Jay Conner

Tag: Private Money Lending

  • Real Estate Investing with Jay Conner

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

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

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

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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.

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

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

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

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

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

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————–

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Real Estate Deals With Crystal Mewhorter

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    In Jay Conner’s recent video, he was joined by a dynamic duo Crystal and Dan Mewhorter. They shared their story on how they have raised millions in private money, in equity and from deals that they have done.

    And the couple is back for more!

    They met Jay in a real estate investing event, where the latter is one of the speakers. From there on, Crystal and Dan would leave their full time job and build their own business. In addition to their business the couple also work for Jay, assisting him with their clients and by being part of Mastermind.

    In today’s show, they are talking about real life deals. Discussing how they find and fund the deals. The kind of profits they make, the kind of cash flow that’s involved and what system or procedure that is best used today in the world of real estate business.

    To know more about closing a real deal, just keep watching this video!

    If you wanna learn how to get funding for your deals.
    Get on over www.JayConner.com/trial

    for a 30 days free access to Private Money Academy.

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

    Free Webinar: 

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

    #RealEstate #PrivateMoney #FlipYourHouse

  • Dan and Crystal Mewhorter – A Story of Life Changing Success in Real Estate Investing.

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    Jay Conner is joined today by Dan and Crystal Mewhorter.

    Dan and Crystal used to both work full time, Crystal was in the healthcare industry and Dan was on call 24/7 supporting software for the coast guard. A few years ago the couple stepped away from their careers and entered real estate investing.

    Now after four 4 years since the couple have met Jay they have raised millions of dollars in private money and private funding for their own business.

    Dan and Crystal business model in real estate investing focused on a combination. Meaning 80% to 90% of their portfolio have some terms deals and the predominant piece of that percentage is in “rent to own status”. While ten (10) to twenty (20) percent are in “fixed and flip” by which are all in private funds.

    An estimate of the couple’s average profit and equity is seventy two thousand dollars ($72,000.00) per house.

    If you want to learn more about the recent deals that Dan and Crystal have done, how they found, funded and all the work that needed to be done to make a successful deal, just continue watching this video.

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

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————-

    Jay Conner (00:00):
    Well, hello there and welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority and your host on the show. And that this is your first time joining us. We want to give you a very, very special welcome. We talk all things real estate here on the show. We talk about investing in single family houses, commercial deals, land, self storage, any way you can think about carving up a real estate deal, we talk about it. We talk about how to find deals, how to fund deals, how to rehab them. If you’re into rehabbing, how to sell them fast, how to automate your business and actually work in the business list and 10 hours per week and make a lot of money while you’re doing it. And if you’ve been tuning into the show you know that I have amazing guest come on the show you’re with me, and today is no exception, but before I introduce my guests today, by the way, the reason you should stick around is we’re going to be talking about actual deals that are going on right now.

    Jay Conner (01:13):
    And my guests are going to talk about how they’re finding these deals these days and what the numbers are looking like, and you’ll be able to duplicate it. But first I’ve got a free gift for everybody that is tuning in. And that is, I recently launched my membership, which is called The Private Money Academy. And in this membership we are live on Zoom coaching calls at least twice a month, and we have phenomenal content and teaching inside the membership sites. So if you’re remotely interested in getting more funding for your deals, without relying on local banks or mortgage companies and not relying on hard money lenders, cause this has got nothing to do with hard money, this is private money. If you want some more funding for your deals and not have to worry about your credit score and verification of income and all that mess.

    Jay Conner (02:04):
    Well, get right on over to www.JayConner.com/Trial. And that’s going to give you a full month’s free access to all the benefits of the Private Money Academy. So again, that’s www.JayConner.com/Trial. Be sure and take me up on that free offer. Well, it’s now time to bring on our guest today. Oh, one more announcement. I really appreciate for you to be if you’re tuning in, on iTunes or any of the venues like that, be sure to subscribe and share and like and review particularly review of being a whole lot to me as well, I’d appreciate that. So now on our guests, my guests today are up in Virginia and we first met oh somewhere around four years ago or so, and it is amazing what they have accomplished in such a short period of time.

    Jay Conner (03:12):
    They’ve raised millions and millions of dollars in private money and private funding for their own business. And they’ve massed a huge wealth and equity and cash since doing deals. In fact, in just the past four months up there in their market, they have purchased 16 additional houses bringing their portfolio to almost 100 houses that they have in their portfolio and their inventory. And I’m going to bring them on here in just a second to share with you how they’re finding these deals these days, how they’re getting them funded and what their business model is looking like. So with that, welcome to the show, Dan and Crystal Mewhorter.

    Crystal Mewhorter (03:55):
    Hey Jay.

    Dan Mewhorter (03:55):
    Hey Jay.

    Jay Conner (03:57):
    Hello, good to see you. And didn’t we have just a fantastic time last week here in Eastern North Carolina at my live event, The Real Estate Cashflow Conference.

    Dan Mewhorter (04:09):
    Absolutely

    Crystal Mewhorter (04:09):
    So much fun. It was so great to be in person with all the students.

    Dan Mewhorter (04:13):
    Yeah.

    Jay Conner (04:13):
    And we had our Mastermind meeting last, let’s see a week ago last Monday and Tuesday, two full days. That’s our top elite group Mastermind members from all over the nation. So yeah, we had us a full week, Monday through Friday for sure. Didn’t we?

    Crystal Mewhorter (04:30):
    Absolutely.

    Jay Conner (04:31):
    So, Crystal and Dan, whichever one of y’all wants to do the talking I’m sure you all want to go back and forth. Why don’t you tell our audience how it is that we even know each other.

    Crystal Mewhorter (04:46):
    So I had, I have the great privilege of actually running into Mr.Jay Conner. So I was at a Real Estate Investing event and I was running down the hall as I’m known to do. I generally don’t walk very slow. So, just wasn’t paying close enough attention, ran smack into him we were at the elevator up, he was delightful, surprisingly pleasant. I had no idea who I was talking to at the time he introduced himself asked me a couple of questions. I went back to the event, you know, had my head hanging just a little bit, cause I was really quite embarrassed and not moments later he’s introduced as the next speaker which much to my surprise. From that point forward, I had the great opportunity to get to know Jay and Carol Joy and then ultimately attended their events sometime later. Dan and I did, and got to know them a bit better.

    Crystal Mewhorter (05:39):
    And I think the really special part was obviously spending time with them at their events and getting to really know them and, what a family it really is. So signed up to be members of the Platinum Program and we worked the entire program. And as Dan had said, we did what Jay said, that is his rule, Jay said to do it. So we have to do it. And we really credit that to our success. And in the end of it all have the absolutely awesome, awesome pleasure of getting to assist with coaching, your students that are in the program at this point. So we’re very, very blessed.

    Jay Conner (06:16):
    Absolutely. So I sort of spilled the beans, but the kind of results that you and Dan personally have achieved so far and not to be personal or too specific, but how would you describe, your results?

    Dan Mewhorter (06:36):
    Phenomenal. And it is far out exceeded or exceeded my expectations and we just continue to keep growing. So we continue to do what we do and it works for our market and we’re still using the basis of it as your structure and it’s been great.

    Crystal Mewhorter (06:55):
    And I would chime in life changing. So we’re both incredibly fortunate. We both worked full time, many, many hours. So I was in the healthcare industry and also in leadership. So I worked well over full time. Did activities required, nights, weekends, things like that. And was raising two small children and actually stepped away from that career a few years ago now and are able to enjoy a lifestyle we could have never have dreamt and Dan was able to step away from his way over full time career. Cause he was on call 24/7 supporting software for the coast guard and in their search and rescue program. So the two of us has an incredibly different life than we could ever have imagined. So life changing would be the best word.

    Jay Conner (07:47):
    So you’ve been both of you been full time working together husband, wife team in The Real Estate Investing. And how long have you all been full time now?

    Crystal Mewhorter (07:59):
    I’ve been three years.

    Dan Mewhorter (08:01):
    And two and a half for me. Just a little less than two and a half.

    Jay Conner (08:04):
    That’s awesome. So tell everybody, what does your all’s business model look like? And what I mean by that is, you know some real estate investors focus heavily on terms. And I know you all do a lot of terms deals. Some investors rely on hard money as far as funding their deals. Some investors buy and hold, some buy and flip, some do a mix. So what’s just the overview of your all’s business model look like?

    Crystal Mewhorter (08:36):
    Our business model is focused on a combination. So by all means we do a lot of terms deals. That’s one of the things that we specialise in and really enjoy the benefits of. So at any given time our portfolio has about and it, of course it changes cause it’s goes through evolution. So 80 to 90% of the portfolio may have some sort of terms in that and or predominant the predominant piece of that is in a rent to own status. And though all of those deals, whether they’re owner finance, subject to you or any other level of combination of creative financing may have some private money on that as well. And then anywhere from 10 to 20% at any given time are fix and flip directly all private funds.

    Jay Conner (09:25):
    What’s your average profits looking like these days? And when I say average profit, you may have, you know, you sell a lot on rent to own, so you haven’t cashed out on selling it rent to own, but you got a big chunk of equity. So, either in cash out profits or equity, what’s your average profits looking like?

    Crystal Mewhorter (09:45):
    Average, when we put it together I guess about two weeks ago, we revisited that to see what our numbers look like. We’re averaging 72 as our profit margin, obviously they vary.

    Jay Conner (09:57):
    Yeah. Just to make sure everybody understands that $72,000, not separate, we’re not talking $7,200 in wholesale fees. We’re talking profit and equity of $72,000 per house. What’s the median price, a house in your all’s area.

    Crystal Mewhorter (10:16):
    250,000.

    Jay Conner (10:18):
    So you’re 250. So obviously for you to be getting these kind of average profits, you gotta be finding these in very, very deeply discounted being able to buy them deeply discounted, right?

    Crystal Mewhorter (10:30):
    Yes.

    Jay Conner (10:30):
    Yeah. So I asked you to come on the show today and talk about a couple of recent deals that you all have done. So let’s talk about your first deal and let’s tell them everything, you know, from how you found the deal? How much you paid for it? How did you fund it? What kind of repairs if any, were required? What did you sell it for? Or how did you sell it? What kind of marketing you use to locate it? And just sort of from start to finish,

    Crystal Mewhorter (11:04):
    Do you want to talk about long lap or do you want me to start? Okay. So a purchase that we just recently completed within actually, I guess, about two weeks we found the deal. It was actually someone that identified us on Google. So we can attribute that to all of the SEO efforts that we’ve put in place. So search engine optimization for those that aren’t familiar with that term, having had companies that have assisted us with that as well as really working that organically. So making sure that we’re reaching out to our customers asking them to share when they have a good experience and so forth. So this was a Google search.

    Jay Conner (11:47):
    Let me ask you all this. What are just I mean, if someone wants to other, I mean, it’s always best to hire an Expert, but if someone’s wanting to increase their organic results of people just searching to find them. What’s a couple of tips you can give people on increasing their exposure on the internet and people finding their website.

    Dan Mewhorter (12:12):
    So, I mean, we do a lot of free advertising, free SEO, organic SEO, if you will, Facebook and the social medias. So whether it be Twitter, Instagram whatever else we get out there, I don’t know, we’ve got a ton of them out there, but Facebook, primarily we do a lot of advertising on our Facebook business page to get the word out of that. When it comes to Google searches though, when you put on your website, if you have a website and you should have a website if you’re a business, you should be putting in a lot of keywords in there that when people do a search for say, buy my house fast, or sell my house fast, or sell my house in X city, putting those phrases in there will allow them and on your Google my business page, which you should have as well, putting those in there, those allow people to find you on a Google search.

    Dan Mewhorter (13:08):
    So understanding what people are looking for when they do searches is really critical. I would highly suggest that you do some research on that. There are websites you can go to. To identify what people are looking for in your area.

    Crystal Mewhorter (13:22):
    And another really simple tip is send your link, your Google link out to people that you’ve done business with. And it doesn’t have to even be necessarily a buyer or seller. It could be somebody that’s had a really good experience with you in terms of working with them on something where you’ve supported them or assisted them, but sending them the link so that they can go in and give you a Google rating. And a review, those things help a great deal. And those are really simple things to do. Not always easy to get people to reach out and complete those things. But if you send people a link, they’re generally more apps to get that done for you.

    Jay Conner (13:58):
    Excellent. All right, well go ahead.

    Crystal Mewhorter (14:01):
    Okay. So, Oh, so he found us on a Google search. We had a conversation, this is a three bedroom, two and a half bath in Virginia Beach. So it’s a good area desirable. The current CMA is 185,000. We were able to negotiate with him to 1225, and he did not want to accept terms. So actually I’m going to give you probably for the first time ever when we’ve discussed deals, I’m going to give you two that aren’t entirely cash, which is a little unusual

    Jay Conner (14:42):
    Now, what was his motivation? What was his hot button?

    Crystal Mewhorter (14:47):
    He got a job in Louisiana and this is actually a second house. So, he was trying to rent It, have had a terrible time with it. Last thing you want to do is be renting this house, when he just gone through a not great situation, and move to another state far, far away.

