Jay Conner

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  • Update on Jay’s Latest Real Estate Deal

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

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

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

    What is a Bird Dog?

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

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

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

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

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

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

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

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

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

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

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

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

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

    Real Estate Cashflow Conference:

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

    Free Webinar:

    http://bit.ly/jaymoneypodcast

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

    #RealEstate #PrivateMoney #FlipYourHouse

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Jay Conner (00:04):

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

    Jay Conner (00:45):

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

    Jay Conner (01:43):

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

    Jeremy (02:48):

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

    Jay Conner (02:49):

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

    Jay Conner (03:00):

    There we are. Jeremy, can you hear me?

    Jeremy (03:02):

    I can hear you.

    Jay Conner (03:03):

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

    Jeremy (03:10):

    Thank you. It’s my pleasure.

    Jay Conner (03:11):

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

    Jeremy Knauff (03:44):

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

    Jay Conner (04:52):

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

    Jeremy Knauff (05:04):

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

    Jeremy Knauff (05:58):

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

    Jeremy Knauff (06:49):

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

    Jay Conner (07:31):

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

    Jeremy Knauff (07:38):

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

    Jay Conner (08:06):

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

    Jeremy (08:13):

    Yeah.

    Jay Conner (08:13):

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

    Jeremy Knauff (08:19):

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

    Jeremy Knauff (09:13):

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

    Jeremy Knauff (09:58):

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

    Jeremy Knauff (10:39):

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

    Jeremy Knauff (11:18):

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

    Jeremy Knauff (12:22):

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

    Jeremy Knauff (13:20):

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

    Jeremy Knauff (14:06):

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

    Jeremy Knauff (14:45):

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

    Jay Conner (15:28):

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

    Jeremy Knauff (16:42):

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

    Jay Conner (16:47):

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

    Jeremy Knauff (17:02):

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

    Jeremy Knauff (18:22):

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

    Jeremy Knauff (19:04):

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

    Jeremy Knauff (19:51):

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

    Jeremy Knauff (20:32):

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

    Jay Conner (21:06):

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

    Jeremy Knauff (21:23):

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

    Jay Conner (21:36):

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

    Jeremy Knauff (21:57):

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

    Jay Conner (22:03):

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

    Jeremy Knauff (22:35):

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

    Jay Conner (23:10):

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

    Jeremy Knauff (24:17):

    This is very true.

    Jay Conner (24:20):

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

    Jeremy Knauff (24:32):

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

    Jay Conner (24:57):

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

     

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

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

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

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

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

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

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

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

    But how much did he actually pay?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Real Estate Investing with Jay Conner

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

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

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

    ————————————————

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

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

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

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

    Crystal Mewhorter (04:13):
    Hey Jay.

    Dan Mewhorter (04:13):
    Hey Jay.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Crystal Mewhorter (12:33):
    Correct.

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

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

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

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

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

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

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

    Crystal Mewhorter (14:30):
    Correct.

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

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

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

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

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

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

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

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

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

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

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

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

    Dan Mewhorter (18:47):
    Private Money.

    Jay Conner (18:48):
    Private.

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

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

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

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

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

    Jay Conner (19:16):
    All right.

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

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

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

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

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

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

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

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

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

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

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

    Crystal Mewhorter (21:42):
    Yeah.

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

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

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

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

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

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

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

    Crystal Mewhorter (23:55):
    Correct.

    Dan Mewhorter (23:55):
    Yeah.

    Jay Conner (23:56):
    Well.

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

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

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

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

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

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

    Crystal Mewhorter (26:28):
    Absolutely.

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

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

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

    Crystal Mewhorter (27:23):
    Great.

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

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

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

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

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

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

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

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

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

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

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

  • 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!

  • Matt McKeever, BRRRR Investing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Joanne Musa, Tax Liens and Private Money

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    Jay Conner (00:05):
    Well, hello everybody there! And welcome to another episode of real estate investing with Jay Conner. I’m Jay Conner. Your Private Money Authority and the host of the show. And welcome! If this is your very first time, a very special welcome to you. You may be watching on the iTunes or listening on iTunes or Google Play. You may be watching live right now. If your live stream on mobile Youtube channel or on facebook. Or wherever you’re coming in from, we’re glad to hear or have you. If this is your first time here on Real Estate Investing with Jay Conner, we’ve talked about everything that relates to real estate from finding deal to funding deal. To automating your business. To all kinds of real estate. Single family houses, self storage, land, commercial deals. You name it. So today, for the first time since we launched the podcast. And my lands! We’ve now exceeded probably over 300,000 downloads and listens since we’ve launched. Got a subject today that we have not talked about on the show.

    Jay Conner (01:26):
    So I’m very excited to have my special guest. And if you’ve been following me, you know, that I have the best amazing guests and experts as it relates to real estate investing. Well, today is no different. I’m so excited to have my special guest who is known online as The Tax Lien Lady. And she’s the author of the books, “The Truth About Tax Lien Investing” and the Amazon best seller, “Tax Lien Investing Secrets: How You Can Get 8% to 36% Return on Your Money Without The Typical Risk of Real Estate Investing or The Uncertainty”. And we know about that folks! The uncertainty of the stock market. And she’s also a contributing author to the Amazon best seller, “Trust Your Heart: Transform Your Ideas Into Income” Now, my special guest, she’s been featured in the online magazine, NuWire Investor and Foreclosure News Report. She’s also been on real estate investing website, www.REIWired.com and for ForeClosure.com and addition to that, REIBluePrints.com. And she was mentioned in the January 2013 issue of Forbes Magazine. Our special guest, also known online as Tax Lien Lady, her articles on Tax Lien and Tax Deed Investing appear all over the internet. Her easy to follow step-by-step guide – nonsense approach and to investing in tax lien certificates and tax deeds.

