Unlocking Real Estate Success: Jay Conner’s Guide to Private Money Mastery and Investment Strategies
September 30, 2024 • 44 mins
Discover the power of private money in real estate investing with our latest episode featuring the brilliant Jay Conner. Jay's been a game-changer in the real estate world since 2009, never missing out on a deal due to funding. He introduces his revolutionary seven-day Private Money Challenge, a transformative program that shows investors how to secure private funds for single-family homes without directly asking for it. Learn why private lenders outperform hard money lenders and how you can lock in funding with terms as favorable as an 8% interest rate and zero extra fees.
Have you ever been told that finding a deal will magically attract funding? We debunk this myth and emphasize the critical importance of securing your financing upfront. Jay and I share proven strategies for finding lucrative real estate deals, such as leveraging Google and Facebook ads and building relationships with local officials. From identifying motivated sellers like out-of-state owners and tax-delinquent properties to the importance of consistency in direct mail marketing, this episode is packed with actionable advice to help you succeed in real estate.
Explore innovative strategies for acquiring properties under foreclosure, including the concept of buying properties subject to existing notes. Jay highlights how offering financial incentives to distressed sellers creates win-win scenarios, and we discuss the significant benefits of automation in real estate operations. With insights on the evolution of real estate investing and the value of having a knowledgeable mentor, this episode is an invaluable resource for anyone looking to thrive in the real estate market.
To learn more about Tony Johnson and Timeless visit us at:
https://timelessci.com/
https://timelessco.com/
https://www.linkedin.com/in/tonytimeless/
If you would like to discuss investing in Commercial Properties create a profile and schedule a call:
https://timelessci.investnext.com/
Reach out to us directly at:
info@timelessci.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Welcome to another episode of Carolina Commercial
Real Estate Connection.
Today we have Jay Conner withus.
Jay, thank you so much forjoining the show.
Speaker 2 (00:09):
Oh, my lands, tony, are you kidding?
It's my honor and pleasure.
Thank you so much for having mecome on.
I mean, I'm so excited to behere because we get to talk
about what I'm so passionateabout and that's private money,
because since 2009, I've nevermissed out on a real estate deal
for not having the money.
Speaker 1 (00:28):
That's fantastic, and that was a tough time to not be
missing out on deals.
So you know, that's that'sfantastic that you did that.
One thing that I wanted tobring up uh, get going here, jay
.
We were discussing a couple ofthings.
You do a lot of differentthings.
Right now You're focused onPrivate Money Challenge.
You've created a site,wwwprivetmoneychallengecom.
(00:49):
Could you tell us a bit brieflywhat that is about?
Speaker 2 (00:54):
Oh yes, in fact, tony , this is like brand new.
I just started doing thePrivate Money Challenge.
It's a seven-day challenge, allabout raising private money for
real estate investors, how toraise private money, where to
find it, how to get it withoutever asking for money, and so
here's the way it works.
I go live about 15, 20 minutesa day, so it's very digestible
(01:20):
and consumable.
And it's for real estateinvestors that have never done a
deal, never raised privatemoney.
It's also for real estateinvestors that's done a ton of
deals and they're just sick andtired of paying hard money,
lender rates and originationfees and all that kind of stuff.
So, yes, come join me.
It's a lot of fun, veryinteractive and I promise you
(01:41):
whoever joins me in the PrivateMoney Challenge is going to know
exactly how to raise privatemoney and how to get it very,
very quickly atwwwprivatemoneychallengecom.
Come on over and join me at theparty.
Speaker 1 (01:58):
Fantastic, jay.
You are definitely passionateabout what you are doing.
So tell me, when we're talkingabout you're raising money is uh
, is this raising forsyndications?
Is it just raising forpartnerships?
What?
What specifically?
Or is it just raising ingeneral?
It doesn't matter which whichroad someone's going down.
Speaker 2 (02:19):
Great question.
So everything I do, everythingthat I share and teach about how
I do, it's all called one-offs.
So this is specifically what Iteach, specifically for
single-family houses.
So I'm not raising money forsyndication, I'm not raising
money for a fund.
Typically, you're going to dothat when you're in the
commercial world, as you are,tony, and you're going to raise
(02:42):
money for apartments orrestaurants or self-storage
buildings and stuff.
But in this world of singlefamily houses, there's what we
have one of.
So there's a private lender, ormaybe a couple of private
lenders that are funding thedeal for a single family house.
They each have their ownpromissory note.
They got their own here inNorth Carolina, their own deed
(03:04):
of trust.
Most states call it a mortgagehere in north carolina, as you
know, in wilmington's, a deed oftrust, however.
However, if someone's listeningto this episode and you're
interested primarily incommercial, guess what?
It's the same money.
It's the same money that youraise.
It's just a matter of how youstructure the deal and how you
(03:25):
use the money and how yourprivate lenders, you know, get
compensated and how they gettheir return.
Like in this world of singlefamily, there's no back end,
there's no joint venturing,there's no equity.
All the private lenders get astraight interest rate which, by
the way, is right now 8%.
No points, no origination fees,no junk fees, no extension fees
(03:46):
, straight 8%.
And so, yeah, not raising moneyfor syndications.
It's individually privatelender and for a single family
house.
Speaker 1 (03:58):
Okay, so you're saying these are private lenders
for single family and 8% withno origination fees, and this is
raising from privateindividuals, and what your
course is going to do is trainsomeone how to basically find
and interact with these peoplewhere you don't even have to ask
(04:20):
for the money, the money isjust going to keep flowing right
to you.