    Jay Conner (15:07):
    We can never know for sure why other people decide to do what they do, but do you know, or do you have a guess as to why this particular seller was willing to give up so much equity?

    Crystal Mewhorter (15:20):
    I do actually. He’s done, and he did not want to have to go through the process and try to get a realtor he’s been down that road felt like that wasn’t a very comfortable road either. I.e, getting what he wanted and for him to get to know that the sale was complete and we we’re going to hand him the cash, He was fine.

    Jay Conner (15:42):
    Gotcha. So repairs, are any rehab required or is it a, just a beautiful house?

    Crystal Mewhorter (15:50):
    He actually completed all the repairs from the previous tenants, even putting in new carpet and painting.

    Jay Conner (15:56):
    So you don’t have to touch it. All you gotta do is put it on over to disposition. So the numbers again were the after or the as is value.

    Crystal Mewhorter (16:06):
    The as is value Yeah, it’s 185,000, we bought it for 122,500

    Jay Conner (16:11):
    122,500 Okay, nice.

    Crystal Mewhorter (16:14):
    Yeah. And so, and of course we’re selling it rent to own, so we’re going to be able to increase that sales price. But as it stands right now, if we were to take it to market and, you know, sell it ourselves, we obviously could make 62,500 on it just directly as it sits today. We won’t do that. It’s in too good of an area and it’s and it’s also a townhouse, so it’s like fairly ideal for a rent to own status.

    Jay Conner (16:49):
    Right.

    Crystal Mewhorter (16:49):
    And so it really fits the bill. So our monthly going out to our private lender is $883. Actually, It’s 1550 all day, every day to rent to own it. We might even be able to push that a smidge, but like on a really, you know, fair day, we can do that. So it’s already cash flowing $667 for all intent and purposes as it sits now. And so we’ll actually go ahead and carry it for a little while and watch what the market does and sell it from there.

    Jay Conner (17:12):
    Well, you know, for the long term selling rent to own is the most profitable.

    Crystal Mewhorter (17:16):
    Yup.

    Jay Conner (17:16):
    Because when they get ready for a mortgage, your rent to own buyer they didn’t negotiate with you on price.

    Crystal Mewhorter (17:27):
    Uh-huh.

    Jay Conner (17:27):
    They and when it comes time for them to cash out, you’re not having to pay realtor fees on selling.

    Crystal Mewhorter (17:36):
    Yup.

    Jay Conner (17:36):
    And, you typically don’t have to go through the painful process of the buyer hiring their inspection company and nitpicking you to death. Right?

    Crystal Mewhorter (17:48):
    Absolutely.

    Dan Mewhorter (17:50):
    Yeah.

    Jay Conner (17:50):
    So you just closed on it two weeks ago and just to make sure everybody knows what we’re talking about. When you say you funded this deal with private money, does that mean you went to a broker or how did you, what do you mean by, in your case? It’s funny with private money.

    Crystal Mewhorter (18:09):
    Oh, so one of our private lenders that has their money in a self directed IRA. So somebody from our warm market.

    Jay Conner (18:16):
    Right.

    Crystal Mewhorter (18:17):
    Directly our warm market, it’s not even a conversion from a cold to warm there’s somebody that was in our warm market. It was actually somebody that Dan worked with when he flapped all the CDs on the desk when he walked out the door.

    Jay Conner (18:29):
    So Dan what’d you tell folks about that CD is.

    Dan Mewhorter (18:33):
    Okay, so we, Jay.

    Crystal Mewhorter (18:36):
    What’s the CD?

    Dan Mewhorter (18:36):
    The CD is The Private L ender CD.

    Crystal Mewhorter (18:38):
    The 16 minute stress free investing.

    Dan Mewhorter (18:42):
    Right. It’s the intro.

    Jay Conner (18:44):
    Right. And so what is it? And how’d you use it and how did it work?

    Dan Mewhorter (18:48):
    So, when you’re in Jay’s world, Jay will help you create these CDs. But we thought it would be great if my beautiful wife with her lovely voice would create one as well. So we locked her in a closet for about, I think it took about an hour really to get it what you wanted. And it walks through the introduction of what a self directed IRA is and how it can invest for you and how you can make a profit off of it. And it’s kind of like a 10,000 foot introduction into it, to get you interested in it, and get you to kind of understand that there’s other ways that you can invest in real estate. You can buy and sell and do what you want to with your own money and not be a slave to somebody else.

    Crystal Mewhorter (19:28):
    It’s the teaser,

    Dan Mewhorter (19:30):
    A teaser,

    Crystal Mewhorter (19:30):
    And what do you do with it?

    Dan Mewhorter (19:32):
    So, when I decided that it was time for me to leave my job prior to being escorted out of the building, which is what they do on a government job, I took probably about 50 CDs, about 50. And I distributed them to everybody’s desks within a hundred feet of my cubicle. Everybody got one. So they all started calling me up and laughing and saying, that was the funniest thing they’ve ever seen. And now they’re all starting to call us up saying I was funny, but now I’m interested because the mark has been doing the whole roller coaster thing for him. So, Yeah.

    Jay Conner (20:10):
    Right. So that’s the gives everybody an introduction to what Private Money is. So the funding that you got on this deal was actually from an individual using their retirement funds. And of course you probably had to train them on how to get their retirement funds moved over from wherever they had them, to a self directed IRA company, and then that, and then they could fund your deal or deals by using their retirement funds.

    Crystal Mewhorter (20:36):
    Absolutely.

    Jay Conner (20:38):
    So, have you already got a buyer for this rent to own home?

    Crystal Mewhorter (20:41):
    He had, how many did you have on this one last week?

    Dan Mewhorter (20:44):
    700.

    Jay Conner (20:47):
    700 inquiries.

    Dan Mewhorter (20:49):
    Yeah. 700.

    Jay Conner (20:50):
    Wow. I think you might have it sold.

    Crystal Mewhorter (20:54):
    Think so.

    Dan Mewhorter (20:56):
    Weeding through them all, finding the best qualified one.

    Jay Conner (20:59):
    Right. So you’re still working through all those inquiries,

    Crystal Mewhorter (21:02):
    Correct. Cause we were gone last week, so yeah, so we took communications and talked to people that we in sent out potential applications. But we don’t have them firmed up. I.e, we haven’t run background checks or confirmed their exact funds, So.

    Jay Conner (21:24):
    Right. What did you price the house at?

    Crystal Mewhorter (21:28):
    What did we price the house at.

    Dan Mewhorter (21:29):
    A monthly?

    Crystal Mewhorter (21:31):
    No, we priced at 1550. What did you sell it for? Did you do.

    Dan Mewhorter (21:35):
    200 even? I think I put that on my 200,000, even as what they put out.

    Jay Conner (21:40):
    Okay. So back to the point, when you sell on rent to own, you’re able to raise the price above what it will appraise for today. For at least two reasons your rent to own buyers are not negotiating with you on price per se, but they would be in the multiple listing service. And the other reason is how long are you going to give them the cash out 12 months? 24 months? How long is the term?

    Dan Mewhorter (22:03):
    On this? On this one is a 24 month one.

    Jay Conner (22:08):
    Right.

    Dan Mewhorter (22:08):
    But again, the way that I communicate with them is that obviously I’m looking for the most qualified people to go in there, the ones that A, can afford it and not be eating beans and rice the entire year or two years, Right? And not be housed for. And then B, the ones that their credit, while it may not be the best credit to be able to get a mortgage. It’s not the worst one either. So if they’re in there and they’re sitting at, you know, 500 X, whatever it may be, I know I can get them qualified because we have, we’ve got a great credit repair program that we sponsor as well. So I know I can get them requalified as long as they follow through. I also look at their record of where they are renting at before and make sure there’s no addictions, things like that. And if they match that 700 dwindles down very quickly to probably about 75 of those 75, I have a conversation with them. And if I feel good about that, and Crystal feels good about it because we’re pretty good about judging people’s personalities by conversations.

    Dan Mewhorter (23:06):
    Then we decide, okay, these are the top five. Let’s get them in there. And we know that they’re most likely going to qualify well before the two years. So we do explain to them if you’re able to qualify quickly and you don’t want to rent it the entire time, just let me know when you’re ready to qualify when you’re ready to get you on mortgage. And then we’ll shut it down. So, we can get them qualified as quickly as three months, or it may take the entire two years.

    Jay Conner (23:29):
    Gotcha. Well, those numbers work. Let’s say your $200,000 is the option price that you’re selling it for. You bought it for 122.

    Crystal Mewhorter (23:40):
    Uh-huh.

    Jay Conner (23:40):
    Yeah. You probably didn’t have to take that one to the committee, did you?

    Crystal Mewhorter (23:43):
    No.

    Jay Conner (23:43):
    That’s awesome. Look, I know you all came prepared to talk about another deal, but we’re out of time on this show. So will you all come back on another episode very, very soon.

    Crystal Mewhorter (23:55):
    We would love to, anytime.

    Jay Conner (23:58):
    Awesome. I’d love to have you come back and talk about the other deal or deals that you had lined up. Well, I know the audience wants to hear it. So any parting comments before we wrap up this show,

    Crystal Mewhorter (24:10):
    I just want to say, you know, thank you for all that you’ve done for us. And it’s really great to be part of this world and everybody that’s out there, just listen and do what Jay says. So anybody that’s getting ready to join us on the journey. We’re super excited for you. If you’re in the early part of your journey and looking at either the membership or you’re following the podcast listen up and look for your opportunities, cause there’s just so much out there and we are so blessed and fortunate and really excited to be able to give back.

    Jay Conner (24:40):
    Well, thank you so much, Dan parting comments.

    Dan Mewhorter (24:43):
    If you can make it to one of Jay’s events, I highly suggest that you do so. The networking alone there is incredible, but getting to meet Jay and the family in person and not just virtually here, which is great, but in person is absolutely phenomenal. Again, I wouldn’t trade it for the world. Jay, it’s been a heck of a ride and we look forward to seeing where we’re going and sharing it with you as well.

    Jay Conner (25:04):
    Thank you Dan. Thank you Crystal, Carol Joy and I love you guys, and I love your servant’s heart. You’re making a big impact in a lot of people’s lives so that you have it Folks! That wraps up another show. I’m Jay Conner, the Private Money Authority wishing you all the best and here’s the taking your real estate investing business to the next level. I’ll see you on the next show.

  • Jay Conner Mastermind LIVE!

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    Chaffee-Than Nguwen (00:00):

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

     

    Fred Wallace (00:18):

    Wallace.

     

    Chaffee-Than Nguwen (00:20):

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

     

    Fred Wallace (00:25):

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

     

    Chaffee-Than Nguwen (00:46):

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

     

    Fred Wallace (01:01):

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

     

    Chaffee-Than Nguwen (01:15):

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

     

    Fred Wallace (01:26):

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

     

    Chaffee-Than Nguwen (01:33):

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

     

    Fred Wallace (01:40):

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

     

    Chaffee-Than Nguwen (01:47):

    And you get, you got fed today.

     

    Fred Wallace (01:49):

    I got fed.

     

    Chaffee-Than Nguwen (01:50):

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

     

    Fred Wallace (01:52):

    We get fed again.

     

    Chaffee-Than Nguwen (01:52):

    That’s right. Awesome.

     

    Scott Paton (01:56):

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

     

    Fred Wallace (02:01):

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

     

    Chaffee-Than Nguwen (02:30):

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

     

    Fred Wallace (02:36):

    Yes.

     

    Chaffee-Than Nguwen (02:36):

    You’ve bought and sold real estate.

     

    Fred Wallace (02:38):

    Yes.

     

    Chaffee-Than Nguwen (02:38):

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

     

    Fred Wallace (02:55):

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

     

    Chaffee-Than Nguwen (03:13):

    Awesome. Well, thank you very much.

     

    Fred Wallace (03:16):

    Appreciate it, Chaffey

     

    Chaffee-Than Nguwen (03:16):

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

     

    Andy  (03:22):

    Just knowledge is power.

     

    Chaffee-Than Nguwen (03:24):

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

     

    Fred Wallace (03:42):

    Thank you Chaffey.

     

    Chaffee-Than Nguwen (03:43):

    Mr. Austin, come on in.

     

    Austin Steel (03:50):

    Hello, everybody, I’m Austin Steel.

     

    Chaffee-Than Nguwen (03:52):

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

     

    Austin Steel (03:55):

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

     

    Chaffee-Than Nguwen (04:13):

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

     

    Austin Steel (04:18):

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

     

    Chaffee-Than Nguwen (04:26):

    So they can get a lot of real estate done.

     

    Austin Steel (04:27):

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

     

    Chaffee-Than Nguwen (04:35):

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

     

    Austin Steel (04:42):

    Yeah.

     

    Chaffee-Than Nguwen (04:42):

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

     

    Austin Steel (04:52):

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

     

    Chaffee-Than Nguwen (05:43):

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

     

    Austin Steel (05:47):

    Yeah.