    Jay Conner (03:05):
    And it earned her the reputation of being the most trusted authority on tax lien investing in the United States. Now her website is www.TaxLienLady.com. She has actually helped thousands and thousands of investors around the world answering their questions about tax lien investing and tax lien certificates and tax deeds. And has helped her subscribers and students to profit from this little nutting and misunderstood real estate investing strategy. Now, when you stay on here to the end of the show, you’re actually, we’re going to tell you, she’s going to give away for free her Amazon bestseller book, and you’ll learn how to get that. So with that, I’m so excited to introduce everyone here to Joanne Musa! Joanne, welcome to the show!

    Joanne Musa (03:56):
    Hey Jay! Thanks for having me. I’m honored to be here today.

    Jay Conner (04:01):
    Absolutely. I’m excited to have you on Joanne. And by the way, we’ve got live participants right now that have already tuned in. So everybody, if you are watching the live stream, of course, this isn’t going to work. If you’re listening on iTunes or Google play, but if you are on the live stream right now, we welcome your questions about tax lien investing. So right now, if you’re on the live stream, go ahead and say, hello and where you are tuning in from. I see we’ve got Lori and we’ve got Paula on so far. So everybody say hello as you’re coming in. So gentlemen, before we dive in to this tack this world of tax lanes, how’d you get started in real estate?

    Joanne Musa (04:43):
    Oh, well, you know, I always wanted to be a real estate investor, but the one thing that I didn’t know how to do, I don’t have a, I didn’t have a background in finance or real estate. And I, I didn’t know how to negotiate. So one thing I didn’t like to do is negotiate. Back in 2000, I was reading books by, I was reading books by Robert Allen about, you know, no money down and real estate investing and multiple streams of income. And I tried go into foreclosure sales and sending out pre-foreclosure letters. And this was at a time when people could get loans easily and pay off what they owed. And I just back then, I didn’t know how to do it. Now, since then, I’ve learned how to do it. But what I found out was that I could invest in tax liens and go to these tax lien sales, and I didn’t have to negotiate with anybody. And I didn’t need a lot of money because back then, I didn’t know how to use other people’s money. I didn’t have good credit and I didn’t do deals. You have to have cash. And of course, if you know how to get back, then I didn’t know how to do that. So one thing I did know is that I had enough money. I could go to these tax sales and buy these tax lien certificates. And that they had a high rate of return, no matter what the market did. I still got the same rate of return on my investment and it was backed by real estate. So it was a safe investment, as long as I did my homework, which I learned in the very beginning. You do have to make sure that it’s good real estate that you’re buying a lien on.

    Jay Conner (06:45):
    I got you! So you started doing the tax lien business in what year?

    Joanne Musa (06:51):
    Oh, 2002.

    Jay Conner (06:53):
    Oh, wow!

    Joanne Musa (06:54):
    Yeah. It’s been a little while.

    Jay Conner (06:58):
    So let’s first be clear and let everybody make sure we’re on the same page. Exactly. What is a real estate tax lien?

    Joanne Musa (07:11):
    Oh, good question. Good question. Well, you know that your property taxes are depended on by the County or municipality where you live, who collects your property taxes. They need them to pay school teachers, build roads, pay other civil servants, like firemen and policemen. So what do they do if people don’t pay their taxes? Because they need that money to meet their budget. So in some States, I live in Pennsylvania now. When I started this, I lived in New Jersey. But in Pennsylvania, if I don’t pay my taxes, the next year my property will be sold out from under me in a tax sale. They’ll just sell the property. Okay, well, they’ll let you go a year delinquent. And after that, they’re gonna, they will, they are going to try to get you to pay it. But if you don’t, they’re going to put your property in a tax sale.

    Joanne Musa (08:09):
    But some States, when I lived in New Jersey, they don’t sell your property. They give you a little bit more time to come up with the money. So what they do after your year delinquent, they sell your taxes to investors. They have an auction. Where they auction your taxes and different States do it different ways. Some they bid down the interest rate because in New Jersey, the penalty, if I don’t pay my taxes, if I went up property in New Jersey, there is a penalty that I will pay when I finally pay it, which is 2% to 6% penalty. And there’s also an interest per annum interest rate of 18% per annum. That I will have to pay. When I finally do pay those taxes. Well, guess what? The investor gets that. So that’s why they are so willing to buy those taxes because where else are they going to get that kind of investment return on their money?

    Joanne Musa (09:07):
    Not in the bank today. Not, years ago, you used to be able to get that in a CD, but not anymore. They can maybe get that in the stock market, but look, what’s been going on lately. It’s a little bit risky to do that. Now, but when you buy somebody’s taxes, if they don’t pay you in a certain amount of time, that’s called the redemption period. Then what happens is the investor gets to foreclose on that property. Now that is their leverage that they’re going to get paid. So you have that property is your guarantee that you’re going to get paid. Okay. So that’s why it’s very important to do your research and make sure it’s a good piece of property because there’s a lot of reasons why people don’t pay their taxes. If I have an unbuildable lot next to my house, that I know that I can’t build on, can’t do anything with, and maybe it’s not next to my house.

    Joanne Musa (10:02):
    Maybe it’s, you know, a block away or a town away or a state away, but it’s not buildable. Why do I want to keep paying taxes on it? Well, I’m going to get tired of that after a while. So I’ll just stop paying. So you don’t want to come along and pay those type of taxes. You want to pay taxes on a property that is useful in some way. You know, it doesn’t have to be a three bath, two bedroom house. If it’s a buildable lot, that’s good commercial property is good, but it’s just something that you’d be able to sell or something that has value.

    Jay Conner (10:37):
    I got you! So comparing tax lien investing to other types of real estate investing, why is, why have you chosen tax lien investing? Why is it a good investment versus say, other strategies?

    Joanne Musa (10:56):
    Well, it’s easy to get into because you don’t need a lot of money. You don’t need good credit. It is a real asset that it’s backed by a real asset, which is the property. And it’s in the state that I lived in, in New Jersey, there were tax sales all the time that I could go to. So that’s how, it was an easy entry. It’s an easy entry point for most people to get in.

    Jay Conner (11:28):
    Right! So is it correct in saying, when a real estate investor invest in a tax lien, they’re either going to earn the interest or they’re going to be able to claim the property and do whatever with the property that they want to, is that right?