Speaker 2 (04:24):
Am I right?
Isn't that amazing?
Speaker 1 (04:26):
Yes, that's fantastic .
So tell us a little bit more.
This is too interesting.
So you're saying that you'regoing to be able to train
someone in seven days to be ableto go out there who has never
done this and be able to getsomebody to give them money?
I was just on the phoneyesterday with a person who I'm
(04:47):
quasi-coaching, just kind ofhelping him go through his first
deal.
Is this something for his casethat someone would loan for a
construction loan for building anew home, single-family home?
Speaker 2 (05:00):
This is not for a construction loan, and here's
why Not for a construction loan.
And here's why.
And here's why we're giving ourprivate lenders the collateral
so we're not borrowing unsecuredmoney.
Now, you can you can borrowunsecured money legally, but I
don't do it right Because I wantto give my private lenders
collateral.
So this works best the way thatI do it and everybody that I've
(05:23):
taught.
It works best for existinghouses that are already there,
that you're buying at a discount, because most of them that we
buy do need some type ofrenovation or rehab.
Or if you're doing a buy andhold, it might just need rent
ovation.
There's a difference betweenrent ovation and renovation.
If you're doing it, Right.
Speaker 1 (05:43):
I thought you'd like that.
Know if you're doing it right.
I thought you'd like that one.
Tony, that's pretty good.
Speaker 2 (05:49):
So, uh, yeah, so this is, this is how we're
structuring these dealsProperties are already there.
Speaker 1 (05:57):
Yeah, that's great.
So the properties are alreadythere and what you're saying?
It could be a property in goodshape or something that needs a
value add or a little uplift.
Speaker 2 (06:05):
Absolutely.
I mean, you know, sometimespeople will say to me say, jay,
I don't need any private moneybecause I'm buying pretty houses
on terms.
I'm buying pretty houses thatdon't need much renovation, and
I'm well.
Here's the answer to that.
In my experience, tony and I,and my wife and I, we've been
full-time here in eastern NorthCarolina since 2003.
(06:27):
We've rehabbed over 500 houses.
But I buy on terms, I buysubject to the existing note and
seller financing and all thatcreative stuff.
But here's the deal.
I'm a pretty good negotiatormyself.
I've had the sameacquisitionist for 18 years, for
goodness sakes.
And here's what I've discoveredin reviewing thousands of
(06:48):
property lead sheets frompotential sellers Only 13% of
those FSBOs for sale by ownerswill sell to me creatively, you
know, subject to sellerfinancing.
What do the other 87% of thoseoff-market sellers require?
All the cash, right?
(07:09):
So private money.
You're going to use privatemoney when the seller requires
all the cash, and of coursethat's in the majority of cases.
And you know there's nothing inthe multiple listing service
these days anyway, there hasn'tbeen anything for sale in the
multiple listing service.
That's a deal.
I mean there for sale in themultiple listing service.
That's a deal.
I mean there's something in themultiple listing service that's
like super crazy.
(07:29):
Tony, did you know here inlittle old, teeny, tiny Morehead
City, north Carolina, themedium price now is 550 000 here
in Morehead City.
Now, of course that includesthose houses that are on Bogue
Sound and on the intercoasterWaterway and all that stuff.
But anyway, I have no idea howI got on that rant and that rave
.
Oh, yes, I know what you said.
(07:50):
So, yes, I guarantee by the endof seven days in the private
money challenge dot com thatwhen somebody comes in with me
there they're going to knowexactly how I do it and how to
get this money without everasking for the money.
Speaker 1 (08:07):
That's fantastic.
So let's walk through just forsomeone who is, let's say, a
little bit inexperienced in dealsearching and deal finding.
So if someone can find somebodyand give them some money,
that's one aspect of the deal.
But what we're talking about isfinding off-market deals.
(08:27):
So, what type of help do youoffer or support do you offer
for these clients that then needhelp finding a deal?
They've got all the information.
They've got people throwingthem money around the corner.
It's stacks of money behindthem but they don't know how to
find a property.
How are you going to help themwith that?
Speaker 2 (08:44):
I'm going to help them with that.
And here's the thing I tell you, Tony, you know what drives me
crazy.
Now I'm getting ready to saysomething.
Taking a little risk here,taking a little risk, I'm
getting ready to say somethingthat I hope you agree with me on
.
If you don't agree with me,then I'll ask for forgiveness
(09:12):
right now, up front.
But let me just tell you whatdrives me stupid, crazy.
I just want to go slam myselfinto a wall.
Every time I hear it, thesegurus going around on the
platform telling new real estateinvestors quote, unquote oh,
just get the deal under contract, the money will show up.
You ever heard that, Tony?
Speaker 1 (09:26):
That's right, I hear it all the time.
But if you don't already havethe money before you find the
deal, it's too late.
Speaker 2 (09:31):
hey, listen thank you , thank you, thank you.
It's like they say.
You know, I was a guest on apodcast the other day and the
host and I were having thisconversation.
I said I said why in the worlddo they say that lie?
Why do they lie to the audiencethat the money will show you,
get a good deal.
The money's going to show up.
(09:52):
What's it going to do, likerain out of clouds or something?
I said why do they lie to theiraudience?
And they said Jay, I can tellyou why they lie to their
audience.
I said why?
He says because they're sellinga course on how to get a deal
under contract and how to find adeal, and they don't teach you
how to get the money.
I said well, that makes sense,right there.
So how do we find these deals?
