Jay sells a lot of houses through rent-to-own buyers.
What is a rent-to-own buyer?
Typically a rent-to-own buyer is someone who does not have a credit score to qualify for a mortgage. But they can afford a monthly payment and are able to pay the deposit or in legal terms, the option fee. Some may also call it a non-refundable option deposit.
Watch this video and learn how Jay Conner used this strategy in sealing this deal.
Jay Conner has been investing in Real Estate for over 15 years. He typically makes 2 deals a month. He has bought and sold over 400 homes.
He had an 800 credit score and the bank closed his LOC. He needed to find a new source of funding. In the past eight years, Jay has never missed a deal because of funding.
He has developed a strong network of Private Money suppliers.
Chaffee-Thanh Nguyen started investing in Real Estate a decade ago. He dramatically changes and impacts the lives of thousands of people around the world as an Executive Success and Event coach with the likes of Powerteam International and Marshall Sylver’s Mind Power Inc. Chaffee also teaches at his own events.
“Jay’s private lending scripts alone are worth the price of his entire system, and are the best I’ve ever heard … including mine!” – Ron LeGrand, Famous Real Estate Guru, Jacksonville, FL
“You will not believe this, but it is absolutely the truth … 3 days after attending Jay’s seminar Where to get the Money Now, I was doing a call on one of my customers. He was telling me about how he had just sold his home and I ask him if he had ever considered real-estate investing. After hearing the information that I shared out of Jay’s seminar, he is now in contact with my attorney to discuss his investment!“
* Occasionally we have affiliate links in our description.
DISCLAIMER: Jay Conner is not a financial advisor, real estate broker, licensed mortgage broker, certified financial planner, licensed attorney nor a certified public accountant, therefore consult with a professional prior to making any real estate investing.
So we sell a lot of homes on rent-to-own, same thing as lease purchase. So, let’s talk about these two different exit strategies. And quite frankly, I haven’t decided which way I’m going to go. It doesn’t matter really. I mean, it’s, both of them are wins, but let’s just lay out the numbers. So, I’ll sell it on a rent-to-own. Now, let me describe what rent-to-own means. Lease purchase is the same thing. So a rent-to-own buyer typically does not have the credits score to qualify for a mortgage. But, they can afford a monthly payment and they got to have a deposit or a actual legal term is called an Option Fee. We also call it a Non-Refundable Lease Option Deposit. So the reason a rent-to-own buyer will buy from you. So if I sell it to on rent-to-own, I’m selling it as is.
Jay Conner (01:03):
It’s also called in this case, work for equity, right? But, we’re selling it as is. So in other words, if I sell a rent-to-own, I’m not going to put $15,000 rehab in this house, because guess what? They’re going to paint the walls themselves, all it needs is lipstick, this and that. Right? So I’m gonna sell it at same price of 180,000, but let me just get you in the mind of the rent-to-own buyer, okay. The rent-to-own buyer right now, there’s 82% of Americans that cannot go to the local bank or a mortgage company and get a mortgage. Only 18% of the people can. So there’s a lot of those people in the 82% category that don’t qualify for a mortgage that would love to own a home. So when we sell it on rent-to-own, we’re giving them the opportunity to look forward to having that home’s deed transferred into their name when they are ready for a mortgage.
Jay Conner (02:10):
Typically I’m not going to accept less than 5,000 or $10,000. In this case, 5% to 10%, typically not, or less than 5% of the rent-to-own selling price. The difference between selling it in the Multiple Listing Service and selling it on rent-to-own is, if I sell it on rent-to-own, I’ll make more money, but I got to wait to get my money. I make a little bit less money and get my money today. So, Scott let’s run the numbers here. I’m going to sell it for the same price. You say, wait a minute, Jay, why would a rent-to-own buyer pay the same price today as a Multiple Listing Buyer, that’s ready for a mortgage? And here’s why, number one, their primary motivation is not price. Number two, and this is very, very important. Don’t miss this folks.
Jay Conner (03:06):
If I set, I always set the price typically at about 10% or so, 5 to 10% above what the home is worth today. So the home is not worth $180,000 today in its current condition, it’s worth $180,000 if I put 15,000 in it, right? So the home is worth right now, let’s say as is $165,000, but I’m not going to sell it to the rent-to-own buyer for what it’s worth today. And here’s why, besides their primary motivation not being price, if I’m going to give them one year or two years to get ready for a mortgage. Well, my land is just in the past year. Prices had gone up 20% in this area.
Scott Paton (03:56):
Wow!
Jay Conner (03:57):
If I set the price at today’s as is value of 165,000, and it goes up 20%, which would be about $13,000 within a year or two, I just threw $13,000 out the window, right?
Scott Paton (04:13):
Yeah.
Jay Conner (04:13):
So, that’s why I’m setting the price at 5% to 10% above what it’s worth today,
Scott Paton (04:21):
So, in a way they’re not buying the house today or closing next week, they’re actually buying the house in a year or two years down the road.
Jay Conner (04:32):
Correct. Now the beautiful thing about our rent-to-own buyer relationship to me, the real estate investor that is selling, we don’t have a traditional landlord tenant relationship, right? What I mean by that is the first 30 days when they move in, I’m responsible for all the repairs of anything that’s not working as it’s intended. I want all the major components to be working. I don’t want anything leaking, right? I just want them to be responsible for the TLC, the tender, loving care, the lipstick, et cetera. So after 30 days, the rent-to-own buyer is responsible for all the repairs. So they have got the mindset of being a homeowner. Another great advantage is, I don’t care if they got pets. They got pets? They can move in. So the rent-to-own buyers got the mindset of, I am a owner. I just don’t have the title or the deed transferred into my name yet.
Jay Conner (05:32):
And this is a pathway to where I can actually be a homeowner. Whereas otherwise I’d be renting, you know, maybe the rest of my life. So, this rent to own exit strategy is just a beautiful win-win for everybody. So Scott, back to the numbers, I’m going to set the price still at $180,000, selling price, same thing as selling today. But guess what? I’m not going to put $15,000 in rehab. I’m not going to do anything. Hey, this house one, room’s got purple walls, another room’s got orange walls. You say, Jay, how can you sell a house with purple walls and orange walls? Rent-to-own buyer. They’re going to paint it the color they want. Anyway,
Scott Paton (06:21):
That would normally be a mistake that a lot of people make too, is that, let’s say you go and you paint everything. And then the next, the rent-to-own buyer comes in and they don’t like the colors and they wanted, they’re going to repaint it. So,
Jay Conner (06:34):
They’re going to repaint it anyway.
Scott Paton (06:35):
Because you’re not talking to people that are poor necessarily, they’re just people that can’t afford a mortgage. And I think that’s a huge distinction because a year ago, if you could get a mortgage, if there was a hundred people who a year ago could get a mortgage, 30% of them cannot today. Even if nothing has changed in their finances, the banks have just changed the rules and the criteria. And you had a great stat about like 82% or whatever it was. Can’t afford it anyway, it’s gone up because the banks have sort of tightened the screws a little bit. And so we have a lot of people who have no problem making the down payment. They have no problem paying the rent. They have a problem with the bank, just like you had the problem with the bank a long time ago, and this is a solution for their problem.
Jay Conner (07:21):
Exactly. So the profit here, let’s run the numbers here on the rent-to-own. So the profit is 180,000 still when they’re ready for a mortgage, of all I’ve got in it is 99. So the profit in the future on this exit strategy is $81,000 versus 66,000 today. But I got to wait, but there’s one thing on this profit that we haven’t calculated, Scott.
Scott Paton (07:50):
Yeah.
Jay Conner (07:50):
We count. Selling on a rent-to-own. I got a positive cash flow. So this subject to mortgage, the monthly mortgage payment is right around 700 a month, the rent-to-own buyer’s going to be paying 1200 a month. So I’m going to get a $500 a month, positive cash flow. If I sell it on rent-to-own, I’ve got that 5 or 10% Non-Refundable Lease Option Deposit. Now when they get ready for a mortgage, if they get ready for a mortgage, okay, I’m going to apply that five or 10,000 or whatever it is.
Jay Conner (08:26):
Non-Refundable Lease Option Deposit to their purchase price. But guess what? Let’s say, they don’t get ready for a mortgage. Let’s say they move out. Guess what? I still own the house. They don’t get their Non-Refundable Lease Option Deposit back. And I get to sell the house again. Now I will tell you, my mindset and my outlook with having a servant’s heart is the way I look at this world and people. I want these people to get a mortgage, actually, I’m going to help them. I’m going to refer them to my credit repair company, help them get there. But if they decide otherwise the responsibility is on them as to whether they stay or they move out. So again, multiple exit strategies. That’s another thing, Scott. We didn’t bring out. And I see we’re about running out of time. So I probably need to wrap up.
Jay Conner (09:17):
But one thing we didn’t bring out is, let’s come back over to the rehab. How am I going to fund the rehab? If I decide to rehab $15,000 and put it in the Multiple Listing Service? Well, here’s how I’m going to fund it. Private money. I’m not going to get that $15,000 out of my pocket, right? I’m going to use private money so I can get a small, you know, I can borrow 20,000, 25,000 whatever dollars from a private lender and give them a promissory note and a mortgage in second position underneath the first mortgage. So now first mortgage payment that I’m agreeing to pay, now I can just borrow, shoot. If I borrowed $25,000, use 15,000 of it to rehab it. I stick the other $10,000 in my pocket. So if I borrowed 25, I bought it for 99, call it a 125. When I sell it for 80, I still got a $55,000 positive cash flow. And I put $10,000 in the bank. Ain’t it a great business?
Scott Paton (10:31):
It is. That’s amazing.
Jay Conner (10:35):
So again, fix it up, sell it now, $66,000 profit. Of course that’s less realtor fees. See, when you sell on rent-to-own there are no realtor fees, that’s another benefit to selling on rent-to-own. You’re going to save 5 or 6% because you found the buyer, rent-to-own buyer gets ready for a mortgage, 5% savings at least. That’s going to save you $9,000 in realtor fees. If you sell on rent-to-own, again, you want more money. You want nice money now or you want even a bunch more money later. You get to choose
Scott Paton (11:17):
So you can have a nice little check at the beginning. Then you can have a nice little check every month, come in and then you’ll get a nice size check when they decide to, well, when the bank says, they’re going to be able to afford a mortgage, but what would happen if they’re okay? So they’ve got a good job, but let’s say it’s a family. Both of them are working. They got a good job. Everything is fine. They’re having a bit of trouble with their credit. And they decided to go for say two or three years instead of the one year. Is that an issue?
Jay Conner (11:50):
Yeah. So that’s an excellent question. Most of the time, my rent-to-own buyers, the rental agreement is for one year, 12 months, right? So I’m giving them 12 months to get ready for a mortgage. If they use the credit repair company that we refer them to, then they can, they will probably be ready for a mortgage, but I want to work with people, right? So from a legal standpoint, if they’re not ready for that mortgage in one year, on that term I could kick them out. I mean, I could, you know, they lose their Non-Refundable Lease Option Deposit. I go sell it again. But you know what? I don’t do that. I want to work with people if they’ve been making their payments on time and they’re making progress and I’ve got a nice cash flow coming in, why in the world would, I want to kick them out? I want to keep working with them, right? To help them move towards the mortgage. So, and answer the question. If they’re not ready for a mortgage within the term of the agreement, what do I do? I extend their rental period. If they have kept their end of the bargain.
Scott Paton (13:00):
Now the other side of it is, they’re motivated to fix their credit because you just said that there was $700 is what the mortgage is now, and they’re paying 1200. So if I’ve got any financial savvy at all, I know that I could be saving that. Let’s say $400. Maybe it’s a little bit more expensive mortgage than the people that are there now. So, you know, I can be looking at saying, I’m giving away $400 that I could be putting in my pocket $5,000 a year. And so I’m motivated to be able to switch over to this as soon as possible.
Jay Conner (13:35):
Yeah. And interest rates today in the two’s that $1,200 a month rental payment would come down and help their cashflow per month when they are ready for a mortgage, that’s for sure.
Scott Paton (13:50):
Nice, awesome. So, that’s a pretty nice deal that you’ve got going there and you’re helping two groups of people. Obviously the people there want to leave and another family is going to want a nice place in North Carolina.
Jay Conner (14:05):
Yeah. I mean, it’s a, win-win all around. I mean, these people, the sellers. They want out of dodge. They want to get back, they’ve lived down in this town in Georgia. They want to get back to this town in Georgia. They don’t like where they are, here. They want to get, they got family down there in Georgia and that’s a win for them. I mean, we’re able to make it happen fast. I mean, you know, we’re closing in within two weeks that never happens through traditional. And guess what? Another advantage of buying subject to, or using private money? There’s no appraisal involved. There’s time entanglements that, I mean, the beautiful thing about either buying subject to, or, and, or using private money is we get to set the rules. The banks don’t set the rules, we set the rules.
