out there, the burden of that was overwhelming to both. So to cash it out and to know that they were done was far more important to them than the consideration of whether or not, you know, they could leave it in their name for a period.

    Jay Conner (18:35):
    So if you can’t buy it or they won’t sell to you on subject to the existing note, which is another is one of the categories of what we call buying on terms, then where do you get the funding for it?

    Dan Mewhorter (18:47):
    Private Money.

    Jay Conner (18:48):
    Private.

    Crystal Mewhorter (18:48):
    Private center that’s itching to get their money working. So we’re happy to happy to oblige.

    Jay Conner (18:55):
    That’s right. So is this a new private lender?

    Crystal Mewhorter (18:59):
    It’s an existing lender who came back up.

    Jay Conner (19:02):
    Okay. Very good. Meaning you are, they had already invested money or loan money to y’all’s entity, and you sell the property, cash them out and now they want to go do it again.

    Crystal Mewhorter (19:13):
    Yep. They’re ready to keep going.

    Jay Conner (19:16):
    All right.

    Crystal Mewhorter (19:17):
    This is good timing.

    Jay Conner (19:17):
    So you go out of the house and let’s hear about repairs.

    Crystal Mewhorter (19:22):
    Yeah, So. This is the tough part, and I’ll be honest. I’m not typically a softie, but I do care very much about people don’t get me wrong, but I try to keep business, business numbers always speak to me. The numbers still work. So that’s all good, but it was tough for me. This, the condition of the property is pretty bleak. So all flooring, kitchen needs to be gutted, bathrooms need to be gutted, all windows.

    Jay Conner (19:49):
    How many square feet is it?

    Crystal Mewhorter (19:49):
    1400. It’s not a big deal.

    Jay Conner (19:52):
    Average size first time home buyer house.

    Crystal Mewhorter (19:55):
    Yeah, perfect. Yeah. Like really fits our market in terms of being able to resell it perfectly. And is in a great neighborhood for that. You know, sits in a cul-de-sac. I mean, it’s just really quite, it’s an ideal setting, but everything’s gonna need to be done. Like I said, all exterior there’s rot around the base of the windows on the front. Definitely needs a roof. And when we got inside and we were walking through there’s multiple roof leaks with mold, so they have buckets sitting around their house. That was tough for me. They have kids that live there. And one of the rooms has multiple beds and there’s a bucket on the bed. That breaks my heart. So Dan doesn’t even know I did this yet, but I called them to see if I could send somebody over to see if we could at least tarp it for now, I mean, I don’t even care.

    Crystal Mewhorter (20:48):
    I just don’t want the, I don’t want them to live like that. It just breaks my heart. So and several other issues, like they’ve had lighting that wouldn’t, hasn’t been on for years. So they have lamps in spaces where there normally be lights. Dan actually fixed that I think. Probably not long-term but flipped a breaker. So they have some lights. It probably will go back out. I’m sure there’s a bigger issue. But so I mean, it’s pretty extensive. We can salvage the tubs. But for the most part, everything else has to go. They haven’t used almost any of the closets because for years as per her because they are moldy and they don’t want to open them. So.

    Jay Conner (21:27):
    Dan, you have a thought?

    Dan Mewhorter (21:31):
    No, I just thought. I’m so sorry.

    Jay Conner (21:31):
    So the they’re willing to sell to you for payoff, which is about 60,000.

    Crystal Mewhorter (21:42):
    Yeah.

    Jay Conner (21:42):
    So you’re estimating the total repairs at how much?

    Crystal Mewhorter (21:45):
    60,000.

    Jay Conner (21:47):
    Right. So they’ll sell for pay off, which is 60,000 repairs of 60,000. So all the way on until Murphy shows up as in the unexpected. You’re going to be somewhere around $120,000 invested in this house. And so your realtor comes back and says, okay, I’ll fixed up this house and property should be worth how much?

    Crystal Mewhorter (22:10):
    Well, my realtor says it’s worth more than I think it’s worth, but we’re going with 250.

    Jay Conner (22:15):
    Well, typical height, I think 250 works. If you’ve got an after repaired value that you can list it for or sell it for two 50 and you got to know you’re going to buy for 60 at pay off and 60 on the rehab, that’s about $130,000 profit. So don’t have to take that one to the committee right?

    Crystal Mewhorter (22:35):
    No. And I will say that we’ve already decided that, because of course we don’t know when Murphy and this one, this one’s got a lot going on. So until we have, you know, inspection, everything else, I don’t know everything, but I can’t imagine we’re going to get in too horribly, much deeper. There’s not a whole lot else to replace. But we’d like to give the seller something, we’ll give them some money on this one where I can’t, they gotta come out with something. I know that they didn’t intend for this to go that way. So,

    Jay Conner (23:15):
    Well, there’s a lesson learned in that. I was talking to somebody not long ago and and they said, well, you know, Jay business is business, and I merely replied, no business is not business. Business is people. And people determine what the numbers are, what the business is. And so right there is a perfect example of how both of you, Dan and Crystal, you got a servant’s heart you’re looking at doing what’s right. What’s fair to all concerned, even an occasion right here where they’re not asking for any more money. Right?

    Crystal Mewhorter (23:55):
    Correct.

    Dan Mewhorter (23:55):
    Yeah.

    Jay Conner (23:56):
    Well.

    Crystal Mewhorter (23:57):
    No, we’ve always said, and you and I have talked about this before. It’s all about relationship, every aspect of everything you do. And I, how can you consciously walk in or out of a relationship and not really look at what’s going on with all parties? So it’s important to do the best you can to do the right thing.

    Jay Conner (24:16):
    Well, and you know the secret of what you’re doing there is giving. I mean, how much are you thinking about giving them if you know, some unexpected, you know, it doesn’t show up.

    Crystal Mewhorter (24:28):
    I mean, if something unexpected doesn’t show up, I would consider 30 or more grand to split between the two of them. If something unexpected shows up, at least I’m, I would consider as 20. So they each walk away with 10. Even if, you know, our end goes kablooey! We’re still going to come out ahead.

    Jay Conner (24:48):
    Well, you know my dad told me many years ago, he says, Jay, you already know the right thing to do without somebody telling you what the right thing is to do. So let’s talk about exit strategy for a moment before we wrap up this episode. So you are all like me, you all sell homes, different ways. Some of them, you put in the multiple listing service with your realtor, you sell them, you cash out, you go, again, some of them, you settle on rent to own where you help people actually go ahead and move into the home, help them get a mortgage, you know, down the road a few months or a year or so. And then they cash out. What’s your intention on this position of this property.

    Crystal Mewhorter (25:33):
    Plan is MLS. We’ll go ahead and list it with our realtor, let her sell it and go from there. So, obviously we’ll pay some out as everybody knows. When we do that, as opposed to when we sell it rent to own, that looks different. We actually have three that are in process that should be cash out any day now, if COVID, wasn’t so slow causing everything to be so slow, I should say.

    Jay Conner (25:56):
    That’s awesome. So as we wrap up, let’s brainstorm on some lessons learned from this case study, if you will, it’s a real life case study. So let’s just go around the room lessons learned from this deal, and I’ll go first and then Crystal and then Dan. And I’ll see if I got anything else left. So my first lesson learned from this case study is if you didn’t have Private Money Already relined up, ready to do deals, you’d be missing out on this deal. Right?

    Crystal Mewhorter (26:28):
    Absolutely.

    Jay Conner (26:29):
    All right. Crystal, second lesson learned.

    Crystal Mewhorter (26:33):
    That’s a tough one. I mean, there’s always, gosh knows. I’m sure I could think of 25, but you put me on the spot. The cell it’s all about, it’s all about people dealing with people. So to be honest, I’m not sure that if we weren’t coming at this from the heart space, that the same response would have been true. i.e I’m genuinely concerned about these people in their situation. We want to fix it, that’s what Dan and I do. That’s I truly believe why people choose to work with us over someone else. Oftentimes. So for me, it’s really just having a very keen awareness of how valuable relationship is, and coming from that heart space.

    Jay Conner (27:17):
    And I promise you, people can tell where we’re coming from. They can tell.

    Crystal Mewhorter (27:23):
    Great.

    Jay Conner (27:24):
    Dan, lesson learned from this one.

    Dan Mewhorter (27:27):
    I’d have to say, having the correct type of advertising and getting yourself in the right spot at the right time. I mean, there’s a million real estate investors out there in the world, but they don’t all advertise the same way. They don’t come across as big of a servant’s heart as we do, and our communications with them. But knowing how to advertise correctly is definitely the winner on this.

    Jay Conner (27:49):
    Yeah. And as you mentioned, this one came in from a Facebook ad where you were offering to buy someone’s house without having to list it with a realtor, or do you remember the specific, unique selling proposition or the unique call to auction or offer in the Facebook ad? Cause I know all, you know, you all, and I, we have different types of Facebook ads,

    Dan Mewhorter (28:13):
    Right? So this one was just a full price. We buy full price and we sell, you know, we can buy quickly with no closing costs or fees. So save your equity. If you have any, or keep you from having to pay out of pocket when you do sell, that was kind of it in a nutshell. So but had a nice picture of us on the front.

    Jay Conner (28:36):
    I love it. Well, you actually said the one I was, so I’m not going to try to top you,

    Dan Mewhorter (28:44):
    Can I add one more? And that is, you know, I think an important lesson that we don’t all think of is, and in reality, yes, we’ll make some adjustments to this, but it’s still really important. And that is, don’t be afraid to ask if they’ll take what they owe, even if they’re, if that doesn’t look like a reasonable answer, because sometimes circumstances and speed are far more important to a person than just whatever value it is that you’ve identified in your mind. So just don’t be afraid to ask those questions.