     

    Chaffee-Than Nguwen (05:48):

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

     

    Austin Steel (06:01):

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

     

    Chaffee-Than Nguwen (06:33):

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

     

    Austin Steel (06:50):

    I’m looking forward to it.

     

    Fred Wallace (06:51):

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

     

    Scott Paton (06:56):

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

     

    Chaffee-Than Nguwen (07:08):

    Yes.

     

    Scott Paton (07:08):

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

     

    Chaffee-Than Nguwen (07:15):

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

     

    Scott Paton (07:30):

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

     

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

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

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

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

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

    You definitely don’t want want to miss this.

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

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Max Keller (21:14):
    Right.

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

    Max Keller (21:18):
    Right.

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

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

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

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

    Max Keller (22:58):
    Yes.

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

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

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

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

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

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

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

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

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

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

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

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

    Max Keller (31:24):
    Yes.

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Andrew Campbell and Multifamily Investments

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    Today, Jay Conner interviews Andrew Campbell about multifamily investments.

    Real Estate Builds Wealth better than any other investment vehicle. No other investment class has 4 ways to provide returns that real estate provides including: Cash Flow, Appreciation, Amortization, Depreciation. Focusing on Value Add & Infill Locations Minimizes Operational Risk.

    This is a strategy that uses both Macro & Micro Economic factors provides our operating team with strong upside potential. The U.S has already become a nation of renters.

    Home affordability, economic uncertainty and a shift in the mentality of the American Dream has made renting, not owning, the new normal. Texas is better-positioned to capitalize on population and job growth than any other state.

    A business-friendly environment, strong employment opportunity and family affordability have made Texas the best place to live in America right now.

    Tune in to the discussion today to learn more about this with Jay Conner and Andrew Campbell.

    Real Estate Cashflow Conference:

    https://www.jayconner.com/learnrealestate

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ———————————————————

    Jay Conner (00:01):
    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 if you’re brand new to the show, a special welcome to you here on the show, we talk about all things relating to real estate investing, how to find deals, how to fund deals, how to sell deals quickly, how to automate your business. So you’re running it and it’s not running you. And if you’ve been tuning into the show, my land, since we launched in June, 2018, we’re blowing right on through 300,000 downloads. We appreciate all of our subscribers. So if you’re tuning in on iTunes or Google play, or one of those type formats, we really appreciate if you will subscribe and rate and review us and give us five stars. And also if you’re new to this show the reason I’m called The Private Money Authority is because back from 2003 to 2009, I relied on local banks to fund our deals.

    Jay Conner (01:11):
    And I got cut off like the rest of the world in 2009, I was introduced to this wonderful world of private money to where you actually do business with individuals. And so I’ve got right now about 50 different private lenders investing in our deals. And I also coach and train and educate other real estate investors on how to get funding for your deals without relying on banks and mortgage companies and et cetera. So if you’d like to learn all about that, and how you can get plugged into the money and get plugged into funding, I’ve got a free trial for you to come join my membership, where I actually do live training twice a month, and you get all kinds of content and training inside the membership. It’s called The Private Money Academy and for you to come check it out for free for 30 days, get on over to www.JayConner.com/trial.

    Jay Conner (02:11):
    Glad to have you in there. Now, another thing about the show is that I’ve had just some amazing experts and guests join me here on the show and today is no exception. My guest today is a native Austinite in case you don’t know what an Austinite is that someone from Austin, Texas, and he’s a real estate entrepreneur and he broke into real estate investing first back in 2009 as a passive investor. Well, in 2012, he transitioned into active investing and management as a personal portfolio that grew to 76 units across Austin and the San Antonio areas. Well, he earned his stripes if you will, building and managing his personal portfolio before moving into much larger multifamily buildings and deals. Well, the name of his company is Wild Horn Capital. Well at Wild Horn Capital, he’s focused on acquisitions, finding deals and maintaining investor relations.

    Jay Conner (03:19):
    Also leveraging his marketing background to build long term relationships. Well today, his company Wild Horn Capital controls over $200 million in it’s portfolio. And they have over 1700 units in Texas. Well, my guest’s background is in market research and brand strategy, and he’s spending time in both advertising agencies and emerging technology consultants where he was most recently a partner and an award winning app developer. That’s pretty interesting right there. In addition to that, he received a BS in advertising from the university of Texas at Austin, and he has his MBA from Baylor University. With that! well, welcome to the show, Mr. Andrew Campbell. Hello Andrew.

    Andrew Campbell (04:12):
    Hey Jay, how are you?

    Jay Conner (04:13):
    I am doing fantastic! So you grew up in Austin, Texas, right?

    Andrew Campbell (04:19):
    Yes Sir.

    Jay Conner (04:20):
    Excellent. Well, my wife Carol Joy, she’s from Wichita Falls, Texas. And so we got a little bit in common right there. So you actually started in real estate back in what year?

    Andrew Campbell (04:33):
    Kind of 08, 09 kind of move back to Austin around then right as the world was ending and thought it was a good time to jump in.

    Jay Conner (04:42):
    Wow! Well, I tell you that reminds me of what I just shared. I mean not, from 2003 to 2009, I was relying on local banks for my single family house business and wow! With no notice I mean, I got like cut off with no notice, but you know what, for me, Andrew, it was a big blessing in disguise cause I learned about private money very quickly. And actually within 12 months of being cut off from my funding, our business actually tripled because I had access to the funding. So I was able to do, you know, so many more deals. So with you coming in back in 2008, 2009, what was your first year or two like?

    Andrew Campbell (05:25):
    Well, I was probably you know one of the guys you might have been borrowing money from then. I think the first the first few years kind of based in passive investments or I was not real active, you know, kind of barrow lending money and admit it and as a passive investor in some ground up deals in Austin, some infill condo developments and kind of you know, got to see the business happen, got to see things be built, got to see returns come in and, and I think caught the bug a little bit. And really it was started looking for creating a little bit more longterm, passive cash-flows which led me into more on the active side, you know, buying duplexes, fourplexes, and ultimately kind of graduating and now we’re buying, you know, call it 200, 300 unit apartment complexes.

    Jay Conner (06:07):
    I got you. So you and your company is totally focused right now on multifamily units, right?

    Andrew Campbell (06:17):
    Right, yes Sir yeah. Austin and San Antonio, our focus is really kind of class B, B plus assets that have some sort of value add component but you know, good assets and good location. And the business plan is to hold them for five to seven years and you know, make everybody real nice return and just fortunate to be from a market that’s growing as fast as Austin’s growing.

    Jay Conner (06:42):
    Well now, just to make sure our audience understands what is a, B, B plus project or property?

    Andrew Campbell (06:48):
    So, you know, most properties, is kind of a subjective, you know, but ABC properties, maybe a D people might have D properties, which I certainly recommend steering clear of, you know, A-class is going to be typically brand new, highly amenitized, you know, might be downtown B class a little bit older, you know, I’d probably say stuff built in the eighties you know, or nineties, early two thousands, even it’s somewhat based on the asset type and somewhat based on the location.

    Andrew Campbell (07:17):
    You know, but I think for us B, B plus, you know, that’s a good grade in school and that’s a good grade in the real estate world, it’s, we’re not trying to get top of the market rents, but we’re also, you know, we’ve got a good professional base of renters, young professionals, teachers nurses, that sort of thing that are, you know, good, good quality folks and looking for, you know, rental property, but you know, kind sort of middle of the market.

    Jay Conner (07:42):
    What would you classify or list are the benefits and investing in multifamily versus single family houses?

    Andrew Campbell (07:51):
    I think efficiency you know, as I started out kind of with some duplexes and fourplexes, you realize the more sort of shared units you have say under one roof you just it’s more efficient. So if your roof goes out on a single family, you know, you’re out $20,000 on an eight unit building, you know, it’s the same $20,000 to replace that roof or to replace that concrete you know parking lot or whatever the system might be. So I think that’s a big one, I also think as you get into larger,

    Jay Conner (08:23):
    So, Scott I’ma need for you to come to the forefront and save the day for a moment because I just lost connection. And I think you all can hear me. I’m gonna sign out and sign right back in. So pick it up, Scott, I’ll be right back.

    Scott Paton (08:39):
    I don’t know if we lost him or not, but continue on Andrew cause you’re live for us.

    Andrew Campbell (08:45):
    Okay. yeah, so, you know, I think they’re just more efficient and, you know, as I saw you get better, I guess better management, as well as something I saw that you can afford and a property is big enough to support onsite management. You get a better quality of manager. You’ve got, you know, one, two, three, four people whose full time job is to oversee and over that, that asset. And also just logistically of us as the asset manager, having one place to go where you’ve got a collection of you know 250 units, I think it’s a little bit more efficient than you know, kind of if you had 250 single family homes, you’re trying to drive around and keep tabs on it’s just a little bit more difficult.

    Jay Conner (09:26):
    Alright, I’m back with you Andrew, Sorry I got bumped up there for a quick second. So you were talking about efficiency and you know you got one roof and you know, it was $20,000 and you know, you got eight units versus, you know versus one unit. So, let’s talk about acquisitions cause you focus a lot on acquisitions in the company, right?

    Andrew Campbell (09:45):
    Yep.

    Jay Conner (09:46):
    Yeah, So how about help us out and understand, what’s your criteria when you’re looking for a deal? What is it that determines what a deal is? And I know that’s a Multifaceted answer to that question, but at least give us the 30,000 foot view on what’s your criteria on whether to buy or not to buy and what are you looking for?

    Andrew Campbell (10:10):
    Yeah, I think the first thing for us is it’s gotta have some sort of value add component. You know, whether that’s an interior renovation play or it’s a land entitlement, but something that you we’re buying an existing asset and there’s a path, a very feasible path forward to increase the value of that asset. And then we’re going to look at location, you know, so we want to be in good locations. We want to be you know, where we don’t want to bet that the city is gonna make a left turn. This is going to be in a good area. You know we’re pretty strict about our rule of being kind of class B neighborhoods. And I think the final thing is just looking at what those investor returns ultimately become. You know, I think our job is very much to sort of pair you know, good interesting real estate plays with investors.

    Andrew Campbell (10:54):
    And it’s gotta be something that we feel like is a good risk adjusted return that’s also competitive and that you’re gonna feel good about, you know, take into your friends and family your investor base. It says, Hey, this is a play that’s gonna double your money in five years or seven years or whatever that business plan is. So it varies a little bit into your point it’s very multifaceted, but it starts with having a good asset with good bones and then a business plan we believe in, and then, you know, is it, do we think it’ll make money?

    Jay Conner (11:24):
    So when it comes to funding these deals obviously your company raises private capital for some of the funding. Do you use some institutional funding? Do you have some owners that will actually sell to you on terms or is it all the above?

    Andrew Campbell (11:45):
    It’s all been kind of private individuals is where we get our funding. We don’t have any bunch of institutional partners. It’s been just relationships and folks that we know and folks that have heard about us that we’ve gotten to know, you know, based on our focal geographic focus, kind of our track record and, you just a lot of recommendations. So it’s, you know, putting those together and really focused on just helping people understand. I think there’s other alternatives out there to investing and you don’t have to you know, you can have a small piece of a large deal and if you like real estate, but you want to be passive that’s kind of been who our investor base is.

    Jay Conner (12:26):
    Alright, So I know it varies, you know, what year are you in? It varies on the project, but what’s a ballpark type of return that your investors can receive these days.

    Andrew Campbell (12:41):
    So we’re kind of on a typically thinking about things on a five or seven year horizon. You know, so again, that it taken advantage of where we’re located in Austin and how much the city’s growing. You know, we’re not looking to do something in 18 months or two years. So on a five to seven year horizon, typically looking for something that’s going to get you sort of a two X or a one eight X multiple on a five year investment. You know, it’s gonna have some cash on cash. I think that’s the advantage of buying an existing asset as we know kind of going in what that’s gonna look like, in Austin right now it’s been really competitive, you know that may be 4% in year one. But you’re going to get some initial cashflow and you know, looking for a total IRR of kind of a low teens maybe 12 to 14% somewhere in there.

    Jay Conner (13:28):
    Say, if you can double your money or somebody can double their money in five years that is a whale of a return right there.

    Andrew Campbell (13:37):
    Yeah, no it is. And I think that’s you know, when you pair the getting some cashflow with some of the appreciation and being you know, the advantage of leverage I mean we’re pretty conservative in our leverage about 68% across our portfolio, but the power of leverage really allows you to get some outsized returns in real estate.

    Jay Conner (13:56):
    Yeah, for sure. So what are the what are some different ways that you can increase the value you know, of a you know multi-family you know, apartment complex property?

    Andrew Campbell (14:11):
    Yeah, the most straightforward is just in improving it, you know, going in, we typically will buy an asset, we’ll rebrand it kind of change the story, update the look and the amenities, update the clubhouse, so it feels like a newer more modern property, and then we’re going to go update the interiors as well. If it’s a deal that was built in the eighties you know, update the cabinetry, knock out some walls, open up the floor plan, modernize it. When you do that, you’re able to raise the rents. You know, maybe you raise them $75 or a hundred dollars. But again, over 200 units, you know, that’s increasing the NOI quite a bit. We’ve also got some strategies, you know, parking, adding covered parking adding private pet yards, you know, or just, if you’re on a first floor unit, you want your own sort of private space for your kids to run around or a grill or anything.