Jay Conner (14:52):
So yeah, I mean, this is just a great example of the deals that we do every month, month in and month out.
Scott Paton (15:00):
So, let me just quickly go through a summary for everybody. So you purchase the place for 99,000. You bought it subject to the existing note. The after repaired value is 180. The rehab is going to be around $15,000, by private money. So all in your cost is 114,000, which if you just put it on MLS and you sold, it would be a profit of 66,000 less lawyer fees, realtor fees, that sort of thing. However, we have two exit strategies and the second one is sell on rent-to-own. So you still going to sell it at the same price. And it’s going to be around $1,200 a month on rent to own. And the Non-Refundable Lease Option of between 5 and $10,000, which means that probably in the neighborhood of $81,000 profit, you’re helping somebody who doesn’t, can’t get a mortgage right now, but they’re going to be able to have that feeling of home ownership and move towards it and fix their repair.
Scott Paton (16:03):
And it gives you a monthly positive cashflow of $500. So you’re going to get some money right away, a nice chunk, 5, 10 grand. You’re going to be at this cash flow going through for the next year or so. And then at the end of it, they’re going to get a mortgage and you’re going to get the rest of the money.
Jay Conner (16:19):
That’s it.
Scott Paton (16:20):
Sounds like a great deal.
Jay Conner (16:25):
It is, Scott. Scott, I’m so glad you joined me here. Folks again, Scott Paton, The Executive Producer of Real Estate Investing with Jay Conner. And I tell you what, it’s a lot more fun to talk with somebody and be a talking head. I’ll tell you that.
Scott Paton (16:39):
It sure is. So Jay, if somebody wanted to learn more about what it is that you do, how can they, what steps should they take?
Jay Conner (16:47):
Oh, well it’s real easy folks. Get right on over to www.JayConner.com/Book And I go through all the steps, easy steps on exactly how you can get as much private money as I do to fund your deals. Thank you so much for joining and look, I really appreciate the reviews. If, you know, subscribe on YouTube, be sure and subscribe and ring that bell. So you don’t miss out on any of the future trainings that we do right here. Be sure to like share, subscribe and join us again. I’m Jay Conner, The Private Money Authority wishing you all the best and here is to taking your business to the next level. We’ll see you on the next, Real Estate Investing with Jay Conner.
In this video, Jay will share his latest deal at Panther Trail Havelock, North Carolina.
How did Jay find and structure this deal? What are the numbers? How is he going to make at least if not more than $66,000? All this without using his own money.
Watch this video to learn the answers to these questions and find out Jay’s multiple ways of funding a deal.
Jay Conner has been investing in Real Estate for over 15 years. He typically makes 2 deals a month. He has bought and sold over 400 homes.
He had an 800 credit score and the bank closed his LOC. He needed to find a new source of funding. In the past eight years, Jay has never missed a deal because of funding.
He has developed a strong network of Private Money suppliers.
Chaffee-Thanh Nguyen started investing in Real Estate a decade ago. He dramatically changes and impacts the lives of thousands of people around the world as an Executive Success and Event coach with the likes of Powerteam International and Marshall Sylver’s Mind Power Inc. Chaffee also teaches at his own events.
“Jay’s private lending scripts alone are worth the price of his entire system, and are the best I’ve ever heard … including mine!” – Ron LeGrand, Famous Real Estate Guru, Jacksonville, FL
“You will not believe this, but it is absolutely the truth … 3 days after attending Jay’s seminar Where to get the Money Now, I was doing a call on one of my customers. He was telling me about how he had just sold his home and I ask him if he had ever considered real-estate investing. After hearing the information that I shared out of Jay’s seminar, he is now in contact with my attorney to discuss his investment!“
* Occasionally we have affiliate links in our description.
DISCLAIMER: Jay Conner is not a financial advisor, real estate broker, licensed mortgage broker, certified financial planner, licensed attorney nor a certified public accountant, therefore consult with a professional prior to making any real estate investing.
Well, hello there, my friend! I’m Jay Conner, known as The Private Money Authority and welcome to Real Estate Investing with Jay Conner. I’m excited today on the show, to talk with you about a deal, that I just put under contract last week, we’re talking about Panther Trail and Havelock, North Carolina. And to help me talk about this deal, I have invited the Executive Producer of this podcast, Scott Paton, to join me here on the show and help pick my brain as to, how in the world we found this deal? And how we structured the deal? And how the numbers are working? And how we’re going to make at least, if not more than $66,000 on this little ranch house right here in Eastern North Carolina. Hello there, Scott!
Scott Paton (00:48):
Hey Jay, how are you doing today?
Jay Conner (00:50):
I’m doing great because we got another deal under contract, without using my own money.
Scott Paton (00:56):
And that’s exciting! That must be a really nice feeling. You know, you look at your bank account and most people, when they buy something, the bank account goes down, you buy a hundred thousand dollars pieces of property and your bank account stays the same and then goes up.
Jay Conner (01:11):
Exactly, because we’ve got multiple ways that we fund the deals, this particular deal. We didn’t actually use private money. As we were just talking about here on the book, I can use private money and I will use private money in addition to how I bought it. If I decide to rehab it, I love this kind of deal because we’ve got multiple exit strategies. So yeah, I mean, there’s so many lessons to be learned from this particular house that we just put under contract.
Scott Paton (01:42):
So Jay, if you didn’t use private money, you didn’t use hard money and you didn’t go to the bank. How did you buy the house?
Jay Conner (01:49):
Yeah, so we bought this house, well, it’s under contract. So you know, we haven’t had the final stanza of the opera singer yet, but it’s scheduled to close actually next Tuesday, there’s a lesson right there. We put it under contract last week. It’s already closing, next week. That’s less than two weeks of putting it under contract, without using any kind of bank money. So how do we do it? So we bought, we got this house under contract using a strategy called, Buying Subject to The Existing Note. So I’m sure many of you know what that means, but just in case, you’re listening on, you know, iTunes or Google play or whatever, and you’re not familiar while subject to means, there is a mortgage on the house. The people that are selling the house to us have got a mortgage. It’s current.
Jay Conner (02:49):
It’s not behind. Doesn’t matter, you can buy a house subject to the existing note, whether the payments are current or the payments were behind, but it means is the seller is agreeing or has agreed to sell their house, transfer title, transfer the deed, transfer ownership to my business. We’re going to own the house. And the seller has agreed to leave their mortgage in their name. And I am agreeing to make their payments, their monthly mortgage payments to keep it current. And you know, when I first heard of this strategy, my first thought Scott was, who in their right mind would sell me their house and agree to give me total ownership? These people are moving out of state. I mean, they’re going, I’m in North Carolina. These people are moving down to Georgia.
Scott Paton (03:47):
Wow!
Jay Conner (03:48):
Who in their right mind would sell me their house and not get their mortgage paid off and I’m agreeing to make their payments? Well, the, the answer to that question, the person that will agree to do that is a motivated seller. And there’s many different types of motivation. These particular people are just done. If they were to put the house in the multiple listing service, it needs money in order to get it to someone. So they want to go, they don’t want to go through the unknown timeframe of how long is this going to take to get the house sold, et cetera. So, and I want,
Scott Paton (04:28):
The realtors aren’t really going to look at this house. Is that what you’re saying?
Jay Conner (04:32):
Correct. So we’re buying it subject to the realtors have got nothing to do with this transaction. This is between them and between me and my team and my company. And I want everybody to understand that when you buy a house subject to the existing note, that is not assuming the mortgage. I’m not assuming the mortgage. If I want to assume the mortgage, the mortgage would be transferred into my name. The mortgage is not being transferred into my name. It’s staying in the seller’s name and the bank or the mortgage company, or the lender has got nothing to do with this decision. They don’t have to approve me. They don’t have to approve you. This is between you and the seller. And guess what? It’s line number 203 on the settlement statement. This is nothing that’s like, you know, your real estate attorney has got to go make up something on the paperwork. It’s already aligned on the HUD Settlement Statement. And the funding line says purchased subject to the existing notes. So that’s how we have funded this deal.
Scott Paton (05:36):
That’s pretty amazing. So, you’re making the payments. You’re not making any down payment and you don’t really have a lot of risk.
Jay Conner (05:49):
Correct. So, you know, we’re doing, my real estate attorney is handling the closing. So this is not like some kind documentation that we do on somebody’s kitchen table, that all of our closings are handled by the real estate attorney. And so yeah, and mean a lot of times when we buy a house subject to the existing notes, such as a foreclosure and people are behind on their payments, we have to bring those payments current. But in this case, they’re current. And of course, they are trusting me and my company to keep their payments current. They’ve got great credit. They tell us, the payments are current. And you know, they’re trusting us to keep their payments current because, you know, a year or two down the road, they’re probably going, or, you know, two or three or four years down the road, they might want to buy another house. And this mortgage will need to be paid off, before they buy another house. But that’s not their primary concern right now.
Scott Paton (06:46):
So basically, what you’re saying is you found this house that people want to leave the state. The house is in a condition that a realtor will look at it and laugh and leave. Basically, they’re not going to be able to put it on MLS to sell it. You come along and you say, you know what? I can fix up the house. I can, I’ll make you an offer. And part of that offer that they agreed to was, you’re just going to take over the mortgage payments. So, you don’t have a big down payment to make. You’ve got whatever their mortgage payment is. They’re able to say, Oh, thank goodness! This house is off of my plate. What a relief that is. Now, we can go. I think, you said down to Georgia and live the life that we want to live or whatever it is.
Jay Conner (07:26):
Well, you just said something, Scott, that triggered this. And that is, when a seller of a house is motivated. And their primary motivation is debt relief. You just said the houses, you know, off their shoulders, the mortgage is off their shoulders. It’s still in their name. But the responsibility of it, as far as what I’ve agreed to is off their shoulders. So a subject to seller is really looking for, I just want to get this payment off of me so I can get on with my life and that motivation, I mean, somebody, you know, something motivating somebody to do that could be divorced. It could be the loss of a significant other or spouse. It could be the loss of a job, I mean, on and on and on and on and on. Right.? And so I can tell you, Scott, just from experience of doing this business since 2003 and rehabbing over 400 houses and doing all these deals, I guarantee you, if I wanted to, I could have asked the sellers to make the next three payments. If I agreed to start with the fourth payment, they would have done it. They would have moved on to Georgia. No, in that, all I got is three more payments and I’m done. But you know, enough is enough. When we go over the numbers here in a second on this house. I mean, my lands, I don’t need to negotiate that even though I could have.
Scott Paton (08:56):
Well that, let’s get into some of the numbers, Jay, like how much did you buy the house?
Jay Conner (09:00):
Yeah. So the purchase price is 99,000 and some change. But when might as well call it 99,000. Now, the purchase price is how much they owe on the house. That’s the purchase price. That is the payoff. That’s currently what they owe. And now how do we know exactly how much they owe? When I buy it subject to, here’s how. We have the seller of the house, contact their mortgage company or their current lender and ask for what’s called, A 30-day Payoff Instruction Letter. So we don’t just look at their most recent mortgage statement, either that came in the mail or it’s online. That’s not what’s owed on the house. There’s some other ancillary fees. So, I want to know exactly what’s owed on the house. Now, these people, when we asked the question, would you be willing to sell what you owed? Or would you be able to sell it? Would you be willing to sell it for what you owe? That’s the payoff, their answer was yes. To that question. We’ll sell it for what owe. By the way, we never talked subject to over the phone. We don’t talk about that until after we’d been to the house, right? That’s beside the point for now. So the purchase price is $99,000, and that is how much they owe on the house. That’s how much they owe on the mortgage.
Scott Paton (10:27):
So, they just want to walk away from this and not have it be any more of a problem than it already. Is
Jay Conner (10:33):
This be done? And they’ve owned the house for about five years and they’ve put their own money in it. I mean, there’s beautiful stainless steel appliances that they put in like a year and a half ago. There’s beautiful new countertops they put in. New flooring that they put in, in some areas of the house. So,
Scott Paton (10:54):
So, we’re not talking about a shack. We’re talking about a nice home.
Jay Conner (10:58):
No. This is what we call a pretty house. So, you know, as I said, we’ve got multiple exit strategies to consider here. But the first thing I want to do is just close on it next week, and then I’ll decide what I wanna do, but we’ll talk about the different, there’s too many
Scott Paton (11:13):
It’s nice to have more than one option for exiting.
Jay Conner (11:18):
Yes.