So, yes, everybody comes intoprivate moneychallengecom with
(10:15):
me.
I'm going to tell you exactlyhow I do it.
But let me tell you right nowhow I do it and then I'll give
you even more details.
But here, here's the deal.
You see, I like being a big fishin a small pond.
Moorhead City, north Carolina,has only got 8,000 people.
My total target market's onlygot 40,000 people.
I'm here in Carteret County andI invest over in Havelock and
(10:37):
Newbern in Craven County, and soI like to dominate the market.
In fact, you know what driveswhat makes me laugh, tony.
I like to dominate the market.
In fact, you know what driveswhat makes me laugh, tony, is
some.
Some seminar guru will go toGreenville, north Carolina, and
do a half a day seminar andteach all these new wannabe real
estate investors how to finddeals.
All they teach them what to dois go put out bandit signs by
(10:59):
the road that says I buy houses.
Well, every once in a whilesomebody new will show up in my
sandbox here in my area playingin my sandbox and I call them up
and I say hey, this is JayConnor.
Of course I'm getting avoicemail.
Nobody answers the phone.
I get a voice, I say, hey, thisis Jay Connor.
I just want to introduce myself.
(11:20):
I've been buying and sellinghouses here in the area ever
since 2003,.
And I got a problem.
I got hundreds of thousands ofdollars burning a hole in my
pocket with all this privatemoney and I need to buy some
houses.
So when you get a deal undercontract, call me and I'll pay
you an insane wholesaleassignment fee.
Well, I'm lucky if they evencall me back to start with.
(11:40):
But when they do call me back,then I do deals with the
wholesalers.
But how do you find thesehouses?
Well, you can do bandit signs.
I don't do bandit signs, I justlike being friends with the
local government officials,since I'm in a small area, right
?
So how do I find these deals?
Well, I hope if you'relistening, you're taking notes,
but if you're driving, don'ttake notes.
(12:01):
Come back and listen to thereplay.
But.
But here's how I find my deals.
First of all, I got fourdifferent companies that I pay
to do my Google ads.
So what I love about Google andI don't do pay per click.
Pay per click is when you'redoing your own bidding.
I do pay per lead, so I'mpaying an X amount of dollars
(12:22):
for a lead, for a name, aphysical address and a phone
number of an off-market propertyowner, and they're saying I
want to sell my house.
So I love them.
I love them because they'relooking for me, they're looking
for you.
They're going to Google andthey're saying, hey, buy my
house fast, sell my house fast,fast.
There's 75 different keywordphrases that they use, but I
(12:46):
love those leads because theyare looking for us.
In addition to google paidleads, I do facebook ads, so
I've got my favorite, bestperforming facebook ad.
Now, this is not a facebookpost, this is a facebook ad that
just shows up in people'snewsfeed.
And my best performing Facebookad, tony, is me standing here
(13:08):
on a street in Moorhead Cityholding a yellow bandit sign in
front of my chest and it says Ibuy houses and it's got a phone
number and that's it.
So Facebook paid ads.
In addition to that, I got afull-time, 40 hour a week
outbound caller, and so she'soutbound calling.
We use calltoolscom,calltoolscom.
(13:31):
We used to use Mojo, butcalltoolscom is a lot better.
She'll call thousands ofnumbers a day and talk to them.
So you know we're callingout-of-state owners, absentee
owners, tax delinquents,inherited properties.
You know, everybody listened tothis episode.
You know all the lists to callUm and and I just recently
(13:54):
bought a house off of highway 24.
That, uh, that came from one ofmy outbound callers, or one from
my outbound calling list, andit had a double motivation it
was an inherited property and itwas back due on taxes for two
years.
So we had quite a bit ofmotivation going on there.
I just got another propertythat I bought last Thursday, a
(14:16):
week ago, and it was a oceanfront at Atlantic no Indian
beach, tony over there on theisland and Oceanfront at Colony
by the Sea.
And this one was inherited aswell and it was going to the
foreclosure sale on thecourthouse steps on June the 6th
.
So we were able to buy that oneand that came directly from our
(14:40):
off market.
But talk about this property,tony, for goodness sakes.
I bought it for $425,000.
All I had to do is $11,000worth of interior paint and some
sheetrock repairs.
It's beautifully, totallyfurnished with luxury furniture.
Oceanfront bought it for$425,000, $11,000 in paint.
(15:01):
I'm putting it on the marketweek after next for $625,000.
Hallelujah on that one, anyway.
So outbound calling.
We've direct mailed allforeclosures in our county.
We've been tracking every openforeclosure file ever since 2004
.
And about 50% of our businessnow is the foreclosures.
(15:24):
And so those are the, and I dopostcards.
I use investormachinecom for mypostcard direct mail.
Now, if you're listening tothis episode, you don't need to
be doing all these differentchannels and all these different
funnels.
Start out with one.
And, by the way, I'm going togive you two words that you
don't want to miss out onconsistency and measurable.
(15:48):
Consistency and measurable youknow, if I don't have, if you
don't have consistent sellerleads coming in your pipeline
every day, every week, you havea hobby, you do not have a
business, so we want consistentseller leads coming in all the
time.
And yeah, that covers it, tony.
Those are the two mainquestions we hear all the time
how do you find the deals andhow do you fund the deals?
Speaker 1 (16:11):
Absolutely.
So you went through some greatways to market for them.
You also went through somegreat ways and great things.
You're doing.
So when we're talking, forinstance, you specified direct
mail for foreclosure propertiesand then, jay, you brought up
consistency and measurable.