    Andrew Campbell (15:01):
    You can charge 75 to a hundred dollars a month for that. Amenity fees, package lockers. There’s lots of little strategies that you can employ and you know, add to the NOI. And at the end of the day, these deals are I think one big difference with single family is these are valued like businesses. So it’s based on a cap rate in the market. If you can improve the NOI on a property by a hundred thousand dollars, and the cap rate in Austin as a four and a half, or maybe sub, you know, maybe it’s a 4% you’re getting an outsized return on your value of the dollars you’ve spent. So that’s really the name of the game is finding ways to to increase the NOI

    Jay Conner (15:39):
    Is your exit strategy typically to be in a project for five to seven years add value to it and then sell it?

    Andrew Campbell (15:46):
    It is , and I think a lot of that is driven by you know, investors. I mean most investors want to recycle their capital. You know, my personal we’ve got some personal properties and the goal is to own them forever, you know, longterm cash flows but when you partner with investors, people want to recycle that capital. And the hope is they’ll recycle that and potentially might do a 10 31 with those investors but yeah, typically you’re going to sell it in five or seven years.

    Jay Conner (16:15):
    Excellent! So here we are at least in today’s show we’re still in the midst of COVID-19 and the aspects of that. So is now and today still a good time to be investing in melded family with whatever consequences and ramifications of COVID-19 that’s going on.

    Andrew Campbell (16:39):
    Yeah. You know, who knows what the world looks like? It changes by the day. We think it is, you know, and I think couple of reasons our investment thesis has always been you know, people need to live somewhere and offering that kind of B class property you know, It’s a good thing to do you know, people are gonna not pay their car payment, There’s a lot of things you’ll do to make sure you got a roof over your head. We’ve seen collections be very, very strong you know, over 98% across our portfolio since the beginning of cope. And so people have if they can pay their rent they are paying their rent. And so far they’ve been able to do that. I think when you compare it with other asset classes, you know, we feel like multifamily and industrial have been the two asset classes that are outperforming.

    Andrew Campbell (17:23):
    Obviously office is a lot of concern about office space downtown across the country. The office space in the coast is people are kind of leaving the coasts retail, you know, a lot of question marks about how fast, how many of those businesses come back. So, you know, if you look at what your options are and kind of keep cash under your mattress or, you know, you put it in the stock market and kind of, how do you feel about where that’s going to be, or your multifamily it’s always been for us a pretty conservative play and not a business it’s get rich slow. You’re not gonna go we’re not trying to hit, you know, 30% returns on development deals we’re buying existing assets, conservative leverage, and they have good returns. And we think that thesis has held up so far in COVID. And certainly we’ll continue to look for the right opportunities. Obviously you gotta tweak your underwriting and some of your assumptions now with as the market softened some, but it’s still relative to your other options a very strong bet.

    Jay Conner (18:23):
    Yeah. I’ve experienced the same thing here in Eastern North Carolina. We’ve got quite a few people that are purchasing single family homes by using our rent to own program. And we are at 100% collecting all the way through a COVID-19 and, you know, like you just said, a moment ago, people are going to do what they can do. You know, all they can do to keep a roof over their heads. One thing I’ve heard you say Andrew, is that in this line of, in this investment class, if you will, the way you offer people, you know, investing in your business and et cetera, really four ways to get returns. And, you know, you talk about cashflow, appreciation, amortization and depreciation. Can you talk for a minute about what’s the difference between those four and what are those four returns and what they mean?

    Andrew Campbell (19:20):
    Sure, so you know, cashflow is just, it’s pretty simple. It’s kind of the, what’s leftover at the end of the month after we pay all the expenses. And again, a benefit of buying an existing asset, you know, we know how that’s performed, so there’s cashflow and that when we make those distribution to investors, that’s a pretty simple concept appreciation, you know, that’s us benefiting from being in a market that’s growing really quickly. And there’s new people moving here every day, there’s new jobs. So the values go up, you know, I think a lot of people talk about real estate as an inflation hedge, which is another thing, you know in today’s day and age where there’s lot of concern about inflation with the FED and their conversations and real estate, you know, if inflation runs people for paying, you know, tomorrow’s dollars for our assets.

    Andrew Campbell (20:09):
    So it’s a nice hedge there, but that’s just appreciation. It’s the market saying that, you know, your house, you bought it for $200,000 and in five years later, it’s worth $250,000, that’s your appreciation. Depreciation and amortization are kind of based on the leverage and the tax structure. So we’re able to depreciate these assets. We actually had one advantage of large properties, cost segregation. So we can come in you hire an engineering firm and rather than taking a straight line, 27 and a half year depreciation schedule, they break down your property, you know, 200 lines on a spreadsheet and say well, your roof has as a useful value of X years, your appliances, your flooring, your mechanical, et cetera. We can depreciate about 80% of that property in the first five years which lowers your, you get a K1 that shows you, you made little to no money, even though you made got distributions. And then amortization is just us paying down the loan, you know, so every month as we pay our mortgage we own more of the property. And so you kind of combine those four aspects and it makes it’s another big advantage of really any real estate investing. But I think from a passive standpoint you know, what we’re doing multifamily it gets pretty powerful.

    Jay Conner (21:26):
    Last question I’ve got for you Andrew, what are some of your favorite ways? I mean, you’re in acquisitions. What are your, some of your favorite ways to locate these deals?

    Andrew Campbell (21:36):
    You know, we just are inherently focused on relationships, you know, so we’re born and raised in Austin. We’re focused on Austin and San Antonio. And so we pride ourselves on having really good relationships and being very plugged to the community, with the brokers and the other owners. And so we want to hear about every deal that’s coming out and we want to underwrite them and just see where the market’s going and trending. And, you know, we want to get the opportunity to buy stuff off market, which we’ve been successful three or four times, or you know, getting the first phone call if somebody’s gonna get a listing. It’s just been very laser focused on our market and building relationships here at home.

    Jay Conner (22:14):
    I got you. Well, you can’t beat the network, you can’t beat the referrals. So folks you’ve been listening to my special guests today or watching, depending on how you’re tuning in to Andrew Campbell. And so Andrew final thoughts and comments.

    Andrew Campbell (22:32):
    No, It’s been great. You know, I enjoy talking real estate and you know, mentoring people or talking through investing. And so if anybody is interested in reaching out you can see the website here, WildhornCap.com My email’s AndrewWildHornCap.com be more than happy to have a conversation, and I’m kind of a real estate junkie and love to have conversations. So it would be more than happy to reach out to anybody if they were interested in learning more.

    Jay Conner (22:58):
    That’s great! So for those of you that are listening in, let me give you that website specifically it’s www.WildHornCap.com. That’s spelled WildHornCap.com One more time that’s www.WildHornCap.com and you can reach Andrew specifically himself. And that email address again Andrew, correct me if I’m wrong, Andrew@WildHornCap.com. Is that right?

    Andrew Campbell (23:37):
    That’s right.

    Jay Conner (23:38):
    Alright, Andrew, thank you so much for joining me here with the show today.

    Andrew Campbell (23:42):
    Thanks for having me, I enjoyed it!

    Jay Conner (23:44):
    Alright, very good! Well there you have It folks! Another show Real Estate Investing with Jay Conner. I am Jay Conner, the private money authority wishing you all the best and here’s to taking your real estate investing business to the next level. We’ll see you on the next show, Bye for now.

  • Jake and Austin Deraaff

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

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

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

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

    With that, please welcome Jake and Austin Deraaf.

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

    Real Estate Cashflow Conference:

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

    Free Webinar:

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

    #RealEstate #PrivateMoney #FlipYourHouse

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

    #LearnRealEstate #RealEstateInvesting #JayConner

    ——————————————————–

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

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

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

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

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

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

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

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

    Austin Deraaff (05:14):
    Still going strong

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

    Austin Deraaff (05:25):
    Yes sir.

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

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

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

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

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

    Jake Deraaff (05:52):
    Amen

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

    Austin Deraaff (06:02):
    23.

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

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

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

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

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

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

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

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

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

    Austin Deraaff (08:59):
    Yep.

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

    Jake Deraaff (09:17):
    Apartments.

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jake Deraaff (11:16):
    Probably.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jake Deraaff (16:38):
    Exactly.

    Austin Deraaff (16:38):
    Yeah.

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

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

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

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

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

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

    Jay Conner (17:10):
    Yep.

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

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

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

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

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

    Jake Deraaff (18:21):
    Yeah.

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

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

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

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

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

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

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

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

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

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

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

    Austin Deraaff (23:12):
    Yep.

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

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

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

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

  • Dr. Paul White of RealNumberz

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    Jay Conner is joined by none other than Dr. Paul White, the founder and CEO of White Orthodontics, and author of several best-selling books.

    White Orthodontics is a high-end, technology-focused orthodontic practice based in Virginia.

    Dr. White created RealNumberz with his son, Trey, to utilize the latest technology to “supercharge” his real estate investments.

    RealNumberz is the only comprehensive software application designed to help investors manage a diverse set of assets that includes rental properties, private lending, fix-and-flip, and fix-and-hold projects, as well as mortgage notes and syndications.

    This incredible software eliminates investor anxiety by using real-time data and an automated reminder system to allow real estate investors to maximize their returns with 50 percent less time.

    Paul believes the key to achieving financial freedom has as much to do with optimizing your existing investments as it does with acquiring more of them.

    RealNumberz is the easy-to-use solution for the ongoing problems associated with late or inaccurate rents, incorrect note payoffs, uncontrolled and over-budget rehab projects, “yield drag”, and much, much more.

    RealNumberz has helped many of its clients save thousands of dollars and manage their real estate investments from their pockets! Go to https://www.realnumberz.com to see how you can “supercharge” your portfolio with this amazing software!

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

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

    #RealEstate #PrivateMoney #FlipYourHouse

    ————————————————————-

    Jay Conner (00:00):
    Well, hello there and welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner known as the Private Money Authority. Also the host of the show today. And if you’re brand new to the show, we talk about all things that relate to real estate investing. We talk about how to find off market deals, motivated sellers. We talk about how to get your deals funded without relying on banks or mortgage companies also talked about how to rehab houses. We talk about how to sell them fast. And just as importantly, we talk about how to automate the business because after all, why are we in this business? Well, we’re in the business for the wealth and the freedom. So we’re not looking to replace our day job with another job, called real estate investing. We’re looking to run the show to where we are running our business and our business is not running us.

    Jay Conner (01:03):
    Well, again if you’re brand new, I started back in 2003 in Eastern North Carolina, investing in single family houses. And for the first six years, until 2009, I relied on the local banks. I got cut off like the rest of the world did in January, 2009, after being in the business for six years. And I learned about this world of private money and private funding. How to use people’s individual investment capital and their individual retirement accounts to where I can have an unlimited number of private lenders into an unlimited number of private deals. As of today, my wife, Carol Joy, and I have got 49 private lenders individuals, just like you, that are investing with us and and funding our deals. So if you are also interested in learning how you can get funding for your deals and not ever miss out on another deal, because you didn’t have the money and you don’t want to rely on your credit, you don’t rely on your verification of income and your credit score.

    Jay Conner (02:05):
    I’ve got a free gift for you. And that free gift is to come join me, access free for the first 30 days to my new Private Money Academy membership. So why in the world would you want to come check me out for free? Well, first of all, you get me live two times a month in a Zoom coaching call in the group setting for all of the members. Right now, we’ve got about 150 members or so, and it’s growing very, very quickly. We do that twice a month. You can bring all of your questions to the Academy membership, Zoom call. And we also update content every month, talking about locating deals and funding and et cetera. And on each Zoom coaching call twice a month, we put one of the Academy members such as yourself in what we call the hot seat, where we analyze your business, figure out what your challenges are and help you put together a plan to help take you to the next level in your business.

    Jay Conner (03:04):
    So come join me for free for the first 30 days at Jay Conner, www.JayConner.com/Trial again, that’s Jay Conner, JayConner.com/Trial. You will absolutely love coming and checking out these Zoom calls and et cetera, with all the benefits that you get as being in the membership. Well, if you are brand new to joining the show, you may not know this, but if you’ve been tuning in for awhile then my lands, we launched June, 2018. We’re almost North of 300,000 downloads and growing very, very quickly. I have some amazing experts here as guest on the show. Well, today is no different. Let me introduce to you my friend and expert. Well, this gentleman is the founder and CEO of a company called White Orthodontics, which is a high end technology focused orthodontic practice in Virginia.