Scott Paton (11:19):
So how much, if you decide, cause normally what you do is you buy the house, you fix it up, you sell the house. So I’m assuming that’s the first strategy we’re going to talk about to fix it up. You said it’s 99,000. It’s probably going to be what, 40 or 50,000 to fix it up and get it presentable.
Jay Conner (11:34):
Well, that’s a wonderful thing about this home. So this is what we call a pretty house versus an ugly house. A pretty house definition is it’s habitable. It needs some TLC, but nothing major, you know, I mean, it doesn’t need a new roof. However, it does need some minor roof repair on the front right corner. But the roof is fine. Doesn’t new HVAC. Right? But it needs lipstick. So, if I rehab this house all the way and make it drop dead, gorgeous, ready for Southern Living Magazine pictures and all that, and for, you know, for the realtor to hire the professional videographer and come in and do a 3d,
Scott Paton (12:24):
Walk
Jay Conner (12:25):
And all that. So, it takes $15,000 estimated rehab to make it just absolutely gorgeous. If I want to put it in the Multiple Listing Service and get top dollar today.
Scott Paton (12:42):
So, your bottom line cost or the money you’re going to be putting out over time and right away is around $114,000.
Jay Conner (12:51):
If I choose to rehab it.
Scott Paton (12:53):
Right. So if you choose to rehab it what would you sell it for?
Jay Conner (13:00):
Yeah. So the after repaired value is $180,000 today. And that’s what my realtor just told me last week, as we were touring the house right before we went under contract. So the after repaired value, of course, the definition of after repaired value is everything. It looks like a brand new home, smells like a brand new home, all that. So after repaired value 180,000, if I rehab it at 15,000 purchase of 99,000, so the anticipated profit, putting it in the Multiple Listing Service, listing over the realtor is $66,000. Profit. Yeah. That’s the flip profit.
Scott Paton (13:39):
Right?
Jay Conner (13:40):
66,000. And you know what? My average profit per sell, I mean, this house has got 1,450 square feet, three bed, two bath.
Scott Paton (13:51):
Beautiful.
Jay Conner (13:52):
You know, it’s just your average, you know, size house, by the way, Scott, I didn’t even tell you or tell everybody how did in the world did we find this house? Well, we found this one with a Google ad. So what’s so beautiful about Google ads versus Facebook ads. And I do both. I do Facebook ads. I do Google ads. A Facebook ad it comes up in your newsfeed and you weren’t looking for it, right? It just, there you are on the newsfeed. A Google ad, this is a writer downer folks. This is a writer downer, right here. When you get a response from a Google ad, then people were looking for you. They went to Google. And they typed in, sell my house fast or something like that. And guess what? The you go. Now, you’re on your Google ads. Like you were looking for me, here I am. I’m going to fix your problem. So a Google ad prospect, has got typically more, much more motivation than a Facebook ad respondent.
Scott Paton (15:00):
So, you had talked about Two Exit Strategies. You already talked about one where you basically buy the house, fix it up, put it, give it to your realtor, Chris. And he goes, puts it on the MLS and he does a great job of selling it. But there’s a second exit strategy that got you kind of excited. What was that?
Jay Conner (15:16):
So we sell a lot of homes on rent-to-own, same thing as lease purchase. So, let’s talk about these two different exit strategies. And quite frankly, I haven’t decided which way I’m going to go. It doesn’t matter, really. I mean, it’s, both of them are wins, but let’s just play out the numbers. So, I’ll sell it on a rent-to-own. Now, let me describe what rent-to-own means, lease purchase is the same thing. So a rent-to-own buyer typically does not have the credit score to qualify for a mortgage, but they can afford a monthly payment and they got to have a deposit or a actual legal term is called an Option Fee. We also call it a, Non-Refundable Lease Option Deposit. So the reason a rent-to-own buyer will buy from you. So, if I sell it to a rent-to-own, I’m selling it as is.
Jay Conner (16:19):
It’s also called in this case, Work For Equity, right? But we’re selling it as is. So in other words, if I sell a rent-to-own, I’m not going to put $15,000 rehab in this house, because guess what? They’re going to paint the walls and sales, all that needs is lipstick, this and that, right? Someone sell it at the same price of 180,000, but let me just get you in the mind of the rent-to-own buyer, okay. The rent-to-own buyer right now, there’s 82% of Americans that cannot go to the local bank or a mortgage company and get a mortgage. Only 18% of the people can. So, there’s a lot of those people in the 82% category that don’t qualify for a mortgage that would love to own a home. So when we sell it on rent-to-own, we’re giving them the opportunity to look forward to having that home’s deed transferred into their name when they are ready for a mortgage.
Jay Conner (17:26):
Typically, I’m not going to accept less than 5,000 or $10,000. In this case, 5% to 10%, typically not, or less than 5% of the rent-to-own selling price. The difference between selling it in the Multiple Listing Service and selling it on rent-to-own is, if I sold on rent to own, I’ll make more money, but I gotta wait to get my money. I make a little bit less money and get my money today. So Scott, let’s run the numbers here. I’m going to sell it for the same price. You say, wait a minute, Jay, why would a rent-to-own buyer pay the same price today as a Multiple Listing Buyer, that’s ready for a mortgage? And here’s why, number one, their primary motivation is not price. Number two, and this is very, very important. Don’t miss this folks.
Jay Conner (18:22):
If I set, I always set the price typically at about 10% or so, 5 to 10% above what the home is worth today. So the home is not worth $180,000 today, in its current condition. It’s worth $180,000, if I put 15,000 in it, right? So the home is worth right now, let’s say as is, a $165,000, but I’m not going to sell it to the rent-to-own buyer for what it’s worth today. And here’s why. Besides, their primary motivation not being price, if I’m going to give them one year or two years to get ready for a mortgage. Well, my land is just in the past year. Prices had gone up 20% in this area.
Scott Paton (19:12):
Wow!
Jay Conner (19:12):
If I set the price at today’s as is value of 165,000, and it goes up 20%, which would be about $13,000 within a year or two. I just threw $13,000 out the window. Right? So that’s why I’m setting the price that 5% or 10% above what it’s worth today.
Scott Paton (19:36):
So in a way, they’re not buying the house today or closing next week, they’re actually buying the house in a year or two years down the road,
Jay Conner (19:48):
Correct. Now the beautiful thing about our rent-to-own buyer relationship to me, the real estate investor that is selling, we don’t have a traditional landlord tenant relationship. What I mean by that is the first 30 days when they move in, I’m responsible for all the repairs of anything, that’s not working as it’s intended. I want all the major components to be working. I don’t want anything leaking, right? I just want them to be responsible for the TLC, the tender, loving care, the lipstick, et cetera. So after 30 days, the rent-to-own buyer is responsible for all the repairs. So, they have gotten the mindset of being a homeowner. Another great advantage is I don’t care if they got pets, they got pets. They can move in. So the rental home buyer has got the mindset of, I am a owner. I just don’t have the title or the deed transferred into my name, yet.
Jay Conner (20:48):
And this is a pathway to where I can actually be a homeowner. Whereas otherwise I’d be renting, you know, maybe the rest of my life. So this rent-to-own exit strategy is just a beautiful win-win for everybody. So Scott, back to the numbers, I’m going to set the price still at $180,000, selling price, same thing as selling today. But guess what? I’m not going to put $15,000 in rehab. I’m not going to do anything. Hey, this house, one room’s got purple walls, another room’s got orange walls. You say, Jay, how can you sell a house with purple walls and orange walls? Rent-to-own buyer. They’re going to paint it the color they want. Anyway,
Scott Paton (21:37):
That would normally be a mistake that a lot of people make too, is that you, let’s say you go and you paint everything. And then the next, the rent-to-own buyer comes in and they don’t like the colors and they want it. They’re going to repaint it. So,
Jay Conner (21:50):
They’re going to repaint it anyway.
Scott Paton (21:50):
Cause you’re not talking to people that are poor necessarily. They’re just people that can’t afford a mortgage. And I think that’s a huge distinction because a year ago, if you could get a mortgage, if there was a hundred people who a year ago could get a mortgage, 30% of them cannot today. Even if nothing has changed in their finances, the banks have just changed the rules and the criteria. And you had a great stat about like 82% or whatever it was. Can’t afford it, anyway, it’s gone up because the banks have sort of tightened the screws a little bit. And so, we have a lot of people who have no problem making the down payment. They have no problem paying the rent. They have a problem with the bank, just like you had the problem with the bank, you know, a long time ago. And this is a solution for their problem.
Jay Conner (22:37):
Exactly. So the profit here, let’s run the numbers here on the rent-to-own. So the profit is 180,000 still when they’re ready for a mortgage, of all I’ve got in. It is 99. So the profit in the future on this exit strategy is $81,000 versus 66,000 today. But I got to wait, but there’s one thing on this profit that we haven’t calculated, Scott.
Scott Paton (23:06):
Yeah.
Jay Conner (23:06):
Selling on a rent-to-own, I got a positive cash flows. So this subject to mortgage, the monthly mortgage payment is right around 700 a month, the rent-to-own buyer’s going to be paying 1200 a month. So I’m going to get a $500 a month, positive cash flow. If I sell it to rent-to-own, I got that five or 10% Non-Refundable Lease Option Deposit. Now when they get ready for a mortgage, if they get ready for a mortgage, okay, I’m going to apply that five or 10,000 or whatever it is.
Jay Conner (23:42):
Non-Refundable Lease Option Deposit to their purchase price. But guess what? Let’s say, they don’t get ready for a mortgage. Let’s say they move out. Guess what? I still own the house. They don’t get their Non-Refundable Lease Option Deposit back. And I get to sell the house again. Now I will tell you my mindset and my outlook with having a servant’s heart is the way I look at this world and people. I want these people to get a mortgage. Actually, I’m going to help them. I’m going to refer them to my credit repair company, help them get there. But if they otherwise, the responsibilities on them is whether they stay or they move out. So again, multiple exit strategies. That’s another thing, Scott. We didn’t bring out. And I see we’re about running out of time. So I probably need to wrap up. But one thing we didn’t bring out is does come back over to the rehab.
Jay Conner (24:37):
How am I going to fund the rehab? If I decide to rehab 15,000 and put it in the Multiple Listing Service? Well, here’s how I’m going to fund it. Private money. I’m not going to get that $15,000 out of my pocket, right? I’m going to use private money so I can get a small, you know, I could borrow 20,000, 25,000 whatever dollars from a private lender and give them a promissory note and a mortgage and second position underneath the first mortgage. So now first mortgage payment that I’m agreeing to pay, now I can just borrow. Should if I’ve borrowed $25,000, use 15,000 of it to rehab it. I stick the other $10,000 in my pocket. So if I borrowed 25, I bought it for 99 call it a 125. When I sell it for 80, I still got a $55,000 positive cash flow. And I put $10,000 in the bank. Ain’t it a great business?
Scott Paton (25:47):
It is. That’s amazing.
Jay Conner (25:50):
So again, fix it up, sell it now, $66,000 profit. Of course that’s less realtor fees. See when you’re selling rent-to-own, there aren’t any realtor fees. That’s another benefit to selling on rent-to-own. You’re going to save five or 6% because you found the buyer rent-to-own buyer gets ready for a mortgage, 5% savings at least. That’s going to save you $9,000 in realtor fees. If you sell on rent-to-own again, you want more money. You want nice money now or you want even a bunch more money later. You get to choose.
Scott Paton (26:33):
So, you can have a nice little check at the beginning. Then you can have a nice little check every month, come in and then you’ll get a nice sized check when they decide to, well, when the bank says, they’re going to be able to afford a mortgage, but what would happen if they’re, okay? So they’ve got a good job, but let’s say it’s a family. Both of them are working. They got a good job. Everything is fine. They’re having a bit of trouble with their credit. And they decided to go for say two or three years instead of the one year. Is that an issue?
Jay Conner (27:06):
Yeah. So that’s an excellent question. Most of the time, my rent-to-own buyers, the rental agreement is for one year, 12 months, right? So, I’m giving them 12 months to get ready for a mortgage. If they use the credit repair company that we refer them to, then they can, they will probably be ready for a mortgage, but I want to work with people, right? So from a legal standpoint, if they’re not ready for that mortgage in one year, on that term, I could kick them out. I mean, I could, you know, they lose their Non-Refundable Lease Option Deposit. I go sell it again. But you know what? I don’t do that. I want to work with people if they’ve been making their payments on time and they’re making progress and I’ve got a nice cash flow coming in, why in the world would I want to keep kick them out? I want to keep working with them, right. To help them move towards the mortgage. So in answer to the question, if they’re not ready for a mortgage within the term of the agreement, what do I do? I extend their rental period. If they have kept their end of the bargain.