    Jay Conner (29:15):
    Yeah. Well, and the opposite side of that is true as well, which does not pertain to this particular scenario. But what I had discovered over many, many years, is the first figure someone tells you, even when they say that’s the last, that’s the, you know, I will take one penny less than X number. What I’ve discovered is, sellers don’t know what will take until they are given an offer.

    Crystal Mewhorter (29:45):
    Absolutely. Yep.

    Jay Conner (29:45):
    I mean, I’m thinking of one in particular. They started out at 80,000 a year in my market. My acquisition is can only get them down to 60, not a penny, less. We met them in person. We offered 20, which was 60,000 than the original 40,000 less than won’t take one penny less than 60. So again, make the offer, make the offer, make the offer. Crystal and Dan, thank you so much for joining me here again on another episode of Investing with Jay Conner.

    Crystal Mewhorter (30:18):
    Thanks for having us. it was fun.

    Jay Conner (30:20):
    All right. Thank you, Dan, thank you Crystal. And we’ll be talking soon. So listen folks, thank you for joining in here. Real Estate Investing with Jay Conner, I’m Jay Conner, the Private Money Authority. wishing you all the best here’s to taking your real estate investing business to the next level. And remember get right on over right now to www.JayConner.com/Trial. And I’ll see you inside the Private Money Academy. We’ll see you there.

  • Chad McCall on Finding the Deals! – Real Estate Investing with Jay Conner

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    Chad McCall was only 14 years old when h purchased his first property.

    You can never be too young or too old to start investing, all you need is the right plan and a system to follow. He created the system for anyone looking to build wealth in real estate all you need is the drive to get started!

    https://chadmccall.com/
    https://www.restrategylab.com/podcast

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

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————–

    Jay Conner (00:00):
    Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host also known as The Private Money Authority. And I’m so excited, the guests that I have on today’s show, we’re going to be talking about finding deals. You know, that’s the two, one of the two most popular questions that I get as I train and coach other real estate investors. The first question is how do I get money for my deals? The other question is, is how do I find the deals? Well, I’ll be introducing my guest here in just a moment. So you want to be sure to stick around for the entire show, because we’re going to be diving deep on what’s working today on finding the best and most deeply discounted deals. So if you’re new to the show, a very special welcome to you here on the show, we talk about all things that relate to real estate investing.

    Jay Conner (01:01):
    As I said, finding deals, funding deals how to sell houses fast, how to automate the business. So you’re running it, It’s not running you. So we love your feedback. If you haven’t subscribed to our show yet, be sure to like share and subscribe and leave us a five star review if you can. And so, as I said, we talk all things real estate investing. Now, if you’re new to the show, you may not know why it is that I’m known as The Private Money Authority. Well, from 2003 to 2009, I was investing in single family houses here in Eastern North Carolina, January 2009, I got cut off with no notice from the local banks. Well, very quickly I learned about what private money is, and I’m not talking hard money or hard money brokers. I’m talking about doing business with individuals who loan us money from their investment capital or their retirement accounts.

    Jay Conner (01:57):
    That’s a whole another subject right there. So I learned about private money. I was able to attract over $2 million in less than 90 days. And since that time I have not missed out on a deal for not having funding for my deals. Well, if you’re a brand new real estate investor, never done a deal before, or you are a seasoned real estate investor, my guess is you can use some more funding. That’s got nothing to do with your credit, your experience, nothing to do with what you know, it’s got nothing to do with traditional banks or mortgage mortgages or lenders. This is all a different kind of funding. And so I’m got a gift for everybody right here on today’s show. And that is I’m going to give you 33 days of access into The Private Money Academy membership. So, here’s the way this works.

    Jay Conner (02:48):
    I’m live training twice a month, all the Academy members on how to get funding for your deals and all kinds of education is in the membership side as well. So here’s how can take advantage of getting three free days, 30 days for free at www.JayConner.com/Trial. You go on over to that website after the show and sign up for your free access. And I’ll be looking to having you on the next Zoom coaching call. Well, on today’s show, I’ve got a very, very good friend to join me here. And he’s got over 20 years experience on all different kinds of methods on finding deeply discounted houses. Well, he started his real estate investing career all the way back when he was only 14 years old, and he’s also a fellow North Carolinian.

    Jay Conner (03:47):
    I’m here in Eastern North Carolina. He’s from the Western part of the state. Well, he’s been doing real estate full time since 1998. He’s been involved in over 3000 house transactions all across the country. And he has been speaking on stages and five countries with audiences sometimes over 7,000 people. Well, he’s way too young for me to say this next statement, but he’s been retired down in Arizona, all this year. He’s married with two kids, got a 15 year old and a 9 year old. Well, he’s not retired, he’s staying busy. Well, let’s bring him on out of the green room. My good friend, welcome to the show, Mr. Chad McCall. Hello Chad.

    Chad McCall (04:33):
    Hey, Mr. Jay, how are you buddy?

    Jay Conner (04:35):
    Man, I am doing fantastic. And mercy. I see a great big smile on your face does that got anything to do with you just like working whenever you want to these days?

    Chad McCall (04:46):
    Oh my gosh. I think I’ve gotten busier since I was joking around saying, Hey, I’m retiring down to Arizona because of the land of Arizona, from where I came from, I was like, it’s retirement country, but I’ve gotten busier this year. And I’ve only been here since January and Man, 2020. It’s nuts, but it’s gotten busier for me. As you can see, my hair keeps getting more and more gray. Yeah, I’ve got more gray hair than you do, Jay.

    Jay Conner (05:09):
    Hey look, that’s not great. That’s like some beautiful white hair you got going on there Chad. Well hey look, I want everybody to go ahead and know right now. So they stick around to the end of the show. You have got a book. In fact, show them the book that you put together. It’s like a great big coaching manual. It’s a real estate playbook. You got 101 ways to find discounted houses. And we’re going to let everybody know how they can get that book at the end of the show. But in the meantime, I’ve asked you before you came on here to share with us, what are some of the top ways that’s working right here today, this year on finding deeply discounted houses. So I’m going to let you roll with it, Chad, and you know, talk about the different strategies that you want to, and I’ll interrupt when I think it’s the right time to interrupt you.

    Chad McCall (06:02):
    Great, no problem. Well, it kind of started out like years ago, Jay it’s, you know, like you, you talk about money lending and the importance of funding. Well, I started realizing that if I go out there and I start trying to find money to do deals, the guys that had the money, when I started out as a kid, I didn’t have the money. So I was thinking what’s going to really make them want to give me money because who am I? I’m a kid at the time, right? I’m young. I have no it’s really experience. I wasn’t seasoned enough. I wasn’t old enough. I didn’t have this gray hair that gave me instant credibility with these lenders. I was saying, Hey, what’s it going to make that the ability for them to give me money to do a deal? And I kept hearing that they want a better deal.

    Chad McCall (06:50):
    Hey, Chad, we gotta have a good deal. We got to have a really, really good deal. That deal doesn’t look as good. And I was like, well, donor, I need to find good deals. How can I find good deals? I started really thinking about ways to eliminate the middleman, eliminate realtors, a lot of times eliminating other wholesalers, you know, getting down to the, really the bottom of the deal, where you’re talking with homeowners a lot of times, and as I’m going through this journey, that’s where this playbook was really created. So being involved with thousands of transactions with my partner, we scoured the country. We were looking at every possible State, County, City, whatever we could do to find really good deals. And all the strategies came from just experience of doing something, you know, actually applying it. And we started thinking of, do we need the internet?

    Chad McCall (07:43):
    Do we need softwares? Do we need all of these other tools and resources that are out there? Those are all great, but it kept coming back for me to think, as I was doing it, I did it as a kid. I did my first house at 14 years old, the internet wasn’t available back in 1991, you know, there wasn’t Google to go out there and search for a deal to try to find a motivated seller and all these other things you can do online. It was different back then, but the population was still hundreds of millions of people. You’re still talking about 350, some million people probably back then. And so deals were always being done. People were buying and selling and building and rehabbing and doing all that before the internet. So I started thinking about it. I want to put everything I’m doing into a manual or a playbook is what I call it.

    Chad McCall (08:30):
    We’re actually gonna do step by step and try to really understand real estate at its core, which when you start out real estate investigates all about finding a good deal, because I was always going ahead looking for money first sometimes, but then they were like, well, Chad, go get a good deal. I was like, okay. So how would you find the good deals? And then the money started coming. It was a lot easier for me to have conversations with the lenders. And the lenders really started liking me, Jay. And that’s why you’re expert in funding. That’s why I love you so much and get along so well with you and your strategy because you are the money guy for all the cool things that I find in real estate. When I find deals.

    Jay Conner (09:06):
    Before you get into some specific strategies, I’m just really curious. And I know our audiences as well. How do you do a deal when you’re 14 years old? So let’s hear the 14 year old first real estate deal story.