    Jay Conner (04:12):
    And he’s also the author of several bestselling books. Now this gentleman also created a service that is called Real Numberz that ends in a Z. And he created that with his son, Trey, and the reason he created it, they created it was to utilize the latest technology to supercharge their real estate investments. Well, here’s what Real Numberz is about. It is the only comprehensive software application that’s designed to help real estate investors manage. And that’s the key word because this gentleman is an expert when it comes to managing deals after you bought them, which is a challenge for some people, but he designed this software to help real estate investors manage a diverse set of assets, which could include rental properties, private lending. There you go! Fix and flip properties, buy fix and hold properties, as well as if you’re into notes, mortgage notes, or syndications, his software will also help manage those investments as well after you get in.

    Jay Conner (05:25):
    So this incredible software that he and his son Trey developed eliminates the number one investor anxiety by using real time data and an automated reminder system that allows real estate investors to maximize their return with 50% less time of yours involved in the deal. He also believes the key to achieving financial freedom has much to do with optimizing your existing investments as it does with acquiring and getting more investments. Well, his software Real Numberz is that easy to use solution for the ongoing problems associated with later inaccurate rents, incorrect note pay offs, uncontrolled or over budget rehab projects, and much, much more. In addition to that, this software has helped many of their clients save thousands of dollars and manage their real estate investments from their pocket. So with that, let me welcome my friend to the show and expert Dr. Paul White. Hello, Dr. White!

    Dr. Paul White (06:35):
    Hey Jay, how are you doing?

    Jay Conner (06:37):
    I am Fantastic! And just for the sake of these, may I call you Paul on the show?

    Dr. Paul White (06:42):
    Oh, please do.

    Jay Conner (06:45):
    So. Welcome to the show Paul. So glad to have you. Of all the experts and guests that I’ve had on this show. I haven’t had anybody else come on the show with this type of software and this kind of service to help real estate investors. I mean, in my business still today, we keep up with everything on an Excel spreadsheet. Seems to work pretty well since our average profits are 67,000, but you know, one of the four pillars that I teach in my business is what I practice. And that is automation. I actually work in the business less than 10 hours a week because of automation, other software we use and the team we have. And so I’m so excited to hear about this automation software that you and your son Trey have developed.

    Dr. Paul White (07:33):
    Well, Jay, thank you so much for having me and, you know, I appreciate so much what you do and the great coaching that you give your clients. And it’s an issue that I have seen. It’s the same thing you just said. There’s just not much out there, right? We’ve never had anybody on that talked about this stuff. And it was a problem that I had and, went to solve the problem by looking for software. And all I found were spreadsheets and things like that. And I had sort of a bigger list of things I wanted to accomplish. And so spreadsheets are great, but they don’t take care of everything that you want to do with them. And so as a matter of fact, I was a member of a mastermind years ago, and I’m doing a lot of what you were coaching and that is to acquire stuff.

    Dr. Paul White (08:09):
    You know, I had been for too long that guy that did what Dave Ramsey said, and that was to just save your money and pay off all your debts and do all those things. And that’s great if you’re in debt or if you have, if you can’t manage your money, but it’s not a great formula for managing wealth , and so anyway I started, you know, I had some money saved up. So when I got into these masterminds, I started, you know, acquiring a bunch of assets and I was feeling really good until the phone started ringing, you know, for more money and, you know, verifying payoffs and all this stuff. And I just started going, Oh my gosh! You know, what do I do? And here’s the problem. I went and talked to some of the guys in the group that had been in there before me.

    Dr. Paul White (08:43):
    And I said, what are you doing to kind of keep track of all this stuff? And surprisingly the answer was nothing, you know, and occasionally the really sharp guys were using spreadsheets. And so then I asked, okay, well, what, what kind spreadsheet? And one guy said, well, I got this one off the internet. And other guy said, well, I got this from my brother-in-law. And I looked at him and they weren’t even the same, you know, and as orthodontists, we were like things nice and straight and neat, and even, and I just, I wouldn’t see in any kind of congruency there. So it made me a little nervous. So that’s sort of how it got started.

    Jay Conner (09:11):
    There’s no doubt. There’s a huge demand for this type of service. Let me go to your background for just a moment.

    Dr. Paul White (09:17):
    Sure!

    Jay Conner (09:17):
    Please share with me and the audience, your story. You’re a doctor. And you know, you can straighten people’s teeth, right? And then you got into real estate investing along the way. So let’s hear your backstory.

    Dr. Paul White (09:31):
    Well, you know, thank you for the question, cause it’s a great question. And it’s a lot of what we wrestle with it, you know, Warren Buffet famously said, you know, if you don’t make money, while you sleep, you work till you die. And that was sort of a, you know, kind of a crazy thing. And the Aha moment for me was when I finally understood the difference between income and wealth, you know I have a great job, but as Kiyosaki would say in his book, Cashflow Quadrant, I owned my job and that was all I had. I didn’t have wealth and I wasn’t building any wealth I was just working. So, you know, just like you’re trying to do with your clients, we’re trying to have freedom. You have to have income for that. Actually I have to have wealth from that.

    Dr. Paul White (10:08):
    And I had income and I didn’t have freedom. And even still with my job, I own a good job and I make a good living, but I can’t leave the job for more than, you know, a week or so because of the amount of work that it creates before I leave and the tremendous amount of work that leaves when I get back. And so you just never gone very far and you’re always, you know sort of tied or chained to the practice. And so that was sort of a big Aha for me, is understanding that if I’m going to have some more freedom, I have to have something that’s making money while I’m not there. And for me, orthodontics was not that, not that thing. I love it it’s been great, but I started looking for other ways to make money and I discovered what you know, and what all your clients have known or will know.

    Dr. Paul White (10:46):
    And that is that all the wealthy people in the world that are successful have real estate as a major portion of their portfolio, if not all of it. And so including our current president. Thanks. So, anyway it’s one of the things that I’ve learned is that real estate is the way to go. And, as I said, when I was in this mastermind sort of, you know, a little hand holding and trying to learn how to learn the ropes I just found that no one was keeping track of things. And so you see these pictures of messy desk and and so mine, wasn’t a messy desk. It was on a pool table. So I had paperwork spread everywhere and I was just excited, you know, I was acquiring stuff left and right. And I was just leaving this pile of, paperwork and assets behind me.

    Dr. Paul White (11:26):
    And I thought, that’s all I had to do. Right. Cause you hear the term passive income. And so I thought that was it right? I’m there I’ve arrived. And then, you know, the headaches started coming and the questions started coming and you’re getting a lot of emails and phone calls asking for more information or more money or any of these things. And I just started going, Oh my gosh, how am I going to handle this? So my, momentary moment of sort of peace and I feel finally arrived and I’ve got it going, just sort shattered into the reality of my portfolio was chaos. And so I had to find a way to get control of it. And and that’s when I went to my son. Cause I know you mentioned you know, spreadsheets Excel. And to be honest with you, I’m a little intimidated by that.

    Dr. Paul White (12:08):
    It’s not that I don’t like numbers, but for some reason I never learned Excel and all the other software that I ever learned, I just sort of picked it up and started working with it. So, and I can do the basics in Excel, but I can’t really do, you know, create all the sales and do those kinds of things. And so I asked my son who is a programmer. I said, can you make me an Excel spreadsheet? And he said, sure, what do you want on it? And so I told him a few things and as he’s programming, I said, I started asking more and I started adding more things. He goes, alright, do me a favor before I keep this madness going, make a list of all the things you want this to do, and then I’ll make it happen. Right? And I made the list and I handed it to him and he goes, he said, data, a spreadsheet.

    Dr. Paul White (12:42):
    I mean, spreadsheets, can’t do this kind of stuff. I said, If I said, so what are we doing? He goes, you need an app. And I went, A what? Cause I had no idea what an App was Right? And so that’s how we started Real Numberz. And that’s been the, probably the most rewarding thing for me has been to have these ideas of how I want to manage my real estate and all the different investments that are real estate related investments have him sort of have these ideas in my head and I write them down on a piece of paper and he makes it happen. Now in the software world, they call Wire Frame is how you plan out every little step in the development of software out. And I, I call what I’m doing, you know, Wire Frame me. He said, dad, just writing crap on a piece of paper.

    Dr. Paul White (13:20):
    You’re not Wireframing so, that’s been kind of fun, but it’s been amazing. Number 1, to recapture some of the money or my investment in his education. And number 2, to be able to work together with him and sort of work through these tools. And to be honest with you when it first happened, you know, and I looked at for spreadsheets, I go, well, there’s gotta be something else out there. And I looked everywhere for some software that was as comprehensive as what we’ve created and there’s nothing out there. So that’s been, you know, my why for 30 years was to make the quality of orthodontic treatment in the Richmond area better than it was when I got into it. And now my why’s to help real estate investors know their numbers so they can get to freedom faster.

    Jay Conner (13:59):
    I love it! S, what different, before we actually get into what Real Numberz does.

    Dr. Paul White (14:07):
    Sure!

    Jay Conner (14:07):
    And the benefits of it. Because it definitely sounds multifaceted as to what it will do before we get into that. What type of different business models can this software serve and help real estate investors? For example, my business model is two fold. I either buy them in single family houses. So we’re talking to here all single family houses, I mean, in my case. So that will be a subset of my question. What different business model is that many single family houses only is it also commercial? We’ll get to that in a second. But in my single family house world, I’ve got two business models. I buy them. Business model, number one, I buy them, I fix them up. I flip them, I cash out, right? So we kill the golden goose, no wealth right there.

    Jay Conner (15:01):
    That’s just big checks. My second business model or that I do with other deals is I’ll buy them. If they need fix up, I’ll fix up. If they don’t need fix up. And they’re a pretty house in either case. The second business model is I sell on rent to own. Now what makes my rent own or selling a lease purchase different is I actually believe it or not actually require my buyers to enter my credit repair program. And I actually help them get a mortgage. Therefore, 80% of mine cash out. Most of the real estate investors may be 5% cash out on least purchase. Those are my two business models. So leading up to my question what are the different models that Real Numberz will serve?

    Dr. Paul White (15:54):
    Yeah, that’s a great question. Well, you know, what’s so funny about software and this is a true expression software’s never done. So you have this long runway of things that we’re trying to accomplish. And, basically real numberz is divided into four basic buckets. One is real property. The next one is private lending. The third is mortgage notes. And then the fourth is funds and syndications. And so within the real property space you can it takes care of any kind of property think of multifamily, single family you know, self storage, all those kinds of things. And, and what’s really neat about it is also there’s a dashboard for the entire portfolio. And so what we’re trying to build is a piece of software that not only manages all of your properties or all of your assets day to day as needed, but it also gives you a global input about how you’re doing as far as having some kind of target date for retirement or job transfer or, you know, whatever it is that you’re trying to do.

    Dr. Paul White (16:49):
    And so what we’ve gotta do is have weighted average returns on all those things. And that’s a pretty complicated piece that we’re building. As far as real estate now, all there’s a general ledger for the entire portfolio for your entire asset base. And so, regardless of what kind of assets or different types of assets you’re doing, there’s a ledger that keeps track of all the money coming in and out of your portfolio. Then each individual asset has a ledger as well. And so it obviously takes care of transactions. And then those ledger items are then used to drive analytics, and then eventually it’ll drive tax reporting as well. And one of the features that we added to it, what’s sort of speaks to your fix and flip is I, years ago I was buying active turnkeys, like you’re talking about.

    Dr. Paul White (17:35):
    And I had bought a piece of property and and from a guy in CG and so they were rehabbing it. And then I got an email that said we needed, you know, $8,000 more. And so I just wired the money site on scene. And, you know, one of the challenges with professionals, doctors, dentists, lawyers, whatever is at least for medical professionals, is we do whatever it takes to make things right for a patient, even if it costs us money. So we’re just, you know, we just want people to trust us. So we do whatever it takes. And we tend to have that same mentality with those that we work with. And what I’ve discovered in all other walks of life is not everybody’s that way. And even there’s some, I guess, in the medical profession, not the way, but I don’t know any of them.

    Dr. Paul White (18:15):
    And so we’ve just always done whatever it takes to make it right. So there’s a high level of trust. So if somebody said I needed $8,000 more, I just would wire the money. Right? I don’t do that anymore, but that’s what I did when I first started. And it turns out after the the property had been rehabbed and closed, and then we had a tenant in place. We had actually then just finished creating real numberz. So I went back and just to play with the software, entered in all of the the data from the acquisition. And it turns out that that $8,000 was $8,000 over the budget. And I didn’t know it, and I had no clue. And and so I called the property management. So what’s the deal with this $8,000 is, Oh, we put new windows in the house and I go, well, great!

    Dr. Paul White (18:53):
    I’m not saying I wouldn’t have done it, but that certainly would have been a decision I would have liked to been involved in. And so that really sparked me to create one of the features of a real property is a thing called a rehab tracker. And so you create a budget and you create as many different rehab projects as you want to name them. And then you put the amount of the budget, and then you start making deposits towards that budget, which come off your balance sheet, but then any of the charges against those do not, again, hit your, ledger again. So it keeps track of those things, and it keeps a running balance of how much money was spent in those kinds of things. So it can certainly be used for that. If you’ve got a business where they’re flipping a bunch of houses all the time, you know, there are other softwares out there where you need a professional to help you develop it for you, but for the average investor, it’s a great, it’s a great solution.