    Joanne Musa (11:49):
    Yeah. And I just want to let everybody know that, I know years ago there were these infomercials and people think that you could buy a lien for maybe a couple hundred dollars and then get a hundred thousand dollar house. It doesn’t usually work that way. Think about it, if you own, let’s say you own a house you know, that’s a $150,000 or $200,000 house, and you have you know, maybe $5,000 of back taxes that you owe. Are you going to let that property go for those back taxes? If it’s a decent property? Probably not. It doesn’t happen very often. So it’s not really a way, buying tax liens is not a way to get property for pennies on the dollar. There are some States like my state, where they actually sell the deed in the sale. And those are the sales where you could actually get the property, but are you only going to pay the back taxes? Probably not because these are auctions and the price of the deed gets spit up at the sale. So can you buy it for less than you would pay if you went through the normal channels? Yes, you can. But it’s more like 50 cents on the dollar, not pennies on the dollar anymore.

    Jay Conner (13:17):
    Well, I’d tell you 50 cents on the dollar. You know, if it’s a good property, is a fantastic deal. I mean, I buy a lot of, a lot of single family houses and those that we rehab, which were most of them we buy them at 30 to 40 to 50 cents on the dollar. So that’s, it may not be pennies, but it’s, you know, 50 cents is 50 cents. Right?

    Joanne Musa (13:41):
    Yeah. And also these, like you alluded to, when you say most of the time we have to rehab them. Most of these properties have been neglected. Some of them are even knocked down. So, and you know what I’m talking about when you buy stuff for 30, 40 cents on the dollar, you know, you kind of get what you pay for.

    Jay Conner (14:03):
    That’s right!

    Joanne Musa (14:03):
    Yeah. So you just have to think about how much more money you got to put into it before you can turn around and make a profit when you’re buying a tax deed. But what I use tax liens for is a way to invest my money at high return. Without, as my, the title of my book says without the typical risk of real estate investing or the uncertainty of the stock market.

    Jay Conner (14:26):
    Right. Right. Well, now you’ve already mentioned it, then you sort of chuckled when you said it and that was you found out early on that you really need to investigate the property to make sure it’s a good property. And that’s probably the biggest mistake that new people in the tax lien investing do is not checking it out. So what’s your process on investigating property to see if it is a good property and what’s the definition of a good property?

    Joanne Musa (14:57):
    Yeah. Good question. What’s the definition of a good property? Well, that kind of depends on what you’re after. As I mentioned before, I like building lots. Remember you’re paying the taxes on a property. So, and the taxes on a building lot are typically lower than they would be on a lot with a building on it. And anything that could be resold, anything that has value to another buyer is something that I would consider a good property. So commercial properties can be good properties. Residential properties can be good properties. And sometimes vacant land. If it’s buildable. Especially building lots can be good properties. But what you have to check is what I like to check is the assessment value. I check the assessment of the property. And then I will check the market value of the property. So you might want to check comps on the property. And then another thing that I like to check, especially if I’m investing in a place that I’m not familiar with is I want to check the crime rate in the area. So you’re not only checking out the property, you’re checking out the area. And Jay, you’re shaking your head. Cause this sounds just like real estate investing. Doesn’t it?

    Jay Conner (16:22):
    It sure does! Now, do you invest in the tax liens, just right around in your area where you can drive by the house or do you invest in areas that are outside of your area?

    Joanne Musa (16:37):
    Well, I’ve done both, but I will say I do. I always recommend. And I do like to look before you buy. Whether it’s just a tax lien you’re buying or whether it’s a house, you know, a deed that you’re actually buying the house. And the reason is because if you look at pictures online, you might see a house there, but when you drive by it, that house might be gone. There I’ve been, I’ve been there, done that. And a good thing, I looked first because the house wasn’t, that was supposed to be there. That was there in the picture wasn’t there. Maybe it burnt down, maybe it got knocked down.

    Jay Conner (17:16):
    Maybe that’s, maybe that’s probably stop paying taxes.

    Joanne Musa (17:22):
    Well, exactly, exactly. So you don’t, and with land, you always have to look at it first because you can’t tell what it looks like from a picture or a map. You don’t know what the grade is. You don’t know how wet it is, how Rocky it is. You don’t know if it’s buildable and sometimes you don’t even know if you look at it, if it’s buildable. So you have to check with land. I also recommend checking with the zoning officer. To make sure that it’s buildable. And you also want to look for things like road access. You want to make sure it passes zoning regulations, that you have the right road access, that it has a utility access. That utilities are there or where the property is. It’s different things that you look for.

    Jay Conner (18:18):
    I know, I know you’ve got a ton of students. I mean, how long have you been teaching what you do?

    Joanne Musa (18:26):
    Well, I’ve been doing this since 2002 and in 2004, I started, how I got started was I was investing in New Jersey and I ran into somebody else who was trying to figure this out the same time I was. Well he asked me if I would work for him and he had a lot more money than I did to invest. And he was after the larger liens and I was after the smaller one. So I said, yeah, sure. If I could buy liens for me while I’m buying them for you, I’ll do that. And in New Jersey, unlike it is in some other parts of the country, the tax liens are not big County tax liens. They’re small municipal liens. Municipal sales. So there are over 550 municipalities in New Jersey and each one has a tax sale once a year. So on any given day, there could be a few tax sales all the same time on the same day.

    Joanne Musa (19:20):
    So I hired five other people and taught them how to find out about the tax sales, how to do the due diligence, how to bid at the tax sale. And I even helped the person I was working for develop a software program to manage the liens. And so after doing that, I realized there were people all over the country and even all over the world that wanted to learn how to do this. And so that’s when I, I started my website around 2005. I started teaching around 2004, but I started my website in 2005.

    Jay Conner (19:58):
    Okay. Wow! Well so you’re like me, I do the business. I coach. I teach, and I teach the business. And I’ve read. And I don’t know if we have time for you to go through it here on the show, but I’ll ask you about how much time it takes you, but I’ve read where you actually have five steps to, for people to take, to buying a profitable tax lien. Can you give us the 30,000 foot view of each of those five steps?