    Chad McCall (09:21):
    Oh, okay. So you guys might. Oh, well, okay. I’ll tell you. So 1991, I was in a car accident. Like you said, Jay I’m from Western, North Carolina, small town, way up there in the mountains. Nowhere between Lenoir and Morganton little town called Gamewell, but it’s pretty much known by Lenoir, North Carolina. And I was in a car accident and long story short, I was in the hospital for a few months. Really, really severe car accident. And I don’t come from a very wealthy family. I come from just a basic family in North Carolina and I got an insurance settlement from the car accident. And my mom and dad got divorced right around that same time. And I took the money from the insurance settlement and I bought my mama house. So a lot of times you hear the stories from people in the South, you know, when their sons are doing something or someone comes across money, it’s just one of those things.

    Chad McCall (10:17):
    What do you do? You buy momma house? It’s kind of a common thing. I’ve got a lot of friends that are athletes and, you know, professional sports players and different things. And they always come to me. They always say I bought momma house. So you know what? I followed right along with it. And I bought momma house, Jay, when I was 14 years old with the money that I got from the insurance. So when I wasn’t old enough to sign on the contract, so my mom was the co-signer for that house. I remember Gamo Heights. A lot of my friends you’ll have people watching this. They’ll remember that same house that I purchased. And it was a HUD home that I ended up buying back then. And that was when I started talking about my first real estate deals where HUD properties.

    Jay Conner (10:52):
    That’s awesome. Okay. Well, I didn’t want to slow down the momentum there, but I just know people want to know how you buying a house at 14 years old. So all right. Back to you.

    Chad McCall (11:03):
    All right. Got it. So I got back to the strategies and saying, how can we break it down to the most basic form of how to get started on the deal? And the strategy started out like 10, 15, 20, then over time, Jay, these are the numbers of ways that we found properties caught up to 101, and this is the revised version of the playbook was at 90 for the longest time. And then we found a little bit more, but I call it Grassroots Real Estate Investing for some reason, it’s kind of a little nickname that I got to because if you can’t go out there and you can’t find a deal with out a computer, then it’s going to be just as hard sometimes to find it with the computer. You don’t know, it’s almost like talking to, you know, having conversations with people too, a lot of strategies are gonna involve human interactions.

    Chad McCall (11:49):
    Some won’t, some are gonna involve computers. Some won’t, some will involve marketing. Some don’t some involve, you know, investments of money into marketing and your business. Some don’t that’s the beauty of it is there’s so many ways you can find deals and it doesn’t matter where you live. Doesn’t matter if you’re on the ocean like Jay, right by the water, right next door to it. Some of the most expensive real estate in the country is by water. Like where you’re at Jay, or you can be in the rural mountains, up in a cabin somewhere. It doesn’t matter where you are, you can do deals. And if you can find a great property, money’s easy and actually profiting in your real estate, investing business, hitting six and seven figures is very easy too if you find the right deals. So I spent my time really honing in on the strategies and the ones that I like.

    Chad McCall (12:35):
    But what’s really interesting is you start to really see the markets shift. You start, when you’re looking and you’re talking to sellers. It’s very interesting when you’re on the ground looking at deals or you’re doing this business virtually. So there’s different strategies, depending on if you’re remote or if it’s in your backyard, but there’s always a strategy for any person, regardless of your money, regardless of your credit, regardless of your location. We have a lot of people, Jay, that are international investors that take the playbook and they’re investing here in the United States and they don’t, they’re never here. They do it all virtually they pick a few strategies and they just stick to it and they use those strategies over and over and over again to do their deals.

    Jay Conner (13:16):
    That’s awesome. You know, there was a popular book, I don’t know, 25 years ago, maybe 30 years ago. You remember when the book Guerrilla Marketing came out?

    Chad McCall (13:26):
    Yeah. Oh yeah. I think I’ve gotten it somewhere. Yeah. It’s over here. It’s all camouflage book. It’s around here in my desk somewhere.

    Jay Conner (13:32):
    Yep. And and I remember that book, and as you were talking, I was thinking, you know, when you used the phrase, grassroots. So, you know, some of the best ways to find deals in my experience has, does not take a lot of money. Right.

    Chad McCall (13:50):
    that’s right.

    Jay Conner (13:50):
    May take some time of your own or time from a team member to do it. But I was just curious and we’re going to find out here, you know, what, you know, what percentage of your hundred and one different ways of finding deals would you say are actually a Grassroots or a Guerilla marketing kind of thing?

    Chad McCall (14:10):
    Oh, a majority of the margin where they don’t really require a lot of money. And I want to take, let me tell you the difference, what I say, money free equals work. Okay. If you’re not going to put money out there into like a marketing budget, which a lot of investors are new, they don’t have marketing budgets, which is okay. But if you’re going to do it that route, it’s going to take a little bit of time and going to take a little bit of work, which if you’re , if you don’t want to work, then you know what, get together a little bit of a budget now, budget, meaning a majority of the strategies, you know, you’re talking $10, $20, $50, $75 or so a month, or over several months, I had a person spend $70 over 90 days in marketing, Jay. And she closed three transactions on $70 of spent.

    Chad McCall (14:59):
    And here only one of them deals that she did, or the three came from the $70 that she spent. So, yeah.

    Jay Conner (15:06):
    I love it.

    Chad McCall (15:06):
    So it doesn’t really matter. One thing, Jay is in the playbook here. I break down the cost of each strategy. I give you how much it’s going to cost you. I tell you affordability and if you can pick the best strategies for you based on your budget. So I’ve taken 101 ways, and I’ve put those all down into 10 different categories. So you can focus on the category and then get inside the specifics of each category and find the right strategy for you.

    Jay Conner (15:33):
    What’s an example of a category?

    Chad McCall (15:36):
    For example, one of the categories here is I call it The Judicial Strategy. Then I have niche strategies as one. So I have retail strategies as one. I have B2B, which is another strategy, you know, a category. So these are categories. And then inside of those categories have detailed strategies and how to apply the strategy in your market. So it’s not just, Hey, go put out some signs. That’s not really a strategy. It’s if you’re going to do that, how do you do it? How cheaply can you do it? Like, there’s so many things. It isn’t just about putting out a sign. If you’re going to drive for dollars or doing those types of things, there’s a way that you do it to where you can get the best results you just don’t want to get in the car and drive around, or use an app on a phone out there.

    Chad McCall (16:18):
    Like that’s really common nowadays, you see an app on a phone and people say, Oh, I’m driving for dollars. I’m going to send postcards. And this, well, just doing those things randomly, you don’t have really a purpose. So what I really like to let people know is in real estate investing, you have to have a purpose for the actions of what you’re doing. So if you’re going to go drive across, where are you driving? Why are you driving there? Who are you going to see? Why is that a good market? Is that an area that’s going to be good if you do get a deal from it? Cause a lot of times, Jay, I’ve been in markets where I can find an amazing deal, but there’s no buyers for it. And if there’s no buyers for it, why would a funder want to fund me on that deal? If they think it’s too risky.

    Jay Conner (16:55):
    Exactly. As you’re talking, one word comes to my mind and then I want, then I want you to, I know our audience is biting at the bit that they hear the first strategy that you’re going to talk about. But one thing that comes to mind is a word that is critical when we are in real estate investing and we are locating deals to do. And that’s the word, consistency and measurability. And when I say consistent, it’s like, you know, if you’re like, okay, I get up today. Well, what am I going to do to go find a deal today? That’s not how it works. In my world, you got you get the education, right? You gotta, you gotta, you need to hang around somebody that has already learned how to do it and implement, you know, put the plan together. Okay, what strategies am I going to start testing? What’s my budget and consistency. You know, activities going on every day of bringing in, you know, some are leads. And along with that, we can’t set it and forget it. We got to continue to measure it. And we got to have a mechanism on measuring. What kind of return are we getting in our investment of dollars and investment of time, you agree?

    Chad McCall (18:13):
    Oh, you have to measure what you’re doing. And that’s when I tell people, it was like a lot of people, Jay, that I run into say, Chad, I’m so glad I found this playbook. You know, I did direct mail though. And it didn’t work. How long did you do it? Well, I did it for two months. I was like, well, if you pay attention to the strategy, it’s going to last a lot longer than that. You know? They’re like, well, I sent out postcards, you know, not versus my yellow letters. And well, how long did you do it? And some people, they just, they jumped around from strategy to strategy. They ever get the consistency out their day, like you’re talking about. And I always tell people, if you do something consistently, just like you said, you can get a predictable result if you can measure.

    Chad McCall (18:52):
    So you gotta be consistent. So you have the ability to measure. Then that’ll give you a predictable outcome, you know? And I learned from you Jay, you guys. I went in the field with Jay. Jay, probably that’s about that. I came out, went around Jay, show me what he’s doing. We talked like, this is what people do that are in this field. The experts I learned from Jay too, of how to be better on my side of finding deals, because I know that I’ve got to go to people like Jay and say, Hey, I need more money for deals. And if he knows what I know, and I know what he knows, it makes that so much easier to have that conversation with a funding person or to help me line up funding or referrals to other funders to do deals. So that’s the relationship that you want. You want to understand your market. You want to understand things and then give yourself time to be consistent enough. So you can measure. Then you can get a predictable result. Cause Jay will know that Chad gets this type of deal. Chad’s doing this type of size houses, this location, they get very, very comfortable with you. Then they start doing a lot more for you. Then they start giving you a little bit better rates sometimes. All of those things work out when you’re consistent with business for them. Right, Jay,

    Jay Conner (20:01):
    You got it. All right. Let’s talk about a strategy. That’s one of your favorites.

    Chad McCall (20:05):
    Oh man. I got so many, you know, I don’t know. Well, I’ll tell you one right now. That’s really hot. And some people are going to say no way, but Airbnb is a really hot strategy for motivated sellers.