(16:33):
So what we're talking about andwhat Jay's saying here is you
know, you could go start doingmailing and a lot of times
people will go they'll do mails.
Let's say, they do a couplemailings, then they start
getting the calls, then they'renegotiating.
You have to consistently mail.
So by the time you get throughall those leads and then you
let's say, oh man, I'm out ofleads, I'm going to mail again.
(16:54):
Well then you're going toalready have a gap.
You have to mail, somebody hasto get the mail, then they have
to open the mail, then you haveto wait for leads to come back.
If you didn't consistently keepmailing, then your leads dry up
and you're starting all overagain and then, like he's saying
, it becomes a hobby becauseyou're going to have getting
inbound calls from your leadgeneration of sending out
(17:15):
mailers.
So you have to commit to weeklyprogress on something.
So that's fantastic, jay, andthat's some very good tidbits
that you're giving people withproducing Google ads, facebook,
so he's giving you, on a highlevel, what you would get much
more in depth on a course.
Sounds like you know your stuffand someone that's done 500
(17:36):
homes.
That's rather impressive, soobviously you have some
experience.
That's great.
Um, so could you?
Is your wife in business withyou?
Speaker 2 (17:46):
yes, so carol joy, she's got her office right down
the hall.
Brenda smith, our officemanager, uh, sits next to her.
And then I have my executiveassistant, ashley, who manages
my calendar.
And I'll tell you somethingelse that makes this business
fun and scalable, and that isautomation.
You know, when I startedgetting out of my own way,
(18:09):
that's when the business reallystarted to take off, years ago.
I remember we'd been in thisbusiness.
Carol Joy and I had been inthis business for maybe a year,
and it was on a Saturday nightat quarter to nine, for goodness
sakes.
We were at Lowe's HomeImprovement picking out stuff
for a house and gettingknickknacks for staging.
And I looked at Carol Joy and Isaid what in the world are we
(18:32):
doing at Lowe's Home Improvementat quarter to nine on a
Saturday night working?
Why did we get into thisbusiness?
Well, we got into the businessbecause we wanted some freedom,
right, wealth.
You could be making all themoney in the world.
And if you're not enjoying thejourney, then why in the world
are you?
You know, are you in there?
So you know, automation,getting out of my own way.
(18:55):
And you know, I started outthinking well, nobody else can
do anything better than I can.
Well, that was sort of stupidright.
I actually found out when Istart delegating and becoming a
3D person, which is dictate,delegate and disappear and get
out of the way and let them dotheir job, and, of course, you
got to have accountability inthere as well.
(19:16):
You can get so much more doneand you know most of what gets
done in this business.
Everybody else is better at itthan I am, in fact.
What do I do?
I mean, what do I do?
Well, my responsibility thatI've chosen by choice is make
sure the marketing machine isturned on, and we got seller
leads of single-family housescoming into our funnel every day
(19:38):
.
What else do I do?
I make decisions.
Well, what kind of decisions doI make?
Well, I make decisions on whatI want to offer on properties.
I don't go out and estimaterepairs.
My project manager does that.
I got the same project managerfor 16 years that's been
estimating repairs, and then thegeneral contractor gives their
budget sheet and everything.
So what decisions do I make?
(20:00):
The only decision I make iswhat do I want to offer on
properties?
And, truth be told, I coulddelegate that out to my
acquisitionist, because all I dois punch my calculator on my
iPhone for about 30 seconds andrun my calculation as to my
maximum offer.
I could give that to her.
But I sort of like the fun ofmaking offers and, by the way, I
(20:24):
don't make the offers, theacquisitionist makes the offers.
And you know I don't even talkto my acquisitionist, except
maybe once every three months.
All of our communication isthrough the software.
That's a big way that I got outof the way and automated.
So we use reisoftwarecom.
That's a small boutique company.
(20:45):
Marla Harmon owns it and what'sbeautiful about it is that all
the communication, all of ourleads, all of our pipelines is
in the software and the entireteam communicates.
I got a full-time lead managerfor the past five years.
The job of the lead manager isto make sure no leads fall
(21:05):
through the crack.
I tell you, tony, when Istarted out I was the most
disorganized mess on the planet.
I was trying to run thiscompany off Post-it notes.
I had so many Post-it notes Ihad them on my forehead trying
to remember everything to do.
But with this software thetasks are in there.
In fact every lead that we havecome into the business
(21:26):
automatically goes into the REIsoftware to where nobody
manually has to put the leads inAll those Google leads, all
those Facebook leads.
Everybody manually has to putthe leads in All those Google
leads, all those Facebook leads,all those postcard leads.
All that stuff automaticallygoes into the software.
By the way, if somebody'slistening to this episode and
you want to check outreisoftwarecom, you go there,
(21:47):
you talk to Marla and you tellMarla to give you the Jay Conner
discount because she's a really, really nice girl and she'll
take good care of you.
Speaker 1 (22:00):
But anyway, that's how we automate and get out of
the way and get more done.
That's fantastic.
And yet in this market you knowif you're not able to work
through these methods to findinga property, you're not going to
find a deal.
That's the reality.
The market is still toocompetitive.
There's not enough inventory onthe market, so when something
is listed right now, it's listedat a deal.
That's the reality.
The market is still toocompetitive.
There's not enough inventory onthe market, so when something
is listed right now, it's listedat a premium.
(22:21):
Things aren't on the market longenough for sellers to struggle
and even if they do struggle,they're so overpriced while
listed on the MLS that when theydo a price reduction it still
doesn't pencil.