    Joanne Musa (20:30):
    Sure. You could use the acronym steps. S T E P S. Let me see if I can remember them first though. Since I did this. But they’re, they’re also all in my book. I actually have seven steps for the complete process because after you buy the liens, there are other things that you have to do to make sure that you’re profitable. Okay. Once you buy liens.

    Jay Conner (20:56):
    You said thos steps are in your book, is that in the book that you’re going to give away here at the end of the show?

    Joanne Musa (21:01):
    Actually, you know what I’m going to give away. I’m not going to give away the book that’s on Amazon because I don’t have enough of those to give to everybody. But I have a, I have a special report called the seven steps to building your profitable tax lien portfolio. And those seven steps are all outlined in there.

    Jay Conner (21:23):
    Okay! Great!

    Joanne Musa (21:23):
    And the first one is, I could give you the first one and that is, Select The Right Place To Invest. That is, that is the first S in the steps, five steps process.

    Jay Conner (21:35):
    That’s awesome! That’s awesome! So, I know it’s all over the board, but you know, you got it. You got started in this strategy because you know, it’s a low entry, doesn’t take much money. So what’s the definition of not much money? I mean, I know that depends, but like, what are some examples of like real amounts of money people need? You know, what’s an example of being able to get started, you know, doing this?

    Joanne Musa (22:05):
    Okay. I’ll give you an example. One of the real profitable liens, I did back in 2002. My original lien was for less than $500.

    Jay Conner (22:19):
    Okay.

    Joanne Musa (22:19):
    And it was in New Jersey where I invest, they don’t just sell taxes in these sales. They will also sell utilities. Anything that you owe to the municipality and don’t pay can go into this tax sale. You get a tax lien certificate, and it’s just as good as, you know, a regular tax as the taxes. So this was for the water and soar amount, I believe for this property. And it was for 400 and change was the first amount that I paid. And then every, the next year I got to pay the subsequent taxes. And I paid them for the next few years. And then when this thing finally redeemed, and then I stopped paying, I think after seven years. Now, you can’t let all your liens go that long, but in New Jersey you can.

    Joanne Musa (23:08):
    And so that’s like being able to put money away at anywhere from 8% to 18%. And without having to go to a sale and bid, once you have that lien, you could just keep paying those subsequent taxes. And then years later, I made over 40% on my money. I think in seven years that it finally redeemed and I made you know, almost doubled my money and that, it’s not the only incidence where I did that. As a of fact, I have another secondary lien that I bought where I put up a little bit more money and made about 30% on my money in 18 months. So it, and that, that lien was you know, was a couple thousand dollars.

    Jay Conner (24:06):
    Okay. So yeah. We’re not talking anything about huge amounts of money.

    Joanne Musa (24:10):
    No, yeah. That’s the, see, small investors can do this when you’re doing it on your own. When you, when you have somebody else do it for you, you have to come up with a lot more money, but when you’re doing it on your own, you could start with smaller amounts.

    Jay Conner (24:26):
    Excellent! And the free report that you’re going to give away, and we’ll give out the website here in just a second, but does it like tell, does it tell people how to get started and like where to go? I mean, you know, where do you go in your local area to find out where the sales are? And when the sales are?

    Joanne Musa (24:44):
    Well, here’s the problem with that. It’s different for every state. I do have, I’ll tell you what, I do have another program that I could give to your listeners. And it’s called the Sweet 16 Tax Sale website, swipe file. And that’ll give them 16 places they could go to find out about tax sales. 16 different tax sale websites, because that changes. Now I have a special tool that I use to find out what tax sales are coming up around the country that, that I give to my members. But they can not, they can find out about that after they get the basics, you know, and I doubt if it’s the right thing for them or not.

    Jay Conner (25:36):
    Well, I’ll tell you what, Joanne, let’s not hold it back anymore. Let’s go here and put up on the screen and those that are listening, write it down. Here’s the website where you can go to get Joanne’s free gifts that she just mentioned. To get you started to learning about tax liens. You go to www.JayConner.com/TaxLien And just to make sure you got that straight tax lien is T A X L I E N. That URL one more time. It’s www.JayConnner.com/TaxLien Joanne, final words of advice here on this show for our listeners and followers who want to learn about getting higher returns on their money without the risk of the stock market. Final words and thoughts.

    Joanne Musa (26:35):
    Well, I believe the best place to invest is in your own backyard where you know, what the property values are. And you just need to check out what happens in your state, in your County or in your town, depending on what state you’re in, because it is different in every area of the country. So you want to find out what happens in your particular area of the country.

    Jay Conner (27:03):
    Wonderful! Joanne, thank you so much for taking the time to come on the show and for offering your wonderful, valuable, free gifts to my folks. Thank you!

    Joanne Musa (27:14):
    You’re welcome. Thank you for having me on your show!

    Jay Conner (27:17):
    You bet it Joanne! Well, 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. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show!

  • Jim Sheils and 18 Summers

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    Jay Conner (00:02):
    Alright, Scott! It looks like we are live streaming right now. So come on up here up front Scott and join me for a moment and we’ll hang out before we officially start. So what’s going on in Metagene Columbia right now?

    Scott Paton (00:23):
    Well, it’s another beautiful day. We’re having a, it’s, we’re excited because in a few days the quarantine is over and it will be replaced by who knows what it’s not going to be like everybody opening up and dancing and sightseeing, and eating and drinking like they did before. But it’s easing off, which is really good. We’re very fortunate here compared to Peru and Ecuador, and certainly Brazil in that we’ve had a lot lower number of people who have died and a lot lower number of people who have been sick. So they’re a little concerned that if they open it up too fast, everyone will be, will get ill. But I’m suspecting if we’ve been pretty much alone for a month and a half or two months to the corona virus has done its thing and it’s time to get out and get some fresh air and be out in the mountains. So…

    Jay Conner (01:13):
    Yeah. Well, my lands! I’ve heard you say over the last few weeks that they don’t let you go outside for one hour a day.