Scott Paton (28:16):
Now the other side of it is, they’re motivated to fix their credit because you just said that there was $700 is what the mortgage is now, and they’re paying 1200. So if I’ve got any financial savvy at all, I know that I could be saving that. Let’s say $400. Maybe it’s a little bit more expensive mortgage than the people that are there now. So, you know, I can be looking at saying, I’m giving away $400 that I could be putting in my pocket $5,000 a year. And so I’m motivated to be able to switch over to this as soon as possible
Jay Conner (28:51):
At interest rates today in the twos, that $1,200 a month rental payment would come down and help their cashflow per month when they are ready for a mortgage, just for sure.
Scott Paton (29:06):
Nice, awesome. So that’s a pretty nice deal that you’ve got going there and you’re helping two groups of people. Obviously the people there want to leave and another family is going to want a nice place in North Carolina.
Jay Conner (29:21):
Yeah. I mean, it’s a, win-win all around. I mean, these people are sellers. They want out of Dodge. They want to get back, they’ve lived down in this town in Georgia. They want to get back to this town in Georgia. They don’t like where they are, here. They want to get, they got family down there in Georgia and that’s a win for them. I mean, we’re able to make it happen fast. I mean, you know, we’re closing in, within two weeks that never happens through traditional. And guess what, another advantage of buying subject to, or using private money? There’s no appraisal involved. There’s time entanglements that I mean, the beautiful thing about either buying subject to, or, and, or using private money is we get to set the rules. The banks don’t set the rules. We set the rules. So yeah, I mean, this is just a great example of the deals that we do every month, month in and month out.
Scott Paton (30:16):
So, let me just quickly go through a summary for everybody. So, you purchased the place for 99,000. You bought it subject to the existing note. The after repaired value is $180,000. The rehab is going to be around $15,000, by private money. So all in your cost is 114,000, which if you just put it on MLS and you sold, it would be a profit of 66,000 less lawyer fees, realtor fees, that sort of thing. However, we have two exit strategies and the second one is sell on rent-to-own. So you’re still going to sell it at the same price. And it’s going to be around $1,200 a month on rent-to-own. And the Non-Refundable Lease Option of between five and $10,000, which means that probably in the neighborhood of $81,000 profit, you’re helping somebody who doesn’t, can’t get a mortgage right now, but they’re going to be able to have that feeling of home ownership and move towards it and fix their repair. And it gives you a monthly positive cashflow of $500. So you’re going to get some money right away, a nice chunk, five, 10 grand. You’re going to be at this cash flow going through for the next year or so. And then at the end of it, they’re going to get a mortgage and you’re going to get the rest of the money.
Jay Conner (31:35):
That’s it.
Scott Paton (31:39):
Sounds like a great deal.
Jay Conner (31:41):
It is Scott. Scot, I’m so glad you joined me here. Folks again, Scott Paton, the Executive Producer of Real Estate Investing with Jay Conner. And I’ll tell you what, it’s a lot more fun to talk with somebody to be a talking head. I’ll tell you that.
Scott Paton (31:55):
It sure is. So, Jay, if somebody wanted to learn more about what it is that you do, how can they, what steps should they take?
Jay Conner (32:03):
Oh, well it’s real easy folks. Get right on over to www.JayConner.com/Book And I go through all the steps, easy steps on exactly how you can get as much private money as I do to fund your deals. Thank you so much for joining and look, I really appreciate the reviews. If you’re, you know, subscribe on YouTube, be sure and subscribe and ring that bell. So you don’t miss out on any of the future trainings that we do right here. Be sure to like share, subscribe and join us again. I’m Jay Conner, The Private Money Authority wishing you all the best and here is the taking your business to the next level. We’ll see you on the next Real Estate Investing with Jay Conner.
Jay Conner has been investing in Real Estate for over 15 years. He typically makes 2 deals a month. He has bought and sold over 400 homes.
He had an 800 credit score and the bank closed his LOC. He needed to find a new source of funding. In the past eight years, Jay has never missed a deal because of funding.
He has developed a strong network of Private Money suppliers.
Chaffee-Thanh Nguyen started investing in Real Estate a decade ago. He dramatically changes and impacts the lives of thousands of people around the world as an Executive Success and Event coach with the likes of Powerteam International and Marshall Sylver’s Mind Power Inc. Chaffee also teaches at his own events.
“Jay’s private lending scripts alone are worth the price of his entire system, and are the best I’ve ever heard … including mine!” – Ron LeGrand, Famous Real Estate Guru, Jacksonville, FL
“You will not believe this, but it is absolutely the truth … 3 days after attending Jay’s seminar Where to get the Money Now, I was doing a call on one of my customers. He was telling me about how he had just sold his home and I ask him if he had ever considered real-estate investing. After hearing the information that I shared out of Jay’s seminar, he is now in contact with my attorney to discuss his investment!“
* Occasionally we have affiliate links in our description.
DISCLAIMER: Jay Conner is not a financial advisor, real estate broker, licensed mortgage broker, certified financial planner, licensed attorney nor a certified public accountant, therefore consult with a professional prior to making any real estate investing.
Here’s a question from Elaine. I saw Elaine. Hey, Elaine, what are you snacking on today girl? I see you there. stuffing your face. That’s what is it? Ripples? Oh, my lands. I’m better than say what I thought I said, I thought I said that’s pimples. I said, good night. That’s nasty. All right. So here’s your question from two weeks ago? I think I just saw you put it in the chat. That was nasty. Wasn’t it? Lena, Lena. I want you to know we kept your Christmas card that you sent us two weeks ago. That was not as sweet. Okay. Here’s your question, Elaine, we’re in the world that you’d get these questions, girl.
Elaine:
I do a whole lot of research and I was researching this property. And when I researched this property and I was looking at their notes, I found out that they put four deeds on one note. And in addition to that, they had, what’s called a future advanced cause. And I’m thinking, Hey, this might be good, I might be able to use this. So from what I gather, and you’re going to tell me if I’m correct or not, this future events, clauses, currently, this bank will give you extra money to use for your next project, because here’s, my problem is I’m buying more and more properties in Memphis, Tennessee, which is wonderful. The last two that I bought worked for about 25,000, you can’t get a loan for 25,000 and I do have some private lenders that will loan me money, but it’s only for short terms. So I’m walking to refinance them for like over 30 years. What I can’t, because they’re so small. So I’m thinking, Hey, maybe this will help me out and can give me the extra money to buy more and more properties.
Jay Conner:
All right. So let me answer your question. So the question is how does a future advanced clause work? Here’s your answer, a future advanced like clause in a mortgage that references future advances is exactly what it sounds like. It’s a clause in the mortgage that says, Hey, you can have future advances. So let me define what that means. Future advanced clauses. You can have on a line of credit, a future advance you can have in a lot of credit that is revolving, or you can have a future advance on a non revolving note. So here’s the way it works. You have future advances on new construction, right? That’s called draws. So, and a future advance is a draw, right? So you’re gonna have draws. You’re gonna have future advance, If you’re borrowing money, this, by the way, this does not apply to private money.
Jay Conner:
Folks. This does not apply to private money. This is only commercial loans that we’re talking about this clause and mortgages. So if you’re borrowing money from a traditional lender or you’re borrowing money from a hard money lender, God forbid there’s this thing called rehab draw, right? So you can have a draw for purchase. You can have a draw for rehab, et cetera. Equity lines of credit or revolving lines also has that clause has that clause in the mortgages because equity lines of credit are secured by real estate. And so when you are getting a future advance, you’re just an advanced is just a pull down on that equity line of credit. Typically these lines of credit are not on, are not on multiple properties, but could be. So Elaine, that’s the answer. But more specifically, if you’re looking at a particular note, then I recommend you get your real estate attorney to take a look at that clause and see specifically, what are the conditions, here’s the most important point important part of your question, what are the conditions enabled in order to get future advances? And it’s all going to come down to how the note is written, right? So that’s the general answer. The specific answer is going to be in the note that you have. Thank you for the question Elaine, because my guess is nobody else on the Academy call here today ever heard of future advanced clauses, but there you have it.
Today on Real Estate Investing with Jay Conner, Jay and his guest Brent Bowers will talk about land deals. Why it’s so profitable, how it’s so easy to do the business, how to locate these land deals and how to make big profits quickly.
Brent is Jay’s friend and a colleague in Mastermind. He is an expert in land deals. Before he entered the world of real estate he used to serve in the army for 8 years then he started investing in single-family houses back in 2007.
In 2016 he discovered the highly profitable opportunity in making land deals.
To learn all about Brent’s successful land deals, watch the full video.
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.
Well, hello there. If you are a real estate investor and you’re looking for more funding for your deals without relying on hard money lenders or any kind of traditional funding, don’t go anywhere. They cause I’m getting ready to plug you into the money with my new free book, how and where to get the money. Now don’t go anywhere.
Jay Conner:
Well, hello there I’m Jay Conner, the Private Money Authority, and welcome here to Real Estate Investing with Jay Conner. Wow. I appreciate you being here so much and I’ll tell you why we are fast tracking past 300,000 downloads or listens. Since we launched the podcast, you may be listening to us on iTunes or Google play, or you may be watching one of our YouTube channels in any event. We’re glad you’re here because here on the show, we talk about all things real estate. We talk about how to find deals before other real estate investors even know they exist. We talk about single family houses. We talk about commercial deals. We talk about self storage and today I’ve got a very, very special guest I’m going to bring on in just a moment. Not quite yet. And today we’re going to be talking about land deals, why it’s so profitable, how it’s so easy to do the business, how to locate these land deals and how to make big profits very, very quickly.
Jay Conner:
So if you’re tuning in and of course you are please like share, subscribe and give us feedback. We’d love to hear your reviews as well, but I promised you a moment ago that I was going to plug you into the money. Now I’m known as Jay Conner, the Private Money Authority, and here’s why from 2003 to 2009, I was using the local banks, mortgage companies and et cetera to fund my deals. And in 2009, I got cut off from the banks with no notice. And there I was with no way to fund my deals. Well, my definition of coincidence is God’s way of staying anonymous and less than two weeks of being cut off from the banks, I was able to attract and raise over $2 million in private money, private funding. And here it is folks, this money has got nothing to do with any kind of traditional borrowing for your real estate deals, nothing to do with hard money.
Jay Conner :
This is private money. So I’ve got a free book just released brand new. I got a free book for you where to get the money now, how and where to get money for your real estate deals without relying on traditional or hard money. Lenders just released hot off the press. And this book also includes two tickets valued at $3,000 to the private money Academy conference live event. So don’t go. In fact, I’ll just go ahead and give it to you right now. So here’s the website on how you can get this book for free and all you gotta do is cover the shipping cost. You can go to www.JayConner.com/Book, and we will ship that out to you.
Jay Conner:
We don’t even have it in digital version. You’re going to get an actual book, autographed shipped in the mail to you right away now onto my guests. As I mentioned a moment ago, my guest today is an expert in land, but he didn’t start out in land. In fact, my guest and expert he’s been in the army, been the military. He was in it for eight years and then he started investing in single family houses back in 2007. He struggled, he struggled he struggled. And then in 2016, he discovered the highly profitable opportunities in land. And we’re going to learn all about it from my guest right now. Y’all welcome here to the show, my friend and mastermind colleague, Mr. Brent Bowers, Brent, welcome to the show.
Brent Bowers:
Jay. So good to be on your show, man, if you would’ve come, if I would have gotten your book back in 2007, maybe I wouldn’t have struggled and struggled and struggled. I would have had all the money and I would’ve done some more house deals, like c’mon, why do you have to write this book now?
Jay Conner:
And the end of the day, the real world, most, most single family house deals require either all the money or some money. Right?
Brent Bowers:
Yeah.
Jay Conner:
I take, I mean, I do it. I’ve been doing it since I’m been investing in single-family houses since 2003, then using private money since 2009. And since that time I haven’t missed out on a deal for not having the money, but enough about me. I want to talk the rest of the show, Brent, about you. So first of all, where are you and what does your, your what’s your real estate investing business look like these days?
Brent Bowers:
So I’m currently standing right now, my office in Colorado Springs, Colorado. It’s actually a commercial building that we purchased for very inexpensive, but we pay with it with land, you know, land is what allowed us to buy this commercial building. And what’s great about that is, you know, you’ve got all these tax write offs, enterprise zone, but I’m in Colorado Springs and I’m a land investor. We buy land at massive, massive discounts. And then we turn around and sell this land at a premium retail price to people that can afford monthly payments. That’s it that’s me in a nutshell, I love land and it’s provided a financial time freedom. The ability to go on two vacations in six months to three week vacations in the last six months you know, it’s just provides something that I wasn’t able to accomplish with, you know, flipping houses and wholesaling houses and apartment complexes. So here I am, you know, shouting the word from the rooftops of why land is so incredible. And you know, I get a lot of questions of how the heck do you make land and why land and this and that. So that’s why I’m on the show today. And it’s an honor to be with the Private Money Authority, Jay Conner.