    Jay Conner (20:20):
    Okay. First of all, why is Airbnb so hot right now?

    Chad McCall (20:27):
    Okay. I own Airbnbs in several States. I love the Airbnbs, but don’t get me wrong. But Airbnbs for motivated sellers because rules, regulations, you know, things are going on out there in the world. The reason why I say this is I filtered phone calls from at least 30 to 40 owners of Airbnbs, because they’re worried about what’s going to happen. Okay. And I’ll give you an example. What’s the most common conversation I’ve had with them is Chad, am I going to get sued? If someone catches Corona virus from one of my properties? Well, no one knows, right? But there’s a fear factor that could possibly happen. We haven’t seen a court case yet of that. Jay, we don’t know, and we can’t prove it. And we don’t know contact tracing and all the other things that can be involved with it. So homeowners, if they did get sued for that, what are the chances that they’re going to be able to weather a storm of a financial crisis like that the average person can’t. So that good investment now may turn into a longer term investment.

    Chad McCall (21:25):
    They don’t want to deal with the management or the maintenance or anything that they’re going to have to do because cleaning costs. A lot of the cleaning company with Airbnbs are increasing their prices. Instead of that $75 to clean your unit or a hundred dollars after each visit, you’re going to have to spend 2 to $300, get a certified person. They got to use the right chemicals materials. And therefore that costs is going to increase on to your sellers, and to your rates and things. Right? So now if you have turnover in your property, we’re used to get two nights a month and then, or three night minimum stays. You’re gonna see a lot longer. Minimum stays with Airbnb week, two weeks because they don’t want to have to keep paying these costs of cleaning fees and everything else. Then you’re going to also see in certain areas like condos, town homes, the HOA’s are going to start changing rules due to what’s happening for traffic and people coming from out of the country.

    Chad McCall (22:14):
    If you have a resort or a destination location, Airbnb. So I’ve noticed that you can get a lot of great deals on Airbnb’s right now, furnished and have great conversations with Airbnb owners that are just, you know what, yeah, I’m interested in doing that or taking over some of their properties subject too, because we’re not just out there finding deals to get funded. Jay, I know you love to fund all my deals for me, but I just, I find deals and I figured out ways to structure deals that aren’t necessarily the best for funding too. I may end up working on a short sale with someone taking over a subject too, working on a, you know, at least option something more creative as well when you have that motivated seller, because not all my deals are going to have the largest amounts of equity, but the ones that don’t, there’s still a way to work those deals.

    Chad McCall (23:00):
    And there’s ones that do, always wait to wholesale and get them funded and rehab, et cetera. So Airbnb’s are great right now. And it’s very easy to find those and look at them because checking on the calendar, seeing which calendars have been booked out, which you know, locations are, I mean, there’s so many out there across the world and there are so many things going on with Airbnb and vacation rentals being up in the air right now. And again, it’s not every one of them, but you can have a very targeted, very qualified list. If you get the right message to those owners and you let them know that you’re interested in buying their property or putting a long-term rent in place as well, Jay, where you can rent it for two years at a thousand a month, and then you rent it out, you know, and you were on the Airbnb business on that charge 14, 15, 16, $1,800 a month, renting it out two or three times a month is all, where you can create your own little amazing cashflow business just from going out there and having the right conversations with Airbnb owners.

    Chad McCall (23:53):
    But there’s a way to do that. There’s a right way to have that conversation. So that’s a great strategy right now with what we’re facing,

    Jay Conner (24:00):
    Right? How do you initially communicate with the owners of Airbnb’s to you know, sift and sort those that might be interested in selling?

    Chad McCall (24:12):
    Okay. So I do a lot of this myself. I designed my business where I can do everything in my business on my own before delegating it. But with Airbnb’s, I always have my VA go out there and start searching for my properties that are having no bookings. So on the calendar dates, when they’re not booked up and they always have availability or they have the lowest rates on their rental nights, that shows me they’re very motivated. So then I look for the lowest rates and the most calendar vacancies. That’s two things. So you can almost start to calculate, is this owner going to be making any money anytime soon or not? And then a third motivation indicator that I look for Jay is the ones that have really bad furniture. So if it’s really cheap, really bad furniture and old calendar invites, how are they going to pay to do all the cleaning up and things that they’re going to have to do?

    Chad McCall (25:01):
    And it’s more of a burden for them sometimes again, not every one of them, but what we’re looking for, you can easily find a 20 to 30% conversion rate talking to those. And that’s a great conversion rate when you find the right type of motivated sellers, motivated landlords that have had those properties. And then I go a step further, Jay, I check and see how long those individuals have on those properties. So I look at the deed dates and if I can have a deed date, that’s so long, 10 years or more , then I know there’s some equity in there in that situation to have a good conversation, to write them a check for that housing from Jay Conner. When I say, Jay, I got a great deal, give me 50 grand, that’s worth a hundred. And you say, sure, Chad, I know, you know what you’re doing. And then we’d go out there and I sell it. I pay your money and I’ll walk with a profit. There you go.

    Jay Conner (25:48):
    These properties that you’re buying that are currently being marketed as Airbnb. When you acquire the property, what is typically your plan of this you know, disposition? You know, what are you going to do with it?

    Chad McCall (26:01):
    Oh, resell. Totally. Unless they don’t want to sell it to me yet. I can get a longer term lease. Do I like a lease option? If I’m a limited financially, then I can work more of a creative deal with them, Jay, but I’d love to just take those properties. They already have traffic. It’s usually in a nicer area. That’s why they’ve held the properties for such a long time. So it’s very easy to resell. Plus the homeowners. Usually aren’t going to want to do any of the work that it takes to get those properties up to market standards because they haven’t made any money with their Airbnb. So they need to come out of pocket with 20 grand. They’ve not made the 20 grand that they were thinking they were going to make with the Airbnb. And so there you go. You have an upside.

    Chad McCall (26:42):
    Now, one, the things that most people don’t realize is Airbnb. A lot of these properties after this year, there’s so many properties it’s estimated to over 40% of Airbnb owners are defaulting on their mortgages right now on those properties. So with the high increase of that, that’s a lot of homeowners, insurance policies are going to be going in saying, what’s going on here. All it takes is for the homeowner insurance policies to know that they weren’t getting the right type of policy for a vacation rental or short term rental policy. And you’re gonna have a lot of owners that are gonna be freaking out about that too. So you’re going to catch some motivation from some of these sellers at the right point, and you can make a full time business on Airbnb from motivated sellers. If you want.

    Jay Conner (27:27):
    Now in your playbook, you got 101 different ways to find discounted real estate in today’s market. If someone is like really, really tight on a budget, don’t have much money to invest. What’s one of your top one or two strategies in your playbook for people that are short on budget?

    Chad McCall (27:45):
    Well, the easiest thing, Jay is the most public information that you can have out there is going to be a delinquent tax properties and code violations. I love both of those strategies because it’s free and you can always find some type of motivation. Now let’s just take code violations, for example, this strategy it’s public. I was just looking today, yesterday, and one location Jay, one city. And I’ll just give you an example. So Pennsylvania, so we’re talking Pittsburgh. In Pittsburgh do you have any idea of how many code violations have been filed in the last five years in Pittsburgh? Jay like, would you have a guess? Let’s just talk about like code violations. Like what would you do.

    Jay Conner (28:28):
    I don’t have a guess, but before you answer, before you let everybody know, give everybody some examples of what a code violation is.

    Chad McCall (28:35):
    Okay. Code violations or anything that you’re going to be in trouble for, from the exterior of your property, primarily, unless there’s a complaint on interior. Now, the interior complaints come from vacant properties, obviously a complaint from the city, meaning you’re not uphold into the building and standards, arrangement, or agreement that you have with the city. And that’s a big deal. Okay. They have the, it’s like the police that drives around and looks for reasons to, like, for me in North Carolina, Jay, you know, we’re out in front of the Western, North Carolina. It’s not very uncommon to have a couch sitting on your front porch or a car that’s been broken down in the front yard for 20 years. And hasn’t been moved. Okay, very common where I’m from, but that’s a code violation. You’re going to have to move it. They’re going to find you, they’re going to charge you for it.

    Chad McCall (29:23):
    Busted out windows garbage, debris, grass is a very common one. A lot of those things, you know buildings without permits. This is a really good one too Jay that so when you’re looking at code violations, so I’ll give an example. One of this is the last five years there was 15,000 code violations filed the last five years now in the last year, there was 4,500 of those in the last year of the 4,500, this one city, okay. 900 were major code violations. And this, when I say major, this is over 7, 8, $9,000 to me based on this area. So now those aren’t legal complaints. They’re filed. People have to fix it. In other words, it’s a fix it ticket. It’s like, Hey, if you don’t fix this, you know, we’re going to not give you an occupancy permit to be able to live or rent in this property.

    Chad McCall (30:21):
    So now that’s a major deal for a lot of people. Now, I will say that what we’ve seen is an unprecedented times right now in the pandemic, there’s a lot of major cities that have had some vandalism has had problems, things going out there, and guess what? That’s not going to stop the landlords and the code violations and everone’s not having to fix some of these problems, but they’re going to make sure they’re a very aware in certain areas of vacant properties. Now you’re gonna have a lot of people out looking for damage. They’re going to be looking at vacant properties, they’re going to be finding just because of the circumstances they’re going to be catching on to other landlords that had vacant properties sitting there. Other landlords that have think there got away with problems before they’ve been letting it sit there.