    Scott Paton (01:22):
    Only one hour a day. Two to three, and you have to be under 60 years old. So I’ve cheated on that one. But I don’t get away with it because I look 25. So…

    Jay Conner (01:34):
    You definitely look less than 60 that’s for sure. I was going to say, though, they like to do different hours for different. Like, if your name ends in a P like Paton, you got a certain hour, you go out or they just let the whole world up for an hour.

    Scott Paton (01:48):
    Well, isn’t that weird, right? The whole world comes out from an hour. Now they pick two to three, which is the hottest time. So most people don’t want to go out and you have one day a week where we’re based on the last number of your like driver’s license. You can go shopping in the big stores, but the little shops like around me, they are just happy to see me. They don’t care what they have of the week. It is. And so it’s kind of a little bit loosey goosey that way,

    Jay Conner (02:14):
    Mercy. So if you’re just now coming into the live stream, go ahead and type in the comments section and let us know what’s, where you are tuning in from. Cause we always like to know. And I got a really special guest that I’m going to be introducing to you in just a moment. But before I do, I want to let everybody know what we’ve got going on for the next two Fridays, I’ve got two free trainings. And you can go learn all about it. And these are actually free. This coming Friday, May 29th. And then again on June 5th, Friday, you can go to www.JayConner.com/fortune. And one, we’ll be talking about the next two Fridays, this coming Friday, it’s going to be a position or teaching you the 30,000 foot view of my foreclosure system, how it is that we you know, locate foreclosures before other real estate investors know about them.

    Jay Conner (03:19):
    And as pertains to COVID-19 I had to learn how to do this virtually. So again, that’s 9:00 AM Eastern to 5:00 PM Eastern, this coming Friday. And then again on June 5th I call it, I’m gonna be teaching how to get what I call free private money. And that is of course you all know I’m known as the private money authority, but how you can actually get your deals funded without even having to raise private money. So again, you can go over to JayConner.com/fortune and learn. And get registered. Okay. Get registered to attend for these two upcoming Fridays.

    Scott Paton (04:04):
    So Jay I just want to cut you off just for a second, and just say that we had our first Friday last Friday, it was awesome. We had over 2,500 attendees for the, throughout the eight hours. Pretty amazing. And when you go to JayConner.com/fortune at Jay is talking about private money, he’s the private money authority last Friday. And I put the embed of that full eight hours of training on that same page. So you can watch it, whether you register or not. But if you want to see the next step, like these all fit together very nicely, then make sure you go, you register, see what happened last week, and then you’ll be prepared, really prepared for what’s going to happen this coming Friday. And we’re really excited about what we’re going to be sharing with you.

    Jay Conner (04:50):
    And there is Dan! Hello, Dan Mewhorter. A mastermind member. Jay, these free sessions are incredible packed full of content. Anyone enters through the learning how to get into real estate investing or need to up their game need to be on this. Awesome. Dan! Thank you for the shout out. Alright, well, Scott, I’m ready to officially start this show and podcast. How about that?

    Scott Paton (05:16):
    Alright, here we go.

    Jay Conner (05:17):
    Alright. I’m going to give you three seconds of silence and here we go.

    Jay Conner (05:31):
    Well, hello everybody. And welcome to another episode of real estate investing with Jay Conner. I’m your host, Jay Conner. Known as “The Private Money Authority”. And I’m just so glad you’re here. So you may be viewing live on the stream yard right now, or you may be listening to our podcast. It’s on iTunes and Google play. Or you may be watching on YouTube or et cetera. Regardless as to whether you’re watching or listening live, or you are listening or watching the replay, we’re glad you’re here. And, you know, we launched my podcast, we’ve launched the show. My lands! It was June, 2018. I can’t believe that much time has gone by. Anyway, we have another show today and I’ve got a very special guest we’re in a high end mastermind meeting together, and his name is Jim Sheils. Let me tell you a little bit about Jim and then we’re going to bring him in from the green room.

    Jay Conner (06:27):
    So Jim has been a full time real estate investor all the way back since 1999. So Jim’s been doing it longer than me. I went full time in 2003 and Jim’s ventures have done over 1000 acquisitions and rehabs. That’s a lot of properties. So, getting a star in the Bakersfield, California, a left there in 2005, headed over to Northeast Florida. That’s where he is now. So thought of the longterm growth patterns that were predicted for that area. So after 2008, and of course it was your recall. It was because of 2008 and 2009. That’s how I became known as the private money authority. I was cut off from the banks and learn how to get a lot of private money fast. Nonetheless, after 2008 Jim’s company did a bulk of foreclosure properties until switching their model to new construction, to adapt to the changing market conditions and needs.

    Jay Conner (07:29):
    So Jim, forming a very dynamic of building partnership called Jack’s wealth investments. They now focus on catering to investors in single family and small multiunit development in Jacksonville, Ocala, Palm coast and Atlanta, Georgia as well. Now, the big reason that I’ve got Jim here on the show today is because he runs a family education company called 18 summers. And I can’t wait to hear the story behind him naming it that. But what this education company does it specialize in talks, workshops and retreats for entrepreneur families. They all, Jim also wrote his bestselling book titled the family board meeting that went to number one and categories of relationships, parenting and entrepreneurship. So Jim is an expert in training and teaching on how to have balance in your life and in your business. In addition to that, Jim is also an avid surfer. Andrew was traveling with his family, particularly when we come out of COVID-19, the travel will be turned back on and especially loves traveling with his beautiful wife, Jamie. And their four children. So anyway, what an adventurous guy and Jim’s greatest adventure today was donating a kidney to the greatest guy on this planet from his perspective. And that of course, was his father. So with that, Jim, welcome to the show.

    Jim Sheils (09:06):
    Hey Jay, good to see you! Good to be here,

    Jay Conner (09:09):
    Great to see you fellow CG member. Great to have you here on the show, Jim. So I’m just so excited to have this conversation with you about balancing life, balancing business, and to learn more about your workshops and your, and your retreats that you do. But I gave, I gave the folks part of your background, but you started back in 1999. How did you start? What got you into it?