Jay Conner:
Well, thank you. Brandon says I’m excited to have you here because the niche that you’re in, in my experience, there’s not that much competition out there. As far as people really going after the land and of the business, but before we dive in on why land and really, you know, how the process works. I want to hear your backstory. How’d you get into real estate to start with and you know, what led up to that?
Brent Bowers:
I love it. So 2007, I had just gotten my real estate license. I graduated high school, 2004.
Jay Conner:
You wanted to work for tips?
Brent Bowers:
Yeah, literally I didn’t realize what I was getting into. I had a lawn and landscape company that was, I was making pretty good money. So I wanted to buy my first house. I also had just gotten my license, like I had just said, but the reason why I got my license is because I wanted to have that inside track. I wanted to see all the deals come across my desk and I was going to cherry pick what I was going to buy. So I found the deal and I was like, I’m going to actually move into this one. So call great-grandma. And I asked, I said, Hey, I’d like to borrow a thousand dollars from my earnest money deposit. I’ll pay you back when you get my real estate commission. Cause I’m actually the buyer’s agent on this as well. Grandma’s said, okay.
Brent Bowers:
If you don’t pay me back, it comes out of your inheritance. I said, no worries, grandma. I’m going to pay you back. By the way, when she died, I never saw that thousand dollars I should have just kept it. No, I never got an inheritance obviously. So long story short, I get my commission check and everyone knows what happened in 2008. And I actually lived in that house like four or five months, and then I turned it into a rental. Now I’m a landlord. So I’m extremely sophisticated. I’ve got a real estate license, I’m a landlord. And I move it to the coast and I’m going to sell real estate and hit it big. So I moved to West Palm beach, Florida rent this house out at the top of the market. So I’m getting the, or no, I’m getting 950 a month on a house that I want you to get in about 850 a month on.
Brent Bowers:
So what does that tell you? I probably rented it to somebody with bad credit. And they’re going to trash my house in a year. Right. That’s what happened to me two or three times. So I had to learn through hard knocks. You know, I, the third, the second time it got trashed, I had just come back from a year long deployment in Afghanistan. So that’s where all my extra money went for that one, but I’m jumping ahead of myself. So I’m now a landlord, I’m hitting the streets in 2008 real estate. Market’s crashing financial industries crash and all these things are crashing, and I’m not making any money in real estate. So I was like, I’ve got to just do something different. I was married not getting by, you know, bills were adding up and I was like, I’m going to go back to school.
Brent Bowers:
So I joined the military and I was in the military for about eight and a half years. And the entire time I’m in the military for the first three years I’m overseas. So I had to kind of put everything on hold. So I thought virtual investing was not in my mind back then, except for that one rental that just kept causing me heartache. So I get back to the States. I get right into it, I’m now hold on houses. Cause the army sent me to college to be an army officer. And I picked up a very expensive private college. So I had to wholesale houses to pay for classes. And then I kinda, you know, got that going. And I actually ended up hiring a mentor a friend of ours that we both know, Tom Crowell, we got a system going and I’m now being moved Colorado Springs.
Brent Bowers:
And then I’m doing missions. All these other States, I’m literally like doing a virtual wholesaling company and I never get to go see sellers. And I’m like, this is really hard to buy a house when you don’t get to see sellers. So I heard this podcast of what this guy was doing with land. And I was like, well, Tom Crowell, you know, said that, throw away all my vacant land records on the tax legal list. I was like, I’m just going to mail it. Just see what happens. Well, my phone exploded. I must’ve, I think I mailed 687 letters to vacant land. I got 85 phone calls and I got two deals out of it.
Jay Conner:
Oh my land!
Brent Bowers:
Two deals. Each one of those parcels of land, one was $285. And the second one’s $500 and I sold both of them for five grand, a piece.
Jay Conner:
Wow! Talk about a return on investment.
Brent Bowers:
Super return. I didn’t believe it was real. So I tried it again. And it just kept happening, kept happening. And finally, like the fourth of the fifth deal was a bank, a bank sold me a 44 acre parcel of land next to an air force base in Colorado for 25 grand. And I literally like wholesaled it the next day for 38 grand. So I was like, this stuff’s real, I’m now going all into land. And here we are, you know, fast forward from 2007. Well, I don’t want to date this, but not looking back.
Jay Conner:
So how long were you working the single family business model?
Brent Bowers:
So you know what? I was probably working it from, I started back up again in 2013. I did a couple half hazard wholesales and then I hired the coach and the end of 2015, early 2016. So really from 2016, to current, I still got my house buying company. It’s not as cool and as glamorous to me, cause it doesn’t pay me every single month like the land does. But I’ve still got that, that I guess, division, but it’s being ran by an amazing person on that loves houses way more than I do. So kind of still working it, but the land has just been consistent, constant checks coming in. I can count on it. I can go on vacation. I don’t have to take the phone calls from the rodents or the rents I mean the renters. It’s just the land buyers. So I guess to answer your question, we’re still doing the houses, you know.
Jay Conner:
So first of all, help me make a list as to as many benefits that you know of, why, what does land, the land business offer that other, you know, realms and real estate doesn’t such as single family, commercial, small apartments, large apartments, commercial, self storage, all that other stuff that we could be doing. Why are you focusing on the land, gimme as many reasons as you can.
Brent Bowers:
Yeah. Real quick. You said hardly any competition, that’s so true. I think that reason why is they don’t know how to make money with the land. Another benefit is I can get my money back out of this land really, really quickly. And how I’m doing that is I’m usually paying a massive or I’m usually getting a massive discount on this land when I buy it and when I pay that seller. And generally I try and get a down payment, big enough to get most of my money back out, so where I’m profitable as soon as possible with that monthly payment. So we, we sell it on terms most of the time with seller financing. So we’ll get a down payment and then a monthly payment for a certain amount of time. It could be anywhere from 5 to 30 years, we’ve been toying with 30 year mortgages lately because there’s a reason why the banks do it.
Brent Bowers:
Right. You know, the first five to seven years is interest only. We do it on bigger parcels of land, more benefits. You don’t have to go to the land. You know, you could do this. Virtually could do this from anywhere in the world. My father he’s, I think he’s on his 39th land deal. He just bought a piece of land from someone in Canada. That just didn’t want it anymore. She hadn’t been paying her taxes in years. So it’s easy to kind of just go on Google earth and see it virtually more benefits. You know, you, every one of these parcels of land we do, we’re not starting the clock over. We know that we’re going to be paid for the next, you know, five, seven, ten, thirty years on this land. So if we could do, for example, a week or so ago, my my land specialist sold five parcels of land in one week. So Monday she sold one Tuesday. She sold once a five in one week and they average anywhere from 299, a month to 498 a month, those five, but let’s just, I really like easy math. Let’s just say each one of those was only $200 a month. She just added $1,000 a month to my passive income. And we still got three other weeks in the month. You know, it’s, there’s no limit, you have that buying machine and you have the selling machine of the land. So I think that’s quite a few benefits I could probably make some more
Jay Conner:
So here’s what I want to do. And I know due to the time limits of the show, we can only dive so deep, but let’s go through the steps, step by step and break it down as to the process of, you know, first of all, finding the prospect of the seller. So how do you go about finding these sellers or potential sellers that now, first of all, I assume this is raw land, right? Raw land.
Brent Bowers:
Correct.
Jay Conner:
Are you, I mean, are you, is it all just parcels or are you sometime targeting you know, just like lots of land that’s already been subdivided or is it, buying largest parcels of land?
Brent Bowers:
We do mostly parcels of land. That’s my bread and butter, but we will buy lots in fill lots buildable lots, but not as many, I would say 90% of my business is, you know, the vacant role parcels of land. So let’s answer question, you know, if you drop me in a brand new County and I was just going to get started, the first thing I’m going to do is I’m going to contact that County treasurer. I want to find the people that are behind on their taxes, on their, on their properties. So generally, you know, that’s a call was saying, Hey, can you send me your tax delinquent list? And most of the time they think I’m a tax lien investor. They’re going to, yeah. The list comes out in October. No, I don’t want to buy the tax liens. I want to see the people that are paying your taxes. Who’s in charge of keeping track of those people. So they finally get you to the right person. I get a list and then we figure out what’s vacant land. What’s mobile home, what’s single family and we get rid of everything, but the land. And
Jay Conner:
So you’re not. So in this business model, you’re not wanting to buy the role in any land got anything on it. Typically you just want it vacant, right?
Brent Bowers:
Exactly. Vacant, unimproved, no well, no structures, no nothing.
Jay Conner:
Okay. So it sounds like, and please clarify, it sounds like you are not marketing to the masses of owners of land. Are you only, or do you just start out with people that are, or do you mount off or do you target all of them?
Brent Bowers:
I do usually start out with the tax delinquent and then that kind of gives a good indication, like what we’re looking at after I met. And that’s usually a really small list. You can exhaust that in a couple of weeks, you know? So if you, if you’re listening to the show and you’ve got a limited budget, I recommend start out with that tax delinquent list. Now, if you’ve got a marketing budget and you can spend some money, like I recommend going to the land sharks list, the land sharks lists get a seven day free trial to a prop stream and pulling the entire vacant land list for that County, because that’s going to give you some people to mail. And then you want to kind of focus in on little areas, little pockets and figure out what that land goes for per acre and per lot, because that’s how we’re going to figure out what we’re going to come up with our offer price on our LOL is our Land Offer Letters is what I call them. Because every time I get one back signed, we laugh out loud because we know we just got a piece of land under contract at a massive discount.
Jay Conner:
That’s awesome. So, you have a service, your company has a service that provides lists in pretty much every County in the nation of vacant land.
Brent Bowers:
Yeah to the land sharks list.com. That’s a seven day free trial to the www.TheLandSharkslists.com. That’s a free seven day free trial to prop stream. They have been the best people I’ve ever worked with as far as purchasing lists for rate or that. So tongue tied there for vacant raw land in a County. And generally, if you’re going to go straight to that list and start pulling land records, I like to make sure that these people have owned this land for over three years. And I’m kind of, I don’t want a huge, massive list. I don’t want like 20,000 that’s way too much. I’m looking for generally around 3000 names because that’s going to give me a great indication of the County. After I mailed 3000 or set, let’s just say 1500. I’m going to know if I’m offering too little or offering too much.
Brent Bowers:
If I’ve sent out 1500, LOL’s the land offer letters, we call them blind offers really. And a lot of the industry calls and blind offers. If I’ve sent out 1500 and I haven’t gotten any accepted offers that tells me I’m offering too little for this land now let’s, let’s do the reverse side of the coin. If I’ve sent out, you know, 1500 and I’ve gotten like, let’s just say 15 accepted offers that tells me on paying, I’m offering way too much. I want to be less than around. I want to be less than a half percent acceptance rate because you know, you don’t want to pay too much for the lane. It’s like you find a little hole. Let’s dry it up when you’re go efficient and it’s drowning and you throw a worm in there and you catch a fish right away. Well, eventually you can get cheap with the worms, not put anywhere I’m on the hook and maybe throw the hook in and still catch a fish. So I want to throw that hook with no worm in there and see if I catch a fish. So I want to offer as little as possible and see if I can catch it, catch a deal first. And then we’ll increase the price if need be, or we’ll adjust it as needed.
Jay Conner:
Well, that’s interesting. So your criteria or your formula, rather for the offer that you’re going to make on the land varies after you test the market, right?
Brent Bowers:
Exactly. Cause it’s not what Brent Bowers thinks, it’s what the land sellers think in that area. You know, it’s, we want to go off because I mean, there’s over 3,100 counties in the United States. You gotta figure on averages. You know, when you’re figuring out what the land’s worth, we’re looking at averages and we’re going to offer a percentage on the average. Generally, I usually start around 30 cents on the dollar. So if the land seller for 10,000 an acre, I’m going to offer 3000 acre.
Jay Conner:
So you start out at 30% of the value. Now let’s talk about the value. Are you talking 30% of tax value or what kind of value,
Brent Bowers:
What it’s actually worth? So a lot that’s one of my biggest questions from people was like, how in the world do you comp land? It’s not a three bedroom, two bath house with a one-car garage on the North side of main street. So that’s where I say, I deal in averages. I deal in averages and we offer such a low offer at a massive discount. If we get it under contract, we can always renegotiate. If we got a too high or sometimes we get it so low, it’s like just literally a smoking hot deal. So how do we figure it out is I rely on the experts. I’m not an expert of much, you know, I rely on the experts on what the land’s worth, you know, who are the experts, realtors call a realtor. The first realtor you call is probably not going to deal on land or know anything about land or even care about land, but ask that realtor who is the land expert in this area, this city, this town, and you might have to call two or three people.