Nothing would pencil when youfind it on here.
So the only way to be a realestate investor of single family
property is to do exactly whatJay's going through and you have
(22:44):
to have multiple differentpieces coming together in a
stacking software.
I'm assuming this REI is astacking software.
Is that correct?
Or is it stacking yourdifferent lead trackers and
putting and then showing whichis the hottest lead you should
pursue?
Or what is REI of full stacking, where you're bringing other
softwares in?
Speaker 2 (23:05):
Well, let me share my ignorance.
I don't even know what stackingsoftware is.
Speaker 1 (23:09):
Oh, okay.
Well, that's where you'retaking.
Let's say, delinquencies areshowing up for a property on a
couple different sites, or whereyou have delinquency late on
taxes, you have mortgage defaultand it's been inherited and
those are all coming in togetherand it's stacking that you have
(23:31):
these multiple, as you stated,on your other property where you
had inherited and it had taxliens.
So that's where a stackingsoftware would come in and be
like okay, this is a good leadbecause you have multiple
avenues of a problem for thisindividual.
Speaker 2 (23:44):
Yeah.
So you know what?
I didn't know I had stackingsoftware until right now.
Yeah, I do have stacking, Ijust don't know what you called
it.
So every lead is like a whitebox with black print in it, when
in the software and in thelower left hand corner it shows
all the motivations that theyhave responded to Right.
(24:10):
The reason I know that Colonyby the Sea oceanfront condo was
inherited and going toforeclosure on June 6th is
because in the lower left-handcorner of the lead it told me
that it told me what theirmotivations were.
In fact, I got some leads.
They got like five motivations,you know, and I'm going we
(24:31):
better talk to them pretty fast.
Speaker 1 (24:34):
Right, yeah, and that's the thing.
And then you know it's beingable to talk to someone fast,
right, yeah, and that's thething.
And then you know it's beingable to talk to someone.
You know, jay, you're verypersonable, obviously, just
sitting here talking to you.
You're easy to talk to.
That's the thing.
You have to be genuine and easyto talk to, where you're not
trying to rip someone off ortake advantage of someone.
You're actually helping someoneand if you approach it with the
(24:55):
right manner, you're actuallyhelping someone.
And if you approach it with theright manner, that of what
you're doing is not, you know,taking advantage of anyone.
You're helping them out.
So, for instance, what you'rejust mentioning, if something
goes to foreclosure, what kindof positions is that going to
put them in?
You could come in and save theday for them.
Keep them from having to gothrough the full problem of a
foreclosure.
How they're going to deal withthat on you know, their credit
(25:19):
report, how they, what they haveto do.
Do they, you know, claimbankruptcy?
Do they have to do all theseproblems?
You're solving a problem andgetting a deal, and it's going
with some learning from someonelike you, jay, who's been doing
this, for it sounds like over 18years.
Right, doing this for this longof a time?
That has the experience andunderstanding that when someone
(25:41):
gets with you and they get somekind of a deal, they run into an
issue they are not answering.
They have someone reliable theycan reach back out to and say
hey, here's what I've comeacross.
How the heck do you deal withthis, right?
Speaker 2 (25:53):
I'm assuming.
Speaker 1 (25:55):
I'm sorry, go ahead.
I'm saying I'm assuming and I'dlove you to expand a little bit
more.
Is that something that you'rehelping your clients with, that
join up with you?
Speaker 2 (26:05):
Absolutely.
I'm so glad you brought that up, for example.
So what we're talking about isleading with a servant's heart.
Leading with a servant's heart,and I tell you what in this
business, as with any business,is gonna be successful.
It ain't about reaping.
It ain't about reaping.
It's all about sowing first andgiving value first.
(26:25):
So, for example, how do we leadwith a servant's heart in my
organization?
Well, I'll give you an example.
When Carol joy, my wife, and Istarted this foreclosure
business all the way back in2004, 2004.
We started in 2003, but westarted focusing on foreclosures
and helping people facingforeclosure back in 2004.
(26:45):
We committed to each other.
We're going to do everything inthe world that we can to serve
these people facing foreclosure.
I mean, for goodness sakes,they're stressed out, they're
emotionally strained, they'refinancially strapped, or they
wouldn't be in the predicamentthat they're in.
And so what are we going to do?
We're going to come along andhelp these people.
(27:07):
So how do we help them?
Well, here's the first examplewhen they respond to our letters
.
By the way, we've got eightletters that we mail
sequentially here in NorthCarolina.
We mail them three days apart.
It takes 24 days to go throughthe cycle of all the letters and
we start mailing to thesepeople immediately after the
substitute trustee opens a fileat the clerk of court's office
(27:30):
in the county where the propertyis located.
So we start mailing theseletters.
We get a 57% response to theletters which, by the way, if
anybody's done any direct mail,you know that's stupid, insane.
Like 57%, if you get 2% or 3%,you're knocking it out of the
park, you're not getting 57%.
Speaker 1 (27:48):
That's unheard of.
That's fantastic, it is.
Speaker 2 (27:50):
Well, but the reason it's so high is number one
sequential mailings back to backto back, and the message
matches the market perfectly.
But anyway, when they respondto one of these letters, one of
the first questions we ask themis do you want to keep your
property, do you want to keepyour house house?
(28:18):
And if they do, and if we cangive them an idea on how to keep
their property, is thereanything in that for me or my
wife or my team directly?
No, there's nothing in it forus directly.
But you know what?
That's another characteristicof a successful real estate
investor and entrepreneur, andthat is you must have an
abundant mindset and not amindset of scarcity.