    Jim Sheils (09:35):
    Yeah, I had always wanted to do something on my own and like most entrepreneurs, I started delving into everything from franchises to other business opportunities and I kept falling back on real estate and I like the tangibility of it. It made sense to me, you know, how to, how to take something and pull the levers to add cash flow, to add equity. That made sense. And so I just slowly started going into real estate investments out in central California, where it was where, Bakersfield, California was the blood of Johnny Carson’s jokes for years, but it was an investor’s playground where property started at 40 to $50,000, which is a lot better than you know, Santa Barbara County to two hours over the medium price is 900,000. So I just I had always had, yeah, it was crazy, crazy, crazy. So, yeah, that’s how I got my start. I knew I wanted to do something on my own. I just started getting training in real estate and pulling the trigger, you know, and I always joke, what’s your, what’s the best real estate class you ever took? And I say 432 North M street. That was the first property I ever bought 21 years ago. So that was my best lesson ever.

    Jay Conner (10:49):
    Wow! That’s an amazing story. So, in your introduction that I was sharing with folks you did like over a thousand acquisitions and rehabs and et cetera, but what was it that caused you to switch over to your new model and tell everybody more about what your new model is?

    Jim Sheils (11:12):
    Yeah, well, I guess I always wore that badge on my shoulder, right? I’m a rehabber! I’m a rehabber! And you know, it’s tough to teach the old dog new tricks and I was the old dog by then. You got used to something and we did really well coming out of 2008 here, you know, when there was all that bank inventory, we got really good at finding foreclosures and renovating them and putting them in our own portfolio or working with other investors to build theirs. And the problem was Jay, about five years ago, man, those numbers started to change. You know, they were getting bid up. The numbers weren’t making sense. You’d have to cut corners if you really want to make the numbers work. And I don’t like to cut corners. So my now building partner who I had done deals with before said, you know, we should try some new construction.

    Jim Sheils (11:59):
    And that was almost like, wow! What are you saying? Don’t, Those are, that’s a terrible word. We’re rehabbers. And sure enough, it was the right thing to do because we weren’t able to find old house inventory anymore where the numbers worked, but although new construction, so we basically do build a rent. Now we build new construction homes that are designed just for investment property and we focused on single family, duplexes and quads. But what we’ve been able to find is better inventory. It takes longer, there’s more effort to it, Jay, you know, so we had to, you know, learn some new muscles with developing and zoning and longer timeframes, but overall for ourselves and our clients, it’s more predictable, better areas, better properties, better longevity just a stronger overall investment. So it’s, it was a big jump five years ago, but I’m really glad to the point now where I used to have that big rehab badge on my shoulder. I refuse to do rehabs anymore. I just won’t do. I’ve just completely switched over to the other side.

    Jay Conner (12:59):
    Okay. Excellent. Excellent. Well, let’s dive right on in to 18 summers. And what that is? How you got the name? And why you started doing it?

    Jim Sheils (13:14):
    Yeah. So 18 summers was a lesson that a mentor of mine taught me. I first started doing family talks and I had written my book, you know, a bunch of years ago. And he said to me, Jim, you’re really onto something because there’s so much out there that’s available for the entrepreneur to grow their business, but not to keep their family intact. And what I always wanted to see, and I saw this at a young age, I got, I was able to get on stages at a young age at different events. Cause I had some success in real estate, but I saw some people who were highly successful in business and they were completely failing at home. And frankly Jay, that scared me. I didn’t want that to be me. So this was out of my own necessity and need to make sure that I stayed in that success in business and success at home combination.

    Jim Sheils (13:58):
    And so my mentor was talking about that and he said, look, the years are not all created equal. You’ve got 18 summers. And he’s like, and I looked it up. The stats show 85% of quality time people. The average person ever gets with their family. Their children occurs by the end of the 18th summer because then they start to go off and the amount of timeframe goes down and that just gave me a positive motivation. And now when I went into my talks and workshops that gave the same positive motivation to others, how do we make the most of that time without taking away ambition? Cause I’m very ambitious, you know, being an entrepreneur, but I want to have that double success, Jay success in work and success at home. So 18 summers became, I believe the only family education outlet designed specifically for entrepreneur families to make sure that you can have the best of both worlds.

    Jay Conner (14:46):
    I got you. That’s fantastic. So let me let you put on your training hat on your coaching hat right now and share with our audience, what are some of the strategies that you, that you teach and train at your workshops on how to achieve that kind of balance.

    Jim Sheils (15:12):
    Sure. Let’s go through a couple of principles that I think will stick with people. One of the best compliments I get is what we teach is very, stickable, it’s easy to understand, easy to buy into, easy to apply and see results. So let’s give a couple of those today. You know, going through our world changed as you know, Jay post COVID, you know, it’s, everything got brought home work, family school, you know, everything’s happening from home. So couple of things came into life. And one of the things is the importance that you have in the position of your family, of setting the leadership tone, you know, focus, breeds, increase, and people were talking about toddler meltdowns and teen grumpiness. Can those things be eliminated? No, but they can be minimized. And I believe a lot of it has to do with how are you handling your self in front of your family?

    Jim Sheils (16:02):
    You are setting the tone. And sometimes we forget that. That it’s, that trickle down effect. And so I always try to remind people what tone are you setting at home? You know what tone are you setting? And one of the worst tones that you can set when you’re having a bad business deal, when everyone’s pulled up onto the sidelines, by something like a COVID-19 is, do you have the awareness to step back and say, Hey, this is not my family’s fault. Now, a lot of people don’t even think about that, but that’s really important because you get wrapped up in a deal going wrong, or you’re taking a call in your living room, which you shouldn’t be, you should be separated and your kids act like a kid and yell and you get upset, you know, or you say, well, no, I’m not taking it out on them.