Brent Bowers:
Once you get that person on the phone. I generally like to find the people that list the land in that area, because they’re going to be the smartest people on the land, figure out what that area is worth. You know, price per acre. What is actually worked, not assessed, not, not County property value. And then next look on Zillow. Look, what’s for sale out there in the last six months. Look what’s sold in the last six months. There’s another average for sale sold. And then the final ones I like to look at are the land websites, www.landwatch.com, landflip.com land, I don’t know, landcentury.com. You know, if you take all three of those sources, you’re going to come up with an average, add them all up, divided by three. And then there’s your average price per acre and an average price per school per actual lot. Now, obviously you want to kind of get that as small as possible, like in the town, in a zip code and you never going to be perfect. You just got to get your mail out the door and see what the sellers say, see what the landowners
Jay Conner:
Say. So you get the list from www.TheLandSharkslist.com. Right?
Brent Bowers:
Got it.
Jay Conner:
And so there is the www.TheLandSharkslist.com for the list, right?
Brent Bowers:
That’s correct Jay.
Jay Conner:
So you get your list, I guess you can search by County or whatever, zip code, County, whatever across the nation. So you’ve got your list now is your magic bullet a letter?
Brent Bowers:
You know, what is a lot of debate across the country? There’s two ways to look at it. I would rather do the work upfront by coming up with the offer price and just receive signed, offer letters back via fax email in the mail, because then we know we got a deal, rather than send a postcard, like an actual neutral postcard saying, Hey, we’d like to buy your land because then we’re going to get a ton of phone calls. I don’t want my acquisition manager overwhelmed with those phone calls. My acquisition manager makes hundreds of dollars an hour. I’d rather pay someone, you know, six, seven, eight, nine, $10 an hour to figure out what those offer prices should look like. So that’s just my opinion. You know, my, I don’t want my acquisition manager having to, you know, become an literally a land appraiser. I’d rather pay someone in the Philippines or someone minimum wage to come up with those offers and then keep my acquisition manager from getting stressed out, receiving 150 phone calls a day.
Jay Conner:
Okay. So you can actually locate a virtual assistant and have them trained on what the offer should be. So you can really automate this initial marketing. Right?
Brent Bowers:
Yes Sir. And then that’s the thing. And I don’t do, I mean, we have virtual assistants doing most of it. Like I’ve got someone that buys the land. I got someone that sends the letter or something that comes up with the offer price. Like that’s, I don’t want any of that on my plate. I just want to be the business owner. I want the business to serve me. So we love virtual assistants and we treat them like family, because that’s what they are, they are family.
Jay Conner:
Absolutely. Yeah. Virtual assistants are very, very critical in my business as well. So is that what you’re doing is your business model is you look at, you got the list, you’ve got an assistant virtual assistant that figures out what the offer should be. And is that the initial point of contact is a cover letter with an offer with instruction going, if you want to accept our offer, sign it and mail it back. Or how does it work?
Brent Bowers:
We actually just saying one page, you know, we’re, we’re actually about to test out another, another offer. It’s actually a company that sends off gonna send offers for us. They say, we need a cover letter. So we’re going to try it their way. But I just, we just sent a one page land offer letter and they sign it and they can fax it back, mail it back. And a lot of people will hear facts. What are you talking about? Yes. We get facts offers back all the time.
Jay Conner:
Right. Yeah. I got a fax machine right outside my door. So here comes the letter and you’re wanting somewhere around as a, as a measurement of, okay. We’re paying the right amount for these properties about a half percent. So if you mail out 200 letters, you won’t want to accept it.
Brent Bowers:
Yes Sir.
Jay Conner:
Right. That’s right about, okay, so now you’ve got your letter of intent. We got the list. We mailed it. Okay. Now we got so-and-so. Yes. Buy my land. You got a virtual assistant that came up with the offer amount. Now we got to buy this baby because they have accepted your offer. They’ve signed it. So let’s talk about the closing process as far as purchasing where do you get the money to fund buying this land? What kind of closing is it? Do you check title? How do you close the deal once you got an acceptance?
Brent Bowers:
Absolutely. So if I’m paying him more than $5,000 for this piece of land, my rule of thumb is I’m going to use a title company. And it seems to be that way with some other big time land investors out there. So if it’s under $5,000, I’m going to do like an owner encumbrance. I’m going to use my title guy to kind of do, you know, a title search and make sure there’s no funny things going on, no broken chain of title, any of that stuff. So if everything looks good and it’s under $5,000, we’re going to send a mobile notary, but we’re going to have them bring that transfer document, which is a warranty we bought on a warranty deed. They get it all filled out. They notarize it and they send it to me via email. And then they send me the actual original.
Brent Bowers:
So this seller is already tracking. Here’s our process. Here’s exactly how we work. Most people have no problem being told what to do as long as you’re respectful and kind about it. So they like to hear that we have a process, as soon as we receive this deed, we’re going to present it to the County recorder. And if after they approve it, we’re cutting check. So they know that they’re going to get a check. As soon as the County recorder approves that the, how do we get the money for this? So there’s so many ways to get money out there. Originally I used to have a buyer lined up in the very beginning. I would market this land and I’d talk to the seller about this. I’d say, look, I’m not buying this piece of land for myself. I’m going to turn around and sell it.
Brent Bowers:
Is it okay if I find a buyer before I pay you for the land? And 9 out of 10 had no, no care whatsoever about that. So we’ve already got a buyer lined up to pay us a down payment. That’s almost equivalent to what we’re paying for the land. So if we’re paying 5,000 for the land, I’m going to try and get somewhere around a $5,000 down payment for this land because we’re buying it at a discount. Number two, the second way to find money is partners. There’s plenty of people out there looking to put their money to good use. There’s plenty of people out there that are afraid of the stock market or people that have, you know self-directed IRAs. I’m sure we can learn all about that and your Private Money Authority or where to get the money now book. And then there’s plenty of people out there that they’re just sitting in the same house for the last 10 years. Their house is paid for, they’re 55 plus. And they’d like to see their money get put to good use. So there’s so many ways to find money. That’s just talking to people, going to meet ups, going to real estate, investor associations, talking like we are right now. You know, we’re always looking for money to buy more land. So that’s how we get the money. And that’s the closing process and.
Jay Conner:
Do you use your own money or you use other people’s money?
Brent Bowers:
Literally, that’s it. And guess what? I run out of money all the time. Who’d a think? It I’m sure you probably have it before too Jay. So, but there’s plenty people out there that have like a lot of people you don’t even know they’ve got money.
Jay Conner:
That’s right.
Brent Bowers:
It’s really see you’re doing well.
Jay Conner:
So you got the list, you mailed the list you met them an offer. They accepted the offer. You got closing, you’re using a warranty deed. Now you have closed the deal. Now let’s suppose there is that you already haven’t found a buyer. So how are you marketing now to find the buyers of this land? And you say, so you already told us your business model says, I’m going to pay, you know, X I’m going to pay two, three, $4,000 for the land. Now I’m going to sell it on. What are you selling it on? Are you selling it on a land contract? I mean, what’s your instrument?
Brent Bowers:
Land, contract, or contract for deed.
Jay Conner:
Okay. So you’re selling it on land contract, contract for deed, but then you want a down payment to cover what you paid for the land right? Now, if you’re using a joint venture partner or a private lender, once you get a buyer that pays you back on the down payment, do you maybe keep that money and keep borrowing the private money? Or do you go ahead and pay the private money off? Or what do you do?
Brent Bowers:
So, I’m not using a lot of private money and I’ve done it both ways. Sometimes private money lenders don’t want to get their money back right away.
Jay Conner:
They never want to get it back right away.
Brent Bowers:
They want you to use it for like a year. But if I’ve got a buyer already, that’s going to pay me a down payment. That’s equivalent to what I’m paying my seller. You better believe I’m not getting a private money lender for that one because I’m going to be profitable in 30 days. I’m not going to deal with that. I’m sure that might make cash flow easier. But let me put this disclaimer out there. I do not always get the down payment back, you know, as far as I don’t get always up down payment, big enough to pay the seller. So there’s times when I’ve got a lot of money in this deal and it could take me six, seven, eight months to get most of my money back out in the beginning.
Brent Bowers:
I had no choice, Jay. I was using rent money and grocery money to buy land like that first $285 purchase I told you about where, where I sold it for five grand. I actually called the real estate office that was right down the street from that land. I was like, what’s this stuff worth? Like, what can I blow this thing out for in 30 days? So I’m going to need to get my money back really quick. It’s $285. This is back in 2016. I was, I’m embarrassed to say this. I was like, but I need, I’m going to have to get that money back really quick. What can I list to support? She goes maybe 10,000. Maybe.
Jay Conner:
Maybe?
Brent Bowers:
I was like, fireworks. Fireworks were going off in my head. So I was like, I can maybe call great-grandma again. But so she called me back five minutes later. I now remember it, me and my wife were driving back from this land. And as I spoke through, I took her call and she goes, do you mind if I buy the land in front of you? And I was like, what? What are you offering? She said, I could do it for $5,000. And I was like, well, when, when can you close? She said, well, Saturday I could probably close on Wednesday, like Wednesday in like four days, like a couple of days from now? She goes, yes. So I said, you know, I’m such an amazing negotiator. So I said, let’s do it. Let’s do it. So I called my seller back, said, can we meet on Tuesday? I’ll pay you then. He said, yeah, no problem. This was a CPA. Like he had traded tax work like 10 years ago for this land, so he didn’t care. We met right outside the army base, Fort Carson, and I gave him the money. And basically I sent that transfer document to the title company and they pay me the $5,000 check the next day. So all I’m getting at is I had to get my money back really quick back then. Cause that was, that was grocery money. So I know a lot. That’s another benefit. I know a lot of people don’t just have tons of money sitting around to lock up a land forever.
Jay Conner:
So you just said you sold that you were going to list it in the multiple listing service. So I guess once you buy land, you can put it in the MLS and let’s do the realtor. How are you selling most of your parcels of land? You’re selling an old land contract. So how do you find the buyers?
Brent Bowers:
Yeah. As far as finding the buyers, we put it on Craigslist. We put it on Facebook. Facebook buy, sell groups are amazing. These people scroll through there and see that they can own a piece of land for $999 down and 399 a month. That it’s literally like their minds blown. They didn’t realize that they could buy a land and finance it. Facebook marketplace we put literally bandit signs that we had for our house buying comments. Is we buy a house we flipped that thing around and I have my sign guy right on there with a big black Sharpie marker. Five acres must sell we’ll finance phone number. Like we get calls all the time. My best KPI, Key Performance Indicator, KPI are signs right now, signs bring us in so much money for the amount of money we spend it. So it’s.
Jay Conner:
So I’ll ask this question and I know our audience is wanting to know too, who in the world wants to buy raw land that’s broke? However, if I’m having to, let’s say I’m a buyer of a piece of land you got, and I’m going to put $995 down payment. I’m going to pay, you know, X dollars per month. Me as the buyer, what am I looking to do with that land?
Brent Bowers:
Yeah, no, that’s a great question.
Jay Conner:
Not that it should matter to you.
Brent Bowers:
No, Know your avatar know who you’re selling to. It’s really weird because when I was selling the land myself, my buyer a lot, like I had three truck drivers that bought land from me, like in the middle of nowhere, it was weird. Cause they just thought I’m just drive by that land all the time. I’d love to own it. So that was my avatar. So a lot of times our number one buyer is someday. Maybe they want to build a cabin. They just want to have something to take their RV out and get away from the city especially right now. Like they’re just trying to get out of the city, get away from people, you know, build a fire, roast marshmallows, create memories with their children.
Jay Conner:
There are some people, some people just want to buy land and just to have land and have a place to go have a bonfire.
Brent Bowers:
Literally, I kid you not. And the, my number one question from our land buyers is, well, when can we use it? You can use it right now if you want, like it’s I want you to enjoy it. And you said, who would buy land? That’s broke, you know, broke people, spend their money all the time. They’ve got to just spend it. They get an extra 299 a month. They’re going to find a home for that 299 a month. That’s wonderful.
Jay Conner:
So, do some of these buyers buy land for bragging rights say, Hey buddy, I own that parcel lot over there.