There's plenty to go around.
(28:38):
And you know, tony I don't knowif you're old enough to
remember him or not, but ZigZiegler, he was one of my heroes
.
And Zig Ziegler said you know,if you help enough other people
get what they want, you going tohave all you want.
You don't have to worry aboutyourself.
So if they want to keep theirproperty, I'll say uh, or my
acquisition will say, well, haveyou talked to your lender?
(28:59):
Unfortunately, most of the timethey haven't talked to their
lender because they're in denialand they're like the ostrich
with the head in the ground,with their butt up in the in the
air, where you're going to getkicked right.
I will say well, here's what Irecommend you do.
Call your lender and it isexactly what you tell your
lender.
Now, this is, if they believethey can make payments on a
timely basis, now if they can'tmake payments on a timely basis,
(29:19):
no need in having thisconversation.
But if they had a bump in theroad, call your lender, tell
them your situation.
I promise you your lender wantsto hear from you because they
do not want your house back.
I promise you they do not wantyour house and call them up and
say look, I can now makepayments.
What do I do to apply for aloan modification or a deferment
(29:42):
program?
And maybe they can work withyou if you can prove that you
can make the finances.
I never advise anybody to filebankruptcy because I'm not an
attorney and I can't give thatadvice.
But obviously, if they filebankruptcy, if that's in their
best interest, that's going tostop the foreclosure as well.
So if we can give them an ideaon keeping their home, then
(30:03):
we're going to give them theidea.
Unfortunately, most people donot have the financial
wherewithal to do it.
Now how else do we serve thesepeople?
Well, we buy these propertiesand here's how you're going to
fund these properties.
You're going to fund yourproperty when you buy a
foreclosure.
You're going to buy it subjectto the existing note.
That's nothing new.
(30:24):
It's on line 203 on the HUDsettlement statement.
It already says mortgagesubject to existing mortgage.
It's already there.
Your attorney doesn't have tocreate anything.
And buying subject to theexisting note is very simple.
The seller of that property,the sales you the property.
You take title into your entity.
They leave the mortgage intheir name and you agree to
(30:47):
bring their payments currentbecause they're in foreclosure,
and to make their payments on atimely basis.
You say who in the world wouldallow you to do that?
I can tell you who would allowyou to do that Somebody that
needs debt relief, that can'tmake the payments anymore.
So how else do we serve them?
They many times will sell usthe property for what they owe,
(31:09):
but guess what?
I don't buy it for what theyowe.
If I'm making an average of$82,000 per deal, for goodness
sakes, can I not put a fewthousand dollars in their pocket
and help them get back on theirfeet.
Well, of course I can.
So we'll put $2,000 to $4,000,depending on the deal in the
seller's pocket to help them getback on their feet.
(31:31):
It's all about win-win-winscenarios.
My dad, wallace Connor, who's91 and a half years old right
now he'll make sure you know yougot the half on that he told me
years and he's in a slight slapdab in the middle of a housing
development right now.
Tony's building 350 houses andat 91 and a half years old.
He's got it halfway built outhere in Newport.
But anyway, he told me decadesago Jay, if everybody's not
(31:55):
winning in the transaction andif everybody isn't getting some
meat off of the bone, don't dothe deal.
Speaker 1 (32:03):
Absolutely.
That's a fantastic way to lookat it and you know, when we're
talking about this, people mightsay, well, why doesn't this
person just call a realtor andlist it before they go to
foreclosure or when they'refeeling this?
Well, the reason, typically,that that's not the case and
these aren't the homes for beinglisted, is these homes are
(32:25):
probably in some type ofdistress, have not been
maintained properly.
If they're inherited, they'refull of junk, might've been a
hoarder and it's justoverwhelming for someone to go,
and especially if they're infinancial problems or financial
disarray, they don't have themoney to fix it, to list it, to
get everything cleaned out, toget it all ready for listing.
(32:45):
So when you don't have thefinances to pay the mortgage,
you surely don't have thefinances to get it prepped and
ready to list.
And maybe they're embarrassedthat they can't do that, so they
don't want to call a realestate agent.
Or maybe that they don't want abunch of people traipsing
through the home because of thecondition of the home to sit and
(33:06):
tell them all the problems whenthey don't want to deal with
all those things.
You're like a superhero, comingin when you give them this
letter and then when you'recoming and saying okay, I'm not
only going to buy this house,take over, help you out of your
problem.
I'm going to give you somemoney so you can get set up in a
new apartment and establishyourself and get started all
over.
You're like a savior.
(33:27):
So, yes, zig Ziglar is a fine,a fantastic individual and is
all about helping everyone elsein order to help you.
So, just like with settinggoals, he's very good on that.
Build up, as many people helpeach other get what they want,
to help you get what you want.
So Zig Ziglar is fantastic.
I love that you read him.
(33:48):
He is a classic and, yeah, Ilove that you've done that and
also it's very impressive.
Jane, I'd like to get a littlebit of an understanding.
We're talking and I understandthat you've done that and also
it's very impressive.
Jane, I'd like to get a littlebit of an understanding.
We're talking and I understandthat you have delegated out.
Because you've been in businessso long, how have you adapted
over the years?
It was a completely differentindustry in 2003, 2005.
(34:08):
And then you went through theforeclosures.
If that's what you did in 2004,was fantastic.
But how have you adapted to allthe transition of technology
over the years, because Iimagine in the beginning were
you doing door to door knockingalmost.