    Jim Sheils (16:47):
    But when you stop and think, if we’re showing shortness, anxiety, a little bitterness and our family’s feeling the brunt, and it has something to do with business and not them, that’s not a good tone to set. We got to remember, it’s not our family’s fault when these big things happen. And also we set the leadership tone. And if we can show ourselves to be stronger leaders, more calm, more playful, more not, I’m not saying overly optimistic, you know, like purple, you know, the Rose colored glasses, but that sets a tone that will trickle down to your spouse and children. So one of the most important jobs is as the leaders, that…

    Jay Conner (17:25):
    What I love about that principle and I’m glad you call that principle because what you just said is so foundational. What I love about it, it reminds me of a Jack Canfield’s very first principle in his book, success principles, which is, I am 100% responsible. Right? And what you just went over is you are bringing to light there that what we’re experiencing in our home life is a manifestation of us. That’s excellent. Excellent! Very foundational.

    Jim Sheils (18:07):
    Then it gets us back to the foundation back to the core. And that’s really important, especially when you’re thrown into a bunch of deals or you’re thrown into a pandemic, we all get shook up. So then we have to breathe in and reground our feet. And that’s one of the best things to remember. I set the tone. And I’m not going to set it perfectly, but the better I set it, the better things are going to be. So that’s a big one. A second one Jay, that I love is, we all heard about in COVID again, not to keep going back to COVID COVID about social distancing, right? That’s I get it. That’s, that made sense. But what about tech distancing? The principle of tech distancing, Jay is absolutely essential right now essential. And it’s got two parts to it. First, if your home don’t be worked puking in your living room.

    Jim Sheils (18:58):
    So let’s say you’re standing there, your family’s having a great family moment that buzz in your pocket happens with a text where you’re taking a phone call. And then all of a sudden you’re getting heated in front of them, or you get off the phone and you’re standing there with a scalp because something didn’t go right. You’ve now just mixed over the lines. And that’s just not fair. It’s your, we call it half in parenting. You’re trying to be part of the family. Take the tough work call and especially through pandemic or something. They might have been some pretty heavy conversations and maybe it’s not something our younger kids needed to hear. I always say first step in tech distancing is you gotta distance yourself from your family to take calls, emails, and then before you step in and take a few deep breaths, and then you go back again.

    Jim Sheils (19:42):
    But I can tell you the day two of the pandemic, Jay, I was helping someone who was in a bad real estate way. And they were in commercial. They had a bunch of lease stores. It was heavy. And I was feeling like they’re getting taken advantage of, and I was, I was passionate. I cared about this person and their deal. Well, I’m texting, I’d put the thing away. And I’m kind of talking to myself like the crazy entrepreneur I am. My little five-year-old standing in front of me. And she goes, daddy, why are you so mad at me?

    Jim Sheils (20:08):
    I didn’t even see her standing there. And so it’s like, wow! Again, talking about setting the leadership tone. I said, there’s a time and a place for these calls. And it’s not right in the kitchen with my kids around me. So the first step of tech distancing have a time and a place. Whether if you couldn’t get to your office, I don’t care if it’s a closet or your car, we’re going to take those emails. You’re going to take those calls. You’re going to find a quiet place. Even though I have four loud kids to do a podcast, right? So that we can talk and we can do this. And then the second side of tech distancing, Jay, is you have to have times of being completely and totally unavailable to work, to be with the people in front of you.

    Jim Sheils (20:44):
    If you’re always snagging that text or that Facebook thread or that call or email, you’ll never truly be present. You’ll always be getting pulled out of things and then you’ll be going, geez, we don’t really seem that connected. And we’ve all tried that where we fake, like we’re listening to our spouse or one of our children. And they notice, we think maybe they didn’t notice that we didn’t hear what the hell they said, but it just sets a really bad tone. So you gotta have times where you’re completely and totally unavailable. Shut off. We do a shut off every day at our house, Jay 5:30 to 7:30. It is the tech fast tech distancing. There’s no phone, no laptop, no TV. Everyone is just, we’re not sitting there staring at each other, but all tech is off. So that way, you know, the people right in front of us. So the conversation can flow without an interruption.

    Jay Conner (21:34):
    That is an excellent suggestion. I mean, what I do to where I’m not even tempted to, you know, respond to this, right? I can put it in another room. Where I can’t see it. I can’t hear it vibrate. And I love this again, principle that you’re sharing and it, you were explaining it. It reminds me of a mentor that I had decades ago. And he used to tell me all the time. He said, Jay, wherever you are, be there!

    Jim Sheils (22:15):
    I’ll tell you real estate investors. We wear this badge. Like I’m always available. I gotta work this deal. Almost anything can wait two hours. Almost anything. And there is nothing more rude. We say, well, we got to provide, we’ve got to protect. We’ve got to get the deal through. I get it. I’ve been a real estate investor 20 years. But to jump up from the dinner table for a mundane detail is setting a really bad example for what matters most. And for, would you want your kids doing that down the road? The answer is probably no. So a little bit…

    Jay Conner (22:49):
    Again, you’re setting the example. I love it.

    Jim Sheils (22:53):
    Exactly. It’ll go down. It’s tech distancing is a very powerful and simple. When people think about it, it’s okay to turn off and recharge. Even as a real estate investor, you know, a one hour a day can do wonders if you’re doing it during the things during, during certain hours where you’re around your family, you’ll start to see, wow, we’re having a deeper conversation. I actually am seeing things I’m actually listening. This is incredible. But even if that phone just on, you’re waiting for that “zzt-zzt”, you know, in that pocket, your brain goes out the window. So practice tech distancing, Jay, it works huge. Another thing that’s really important right now, especially this is good. Especially you being the private money guy, you know, non QM money went away.

    Jim Sheils (23:33):
    You know what I mean? There’s lots of stuff that’s changed. I believe certain real estate is going to do phenomenal. Others are going to be challenged, but Jay, if I learned anything in 2008 and we survived 2008, we were heavily invested in California, in Florida at the time, that was not a pretty sight to go through 2008. You know, values dropped 60% wrench dropped 40% a totally different time. And I’m more excited now, obviously then I wasn’t no wait, but let me tell you, Jay, there’s two things people have to look for right now. This is going to be good for real estate investors. You should get support, but there’s two types of support out there. There’s moral support and there’s technical support. Now in 2008, I would take as much moral support as I could get. You should be given some of your friends and family coming through the pandemic or a challenge, moral support, but you might not be in the position to give technical support.