    Dr. Paul White (19:37):
    That’s a fairly inexpensive to be able to manage those things, and then to have the property and track the income, if you’re renting it as far as the the selling part of it, it’s one of the things that’s actually in development is a sell feature that then you create a subject to, and then seller finance the houses as well. So in our mortgage note section, we already have that capability. So you can then turn and open that app up in the mortgage part, and then keep the mortgage that way, if you want it to. But eventually I want to meld the two, but we’re trying to get a basic program that works for enough people. Cause that what you’re talking about is fairly sophisticated. So,

    Jay Conner (20:12):
    So you mentioned there’s actually four different categories for Real Numberz, one was flipping, Right?

    Dr. Paul White (20:22):
    Well, real property in general. Yes.

    Jay Conner (20:24):
    So just real property though whether you’re flipping or holding,right?

    Dr. Paul White (20:27):
    right, right.

    Jay Conner (20:28):
    And then you said private money or private lending. Tell us how.

    Dr. Paul White (20:31):
    Yeah.

    Jay Conner (20:32):
    Tell us how the software helps that category.

    Dr. Paul White (20:37):
    That’s ,Thank you for the question. Yeah, one of the things that’s funny is, you know everything that we do in Real Numberz, I wanted everything lifestyle wise to be able to my portfolio from my pocket. So everything you need is stored on the app. Your pictures, your photos, your contacts, your documents,security duct, documents, all those things are right there in the app. And so one of the things that’s interesting if you’ve done, I know you have, but I don’t know about your listeners that have done private lending, but you know, at some point in time that the borrower wants to pay you back. And so they want you to verify the payoff. And again, because of my ignorance and inexperienced, I just assumed when they gave me a pay-off amount, I went, yep, that’s right. And it turns out I went back and checked them off by several thousand dollars or one of them.

    Dr. Paul White (21:18):
    And so, and I typically lend out of my self directed IRA for those, those types of investments. And so one of the things that I kept noticing was the sense of urgency when they want to close all of a sudden, they out of the blue, they need to close some cause some deals coming up or they need money. And so anyway I got an email one time that said,we want to close this deal today, if possible, can you verify this pay-off? And I got, well, you know, my stuff, the documents are on a pool table back in my house. I don’t even have them here at work. And I’ve got my hands in somebody’s mouth all day. And so, I said, I can get it to you as fast as I can.

    Dr. Paul White (21:52):
    And so, you know, worked all day. And then I went home and then I found the folder. At first I had things in piles on the pool table, my wife at least put them in folders put address on. So I found the folder and I find the the promissory note and I started doing the math. And at first I didn’t even understand that. So I’m doing it monthly, which is not the right way to do it either. And so of course now know that. And so I did the math for how much I was owed. Then I had to log into my self directed IRA account, find that asset, then look at all the amount of money that had been paid to me and then subtracted them, and then add it back to my original principle. And five hours later, I got the instant pay-off for him.

    Dr. Paul White (22:27):
    And I was like, well, there’s gotta be a better way to do this. And so, because each asset, regardless of whether it’s your lending or flipping a house or whatever, has its own ledger, you’re tracking all the payments that you’ve received, which actually saved me a lot of money in the long run. But anyway, and so it knows the deal of the, of the original note, even if you’re wrapping somebody, which you can do, you can have a, we shouldn’t use the term JV, but a partner in the terms it’ll keep track of what the partner what his portion of the deal is. If you’re wrapping somebody. And when you hit, pay-off, there’s a button called pay-off and you hit that button, select a date, and it’ll give you the pay-off amount instantaneously. And it’s accurate. I closed five lending deals in January and every one of them was wrong to my favor, you know? And so it’s nice to have a piece of software. I just pull it out of my pocket and do find the, you know, open the app, find the asset and then push a button. And it tells me what I need. So it takes no time. And, It’s really kind of fun to be able to do that and people know, I know what I’m talking about now, so.

    Jay Conner (23:25):
    That’s awesome! So that’s,

    Dr. Paul White (23:27):
    yeah,

    Jay Conner (23:28):
    That’s an App or that category confirms to the private lender as to how much they should be paid off.

    Dr. Paul White (23:37):
    That’s right. So, yeah. And so it’s great for me. So I’m doing mostly most of the lending, so it’s telling me to pay off what it should be so that they, and they want me to verify it. So that’s the way that it works best. What’s really interesting is again, before I hadn’t created the software with my son I went back and again, sort of historically looked at a deal I’d done. And it turns out that they had missed a payment to my IRA. And I just thought, I didn’t really understand what a custodian did. I just thought they keep track of all the payments and call them when there’s a missed payment. And then they will give you some analytics to tell you how much money they’re making. And it turns out that that’s not right either. I looked up the word custodian means, it hold your stuff.

    Dr. Paul White (24:19):
    You know, so I had closed the deal. I went back and just entered all the numbers. And this particular borrower had not paid a $1,500 payment during the whole transaction of the whole note. But then they closed the note as if they had paid that. So I missed a $1,500 payment, you know, and didn’t even know it and had already closed the note. So I couldn’t get that money back. So the app, just for that reason alone has saved me thousands and thousands of dollars. And it’s been great. And we hear that same thing from other investors that use the software.

    Jay Conner (24:50):
    And I suppose that, of course, for the app to give you an accurate pay-off, then when you receive money you or someone is putting in the App, Oh, I received.

    Dr. Paul White (25:03):
    that’s right.

    Jay Conner (25:03):
    $1,500 payment on such and such a date. So it’s keeping up with what you have received so far.

    Dr. Paul White (25:09):
    Yeah. And even if you get part of your capital returned, it’ll track that as well. So it’s really doing the math based on what you’re owed and what you’ve already received. And so that’s really, you know, and again, if you have a lot of these going, it’s hard to keep up with that kind of stuff. You know, spreadsheet can do it, but you know, what’s great about this software is it sends me a reminder of somebody misses a payment. Now, again, my need was somebody didn’t pay me and I didn’t know it cause an IRA is not calling them. I thought they were right. So, now I get a reminder if the payment has not been entered as received into the software. And so it’s a great way for me not to have to scan all the investments all the notes that I’ve got to see if there’s a problem. You know, it tells me if there’s a rent, a missed rent payment, it tells me I don’t have an interest payment from a loan, or if a note, a monthly payment hadn’t been made, all those things I know without having to go looking for it. So it really does make it easy to it reduces my stress and it alerts me when there’s a problem. So I can kind of keep doing what I’m doing and not have to worry about it all the time.

    Jay Conner (26:06):
    Dr. Paul White’s website, that you can check out Real Numberz is www.RealNumberz.com , Paul there’s two other categories you mentioned that this software keeps that where, so it keeps up with any kind of real property investment keeps up with private money when you are the lender and what was the third category?

    Dr. Paul White (26:32):
    Well, the other is a mortgage note, and I make a distinction between private lending and mortgage notes, because it’s a longer term investment and what’s unique about, and you can do these things with a lot the private lending, but a lot of private lending is usually straight answers with some points. And so what’s interesting with mortgage notes is you know, it’s an amortizing investment. And so it keeps track of all those things. And basically you can just buy a note and hold it and that, and just have this income for as long as you want. But there are other things you can do with a mortgage note that really can supercharge it. And one of the things you can do is sell it. And you can sell either a portion of it, or you can sell all of it.

    Dr. Paul White (27:08):
    If you sell a portion of it’s called a partial.And so you can actually, in some deals, like if you bought a note, that’s, you know, say $50,000 and you bought that note for $30,000 let’s say a 10% rate, you can turn around and sell it to another friend or investor let’s say a 6% rate and get your 30,000 back out of it. And they will tell you in the app itself, it’ll calculate the number of payments that you have to sell in order to get your money back. And then at the end, the note comes back to you and you’ve got zero money in and invest it. And yet you have this stream of payments that are coming to you. And so, you know, a zero invested money returned is a pretty good infinite return that we all like to hear about.

    Dr. Paul White (27:45):
    So that’s one of the things you can do. And the other thing you can do is borrow money against that note. So it’s just like having a house where you can borrow money against it. You know, it has that same kind of value to a bank or to a private lender. So there’s the things, and it keeps track of all these things. And again, if you sell five months, five years of a mortgage note, it creates a reminder at 4 years and 11 months to tell you that this payment’s coming back to you. So again, it gives you a heads up when a note is coming due when investment’s coming due. When rent is coming. And when the end of a lease on a rental that you have, it’ll send you a reminder, say this rental is coming due in 30 days. And so it helps me to send a note, send that very thing I just forward it cause it comes to my desktop or to my phone to be able to forward that note to the property managers say, okay, what are the plans for this property? We got anybody rolling here. Is he going to reinvest, you know, or renew? And so that way, again, I look like I’m on top of my game and I’m not having to do all that. I love that kind of aspect to it.

    Jay Conner (28:41):
    That’s what I call automation. And then there’s a fourth category that this app provides service for, right?

    Dr. Paul White (28:47):
    Yeah. Some people do funds or syndications and we’re just starting to build that part of it out. It’s mainly to track, you know, the issue with funds or syndication, is really no money in it and not much is returned to you until the deal closes. So, you know, a typical fund or syndication, will go five to seven years. Some of them pay off early. And so that one, we haven’t put as much time into it. Cause not as many people do those. It’s a great way for people that maybe don’t have a whole lot of experience to, if you can trust them. That’s, that’s the deal because a lot of those things can, you can lose your principal real quickly. So you have to be able to trust the people that you’re doing business with, but you don’t have to know a whole lot about real estate. But again, everything has due diligence. A better way is to have somebody like you start them off with a single family home because you can see that thing. You have all the control where you have no control over a syndication. So it’s one of those things that we’re sort of programming out for some of the other investors that have requested that. But most of what we do is those first three buckets.

    Jay Conner (29:45):
    So the bottom line Paul, as I understand it is whether you are investing in single family houses, commercial, any kind of real property, the software is going to keep up with where you are and make sure you’re not, you know, wasting money or losing money, same thing as a private lender, make sure you got coming to you. What was in the promissory note and then mortgage notes, which are longer term you can do fractionals and then again, syndications. So, wow!This is simply amazing, Paul! And I’m so glad I’ve had you on here. So what do people need to do to go check out this software?

    Dr. Paul White (30:25):
    Well you know, if you go to our website, RealNumberz.com and there’s a 14 day free trial. If you want to check it out, we’ve now adjusted it. So we’ve got a special running now where there’s a discount of 30% off the monthly fee and we do it by property. So if you have five properties or less, it’s less than it’s $47 a month as a subscription. And you have all the software, one of the cool piece of software that I didn’t talk about, there’s a piece of software attached to this, again, that you can’t do with a spreadsheet that actually connects to your bank account securely. So we don’t store any of the data. So it’s secure and encrypted, but it’ll pull the numbers and the transactions that go to that account. So on the general ledger, you’ll get uncategorized transactions and you would simply assign those transactions to one of your assets and it automatically populates the the ledger for that particular asset.

    Dr. Paul White (31:14):
    And then it keeps track of all the other things that are going on. So it’s really helps you understand what’s going, coming and going and your business account. So it’s a great way to keep up with things and you should have a separate business account. Don’t keep this in your personal account. I’m sure you already have taught them that, but I’ve seen guys do that too. And it’s like, yeah, they have no idea where their money is or what’s going on with it. And you have to keep some reserves. Cause you know, real estate takes a little bit of management sometimes. So anyway, and then there’s an unlimited version of that, which is which also includes the mortgage notes part plus all the other things. And it’s unlimited data, all those other things and it’s $97 a month with a discount.

    Dr. Paul White (31:49):
    And so one of the things that’s interesting to me is we had a client that was, I think he was spending a thousand dollars a month for a Bookkeeper’s account just to keep track of some rentals. And I’m like, dude, we can save you some money here. And he jumped on this in a heartbeat. He goes, this is way more than what I was getting before. I said, well, that’s, you know, we’re trying to make it something that you just, after you start using it, you won’t want to go without it. And that’s been my experience. It has saved me literally thousands, thousands of dollars.

    Jay Conner (32:14):
    That’s wonderful!

    Dr. Paul White (32:15):
    Yeah.

    Jay Conner (32:16):
    Well Paul, thank you so much for joining me here on the show. And folks there you have it. Be sure and check out www.RealNumberz.com And go check out how to stay on top of your business and save a lot of money. Paul, thank you so much. I look forward to staying connected with you and folks, I’m Jay Conner, Private Money Authority wishing you all the best. Here’s to taking your Real Estate Investing business to the next level. We’ll see you on the next show!

  • Chris Prefontaine – Scale and Automate Real Estate Investing

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    After many years of coaching and constantly doing deals himself independently, Chris Prefontaine founded Smart Real Estate Coach in 2014, bringing in his son Nick, daughter Kayla, and son-in-law Zachary as the company began to grow.

    The family team coaches investors on how to properly scale and automate their businesses throughout North America — all without using their own cash, credit, or taking out bank loans to buy property. His team buys and sells homes in his own market every month.