    Chad McCall (31:03):
    And just the problem didn’t fix itself. It’s going to be doubling up. So you’re gonna have a lot of court cases coming up here. The first of the year that are going to be happening in the code violation world that are going to be thousands and thousands of dollars. And this is a legal proceeding that’s filed. And so one of the categories like the Judicial Category, it’s going to be a legal proceeding that’s filed. Legal proceedings, they’re going to be assigned the case number., they’re going to be assigned a court date, all public information. So if you don’t have a big marketing budget or brie, you just go to the date that they have, the court cases there, you can look up, who’s going to be having you look up what violations that they have. If you really want, if you can point and click on Google, you can easily find them.

    Chad McCall (31:41):
    And then there’s your conversation. You know, the problem that they have with the house, you can easily find out if it’s an owner occupied property or a non-owner occupied property. Jay, very simple. It just takes a little bit of rolling up your sleeves. Get back to Grassroots Real Estate code violations has been around forever. I didn’t invent them. Jay didn’t invent them. They’ve been around hundreds of years. So easy to find those it’s legal. It’s all public information. You can roll your sleeves up. You’ll have more leads and you’ll know what to do with them. Just like that. One city over 900. All you need is one seller to say yes. Right Jay? Just one.

    Jay Conner (32:18):
    You got it. Now you mentioned another strategy along with code violations. And what was it that you said

    Chad McCall (32:25):
    You know, I have kind of run out a good strategy today. I think I gave too much.

    Jay Conner (32:32):
    That’s awesome.

    Chad McCall (32:33):
    Other one, Okay. So let’s talk about your delinquent taxes. Okay. A lot of.

    Jay Conner (32:38):
    That’s what we said, delinquent taxes.

    Chad McCall (32:41):
    Yes. A lot of times now this isn’t going to be the same in every single City and County and State it’s different. Okay. But if you’re limited on budget, Jay, this is what I was thinking of. You know, that’s a situation where properties that are delinquent on tax. I’m not talking about chasing at the tax sale or anything like that. Right now. I’m going to give you an easier way to talk about it. Is you have, what’s called land banks, repository lists. You have struck off lists in North Carolina. Jay, I mean, you know, you have the upset bids in North Carolina, right? I mean, that’s a really big one where upset bid. So let’s just talk about North Carolina, my home state. I love North Carolina go Blue Devils and Tarheels both. Okay. you’ve got struck off. So you actually get to see the properties that go to auction.

    Chad McCall (33:27):
    You get to see what the highest bid is. Look at those properties. If you liked the property better, you’ve been a little bit more. As soon as you bid a little bit more, you’ve got several days where you’re the highest bidder, it’s like eBay for real estate. And it’s very easy because a lot of properties on the upset bid list, where if you like one of those, pick it up. It’s very easy. You say, Hey, Jay, I’ve got a property. I’m the bidder on this. I’m going to close in the next week. It’s worth 120,000. I’m going to pick it up for 60 to 70. Will you lend me money on it? You’re going to be like, that sounds like good. I think if the ARV numbers will workout, I think we’re good on that. That’s an easy way to do it.

    Chad McCall (34:06):
    And it all started with unpaid taxes. Now I’m talking about, you can chase them there, or you can get them later in the process after they’ve already been a couple steps further in the process for delinquent taxes and over to this struck off list. So you can easily do things like that and find properties that are available. If you’re in a state with a land bank, they’ve got properties that are sitting there right now for you to pick up and purchase and you can rehab. Maybe you can cashflow some of them. If you’re in a repository state like Pennsylvania, you don’t, that’s another area there’s properties readily available for you if you want. So there’s areas you can find properties right now that most investors don’t look, they don’t think of looking that you can make a decision on right now, if you have access to someone like Jay Conner for all your money needs, he’s right there, right? You’re you’re the man they’d asking when they find a good deal, Jay. But those are easy ways that are really free and really cheap. And they don’t require any budget for someone Jay that’s free.

    Jay Conner (35:04):
    That’s awesome. So we mentioned the beginning of the show, your playbook. Let’s go ahead and tell everybody how they can get a copy of your 101 ways to find these deeply discounted houses.

    Chad McCall (35:18):
    So if you want to get a copy, go to www.REStrategyLab.com/Podcast. Okay. So www.REStrategyLab.com/Podcast for a special offer for Jay. Now, if you don’t go there, you’re not gonna be able get that offer. Okay. You’re, it’s what it really is, is www.REStrategyLab.com/Podcast. You’re going to be able to get this for a dollar, a strategy, pretty much Jay. And I don’t think there’s anything else like it out there. I know there’s nothing else like it, but I don’t think there’s anything that’s going to carry the value of a dollar, a strategy for your real estate investing business. So again, here’s what it looks like. It’s 175 pages of what to do, how you get involved, what you’re doing, doing it. And I’ve even got some of my best marketing things in the back here as well, Jay, like some of the scripts and things that I’ve used, some of the, I mean, certain letters and mail and you know, you name it, they’re all in here.

    Chad McCall (36:15):
    Like what I’ve done response rates, how I do it. There’s ways I even talk about how to get free postcards, you know if you’re ever going to do marketing and things. So there are ways you can do it. So affordable and cheap and zero, if you really want, you don’t have to have these huge marketing budgets with a playbook like this. You can compete with anyone out there in the real estate investing business, no matter how big or small your company is, you can do it. And if you’re a seasoned investor, this is the best thing for you. It’s like your Bible for real estate. If you want to scale or grow. And if you’re new at real estate, you can pretty much need this. So you don’t make a big mistake and go out there and do something wrong and not get a return on your investor.

    Jay Conner (36:53):
    Well, there you have it. Folks get on over to www.REStrategyLab.com/Podcast. Chad, thank you so much for taking the time to come on the show today, to share your experience with our audience and a parting comments.

    Chad McCall (37:11):
    Thanks for having me, man. And you were awesome on my podcast too. I mean, and just your nuggets and knowledge of money and lending in 2020. I’m glad that people that are here listening, pay attention to Jay. He knows what he’s doing. He’s been doing this for so long and your experience that you have. I’m just glad I can be part of the Jay. And I appreciate all you do. And thanks for helping me in my business too.

    Jay Conner (37:34):
    You got it, Chad. Well, there you have it folks. There’s another episode of Real Estate Investing with Jay Conner and here is to taking your business to the next level. We’ll see you on the next show.

  • Jay Conner Mastermind LIVE!

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    Chaffee-Than Nguwen (00:00):

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

     

    Fred Wallace (00:18):

    Wallace.

     

    Chaffee-Than Nguwen (00:20):

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

     

    Fred Wallace (00:25):

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

     

    Chaffee-Than Nguwen (00:46):

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

     

    Fred Wallace (01:01):

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

     

    Chaffee-Than Nguwen (01:15):

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

     

    Fred Wallace (01:26):

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

     

    Chaffee-Than Nguwen (01:33):

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

     

    Fred Wallace (01:40):

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

     

    Chaffee-Than Nguwen (01:47):

    And you get, you got fed today.

     

    Fred Wallace (01:49):

    I got fed.

     

    Chaffee-Than Nguwen (01:50):

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

     

    Fred Wallace (01:52):

    We get fed again.

     

    Chaffee-Than Nguwen (01:52):

    That’s right. Awesome.

     

    Scott Paton (01:56):

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

     

    Fred Wallace (02:01):

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

     

    Chaffee-Than Nguwen (02:30):

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

     

    Fred Wallace (02:36):

    Yes.

     

    Chaffee-Than Nguwen (02:36):

    You’ve bought and sold real estate.

     

    Fred Wallace (02:38):

    Yes.

     

    Chaffee-Than Nguwen (02:38):

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

     

    Fred Wallace (02:55):

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

     

    Chaffee-Than Nguwen (03:13):

    Awesome. Well, thank you very much.

     

    Fred Wallace (03:16):

    Appreciate it, Chaffey

     

    Chaffee-Than Nguwen (03:16):

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

     

    Andy  (03:22):

    Just knowledge is power.

     

    Chaffee-Than Nguwen (03:24):

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

     

    Fred Wallace (03:42):

    Thank you Chaffey.

     

    Chaffee-Than Nguwen (03:43):

    Mr. Austin, come on in.

     

    Austin Steel (03:50):

    Hello, everybody, I’m Austin Steel.

     

    Chaffee-Than Nguwen (03:52):

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

     

    Austin Steel (03:55):

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

     

    Chaffee-Than Nguwen (04:13):

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

     

    Austin Steel (04:18):

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

     

    Chaffee-Than Nguwen (04:26):

    So they can get a lot of real estate done.

     

    Austin Steel (04:27):

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

     

    Chaffee-Than Nguwen (04:35):

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

     

    Austin Steel (04:42):

    Yeah.

     

    Chaffee-Than Nguwen (04:42):

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

     

    Austin Steel (04:52):

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

     

    Chaffee-Than Nguwen (05:43):

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

     

    Austin Steel (05:47):

    Yeah.

     

    Chaffee-Than Nguwen (05:48):

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

     

    Austin Steel (06:01):

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

     

    Chaffee-Than Nguwen (06:33):

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

     

    Austin Steel (06:50):

    I’m looking forward to it.

     

    Fred Wallace (06:51):

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

     

    Scott Paton (06:56):

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

     

    Chaffee-Than Nguwen (07:08):

    Yes.