It was, like you know, drivingfor dollars back then is what
everybody was doing.
Speaker 2 (34:27):
Right, right.
Well, how I have adapted is twoanswers come to mind.
Adapted is two answers come tomind.
So how did I adapt when all thefinancial debacle was going on
in 2007, eight and nine, and allthose people had mortgages that
should have never gotten amortgage, and then the market
was flooded with foreclosures?
You see, tony, when Carol Joyand I started out, I never heard
(34:49):
of private money.
I never heard of hard money, Inever heard of subject to the
existing note.
All I knew to do, tony, from2003 until 2009, was go to the
local bank.
I had the same banker for sixyears, 2003 to 2009.
All I knew to do, tony, is goto the local bank, get on my
hands and knees, put my handsunderneath my chin and pull my
(35:12):
skirt up so my banker could seeall my personal assets and my
financial statements and sayplease fund my deal.
Please fund my deal.
That's all I knew to do,because, you know, the banker
made the rules, the lender madethe rules and all that.
Well, I remember it like it wasyesterday, tony.
By the way, you may find itinteresting here in Moorhead
City, north Carolina, we stillhave handsets on telephones with
(35:35):
cords attached, can you believe?
But anyway, I picked up myphone January 2009.
I'd been in this business forsix years.
My banker's name was Steve.
He knew me very, very well andI called him up, tony, I had two
houses under contract, one inNewport, one in Moritz City.
I called up Steve.
(35:57):
I said, steve, I got thesehouses under contract.
I told him about the deals,like I'd done for six years,
Told him when I wanted to closethe funding required for the
deals.
And Steve went quiet on theother end of the phone, which is
never a good sign when yourbanker goes quiet.
Anyway, he finally spoke up.
He says, jay, I'm sorry to tellyou, but the bank has closed
(36:20):
your line of credit and youdon't have a line of credit.
And I thought to myself to besure I did not hear what Steve
just told me on the telephone.
I said, steve, what do you mean?
The bank has closed my line ofcredit.
We've had a great relationshipfor six years.
What in the world is going on?
Steve says, jay, don't you know?
There's a global financialcrisis going on right now.
I said no, but now you justgave me a global financial
(36:41):
crisis because I can't fundthese deals.
I got under contract, so I hungup the phone and here's part of
the answer to your question,tony, of how do I adapt.
I sat here at the, at my desk,and I thought for a moment I'm
getting ready to share aquestion that I asked myself
that will help fix any problemyou got in your life going on
(37:02):
personal health relationships,financial business, it don't
matter.
I sat here and I asked myselfthis question.
I said, jay, who do you knowthat can help you with your
problem?
And, by the way, these peoplegoing around saying every
problem is an opportunity, thatmakes me want to throw up as
well.
I didn't have no opportunity.
I had a problem.
I couldn't fund my deals.
(37:23):
So when I asked myself thatquestion and, by the way, I love
the book, it's it's who, nothow, it's who, not how.
So I asked, I asked myself thatquestion who can help me with
my problem?
I immediately thought of JeffBlankenship, dear friend of mine
, and Carol Joyce.
He lived in Greensboro, northCarolina at the time and I
called him up.
I said I told him what happened.
(37:44):
He said well, jay, welcome tothe club.
I said what club?
He said the club of the bankshutting you down.
My bank shut me down last week.
I said well, how are you fundingyour deals?
He said you ever heard ofprivate money?
I said no.
He said you ever heard ofself-directed IRAs and how
individuals can use theirretirement money to loan to real
(38:05):
estate investors and earn taxdeferred or tax free income
unlimited per year?
I said what in the world areyou talking about?
So I studied private money, howto do business with individuals
that can loan money, investmentcapital, retirement funds, and
I learned about self-directedIRAs and I established a
relationship with aself-directed IRA company to
(38:26):
where I could refer individuals.
So how did I adapt?
I asked who could help me withmy problem and you know what,
tony, it actually did end upbeing the biggest blessing in
disguise in this business.
Our income and our businesstripled in 2009 over 2008
because you had all theseforeclosures and the banks were
(38:46):
not lending money and you had tohave all the cash to buy those
foreclosures.
Well, my lands, literally themoney was raining out of clouds.
Now, because I had all thisprivate money, I could pick and
choose the deals.
So let me answer.
So how did I adapt?
I asked other people for helpwith my problem.
Now let me answer the question,because I've I've I've hinted
(39:11):
around at it, but I haven'tanswered the question.
How do I have eight and a halfmillion dollars of private money
?
I haven't answered the question.
How do I have $8.5 million ofprivate money?
I never ask anybody for money.
Well, let me reveal the secret.
What I did is I put my programtogether that I was going to
teach people in my ownconnections people I go to
church with, people I play golfwith people in the Rotary Club,
(39:32):
people I see every week and Istarted sharing my program as to
how they could earn high ratesof return safely and securely.
So what did I do?
Here's exactly what I did I puton my teacher hat, my private
money teacher hat, and I startedteaching my own connections
what private money and uh, andhow they could earn high rates
(39:55):
of return safely and securely,without mentioning any kind of
deal.
You know, tony, desperation hasgot a smell to it and if you're
talking about how people canearn high rates of return and
you're talking a deal at thesame time that you need funded,
you're desperate, even thoughyou don't mean to sound
desperate.
So we separate the conversationof teaching the program how
(40:20):
they can earn high rates ofreturn safely and securely with
having a deal to fund.
So, tony, let's say you're oneof my friends and we've met at
Starbucks and and we're talkingalong and and I start a
conversation, and here's how Ilove to start conversations like
that.