    Join our new Private Money Academy with a free 30 day trial, https://www.jayconner.com/trial

    —————————————————————————————————————–

    Jay Conner (00:01):
    Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority and your host. And let me give you a special welcome, particularly if this is your first time to tuning in. Here on the show at Real Estate Investing with Jay Conner, we talk about all things that relate to real estate investing from single family houses to commercial deals, to self storage, to land, to anything that you can imagine. Even note investing. Anything that you can imagine that relates to real estate investing. This show is for you, whether you are a seasoned real estate investor, or a brand new real estate investor.

    Jay Conner (00:51):
    Here’s why. First of all, we talk about private money a lot on this show. How to get funding for your deals, regardless of your experience or your credit or your verification of income. You know, whether you’re seasoned or you’re brand new, everybody is always looking for new funding for your deals. As a matter of fact, on today’s show, my special guest, we will be talking about creative ways to get funding for your deals regardless as to whether you have private money lined up or not. In addition to that, people are always looking for ways to find really, really hot deals. We talk about that on the show here, we talk about how to automate your business, how to sell properties very quickly in order to reduce your carrying costs.

    Jay Conner (01:36):
    But before I introduce to you my guest today, I want to give a special gift to you. You see, I mentioned a moment ago, I’m known as the private money authority. So if you are seasoned or brand new and you want more funding for your deals, I’ve got a free gift for you. And that is, I just recently launched my brand new membership, which is titled The Private Money Academy. It’s a monthly membership where I am live at least two times a month for the entire Academy where we do a hot seat. We analyze your business, help put a plan together to expand your business and scale it and grow it very quickly. I answer Q and A every time live twice a month for Academy members. We’ve got a closed Facebook group where you can ask questions at any time. It’s a very, very expensive and live forum. And we also have brand new training content for the Academy members every month. Well, I’ve got a brand new offer here. Brand new, and it’s free. You can have free access to the Academy for four weeks, and I’m going to give you the URL right now. To where you can go take advantage of this free gift after we finished the show and that’s www.JayConner.com/Trial That’s JayConner.com/Trial

    Jay Conner (03:05):
    So you may be tuning in on YouTube, or you may be on Facebook, or you may be listening to iTunes or Google play or one of our platforms. And so no matter where you’re tuning in from, we need your help. Please subscribe, rate and review. If you’re watching on YouTube, be sure and subscribe and hit that little bell. So you can be notified every time that we go live with a new guest and new training. And speaking of guest and training today is no exception to the past where I’ve got a fantastic expert guests to join me. And so I’m so excited to have him on before I bring him out of the green room and bring him on here, live on the show. Let me tell you just a little bit about my friend.

    Jay Conner (03:50):
    First of all, he is a three time best selling author. One of his books, Real Estate On Your Terms, we’ll be talking about that. Secondly, the new rules of real estate investing and also he is co-author with Moneeka Sawyer’s, Real Estate Investing For Women. He’s also the founder and CEO of SmartRealEstateCoach.com. And he’s the host of the Smart Real Estate Coach Podcast. In addition to that, he’s been in real estate for almost 30 years now. His experience ranges from constructing new homes back in the 1990s and owning a Realty executive franchise to running his own investments, commercial and residential. Well today he runs his own buying and selling businesses where this family thing, which purchases about two to five properties every month. So this guy is still in the trenches today and knows exactly what’s going on. He’s an expert in the realm of terms, he’s also an expert on how to take your business from part time to full time. And he has this very, very special strategy and formula that he employs and also educates his students on which is called, The Three Pay Days. With that, I’m excited to have on and introduce to you my special guest today, Mr. Chris Prefontaine. Chris, welcome to the show!

    Chris Prefontaine (05:16):
    Hey Jay! Good to be back, buddy. Good to see you as always.

    Jay Conner (05:19):
    Good to see you too. And I’ll tell you folks, one special reason I love having Chris here on the show is because Chris and I have got the same exact core values and ethics when it comes to doing business. It’s all about putting the other person first. Whether you’re talking to a buyer or you’re talking to a seller, or you’re talking to a private lender, Chris believes exactly the same thing that I do. And that is, put other people first and you don’t have to worry about yourself. Just sort of like Zig Ziglar said. So Chris, I had you on the show. I guess it’s been coming up on a year ago. I lost track of time, but since that time we’ve had this crazy thing called COVID-19 come along. Corona virus. So first of all, if you would Chris share with the audience how have you been dealing with the Corona COVID-19. How’s it affected your business? And what have you done to adapt? And as your business increased, decreased or stayed the same?

    Chris Prefontaine (06:25):
    Yeah. Thanks, Jay! It’s interesting because when this happened, so I’m going to go back to March when it started to happen. I said to my son, Nick and my son, Zach, I said, okay, I’m hoping what we built post-crash was built to what our expectations were, which was to weather all storms. It really was built to do that. And so our business has tripled and the amount of properties we’re doing as has all the students, so super happy with it, super pleased with it. It’s still, as you know, nobody knows the answer, right? The billionaires don’t know the economists don’t know. So the jury is still out, but so far, we’re just, we’re not getting by with driving. And I love to see that for the students, cause it’s almost like they had an, it’s not even, not official. It’s just a massive pump up in business.

    Chris Prefontaine (07:07):
    I think a lot of that’s because the banks are making it very difficult for your conventional buyers, which makes it difficult for the sellers. I see that, especially in the higher end, you know, the jumbo loans over and over and over again. So I love, and I think you do too, dealing with those buyers that are truly great buyers. They just need a little bit of time. So that’s the kind of path we took since April. What do we change? Only thing we change as a team is virtual meetings every morning, cause we’re virtual, except for one day a week now. And then the, from the, from the standpoint of sellers, we started about a year and a half, probably about the time I was on your show or early, we started pivoting to virtual. Anyway, it just, now that’s overwhelmingly accepted by the sellers, whereas before it was a bit of a sell to let them know how we’re going to do things virtually. So I I’ll end that question or that answer with my son-in-law said to me the other night, we’re at dinner privately. The family. And he said, I gotta tell you, I think COVID coincidentally is one of the best things that ever happened to our company in our portfolio. So probably a little bit different answer than most people give. But that’s been, it’s been a disguised blessing for us so far.

    Jay Conner (08:17):
    Well, when you say your son said, dad, coincidentally, I think this is a, been a blessing for us. You may or may not have heard of my definition of coincidence, but my definition of coincidence is God’s way of staying anonymous.

    Chris Prefontaine (08:35):
    I love it!

    Jay Conner (08:36):
    Well, your story, Chris, and your results and your experience since COVID-19 is exactly the same as mine. My business has tripled both my coaching business and my buying and selling house business. Year to date since January, of course, you know, COVID came in strong in March. I have bought and sold more houses this year than any year since I went full time back in 2003. My coaching business has skyrocketed. And I think another reason for that is because what you just said, virtual. And I really cannot tell you, I wish I could tell you. Well, I can give you part of the reason, part of the reason our real estate investing business at sky rocket is because I was, and you were prepared for the increase in business.

    Jay Conner (09:34):
    For the all cash deals, we have plenty of private money on the shelf ready to take advantage of serving all those people and et cetera. But the, but the demand itself, I must say, I can’t, I cannot give you a definitive answer, but I’m thankful for it on both the buying and selling side. And we were prepared to take care of it. Now, your popular business model that you talk about, your strategy is a strategy that’s called the three pay day strategy. And we talked about it. Last time you were on the show, but we got a whole lot more additional new viewers and audience members since then. So from scratch, how about explaining your three day strategy or three payday strategy and what that means?

    Chris Prefontaine (10:22):
    Yeah, so the three payday is this is on the exit. So we buy them on lease purchase or owner financing sometimes subject to, but all of our exits, almost all of our exits are going to be rent to own. And when we do that, we create the three paydays. That I know you’re familiar with, but the first payday is a nonrefundable down payment. And the second pay day is the difference between what I’m paying the underlying mortgage on that’s in the seller’s name or the seller directly, if it’s owner financing and what I’m collecting from my buyer, my buyer who needs time to get financing. That’s payday two. Payday three is the, is pretty cool because not only the cash out the mark-up and the price that we were able to achieve, but it’s also all of the principal pay down. When you start looking at principal, pay down on some of these deals, of course, the longer the term, the better, right? But when you’re talking about on financing deals, Jay, we only do on a financing deals when we buy, when they’re free and clear property. So we’re doing always principal only pay downs. And so over the course of three, four, five, seven, 10, my building 20 years, you got some massive principal pay down. So I love the three paydays. I also love the longer terms, especially during Covid.

    Jay Conner (11:29):
    So let’s just make sure our audience understood what you just said. So you said the majority of these deals that you’re doing, the three payday strategy and those three paydays again are on the selling side when you’re selling the home they are, you’re getting the nonrefundable option fee or down payment. You’re getting positive cash flow between what you got coming in, what you got going out per month. And the third one, what’d you say the third one was?

    Chris Prefontaine (12:02):
    Principal Pay down. And if there’s any mark-up from what we purchased to what we’re selling.

    Jay Conner (12:07):
    Yeah. It’s just so that principal pay down means you, and then this is what I want everybody to not miss. You’re buying homes from sellers and the way you’re funding those deals, the way this third pay they have is you’re buying those houses with the seller, being your lender. The seller is your bank. The seller is taking a note back and selling to you as seller financing, or you bought it subject to the existing note. Is that right?

    Chris Prefontaine (12:39):
    That’s correct. When they’re free and clear the seller financing, we prefer so that we can structure whatever we want for principal pay down. And the third way buying them would be lease purchase. So more of a sandwich, sandwich lease.

    Jay Conner (12:51):
    Gotcha. So, what are the reasons, what are the benefits, why have you decided to exit with the rent to own strategy versus putting it in the MLS and cashing out?

    Chris Prefontaine (13:06):
    Yeah, mainly it’s the three paydays Jay, but I’ll tell you a pre COVID, but certainly more so now to our earlier comments, both of us. The amount of buyers, the buyer pool for people that can’t walk in a bank today and get financing. And then especially when you get to jumbo and above is crazy. We had a guy, give you a direct example. I think it’s always easier to understand. $1.3 million house. One of our students had a buyer saw that same home had an under agreement. COVID hit, he has a 760 credit, but he didn’t have enough down at the bank. Wanted to see some ungodly amount, like two and a half year reserves, 25% down. He had like 10% down. So he, he thought he lost that house. My student picked it up. We did together. We partnered on it and this guy came out again for the same house and did a rent to own on it because we’re going to give him the two year ramp. He needs to save more money than satisfy the bank. Well, those are everywhere right now. Like the buyer pool is enormous. Prior to COVID I use the percentage of like 60% to 80% of the buyers couldn’t get financing. If you took a snapshot in time, I don’t know what the number is today, but it’s bigger. And so they need our help. And that’s the cool thing about a very healthy relationship. So to what you said earlier, if we put their interests for us, it’s a win-win. Big win-win right now, helping these people.

    Jay Conner (14:24):
    So I’m going to ask you a question that you could actually take three days live seminar to answer. We don’t have three days. So let me just ask you to let your consciousness just flow and just answer it the best that you can from the 30,000 foot view. Here’s the question. When you and your students are talking to a potential seller, of course, all these sellers were talking about where you buy creatively on terms are off market. Clearly you’re not buying these properties in the multiple listing service they’re off market. When you are beginning a conversation and establishing rapport and getting information on the property, we know that the seller of that property in most cases, either has not considered or even thought about the possibility of selling their property on terms. They are thinking somebody just going to buy this house. So my three day seminar question is, what is your talk off? How do you convince someone to agree to sell their house on terms? Before you answer this question, Chris, I want you to explain to everybody and unpack what does it actually mean. The sell on terms. Let’s get that clear you, after you clear up black and white, easy peasy, really, what does it mean to sell on terms? How do you convince somebody to do that when they never consider doing that? And when the conversation started with them, they’re anticipating, you know, getting a check and getting all their money.

    Chris Prefontaine (16:22):
    Yeah, absolutely. So terms to us, cause it does mean different things to different people, as you and I said off air. Terms to us is simply lease purchase, owner financing and or subject to because we combined some of these strategies. That’s what terms is to us. Those are the three areas we live in. The conversation, this, the question you asked with the convincing is by far the biggest thing we get in live trainings. So it’s not convincing. So just to clarify that, so it’s like the same reason you would go to an autobody or an attorney or an accountant because you have something you’re trying to either fix, improve or accomplish, because not always negative, especially with debt free properties, it’s not negative. They just wanted the most. So that’s, so first and foremost, I have a simple question at the beginning of the conversation. Jay, if you were to get your price, I haven’t seen your home yet, but if you were to get your price, are you open to doing that on a lease purchase or owner financing?