    Jim Sheils (24:24):
    And there’s a big difference. I remember in ’08, people were wanting to help me, you know, through the real estate things. They wanted to give me technical support and they weren’t really in the position to do so. Where I’m sure Jay you’ve had the same thing where, you know private money. But there’s sometimes you see that out there. It’s almost like the Baker’s trying to teach you how to cut meat. It doesn’t go together. Right? If you go to the butcher to learn how to cut meat, not the Baker, go to the Baker for baking the bread, but there’s always that crossover. So I always encourage people to save efficiency and effectiveness, to have more time with your family. There’s two types of support out there. There’s moral support take as much as you can and give as much as you can. There’s technical support, technical support, Jay.

    Jim Sheils (25:09):
    There’s probably, I bet you you’d say there’s probably maybe three, four people in the world. You’d feel comfortable talking on your niche and that’s it. And that’s what I’ve learned. There’s only about two to three groups that I go to for overall, what’s the economy going to do real estate wise. And I go to people who have a track record, people who called things for many more years than I’ve been even investing. And have real teams set up that show track record. And I think that’s really important right now in today’s day and age, you want to get the best results, like exactly what you’re doing. You’re giving technical support. Cause you’ve been there done that, but the problem is sometimes we still go for technical support to people who aren’t really in the position to give it, if that makes sense.

    Jay Conner (25:48):
    Yeah. What does giving moral support mean to you? What does giving moral support look like or sound like?

    Jim Sheils (26:00):
    So for example, I had friends that really struggled in retail post COVID. I could give them moral support, Jay. I’ve never done large retail. I’ve never had thousands of employees. That just wasn’t my thing. So there was a fringe type of technical, but for the most part of saying, Hey, I’m thinking about you, you know, hang in there, you know, there’s, there’s gotta be other guys going through this, find out what they’re doing, but I wasn’t going to be the one to stand up on the lifeguard chair and point for where they should go. Cause frankly, I didn’t know. So, the advice is more to tell him, to keep going to hang in there. Call if you need anything, don’t get too down on yourself. Remember self-worth and network’s got nothing to do with each other. Your family is still gonna be there no matter what happens, your real friends will be there. That’s that’s moral support. Technical support is saying, look, here’s how you renegotiate a, you know, a multi package lease. Here are the groups that are holding off on inventory control, where you could get your inventory paid down to a third of what they would have charged you. I don’t know how to do that. I’m no, it has to. So I’d be, I’d be faking it and that wouldn’t be right to do to them.

    Jay Conner (27:15):
    Yeah. Yeah. I believe I agree with everything you just said. And in addition to that, sometimes the best moral support that we can give people is a sincere listening ear.

    Jim Sheils (27:31):
    That’s a lot. Sometimes you don’t have to say anything, they just get it off their chest, you release it. I remember I had a lot of releasing conversations in 2008, Jay. And people just listened and that’s sometimes that, it clears your head just to get it out. And that’s really powerful.

    Jay Conner (27:51):
    Dan Mewhorter is here with us live. He just come in one of the great things about Jay Conner’s masterminds that we give and get moral support and technical support. Well, that’s so true. And that’s a great thing about masterminds. You know, the mastermind that you and I are in Jim. That’s all about giving and receiving the technical support and the moral support, you know, and plus another thing that I’ve discovered over the years when it comes to us entrepreneurs and I’m, my experience has been this relates to men and women. There’s just not the majority of the people walking around. Don’t understand us, does not understand balls. So it’s like, you know, like a lot of people don’t understand on people that are listening to this podcast, they get it because people listening to this show have an entrepreneur spirit, or they’re interested in entrepreneurial things. But now we have this thing called it’s hard to turn this real estate off in between our ears. Right? And you know, people accused us of being workaholics. Well you know, it’s really a challenge not to do what I did because I don’t even view it as work. It’s just what we do. But anyway, these are great strategies. If you have one more strategy you want to share with us or did you, or do you keep it to three?

    Jim Sheils (29:26):
    Yeah, I do keep it to threes, but let me, let me give you a bonus one that’s been really powerful for people. And this is like the cheat of cheats. You know, if, if you want a healthy shortcut, this is one of them, your spouse, your children. If you want to have a good relationship with each of them or up the odds of that. You gotta have one on one time, one on one time, this is something I learned in our retreats. Cause we would do whole family retreats and just two retreats with one parent, one child. The potency of one on one time, like a date with your spouse a day with your phone off. And just one of your children, let’s say you’re crazy like me and have four. It just, it puts the magnifying glass on the relationship in a positive way.

    Jim Sheils (30:10):
    And it opens up new conversations and attention that, you know, big family gatherings won’t. Like I come from an Irish Catholic family, which means I have like 7,000 cousins, you know, and that’s, that’s great, but those big, those big events are great, but it’s the one on one time that had the biggest effect on my marriage and on the relationship with my kids. So I would say just like, you’re going to schedule with your biggest investors to find your deals, schedule one on one time with your spouse and your children. And you’ll be amazed the difference and the depth that you get to just by those deposits of one on one time. It works.

    Jay Conner (30:48):
    I love it. I love it. But Jim, I can tell you what I also know, just in our visit here on the show, you’ve got a servant’s heart. I pick up on it. And I appreciate you coming on here and sharing just fantastic information on how people to really take care of themselves, grow their relationships, nurture the relationships that they have. So let’s give out your website, Jim, because I know our listeners and audience would really like to continue to connect with you.

    Jim Sheils (31:21):
    Yeah. If you’re interested in our build to rent model, you just go to JaxWealthInvestments.com And if you want a little help on the family side, making sure that your family is successful as your business grows just go visit us at 18summers.com. That’s 18Summers.com

    Jay Conner (31:42):
    That’s awesome. Jim, thank you so much. I appreciate you brother.

    Jim Sheils (31:46):
    Thank you, Jay. Good to be here.

    Jay Conner (31:48):
    Okay, everybody there, you have another show. I’m Jay Conner, “The Private Money Authority”. Everybody stay safe. You’re in the midst of a COVID-19 as we come out on the other side and I’m 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. Bye for now.

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