     

    Scott Paton (07:08):

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

     

    Chaffee-Than Nguwen (07:15):

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

     

    Scott Paton (07:30):

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

     

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

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

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

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

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

    You definitely don’t want want to miss this.

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

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Max Keller (21:14):
    Right.

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

    Max Keller (21:18):
    Right.

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

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

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

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

    Max Keller (22:58):
    Yes.

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

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

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

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

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

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

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

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

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

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

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

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

    Max Keller (31:24):
    Yes.

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (38:25):
    That’s awesome. Thank you so much, Max. There, you have it folks. Another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, the Private Money Authority wishing you all the best. Here’s to taking your real estate investing business to the next level. And we’ll see you on the next show.

  • Jake and Austin Deraaff

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    Here on today’s show, I have amazing guests who actually twin brothers based out of New York City. They knew that the traditional route was not the best option for them. So they quit college and found an online course on making money in real estate WITHOUT any money!

    After being told that they COULD NOT make it in real estate, they committed themselves to be successful.

    In 7 months, they were able to do their first wholesale deal. This gave them proof of concept which gave them permission to take massive action. This led to 3 more deals. Then 30 deals. Now they’ve flipped about 60 houses so far!

    Their mission is to help people build long term wealth through real estate investing.

    With that, please welcome Jake and Austin Deraaf.

    How they got to $3,000,000 in Wholesale Transactions both LOCALLY and VIRTUALLY.

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate/

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    What is Real Estate Investing? Live Cashflow Conference
    https://youtu.be/QyeBbDOF4wo

    #LearnRealEstate #RealEstateInvesting #JayConner

    ——————————————————–

    Jay Conner (00:12):
    Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host then also known as the Private Money Authority. And if you’re brand new to Real Estate Investing with Jay Conner, We talk about all things that relate to real estate investing from finding deals, funding deals, rehabbing, flipping, wholesaling, and even more important than that is automating the business. So you’re actually running your business and your business is not running you. So here on the show, I have these amazing guest and experts come on today is no different. But before I introduce my special guest today, I’ve got a very, very exciting announcement for all of you who are tuning in here, either on iTunes or Google play or any, or our YouTube channels or Facebook live streaming ever. How you’re tuning in here to the show.

    Jay Conner (01:22):
    And that is, I just recently launched my new monthly membership, which is called the Private Money Academy membership. What’s so exciting about it. First of all, with all the benefits is that you actually get me live two times a month with a live Zoom group coaching call for all the Academy members. And so what I’m extending to you as, since you are tuning in you’re on the show, I’m going to be giving you a full free trial to the membership and it’s a 30 day trial and you can check it out go on over after the show to Jay Conner, JayConner.com/trial, Now what’s so exciting besides the two live group coaching calls, where we talk about anything in real estate investment that you want to always have special content I prepared for the membership.

    Jay Conner (02:22):
    But we also have in the membership site, we’ve got content that’s being updated every month with all kinds of resources, for private money and et cetera. We talked about finding deals and all different subjects. So again, get on over to www.JayConner.com/trial, And I’ll see you on the inside of the Private Money Academy membership. Now, today my special guests are actually twin brothers and they are based out of the big Apple after 24 long months in college they were suffering, and they knew that the traditional route was not the best option for them as far as getting on their way to a career. So they quit college. They dropped out of school and they found an online course on how to make money in real estate with no money down.

    Jay Conner (03:26):
    After being told by every friend and family and colleague that they could not make it in real estate. They still took a leap of faith and they committed themselves 100% of the way to doing whatever it took to be successful. So after their first seven months in the business, they still had not closed a deal. They finally made it to their very first closing of their wholesale delivers the wholesale deal. Well that gave them the element of poof, changed their lives, gave them a proof of concept and gave them permission to take massive action into what we call this real estate space. So shortly after that, they did three more deals and then soon became a close to doing 30 deals. So today, as of today’s show, they flipped and wholesale, Oh, around 60 houses. So far now some of their flips have been promoted even by local magazines in their area.

    Jay Conner (04:27):
    Another goal was to earn 250 units by February, 2021. And they’re well on their way. Their mission is to help people build long term wealth through real estate investing and to give their partners safe and secure returns with that. I’m so excited to have you on the show, my friends, Jake and Austin Deraaff. Welcome Jake and Austin, Hello.

    Austin Deraaff (04:55):
    What an introduction. Wow! couldn’t have said it better.

    Jake Deraaff (04:57):
    Thank you so much for having us on, Jay. We appreciate it.

    Jay Conner (05:00):
    Absolutely! Well, I appreciate you all coming on. I mean, you know, the big twin brothers, you know, at the ripe old age of 14 years old, it’s just amazing how far you all have made it.

    Austin Deraaff (05:14):
    Still going strong

    Jay Conner (05:18):
    So anyway let’s see, here we are in a high end real estate investing mastermind group, right?

    Austin Deraaff (05:25):
    Yes sir.

    Jay Conner (05:27):
    In fact, that’s how we met. Hey question. Do I get to see you in person in a couple of weeks? Are y’all doing that virtual thing?

    Austin Deraaff (05:35):
    We’ll be there.

    Jake Deraaff (05:35):
    We’ll be there.We’re flying down.

    Jay Conner (05:38):
    Awesome! My wife, Carol Joy, and I we’ve already got our plane tickets so I can’t hardly wait to see you in person. It’s, I’m looking forward to it. I know people are ready to like get out of Dodge, Right?

    Austin Deraaff (05:51):
    That’s true.

    Jake Deraaff (05:52):
    Amen

    Jay Conner (05:53):
    So I love your story. So I know you want to share this. So actually, how old are you all Austin and Jake?

    Austin Deraaff (06:02):
    23.

    Jay Conner (06:04):
    23? My lands to know what I now know when I was 23 years old mercy! could I have not owned the world? Like you’re on your way to do it. So we know part of your story. So you started out in college you know, you went to college for you know, a couple of years or so, and you figured out that wasn’t working. So did you actually go out looking to learn about real estate investing? Or how did that come along?

    Austin Deraaff (06:38):
    So, yeah, it was actually funny. We actually, you know, we always liked making money. We used to flip shoes, flip electronics with everything. And then one day I was with Jake and we found this course online by Cody Sperber The Clever Investor. And it was how to make real estate with how to do real estate with no money down, no credit, no money. Well okay, we have no money, no credit, no license. Let’s try this out. So that introduced the wholesaling. And like you said, it took us seven months to finally get proof of concept. But once we got the proof of concept, you know, we take massive action. Like we get obsessed very quickly and that can be a good thing or a bad thing. And our scenario was a good thing, cause it was absolutely for our business. But it took us a while, but you know, we got it done.

    Jay Conner (07:19):
    That is awesome! So you took that course and so give it, just give us like a summary as to, so when did you do your first deal?

    Jake Deraaff (07:31):
    We did our first deal in may of 2018.

    Jay Conner (07:35):
    Okay. 2018. You did your first deal.

    Jake Deraaff (07:39):
    I’m sorry. March of 2018.

    Jay Conner (07:41):
    Okay. So we’re a couple of years down the road. So share with us what that journey looks like from the time you started. I mean, first of all, you went seven months without doing your first deal. What do you think was the cause of that? And then what happened that really started to catapult your business? So just give us a summary of what’s that journey look like since you started.

    Austin Deraaff (08:06):
    Yeah. It’s like any other business, you know, most people probably would’ve quit after month three or four, but you know, we had times where we want to stop and this doesn’t, we thought it didn’t work. We kept going after it. But the problem, we didn’t get the first deal. It wasn’t even about what we didn’t know. I’m sorry, what we did know it’s what we didn’t know. Like we weren’t really good at marketing. So we were doing very little strategic and the consistent marketing. Like we would put up band-it signs, talk to attorneys, do all these things, but not consistently. But once we started to do consistent efforts in marketing, we actually saw results. So I think the biggest thing was consistent marketing, you know, implementing what we’re reading and learning and stuff like that. A lot of people just reading on YouTube, but they don’t take action. So we start to take a lot of action and then, you know, results started to happen.

    Jay Conner (08:52):
    I got you. And so in a couple of years I think you said you’ve done like 30 deals so far, right?

    Austin Deraaff (08:59):
    Yep.

    Jay Conner (09:00):
    That’s fantastic! So one of your goals is to have 250 units by February, 2020. When you say a unit, are you talking single family houses? Are you talking apartment doors or what’s your definition of a unit?

    Jake Deraaff (09:17):
    Apartments.

    Jay Conner (09:18):
    Apartments? Have you already started in the commercial space?

    Austin Deraaff (09:22):
    Yeah, we have 16 units right now and then another 10 in contract. So 26 units are going to be at the end of the month, about 26 units and the rack, you know, marketing and try to find commercial buildings. So hopefully we have, you know, close to that number by the time the year ends.

    Jay Conner (09:36):
    Are you focusing more on commercial now or single family houses?

    Jake Deraaff (09:40):
    Single family is our bread and butter, but we are starting to look more into the multi-family space

    Jay Conner (09:46):
    I got you. So in your single family space, are you doing more wholesaling or flipping or what’s the percentage of those deals was like?

    Austin Deraaff (09:55):
    We have a couple of different buckets in our wholesaling flip business. So we wholesale and we wholetail we fix and flip. I would say if we did, you know, at a hundred percent, I’d say about 60% is wholesaling, 20% is wholetailing then 20% is flipping.