Brent Bowers:
Yeah. I’d say the bigger parcels of land like the 160 acre parcels that we have some guys it’s like, yeah. I just want to go out there and rip it up with my four Wheeler. And another guy’s like one to do a treasure hunt. And you know, this, you, you name it. Like there’s some, there’s some funny stuff going on out there, but yeah, bragging rights.
Jay Conner:
So realistically, if somebody wants to get involved in this business model, how much money does it take to really get started?
Brent Bowers:
You know what I would say, if you really want to outsource this and have like a mail house, take care of everything. If you sent 300 letters a week, that would be what, 1200 letters a month, call it $1,500 a month to get this business off the ground. Now we can take it to another complete extreme. My dad, I told you is, I think I said this. My dad is on his 39th plan deal. He prints his offer letters out. He’ll write the address of the actual seller. And he does it in one County and he’s mailing the tax delinquent lists. And you know, he’s, he’s got a couple other sniper approaches that he’ll take. But he places the stamp on there. He literally calls it his postage stamp deals. So it cost him the amount of a postage stamp. And here’s, what’s really cool as like he’s got such a unique way of doing this.
Brent Bowers:
He’ll get the land under contract. He tells the seller, look, I’m gonna send you a notary. I’m gonna send you the deed and fill it out, send it back to me. And while he’s waiting for that United States postal service to get that deed in his and his mailbox. And he’s got something on a United States post service where they scan his mail. So he could see when it comes the whole time he is marketing this land for sale. And as soon as it comes, he tells his buyer, meet me at the courthouse. We’ll get this thing recorded, bring your cashier’s check or your cash we’ll record your deed. And then he goes into posits the money in his bank, right around the corner. And then he writes the seller, the check, and he keeps what’s left. Like he does it on literally. So if he sends a hundred letters a month, he’s spending $50 a month.
Jay Conner::
Wow. Brent, I tell you, you you explain it as though it’s just so simple and everybody could either begin real estate investing. You’re using this business model or add this to what they’re already doing in a pretty simple counterweight and very quickly can make it really automated.
Brent Bowers:
I love it. That’s what I love about it. The most, I would say, that’s my number one benefit is the automation of this.
Jay Conner:
That’s awesome. Brent thank you so much for being on the show and please let everybody know how they can connect with you. And I believe you have got a free gift offer for everyone that wants to take you up on it, on your land check list, right?
Brent Bowers:
Yeah. So we actually, my team helped me come up with the land checklist. There’s like 15 checklist items and it’s literally like stuff that tripped me up in the beginning. You know, this is, these are little things like, Hey, is the land buildable are you buying a junk yard type thing and ways to figure it out? Cause we bought a junk yard one time. So yeah. Hit me up on Instagram. @Brent L Bowers. I see it’s in my, there it is. @Brent L Bowers. Just shoot me your email. I’ll know exactly what you’re looking for. I’ll send you my due diligence checklist and hopefully save you a lot of tears. Hopefully marriage, no I’m just kidding, a lot of lost money. So I’d be happy to send that.
Jay Conner:
That is awesome. And Brent, I know some of my folks want to know if they really want to learn this land investing business. Have you got some kind of training or some kind of course or whatever, they can really, you know, give them the details and like the kind of letters to mail out and such.
Brent Bowers:
I absolutely do. If you go to www.TheLandSharks.com head over there schedule a call with my team. We’ll see what your investing goals are and see if we can help you. But yes, it’s a course, recorded modules, weekly coaching calls. Yeah. And it’ll be how to get you started as fast as possible. Yeah.
Jay Conner:
You know, I’m so glad you’ve got that to offer because you know, most people either starting out or starting a new part of the business model. Well, you know, we just really want them to have all the nuts and bolts. We don’t want to have to come up with a letter, you know, and all the, you know, step one, step two, step three. Brent, Thank you so much. Parting comments before we call it a wrap.
Brent Bowers:
You know, just one of the thank you saw you on stage many years ago. Good to talk to you. One-On-One I’m going to go buy, I’m going to actually go to www.JayConnor.com/Book, as soon as we hang up here. And I’d love to see what that book says, because I’m sure I can find a lot of private money with it.
Jay Conner:
You got it, Brent, thank you so much for coming on and listen, folks do take Brent up on his free offer. You can get the checklist that he just offered up. And so with that, I’m so glad you joined us folks, be sure to subscribe, rate, and review, like and share we love your feedback. And so thank you for joining us again on the Real Estate Investing with Jay Conner. I am Jay Conner, the Private Money Authority wishing you all the best and here’s the taking your business to the next level. We’ll see you on the next show.
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
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.
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.
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
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.
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.
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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?
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.
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.
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.
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?
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.
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?
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.
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.
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?
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.
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.
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.
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.
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.
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.
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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.
Jay Conner is joined today by a young couple. They have only been working with Jay’s team for only 3 weeks and they have already raised $400K in private money lined up, ready to go and they are already making deals. Their names are Eric and Erica Camardelle.
Eric, also known as Banjo, is a former United States Marine and started his investment experience by turning his first house into a rental and from there, his love for real estate continued to grow.
His wife, Erica, is a former school teacher and has a master’s degree in Educational Leadership. They are doing the business of real estate together.
In today’s show, we are going to learn what the couple has been implementing for them to experience success in such a short period of time.
“ I will utilize the people that God has put around in my life and follow their instructions until I reached my goal. The key is following instructions, taking actions.” – Eric Camardelle.
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Jay Conner (00:01):
Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner your host of the show, also known as the Private Money Authority. And while you all are part of a movement, we have blown right on through 300,000 downloads and listens since we launched the show. And if you’ve been tuning into the show, you know, I’ve had some amazing guests. Now I’m going to go and tell you right now, before I get them introduced on the show today, I’m interviewing a young couple has only been working with me and my team for less than three weeks. They’ve already got what looks like $400,000 in private money, lined up, ready to go, and they’re already doing deals. So we’re going to be finding out here on the show exactly what it is that they’d been implementing to already be enjoying so much success in such a short period of time.
Jay Conner (01:02):
For those of you that are brand new to the show, a very special welcome to you here on the show. We talk all things that relate to real estate investing. We talk about all kinds of real estate deals. We talk about single-family houses, commercial deals, apartment self storage, land deals. But primarily we talk about single family houses. We talk about how to find deeply discounted deals, how to get them funded without relying on any of your own money, none of your own credits got anything to do with it. So finding and funding, if you’re into rehabbing, we talk a lot about rehabbing houses. We talk about how my average profits are almost $70,000 per house here in a small area of Eastern North Carolina population. Only 40,000 people. We do two to three deals a month, but the average profits, as I said are almost $70,000 per deal.
Jay Conner (01:54):
So private money, what are we talking about when we say private money? Well, it’s got nothing to do with banks, traditional lenders or mortgage companies. It’s got nothing to do with hard money, private money to get your real estate deals funded is all about doing business with individuals that loan us money from their investment capital or from their retirement accounts. Yes, there is a way for people to learn to you as a real estate investor money from their retirement accounts legally, and either tax deferred or tax free with no limit to the income that they can earn per year. So we talk about all these items. Well, when I first started investing back in 2003, the first six years, I did rely on traditional funding sources. I got cut off from all the banks, like the rest of the real estate investors did in January of 2000 or January, 2009.
Jay Conner (02:45):
I learned about private money. I was able to attract over $2 million in private funding in less than 90 days. Looks like my guest right here might be beating my record. If they keep up the pace like they are. And since that time I’ve never out on a deal for not having the funding. Well, my guess is whether you are a seasoned real estate investor, or you’re a brand new real estate investor, and you haven’t even done your first deal yet. There’s a good chance that you’re looking for more funding, particularly in the last few months with traditional funding and hard money lenders shutting down and being tight. Well, I’ve got a free gift for you for simply being here on the show with me today. And that is in the past few months, I’ve launched, what’s called the Private Money Academy membership. And in that membership, I am live at least twice a month where I’m doing live Zoom coaching calls with the members of the Private Money Academy.
Jay Conner (03:46):
In those calls, we talk about how to get funding for your deals using private money and also these other topics such as finding deals. Well, I got a free gift for you. I’m going to give all of you right now. I’m going to give you right now, 30 days free access to the private money Academy. And here’s how you get in. Go over to www.JayConner.com/Trial, Get on over there after the show and get your access. I’ve got a ton of content in the membership site that teaches you from A to Z all about real estate investing. I’d love to have you come join for free for the first 30 days to come check us out.
Jay Conner (04:39):
Now, in addition to that, we love to get your feedback. We love for you to like share comment, subscribe to to the show we’re on iTunes, Google play two different YouTube channels and Facebook. But if you’re listening to the podcast, we really love your feedback and the five stars and the reviews. So please give us that feedback if you will. Well, it’s time to bring on my guests today before I bring them on. Let me tell you just a little bit about them. So this is Eric and Erica. Now Eric is also known as Banjo and he is a former United States Marine and started his investment experience along ago by turning his first house into a rental. Now, from there, his love of real estate investing continued to grow and along with his experience now, since then his wife, Erica is a former school teacher who also holds a master’s degree in educational leadership, entered into the business. So they are doing the real estate investing business together. They make an exceptional team and they are real difference makers. That’s for sure they were with me less than four weeks ago at our most recent live event. And I’m so excited to have them on let’s bring on right now, Banjo and Erica.
Banjo (06:01):
Hey, was going on Jay.
Jay Conner (06:05):
Welcome to the show, Erica, welcome to the show. My dear. How are you today?
Erica (06:11):
Doing good.
Jay Conner (06:11):
You’re doing good? Awesome.
Erica (06:11):
Yes Sir.
Jay Conner (06:11):
Now, I also wanted to bring on a, another guest here to the show. Her name is Crystal, and Crystal came into mine and my wife’s Carol Joy’s world, I guess about four or five years ago. I lose track of time and she also liked Banjo and Erica attended one of my live events and Crystal and her husband, Dan. They became platinum members in the coaching program, mastermind members, and they now have millions of dollars in private money and millions and millions in profits and equity with a portfolio of houses of right at 100 houses and growing very, very quickly. So Crystal, welcome to the show.
Crystal Mewhorter (06:56):
Hey Jay, good to see you all.
Jay Conner (06:59):
Good to see you. I thank all of you for taking the time out of your schedules today to join me on the show. So, as I said, at the very beginning, the reason I wanted to have Banjo and Erica on here is because you all came to my live event less than four weeks ago. And at the live event you enrolled in the Platinum Coaching Program, the Platinum Plus also the Mastermind Program. And I want to have Crystal on here because Crystal, for those of you that don’t know Crystal assist me and coaching our students and our clients with weekly accountability calls our powers, group zoom coaching. And so Crystal and myself, we’ve been working with Banjo and Erica over the telephone and and on Zoom over the past few weeks. And as I mentioned, y’all have got already what looks like $400,000 in private money. It looks like that’s lined up. You’re all already doing deals. So let me start with you there Banjo. So what would you say has attributed itself or what is lended itself that you all have already started enjoying success so quickly? What is it that you put into action
Banjo (08:22):
And you said the word action, really, You have to we were basically just trying to make sure that we’re following the instructions that Crystal gives us to the T. In fact, I have a little motto that I repeat to myself every morning. And in that motto, there’s a little section that says I have I will utilize the people that God has put around me in my life and follow their instructions to the T to reach my goals. So I think the key is following instructions. Take an action.
Jay Conner (08:50):
That is awesome. Now, Erica, what would you say?
Erica (08:56):
I’d go along with that also communication, I think is a big deal. I, so as soon as I got home, actually before I got home I started diving into the systems and just things that we needed to put into place. And even though I’m an introvert and not comfortable with some things I knew that that’s what I needed to do to be successful. So I’m just following what you say to do and getting it done and it’s working.
Jay Conner (09:26):
There you go. So Crystal, from your perspective, of course, Crystal, you helped me with coaching, you know, all of our clients in the Platinum Program and Mastermind Programs and some, you know, one of those common questions I get is, well, how fast can I get the money lined up? How fast can I do deals? And some of the coaching, you know, coaching clients, you know get success very, very quickly, some takes a little bit longer, but what would you say makes Banjo and Erica a little bit different to get such quick success you know, so fast.
Crystal Mewhorter (10:02):
All of the language-ing that everybody’s used is exactly what I would say. And that is, they are definitely action takers. It takes action to make things happen, and they were willing to do that right off the bat. They asked a lot of questions, which is fantastic and lean on their resources. And when they get those answers, they go ahead and take the next step and to echo what my husband said, listen to what Jay tells you to do and just do it. That’s exactly what this couple does. Eric and Erica are wonderful to work with and that they were just willing to get right out there, take steps and move forward. Erica even went so far as to hear that message, make a phone call to set up with a seller. And that was one of the properties that we reviewed in the first week they were in the program and they have under contractor and working through getting private money on right now.