    Chris Prefontaine (17:15):
    Now most say, well, I just want to sell it out. Right? And my answer is I get it. 99% of the sales I deal will say that. Of course I would want to sell tomorrow of a full price cash, and have no issues. Right. But the reality is this. Mr. Seller, you have a significant part of the buyer pool right now that can’t do that. They can’t, they can’t do, they can’t buy your home because of financing. Now that has made, it’s made even easier for me to explain with Covid. It’s even, it’s even worse for them. So that’s the conversation. And then back to the convincing, there is no convincing if they can, A. Wait for their cash, if they have any in the house, any equity left. And B. I can solve whatever issue they have. Give you some off the top of my head.

    Chris Prefontaine (17:57):
    I’m moving to Texas. My family is already there. I want to be there for the holiday. I have two homes. I can’t keep them both during COVID. I owe about what it’s worth. I can’t afford a realtor. If there’s any motivation for selling, that makes sense for me to solve. I can solve it. As long as one of two things are in the mix. One, I need my cash right away. Two. I’m a year behind and has no equity in my house. Like those are the two things that I just can’t do anything with typically. But every other scenario, if they can wait, we can solve it with a lease purchase or owner financing or subject to. So is that, was that a condensed enough or too condensed?

    Jay Conner (18:34):
    Yeah. Yeah. You took three days and put it in three minutes. Which is what I wanted you to do. So what would you say is a realistic percentage of people that you’re talking to. And this is putting aside those that you can’t help. Like, you know, those scenarios, you just, I mean, you know, they’re a year behind and they have no equity. You know, those do have equity. Those that, you know, the math would work if they get it and they can wait, what percentage of those people that you talk to actually end up being, you know, agreeable to selling on terms in some kind of structure?

    Chris Prefontaine (19:17):
    Yeah. About a third. But let me clarify where the third came from. The third have already been weeded out by virtual assistants who spoke to them and they said, yeah, I’m somewhat open. Have someone call me. You know, they weren’t shutting it down totally. They could wait for their equity. So out of those that we get about a third are open to terms. Now I can’t tell you in accurate metric from April 1 to now segregated. I can just tell you ongoing. We’re about a third. So it’s a significant amount. Look, here’s a stat. This is a cool thing. I, some of us, our company and some of our students are niching down just to do owner financing, just at target free and clear properties. Well, if you look at this different stats, but if you look at the stats about a third of the property, the United States are debt free or close to it.

    Chris Prefontaine (20:02):
    That’s a lot of properties! You don’t need to talk to many of those. These street paydays, those free and clear properties. If you get four year terms, you’re talking about six figure deals right across the board. If you get a house that’s 200 grand or higher and you get four years of more, and the principal payments, you’re talking six figures, three paydays, you don’t need to do, you know, 50 of those a year. You can go out and try and do that, but you don’t need to do that for most people. So super, super, super lucrative for both parties. If, if that’s the criteria. So probably a longer answer to your good question.

    Jay Conner (20:36):
    That’s good. Would you say most of these sellers, you’re able to negotiate, that you do negotiate terms, they are willing to take payments or whatever. Would you say most of those are principal only payments or do some people you have to pay interest?

    Chris Prefontaine (20:55):
    Okay, good question. So in the mix of what we do about 20% of the properties we take on our contract offering clear, and yes, we do those with principal only payments. Now there’s been a hybrid or two. I’ll give you two real examples. We did our office building and the owner is very sophisticated investor owns probably not the largest landowner, but one of the largest on Island here where we live. And so he sold me the building and he said, I want five and a half percent interest. This is a year and a half, two years ago. I said, well, you should pay principal. So here’s what we did. We both loved it from when I closed on it in November of 18, all my payments. And there were teared up payments were principal all the way until about September of 19. So as long as the shorter that is, I took that principle five 50 and had it paid down to four 90 without a penny of interest, then he advertised it at 5%. And he got his way. And I got my way. There was no way I would’ve got a 60 grand pay down in principal by doing a conventional mortgage. He knew that. And I knew that. So we both got our way. That’s one example.

    Chris Prefontaine (22:01):
    The other way we do things is let’s say I’m three years into a four year on a financing term. This was an exact deal. And every holiday season, I send them a note or an email. And I say, look, I know you got three years left or two years left, as we click along. If I was to prepay 6,000 was in this case, it was 6,200 prepay. So take it for another day, like prepay some principal when you extend it a year. So I get another year principal pay down that’s of course, if my buyer’s not ready to cash out, it works even better. We did that two years in a row at a particular property. The third year, last Christmas, they called us and said, will you do that thing again? And I said, well, instead of that, why don’t we do this? If you guys don’t need the cash, why don’t we change your note? That’s going to be coming up next year. Why don’t we change that to an interest rate of 4.2? And why don’t we put that out 15 years for balloon? So a four year deal on a financing principal only became a five, then became a six, then became a 21 year deal. So that’s why I said earlier, you can mix and match some of these strategies depending on what the motivation is of the seller. In this case, they didn’t need the money and their account and loved it, that they were going to stack it in some interest. So we do sometimes that was another long answer, but I hope that helps.

    Jay Conner (23:12):
    Oh, it did help because what you just explained was a real life example of the deal after the deal, after deal, after the deal.

    Chris Prefontaine (23:21):
    Exactly.

    Jay Conner (23:23):
    So that’s a great example of, I mean, you know, when I first heard years ago that sellers of homes of houses, of single family houses, would be willing to take a note out 15 years, I thought to myself who in the world would wait 15 years? I mean, they might be dead by then, who would wait 15 years to get their money? And I, and the light bulb finally came on to me years ago. Well, the same answer is to the site to a different question. Who in the world would be willing to sell their property and agree to leave the mortgage in their name and trust me to make the payments? The answer is the same. And the answer is, I can’t make a decision and have the same motivation as somebody else for the seller. They do things for their own reasons. I do things for my reasons and I need, and we need to let them make their choice. Right? One of the biggest mistakes I made when I started in real estate investing was making decisions for other people or deciding in my mind what I thought they would do, or they would not do. And I don’t have a clue what somebody else is going to do until I give them the choice. So my lands! Give them the choice! Right?

    Chris Prefontaine (24:44):
    Yeah. To your last point there about making the decisions pre COVID too many of our students and us, when we first started, we’d say, if they asked us how long a term we may have come out with a term back then, like four years. Now, simply by changing how we answer that we’re getting five, seven, 10, and 20, just as easy as we were getting three to five in the simple question, when they say, how long is, if you got your number, I don’t know if you’ve got your number, what’s the longest you could see yourself going in terms? And I am pleasantly surprised. I won’t say shocked at how many sellers are programmed to say things like, well, I wouldn’t go up 30, like a regular mortgage, but I might go up 20 or might go upto 10, like automatically they do. And so it took us four or five years to figure that one out, but all the students, new students now. So you think we would have had to pick it out first. New students, as soon as we told them that technique thought that was normal. And they’re getting those longterm,

    Jay Conner (25:38):
    Chris, you’re the expert on terms. I’m the expert on private money. But I got a question for you and your students to play with, and I want to hear how it goes. So the question that you just said was, well, what’s the longest you could go? I would love to play with this question. And that question would be, well when they say, well, you know, how long have I got to go? I might ask them, well, how many years would you like to continue receiving monthly income?

    Chris Prefontaine (26:15):
    I love it! in to the point!

    Jay Conner (26:15):
    Well, I don’t, whatever. I don’t want to ever stop getting monthly income.

    Chris Prefontaine (26:20):
    No, I love that one. Thank you for the share.

    Jay Conner (26:23):
    So anyway, it just came. It may be a stupid idea, but I don’t know sometimes what I think stupid works and vice versa. So, so the next question. You talk about operating. In the midst of this current chaos, you talk about operating in the perfect triangle. What does that mean? What is the perfect triangle that you talk about?

    Chris Prefontaine (26:50):
    Yeah. I thought of this right when Covid hit and literally I moved home to the home office here. And that was, we’ve got a really cool community, like really a family environment in the office and amongst our community. So I said this, if we can all attach ourselves to one side of triangle, a cause, just a cause. Like a major mission, like right now, because of the chaos, sellers and buyers are some of them afraid, but all of them need a guide. They’re like screaming for help. And in some cases, literally don’t know, should I sell, can I sell? Does this work? So find a cause that can, then the second piece of the triangle actually affect lives, like affect them, generationally affect them. That’s what we’re doing.

    Chris Prefontaine (27:32):
    We’re going to affect generationally. These people that thought they couldn’t buy or sell. And that’s going to forever be in their family. And then third. And in affecting our lives as well. And then third piece of the triangle is to get paid, to do it. So find a cause. Go out and affect lives positively, including your own. And then get paid to do it. I don’t think that triangle has ever been so prevalent because of the chaos right now, because of the need for a guide and someone to like take them by the hand. There was a major survey done, Jay, I’m going to forget the name. One of my mentors told me about it. They do a trust survey every year. It’s not cause of COVID. They happen to do it right around covid. But the number one thing with sellers and buyers was this trust factor. Like they just want a guy that they can trust and that perfect triangle is where we could camp out.

    Jay Conner (28:18):
    So beautiful way to describe win-win-win. Final question, Chris. For this show. And that is given your experience. We’ve had COVID come along both you and I lived through 2008, 2009. I mean, you’ve been doing this real estate investing thing for 30 years, yourself and your family. What’s the best advice you can give today on how to prepare to handle the next recession. When’s the next recession? Well, if we, any of us knew that we could retire today.

    Chris Prefontaine (28:56):
    You wouldn’t be yet.

    Jay Conner (28:58):
    Is there going to be another recession? Of course. Is it going to be another stock market crash? Of course. You know, it’s cycle cycle, cycle cycle. So what do we need to do to prepare?

    Chris Prefontaine (29:11):
    Sure. I mean, I could go a couple different directions here, personal and business, but let’s go business first. I will personally tell you my opinion, never, ever, ever sign personally on a bank piece of paper, pledging your assets. That’s my opinion, except for maybe an exception of your own home. I could see that working, but you could still buy that on terms as my family members have. So that’s number one. Don’t sign personally. Number two. So then you’re not worrying about if,if,if,if,if. That they’re going to come knocking if the market drops. Okay. Number two. Hang out with someone that weather the storms, Jay, you said you and I have gone through ’08. I went through ’08. I went through 9/11, like you did. I went through my son’s accident where he was put in a coma and that was an overnight shot. You know, all these things beat us up, but they also weathered us because unfortunately success without the, those trials and tribulations, their rotten teacher, they really are.

    Chris Prefontaine (30:01):
    So if you’re going to do anything in real estate, just hang out with someone that weathered a few storms, that’s the way to do it. Just don’t deviate. There’s no reason to reinvent the wheel. And then lastly, on a personal note, pre ’08, I know I would have no problem, no problem whatsoever. Having a personal residence that had there was leverage 70, 80, 90% of it. I would have no problem doing it until you said, Oh, that’s normal. I have good rate. And I’m in real estate. I will tell you if you can live on 50% or less of your income and never have to be in that debt or leveraged position, you will also sleep better. So if you could tell all of these are based on my way, crashing, not needing to sleep at night. When I put my head in the pillow, I want to know that everything’s fine. And so that’s a smidgeling of what I would tell people to do.

    Jay Conner (30:48):
    Awesome advice, Chris. Awesome advice. So Chris, I know that the audience wants to stay connected with you. So how can folks further the conversation and stay connected and get plugged into Chris Prefontaine?

    Chris Prefontaine (31:03):
    Sure. Thanks, Jay! They can go to SmartRealEstateCoach.com There’s if they don’t mind listening to me babble for another 45 or so minutes, there’s a free webinar there. It’s content rich. It’s not going to teach how to make a million dollars. It’s going to expose you to some more information on what is possible for you. And then if you want, we can actually, I’ll probably get a, I’ll get a spanking for this one, but I’ll offer a free strategy call for anyone that wants to talk, especially with Covid here. Just go to SmartRealEstateCoach.com/Action. That’s all. They’ll just ask you if you’ve done deals. If you haven’t done deals, no wrong answer. Allows myself or my son, Zach, to help you out with a free strategy call. No ties, no hooks. We’ll get on 15 minutes. We’ll make it well worth your time.

    Jay Conner (31:46):
    That’s awesome. Well, thank you so much, Chris and parting comments.

    Chris Prefontaine (31:53):
    I said some of them in the interview, cause you, your questions were just spot on. I don’t care what niche you’re looking at. You and I have both advocates of exposing all niches. We both do that on our podcast. I love that. So, find an issue and get behind. I’m not so naive to think it’s mine. I’m sure Jay feels the same way. Find one you can get behind. Secondly, find someone in there that has weathered a few storms. And third don’t deviate for three years. Like just don’t. Don’t get the shiny object syndrome. You’ll have a great experience with that simple formula.

    Jay Conner (32:19):
    I love it! Chris, thank you so much for joining me on the show!

    Chris Prefontaine (32:22):
    Thanks for having me, buddy. Good to see you.

    Jay Conner (32:24):
    Absolutely. And, thank you! My audience for tuning in to another episode of Real Estate Investing with Jay Conner. And I’m so glad you were here. Be sure to tune in for the next show. Here’s to taking your real estate investing business to the next level. I’m Jay Conner, The Private Money Authority. And we’ll see you then. Bye for now.