    Jay Conner (10:09):
    All right. So most people know what wholesaling is. Most people know about flipping is let’s make sure everybody understands what’s wholetailing.

    Austin Deraaff (10:17):
    Yeah. So wholetails are great, especially in the market that we’re in. So basically when you’re able to identify a property that you can buy at a wholesale rate. And at that point, what we do is we clean it out. We close on the property and if it’s in the condition where a bank would be able to loan on the property, that’s when we’ll relist it back on the market and get that full market value.

    Jay Conner (10:37):
    I got you. So in your businesses Austin what hat hats do you wear and Jake, what hats do you wear?

    Austin Deraaff (10:47):
    So I focus mainly on the sales and marketing and any type of like finances, again, the financing. So sales, marketing, and financing, and then I’m on the dispositions, operations and hiring.

    Jay Conner (10:59):
    I got you. So you got to divide it out. Was it any of it? Was it any kind of a challenge when you started out and to figure out who was going to do what?

    Jake Deraaff (11:07):
    He’s the born salesman, So he was on the acquisition team from day one. So

    Jay Conner (11:13):
    Is that why Austin smiles more than Jake?

    Jake Deraaff (11:16):
    Probably.

    Austin Deraaff (11:18):
    Built him for it.

    Jay Conner (11:20):
    I hear ya. So when you got started, what were some of your biggest challenges that you’ve faced and lessons learned?

    Austin Deraaff (11:29):
    Good question. So I think the biggest thing, like any entrepreneur is like, is it gonna work like seven months felt like seven years? Because you didn’t see a check and you’re like, you have to keep telling yourself everyday. It’s going to work. It’s going to work. It’s going to work. But no one around us even knew what wholesaling was like, if you’re in Phoenix other places, it’s common to wholesale. But were in New York, no one even knew what it was. Even most of our attorneys didn’t even know what the word wholesaling was. We have to like reinvent the word in our area. So like, it was just, we had no one, not a lot of support. So we had to build our own inner belief system. So, and that’s the hardest part was telling ourselves It’s gonna happen. It’s just, when is it gonna happen? So we kept going and kept going. But I think if we would have had someone in the beginning that, you know, maybe the coaches have guided us and we were more consistent on marketing. We probably would’ve got a deal done a lot faster, but you know, life, the lessons you learn and the money you make. So that’s our philosophy.

    Jay Conner (12:17):
    Exactly. So while were talking about marketing, you know, the two main things that people want to know that are real estate investors, whether they’re brand new or they’re seasoned, the two things they know want to know more than anything else is where do I find the deals and how do I fund the deals? Where do I find the deals and how do I get the money? Those are the two most popular questions. So in today’s market for your single family houses, let’s focus on that on single family houses. What are your best marketing methods that consistently? And that’s a word you used a few minutes ago. Very, very important word, consistent leads If we don’t have consistent seller leads coming into the pipeline in the funnel, we’re not in business, we’re out of business. What are your favorite methods now to get consistent seller leads?

    Jake Deraaff (13:06):
    So our goal Do a lot of different marketing strategies. So we always continuously have leads coming in. So the stuff that’s been working for us has been direct mail, band-it signs, cold calling, texting door knocking. And we’re just we’re we love to network. So we’re always getting deals with realtors, other wholesalers and even attorneys.

    Jay Conner (13:24):
    So in all those activities, what does your team look like? Like, do you have virtual assistants or what? Like you just mentioned a bunch of things that are like sub businesses or marketing efforts you know, in and of themselves, door-knocking, that’s a business model right there texting outbound calling. So how do you get all that done consistently?

    Austin Deraaff (13:50):
    Yeah. Good question. So right now we have someone who does texting. Like his only job is just, you know, drop the text and answer the text. So he focused on that. We have, we have a van assigned team and then we have about four or five drivers. And what we did was we picked the one that had the most leadership qualities and made him the leader of the team. So he’s a leader of the van assigned team, same with door knocking and then cold calling and keep it in house. So all of our acquisition guys would make outbound calls daily, so led to keep everything. We don’t do any, any like Philippines cold calling, but we do work a lot of VA’s to help us out.

    Jay Conner (14:23):
    Got you. So when it comes to door knocking what types of properties do you door knock?

    Austin Deraaff (14:31):
    Pre-Foreclosures people who just passed away or inherited a property. We’ll get like a bunch of lists, Jay. And what we’ll do is we do something called list stacking. And if you’re new in the business, that’s something I would really recommend because you can get deals that are very cheap. So you basically get a bunch of different lists. Pre-Foreclosure probate, high equity combined into one list, whoever is on multiple lists, put it on a new list. And then we hit those doors. Cause if they’re on three, four, five lists, there’s something going on that you might need to know.

    Jay Conner (14:57):
    How did you train your door knockers

    Austin Deraaff (15:00):
    By doing it with them, Just like people try to automate that It’s really hard. You have to describe a deal with them, show how it’s done, record yourself, doing it, and then, you know, have them consistently do it.

    Jay Conner (15:11):
    So let’s talk about door knocking. So you knock on a door give us your tips on how to successfully door knock. What’s the mindset. What’s the talk off points. How do you build immediate rapport? How do you keep the door from being locked in your face? And what’s the scripting sounds like.

    Austin Deraaff (15:35):
    Yeah. Great question. So we actually started to do was before let’s say we have a list of 50 properties before we go out and actually physically knock. We’re going to send them a handwritten note. Hey, this is so and so we bought a couple of houses in the area. Would you ever consider selling? And now we go to the doors and say, Hey, you know, we’re just knocking. We actually left you a letter. Do you happen to get it? So I’m like, yeah, I got the letter. Awesome. Are you guys considering selling? Me and my partners bought a couple of homes in the area and we love to make an offer. So we kind of go in there with like a warmth, we sent a handwritten letters before and then go out to the house. So it’s not like it’s a cold conversation.

    Jay Conner (16:11):
    Do you think the age of the person helps as far as who’s doing or the age of the person doing the door knocking?

    Austin Deraaff (16:19):
    Yeah, All of our guys are under 30. We had to keep them yet kind of it’s for us. It’s been working well, we have everyone that works with us is younger. So that’s why it’s been working for us.

    Jay Conner (16:32):
    So younger people are perhaps less intimidating when they’re knocking on the door, right?

    Jake Deraaff (16:38):
    Exactly.

    Austin Deraaff (16:38):
    Yeah.

    Jay Conner (16:39):
    What’s your favourite way to find your team members?

    Jake Deraaff (16:43):
    We use a lot of wisehire.com indeed.com.

    Jay Conner (16:47):
    I love wisehire. My favorite reason for wisehire is you’re like already, automatically plugged in to all the other ones just by going into wisehire.

    Jake Deraaff (16:58):
    Yeah. It’s great!

    Jay Conner (17:00):
    Do you use any of their tools such as personality, self profiling tests, et cetera?

    Jake Deraaff (17:06):
    Yeah, we use the PI. Predictive Index.

    Jay Conner (17:10):
    Yep.

    Jake Deraaff (17:10):
    Yeah. So that’s definitely helped us out. We actually hired Sharper Solutions Gary Harbor’s team. And they’ve been helping us out with some hiring as well for some of our key candidates.

    Jay Conner (17:21):
    I got you. So how about, what’s your advice for young real estate investors, young entrepreneurs wanting to get into the business, like, you know, from your experience, what’s your advice to give them

    Jake Deraaff (17:37):
    Well first? Yeah, there’s a lot of different things you can do in real estate. So what I would tell them is figure out exactly what you want to do. Do you want to flip, do you want to wholesale? Do you want to be an agent? Do you want to do creative financing deals? Do you want to be a landlord, figure out and identify what you’re looking to do. And once you figure out what you’re looking to do, just keep failing forward, hanging around the people that are, that have what you want or that are doing what you want and just continue to fail and just keep going. Because if you keep going and you keep learning, you’re just going to keep growing. And that’s basically what we did.

    Jay Conner (18:08):
    So would you say you all have a company mission?

    Austin Deraaff (18:12):
    Yeah. Our mission is to help as many homeowners as possible. Our goal is have 150 homeowners for the year. If we can do that buy a lot of apartments, you know, we’re happy where we’re at. We’re happy at that number.

    Jake Deraaff (18:21):
    Yeah.

    Jay Conner (18:22):
    Well, you said a word that’s very, very important to me and that is that word help. So the reason I asked you about the mindset or how you’re, you know, looking to approach and particularly when you’re door knocking or whatever, myself and my team, we take on the approach of, we are servants. We’re out here to help people we’re out here to serve people. As a matter of fact, when people respond to our marketing and they’re in foreclosure, one of the first questions we ask them is, do you want to keep your home? And I’m in a very, very small area. My total market is only 40,000 people. And so we asked her, do you want to keep going? Yeah, I want to keep your home. I said well, we’ve got a checklist of 10 different ways that you might want to check out what, of course we tell them, we’re not attorneys. We can’t give you legal advice, but we’ll ask him, you know, have you talked to your mortgage company about a a loan deferment program or what have you, and if we give somebody an audio that helps them save their home, there’s nothing in it directly for us. But I do know through the law of reciprocity, what goes around, comes around and the more people we can help get, what they want. We don’t have to worry about ourselves. Would you agree with that philosophy?

    Austin Deraaff (19:34):
    Yeah, 100%. What goes around, definitely comes around. Yep.