Jay Conner (10:56):
That is awesome. Congratulations on that. Now what about real estate investing experience prior to four weeks ago? So, you know, had you already started investing in real estate prior to us, you know, part of the live event a month ago?
Banjo (11:15):
Yes Sir. Yeah. We like you mentioned in the beginning of the show, I started my first rental into, I mean, my first house into a rental while back, about 13 years ago. And we started buying and selling with a partner of mine. It was just me and him. And we started buying and selling houses on a lot of creative financing type situations. We took a break, we both bought multiplexes and kind of got distracted and stopped investing in single family homes a lot during that time. And then we just got fired up recently earlier this year. And all of our deals so far have been along the lines of creative finance type deals. And yeah, we love this fix and flip rehab stuff. So as far as the private lending and the fix and flip type of situation that we’re learning from you brand new to it pretty much.
Jay Conner (12:13):
I got you. So had you and Erica been to any other real estate investing seminars prior to coming to mind the last few weeks,
Banjo (12:26):
Yes Sir. I’ve been at a Quickstart.
Jay Conner (12:30):
Gotcha. So you’ve had some other, you’ve had some other real estate investing training. So what was it about this training and this event and what you saw as, you know, the potential that, you know, you could take your business to the next level? What was it that you saw different?
Banjo (12:51):
Well it’s a whole different strategy, a whole, whole different set up and structure of the business actually. And when I met you at one of the reason why I got hooked up with you is because I met you at the Quickstart and I love, it’s just something about the fix and flip strategy and your business model that you got set up that I like. You’re helping you still help them sell their seller house. Then you’re taking, usually the area that you live in, you take beat up houses, you’re making them nice and pretty. So you’re basically helping keeping your area up to date and pretty, and then you’re, you could still sell the houses with some kind of creative finance and helping buyers that would normally be unable to get a mortgage into a house, into a nice pretty house and help them do that too. So, I mean, that’s the biggest part that’s different for me is the whole fix and flip buy for buy with private lending and you can sell either cash or creative financing. So I liked that whole deal.
Jay Conner (13:59):
Right. So did I get the $400,000 figure right? That’s about what it’s looking like you got in private money so far.
Banjo (14:07):
Yes Sir. We got it was a warm market call. I just followed the opening calls script and learned my program first. You know, that way, when he started asking questions, I’d be able to answer them and sure enough, it was a win-win he was involved in some type of I forgot the name of it, but it’s like an it’s like a big business that pulls all the funds together. And I think he was getting, you know, kind of a low rate of return with it, but so he was already investing in some type of real estate. And I explained to him the difference between what he had going on and the difference between private, my private lending program. And he was all on board. And so he said, yeah, I got 400K they put into the kitty is what he calls it.
Jay Conner (14:58):
That’s awesome. Well, you just answered my next question. My next question was going to be how many different private lenders is making up the 400 grand, but it sounds like that’s one so far
Banjo (15:10):
One. Yes Sir. We got several in the pipeline, so it’s not going to be long. We try and break your record.
Jay Conner (15:17):
You’re like, we’ve been working together less than, I mean, you and Crystal and me, we’ve been working less than three weeks together and yeah, you’re like 400,000 you’re well, on your way, you will break my record if you keep the momentum going. So let’s see here, Crystal. So you’ve been working with them. So you said they’ve been, you know, putting things into action. They’ve been following instructions. Can you give our audience just a couple of examples of, well, what actions did they take in order to get such fast success?
Crystal Mewhorter (15:54):
They won. They showed up for the very first call, immediately completed all action items. In fact, they had everything turned in, that’s required for the first it ranges, but we set it up. So they have about 14 to 30 days to complete all those action items. They completed them all within the first week and turned them in. So downloading your PowerPoint, starting to practice it, working through, getting their lists together. So they have people to call and start to set up conversations for private lending all all of the things that, that are required to make you successful. They got these items on their calendar. They’re having conversations with people already. They were already, I have to give Erica kudos. She says, she’s an introvert and I can relate. But at the same time, she’s doing such an awesome job of stepping outside her comfort zone.
Crystal Mewhorter (16:49):
They’ve already started reaching out and looking for networking opportunities. So she’s already reached out and identified opportunities to start to be invited. So a lot of those steps that we take they’re already lead sourcing and turning those to me, they’re already setting up calls. They did that the first week set up a call with me to do a lead, a deal review so that we could run the numbers and then assure that their one protecting their private lender and creating that win-win situation that we’re. So emphatic and so proud of being able to do as well as having all the numbers in place to make sure that they’re protecting themselves and really coming out with the best deal possible.
Jay Conner (17:24):
That’s awesome. You know, the two most popular questions that I get from folks new real estate investors seasoned real estate investors is, how do I get the funding for the deals and how do I find deals? So you all are doing deals. What’s your favorite way or what it is right now to be locating motivated sellers.
Banjo (17:48):
Erica made simple ad, you wanna tell them about it. We stole your idea from the event, actually, a radio ad.
Erica (18:00):
While we were at your convention, someone mentioned the radio ad that you had going on. And I was like, Ooh, that’s simple, that’s good. So I hurried up and I wrote it down and made me a Facebook ad and got me a lead before we even left.
Jay Conner (18:16):
Oh, that’s great. So your Facebook ad, did you just post posted on organically on your Facebook page or was it a payday ad?
Erica (18:26):
It was, it was a paid ad.
Jay Conner (18:30):
How so? How much did you spend on the paid ad?
Banjo (18:32):
Before we got that lead?
Jay Conner (18:38):
Yeah. How much did you spend on the Facebook ad?
Banjo (18:42):
For that one good lead. We got that we talked to Crystal about that we’re going to net close to a hudred, probably a hundred grand or around there. We paid seven bucks for it.
Jay Conner (18:53):
So that’s a pretty good return.
Crystal Mewhorter (18:55):
I don’t even think. and tell him, tell him you got you netted an additional 35,000. How’d you do that Banjo?
Banjo (19:07):
Well, I’m a real estate agent and I’m not an active one of them, not really a practicing one. Pretty much I had my real estate license for years now. And just kind of using it to, for a little bit of an advantage as an investor, but I’m in the MLS where we found the deal that so I’m running numbers and I come up with a number and I’m telling Crystal these numbers and she said, okay, how’d you get your numbers?I told her, you know, I did it, I got access to the MLS. And she said, all right, well, I’m not saying that you don’t know how to run numbers. I’m not saying that you are a bad agent, but what I will try and get you to do is possibly get somebody who’s very active in that place. Find a good agent who is super active in that area and get their opinion.
Banjo (19:56):
So I tossed it around and a little bit and I’m like, all right, you know what? I’m going to listen to her. That’s what she says to do. That’s why we got her. I’m going to do what the coach says to do. So I reached out to an active agent in the area and the whole time it was kind of funny. Erica was on the phone with me too. And she’s like, Oh man, Oh man, they all like stuck in this area. Oh man, I don’t know if this house was as big as it says. And not the whole time you never goes like, Oh my goodness, I must’ve did these numbers wrong? Well I did, but $35,000 in the wrong direction. So we actually made $35,000 by just listening to that one piece of advice, Crystal, you know, put aside the pride, put aside the ego, listened to the people who you got. Like I said earlier that God put in my life to help me on this journey. And boom! She said, yeah, on the low side it’s 35,000 extra dollars.
Jay Conner (20:54):
So where’s the extra 35,000 coming from
Banjo (20:58):
The ARV, The After Repaired Value.
Jay Conner (21:01):
The ARV was higher than you were originally anticipating.
Banjo (21:03):
Yes, Sir.
Jay Conner (21:06):
By getting a local real estate investor to, I mean, a local seasoned realtor to actually run the comps for you.
Banjo (21:14):
Yes, Sir. So I ran some comps, but I’m not active in that area. And I had some questions, several different factors that were making me second guess myself. But I came up with a decent number. As far as I was concerned. It was a nice conservative number. I knew it wouldn’t lose any money, but I’m glad I listened to Crystal because the other real estate investor, her conservative number was $35,000 higher than my conservative number.
Jay Conner (21:35):
All right. Well, let’s write the numbers down. I, and I don’t know. Our podcast producer might be able to put these up. I don’t know how fast he can type. So the ARV which stands for After Repaired Value. What’s the number? What’s the After Repaired value?
Banjo (21:57):
315,000
Jay Conner (21:57):
315,000. Now this deal came from Erica’s Facebook ad, right?
Banjo (22:01):
Yes, Sir. It was pretty simple too. We were kind of surprised it wasn’t anything special.
Jay Conner (22:08):
All right. So then you’re buying it for how much? What’s your purchase price?
Banjo (22:14):
140.
Jay Conner (22:14):
So you’re buying it for 140. Are you using Creative Financing? Are you using Private Money?
Banjo (22:21):
Private Money.
Jay Conner (22:22):
Private Money. Hallelujah. You got the Private Money. So you got 140. So what are, what’s your estimated repairs?
Banjo (22:31):
About 60.
Jay Conner (22:33):
About 60. And, yep, that’s looking like just about $115,000 profit, less carrying cost. Right?
Banjo (22:43):
Yes, Sir.
Jay Conner (22:43):
So yeah, we’ll give a little golf clap, right? That’s nice. So how long you think it’s going to take you to get it rehabbed?
Banjo (22:55):
Roughly two months, maybe a little longer, but I’m thinking roughly two months. Give or take.
Jay Conner (22:59):
There you go. Awesome. You already talking to contractors or you already got a contractor lined up?
Banjo (23:05):
We got them lined up. We’re ready to rock up. We just waiting to close on it sometime this week, actually. And rock and roll.
Jay Conner (23:13):
That is awesome. So you found the deal with a Facebook ad. You funded it with Private Money and you always borrow more than you need to buy, right?
Banjo (23:26):
Yes, sir.
Jay Conner (23:27):
You’re going to get your Private Money. I mean, you’d get your rehab money up front and are up to a maximum 75% of the ARV. So you can borrow, let’s see here, you can borrow up to how much money on this deal? So if you’ve got $315,000 and we can borrow up to 75%. So since my software updated on my iPhone, my calculator doesn’t want to work. So 75%. So you can borrow up to $236,000. So you could borrow $36,000 more than you need to purchase and rehab and and have money leftover by the way. There’s nothing wrong with putting a little bit of equity in your pro in your pocket.
Jay Conner (24:15):
When you buy, you may have heard me say in the past, we always bring a big check home when we buy, right?
Banjo (24:23):
Yes, sir.
Jay Conner (24:24):
Now, as a matter of fact, Crystal’s husband, Dan is actually typing in the chat right now since we’re Facebook live streaming and YouTube-ing. Dan’s got a question for you all. And the question is, how important would you say it is that the two of you are working together on this business and how much do you enjoy being able to do so.
Banjo (24:50):
Don’t recommend it, totally hate it. No, I’m just kidding. That one’s was for you Dan, all jokes aside. It is absolutely game changing in my opinion, to work with my wife in this business, to get her more involved in this business and to have this is a game changer. It’s night and day and I 100% absolutely enjoy it.
Jay Conner (25:23):
Hey Erica, where you at all? A little bit skeptical four weeks ago, Crystal, could you hear Erica? She broke up on me a little bit.
Crystal Mewhorter (25:42):
I missed part of that. She’s something to the effect of, she kind of felt bad and I’m not sure if it’s because she felt like she was being mean to us or because she’s just done the darn well,
Jay Conner (25:52):
So so Banjo, when this deal culminates and finishes, is this going to be the most profit you ever made on a real estate deal so far?
Banjo (26:02):
Absolutely, 100%.
Jay Conner (26:02):
I’m so excited for you, Well, look, thank you all for coming on here, Crystal. Anything else you’d like to share with the audience about Banjo and Erica?
Crystal Mewhorter (26:15):
I want to, one congratulate you guys for taking action and being so invested in yourselves and in your business to take this step, but to also point out to anybody that’s listening, just like Dan and I always say about ourselves, anybody can do this. You just have to jump in, get the right coaches, get the right help and move forward. So great job you guys, keep moving forward. I’m super excited to continue to support you through this journey.
Jay Conner (26:39):
Thank y’all so much. Well, there you have it folks, another here at Jay Conner Real Estate Investing with Jay Conner. And again if you’d like to get plugged into some of this private money, take advantage of the free 30 day free trial at the Private Money Academy membership at www.JayConner.com/Trial. Well, there you have it. Folks here is to your success and taking your real estate investing business to the next level. I’m Jay Conner, the Private Money Authority, and I’ll see you on the next show.
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!
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
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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.