    Jay Conner (19:38):
    Excellent! We’re actually live streaming right now. We’ve got quite a few comments coming in from folks. So everybody that’s watching the live stream. We’re glad you’re here and and welcome to the show. So what type of advice would you give to people? You know, just in general, what, you know, when I’m asking a general question, what’s the best advice I can give to a real estate investor. That’s starting out. One of the first things I tell them is don’t try to go about this business by yourself. You need to join hips with somebody that actually has walked through the mines you know, instead of getting blown up yourself. And I believe you all got a coaching program that I know you can help anybody of any age, but for those that are particularly perhaps younger and starting out how has your coaching program worked guys?

    Austin Deraaff (20:33):
    Yeah, so, like I said, we have a coaching program, so we have set times customized program per person. So if you’re in a different market than us, we can still help you out. So we do across the country, a set plan, set time for the calls. But the most important thing is we hold you accountable because a lot of times you can’t hold yourself accountable. You need somebody else to help you do that. So our goal is not to do the work for you, but to give you the roadmap, to do the work, hold you accountable, be coachable and give you a support system. cause the biggest thing for us was we didn’t have support. So it took us a while to get a deal.

    Jay Conner (21:06):
    Yeah. how about you, Jake? Any other thoughts come out?

    Jake Deraaff (21:10):
    That’s pretty much it. Yeah. We’re just anybody who’s looking to get their first deal done, whether it’s, you know, locally or, you know, even out West or wherever.

    Jay Conner (21:18):
    Excellent. Well, you know, it’s for that reason that the three of us are in a mastermind together. I mean, it doesn’t matter whether you’re brand new or, you know, you’ve been doing this thing for a long time and you know, what was working really well, maybe two years ago may not be working so well today, particularly when it comes to different marketing methods and et cetera. So parting comments. I’ll start with you, Jake. And then we’ll wrap up with Austin parting comments that you’d like to share with my audience.

    Jake Deraaff (21:51):
    Figure out what you guys are looking to do and what you’re looking to accomplish and back your way into it. So if you want to do 10 deals your first year, figure out how you’re going to get that. First one done continue to network with people. Cause one of our big sayings is your network is your net worth. So show me the five people you surround yourself with and I’ll show you your, your future. So if you continue to hang around, people that are elevating you and who are going after what they want, you’ll be in it heading the right direction.

    Jay Conner (22:16):
    Awesome, Austin?

    Austin Deraaff (22:18):
    I would say this six letter word it’s called commit. So even if you don’t want real estate wholesaling, or you don’t want going to real estate, whatever business or venture you’re going to do, just commit to it. Because when we first started, we didn’t give ourselves a plan B or C, we just burned the bridge. It was either real estate or homeless. So we have to make it happen. Cause we left their parents’ house. And he said, you’re either going to college or you’re until you’re coming home and going to college or you’re not coming home. So we said, alright, we’re not coming home. So we had to really commit to it. And yes, it took a time. It took, we learned a lot in the process and one quote that I was like is “you can’t fail if you don’t quit”. So the only time you actually fail is if you quit. So if you’re continuing to prosper, continue, stop daily and continue to take action. You’re actually not failing. You’re not doing at all. So continue to take massive action. Listen to guys like Jay and you’ll be very successful.

    Jay Conner (23:07):
    Yeah. It’s improper for you to fail until you decide to quit. I think I heard somebody say that one time.

    Austin Deraaff (23:12):
    Yep.

    Jay Conner (23:13):
    That’s awesome. Well, listen, folks, if you want to stay connected and get to know Austin and Jake even better and perhaps work with them go on over to www.JayConner.com/closer, Again, that is to connect with Jake and Austin Deraaff go over to www.JayConner.com/closer, Austin and Jake. God bless you guys. So good to see you I’m looking forward to seeing you in a couple of weeks.

    Austin Deraaff (23:54):
    Thank you so much, for having us in this show. That’s the best show on the internet. So we appreciate that.

    Jake Deraaff (23:58):
    We’ll see you soon.

    Jay Conner (23:59):
    All right. Thank you so much. There you have it folks. Another episode of Real Estate Investing with Jay Conner and I am Jay Conner, The Private Money Authority. Wishing you all the best. Here’s to taking your business to the next level. And I’ll see you on the next show. Bye for now.

  • Matt McKeever, BRRRR Investing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Scott Meyers Jay Conner Real Estate Investing Minus the Bank

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    Scott Meyers (00:01):
    Hey storage nation. Scott here, I’ve got an exciting announcement that I want to make to all of you and an offer that I want to share with you. So, my good friend Jay Conner and I are going to be doing a special series of training events that are coming up here. And so, I’m going to bring in Jay right now if the technology works. So Jay, are you there?

    Jay Conner (00:23):
    Hello there Scott! Yes, I’m here and thank you for having me come on for a couple of quick minutes, Scott. I appreciate it.

    Scott Meyers (00:29):
    Oh my pleasure. My pleasure. And thank you. So listen, let’s, we all know that, these are interesting times that we’re in right now and you know, immediately when once we headed into Covid19, the pandemic, whatever you want to call this. You know, the challenging times that we’re in right now. In the real estate sector, you know, the immediate need was for private money because the banks have shut their doors in some cases and they’ve shut down certain parts of their funding. Some things are funding, some things are not. And we had to get really good at raising private capital and we had to get really good at how we present a pitch to folks on seller financing. And so, again, Jay and I got together because Jay is one of the masters on raising private equity.

    Scott Meyers (01:10):
    He does a whole lot of different things on the private money side, different than what I do. We do a lot of things similar. And so we joined forces. And Jay kind of beat me to the punch, but the good news is he did all the heavy lifting so I didn’t have to. So he is really set up the framework for a training that we’re going to be doing. And that’s coming up really quickly here at the end of May. So Jay, if you wouldn’t mind us since you set all this up, why don’t you share with everybody here just exactly what we’re going to be talking about and the training that’s upcoming.

    Jay Conner (01:38):
    Exactly. So here it is folks, because you are in Scott Myers world. I love the storage nation there. Scott. But because you all are in Scott’s world, you get to attend absolutely for free. Three full day trainings and it’s three Fridays back to back. The first one is Friday, May 22nd. The next one is Friday, May 29th. And then the one after that is Friday, June 5th. Now these are not 90 minute two hour webinars. This is all day folks! Starting at 9:00 AM each Friday morning, 9:00 AM Eastern time. Yes folks for you in a specific time, that’ll be 6:00 AM that you need to start. We’re going to be going all day. Now, what this is really focusing on folks, and Scott’s going to be there with me. What this is focusing on is converting your real estate investing business to being able to do it totally virtually. And here’s what’s really cool.

    Jay Conner (02:36):
    Even when we come out on the other side of Covid19, well first of all, things will never be the same. Things are going to be different forever, but even when we come out on the other side, how can you do your real estate investing business virtually actually from your desks, right? So it’s going to, this training’s going to open up even more avenues and ways for you to do the business. Now, the first Friday, May 22nd it’s going to be focused on private money. So I’m not talking hard money, I’m not talking mortgages or mortgage lenders, I’m not talking bankers. I’m talking about how to get a lot of funding for your deals, getting money and doing business with individuals from their investment capital. They’re self directed IRAs and being positioned to serve a lot of people and have your funding in place immediately when we were coming out on the other side of Covid19.

    Jay Conner (03:26):
    The second Friday is going to be focused on foreclosures. As you all know, due to Covid19 foreclosures have got to stay on them, but there’s an avalanche. It’s going to be opening up a foreclosures and a 36 million plus people laid off and furloughed are going to have even more foreclosure. So here’s the thing, how to have a servant’s heart. Create win-win scenarios. Be able to reach these people in foreclosure before other real estate investors even know they exist. And structure opportunities and deals to where you can help them with their crisis. And in return you will greatly profit as well. And again, it’ll be a win win for everybody.

    Jay Conner (04:11):
    The third Friday, June 5th is what I call how to get free private money. In other words, how to get funding for your real estate deals without having to raise any private money whatsoever. So here’s how you take advantage of attending for free in Scott’s world. You want me to go right on over right now to www.JayConner.com/storage. You’ve got to put storage after JayConner.com or you will not be able to find how to get to this free event. Scott, I’m looking forward to having you in the free event and thank you so much for having me on here to invite your folks.

    Scott Meyers (04:50):
    Well my partner Jay, and once again, I thank you for doing all the heavy lifting and I’m looking forward to this. We got a panel of other folks that are doing some really great things alongside of us. That are going to be assisting in this training. So, folks, this is the time as we’ve been talking for several weeks now. This is not the time to put your head in the sand. This is going to be the greatest opportunity that we have to be able to not take advantage, as you said, of what is going on in people’s lives right now, but to take advantage of this gift that we were giving during this recession. And that is an opportunity to go out and transact a lot of deals and help a lot of people. So it starts with learning about the private money, where to find some of these foreclosures and the distressed sellers across all asset classes in real estate.

    Scott Meyers (05:32):
    And then again, how to find out their free private money. So I’m looking forward to working alongside of Jay. I’ve known Jay for a number of years now, and he and I have collaborated on a few things in the past and thankful that we can come together and once again, help you as well as many other folks that are going to be struggling when these foreclosures begin to come out into the marketplace. So with that sign up now and then we look forward to seeing you and over the next three Fridays where Jay’s going to teach you the ins and outs of the area, in the areas we just discussed. But most importantly on the panel discussions and talking about how to get private equity. All right, we’ll see you there again.