I'll say Tony, by the way, areyou investing in anything these
days?
You see, tony, you think I'masking you for advice.
(40:42):
I'm not asking you for anyadvice.
I'm getting ready to share withyou what private money is all
about.
I say, tony, are you investingin anything these days?
Odds are, if you're investingin anything these days, you're
probably not very happy with it,because the stock market is so
volatile and all over the placeand you can still only get four
or four and a half percent in a12 month CD down at First
Citizens Bank.
And so I'll start aconversation I said well, have
(41:04):
you ever heard of private moneyand how an individual can earn
high rates of return safely andsecurely, or tax free or tax
deferred?
Of course you don't know theanswer to that question.
If you're, you know, just anaverage person, and so we'll
talk about private money.
So once you tell me you'reinterested in this program and
you tell me how much you got toinvest, then how do I get my
(41:25):
deal funded without asking youfor money?
Well, here's the secret sauce.
I call you up with the goodnews phone call.
Well, what in the world is thegood news phone call?
Well, the good news phone callgoes like this hey, tony, this
is Jay.
I got great news for you.
I can now put your money towork.
Now.
You see, you've already told mehow much money you got.
(41:46):
If it's retirement funds, I'vealready introduced you to the
self-directed IRA company that Irecommend.
You've already transferred yourmoney over and you're waiting
for the good news phone call.
You're not making any moneyuntil I put your money to work.
I'm ethically bound to put yourmoney to work now, since you
moved the money over.
So I call you up, tony.
I got great news.
I can now put your money towork.
(42:07):
I got a house under contract inNewport with an after repaired
value of $200,000.
The funding required for thedeal is $150,000.
I know you got $150,000 becauseyou already told me Closing's
next Friday.
So you're going to need to wireyour funds to my real estate
attorney's trust account nextThursday.
I'm going to have my realestate attorney email you the
(42:28):
wiring instructions.
End of conversation.
I'm not asking you if you wantto do the deal.
That's the most stupid questionin the world I could ask you.
Of course you want to do thedeal.
You're waiting for me to putyour money to work because you
already moved it over to theself-directed IRA company and
you ain't making no money untilI put it to work.
And so end of conversation youwire the funds and off we go and
(42:51):
close and I'm going to pick upa big check every time I buy,
because I always borrow morethan I need to purchase and do
the rehab.
That only works if you'rebuying at a significant discount
and the favorite phrase on myreal estate attorney's check
stub is excess cash.
To close, lord have mercy, Ilove me some excess cash.
Speaker 1 (43:09):
Holy moly, jay, that's a way to close out the
call.
Hold me.
My goodness, my goodness, youguys need to reach out to Jay
today.
Privatemoneychallengecom.
Jay, that's fantastic.
You've put a bunch ofinformation bombs out there for
everybody to get started andhave shown by giving all this
value out here for free.
You're well worth someone toreach out to and get a little
(43:32):
bit more information, spend alittle bit more time with.
And so if you're looking for amentor, someone to help you to
learn the ins and outs of realestate, for taking down some
single family properties, pleasetake some time, reach out to
Jay.
Jay, thank you so much fortaking the time to sit and go
through your experiences with usand give great tidbits out to
(43:52):
the people listening today.
I really appreciate it, sir.
Speaker 2 (43:54):
Tony, it's all my honor and pleasure.
Thank you so much for having me, and God bless you.
Thank you, sir.
Have a great afternoon you too.
Welcome to another episode of Carolina Commercial
Real Estate Connection.
Today we have Jay Conner withus.
Jay, thank you so much forjoining the show.
Speaker 2 (00:09):
Oh, my lands, tony, are you kidding?
It's my honor and pleasure.
Thank you so much for having mecome on.
I mean, I'm so excited to behere because we get to talk
about what I'm so passionateabout and that's private money,
because since 2009, I've nevermissed out on a real estate deal
for not having the money.
Speaker 1 (00:28):
That's fantastic, and that was a tough time to not be
missing out on deals.
So you know, that's that'sfantastic that you did that.
One thing that I wanted tobring up uh, get going here, jay
.
We were discussing a couple ofthings.
You do a lot of differentthings.
Right now You're focused onPrivate Money Challenge.
You've created a site,wwwprivetmoneychallengecom.
(00:49):
Could you tell us a bit brieflywhat that is about?
Speaker 2 (00:54):
Oh yes, in fact, tony , this is like brand new.
I just started doing thePrivate Money Challenge.
It's a seven-day challenge, allabout raising private money for
real estate investors, how toraise private money, where to
find it, how to get it withoutever asking for money, and so
here's the way it works.
I go live about 15, 20 minutesa day, so it's very digestible
(01:20):
and consumable.
And it's for real estateinvestors that have never done a
deal, never raised privatemoney.
It's also for real estateinvestors that's done a ton of
deals and they're just sick andtired of paying hard money,
lender rates and originationfees and all that kind of stuff.
So, yes, come join me.
It's a lot of fun, veryinteractive and I promise you
(01:41):
whoever joins me in the PrivateMoney Challenge is going to know
exactly how to raise privatemoney and how to get it very,
very quickly atwwwprivatemoneychallengecom.
Come on over and join me at theparty.
Speaker 1 (01:58):
Fantastic, jay.
You are definitely passionateabout what you are doing.
So tell me, when we're talkingabout you're raising money is uh
, is this raising forsyndications?
Is it just raising forpartnerships?
What?
What specifically?
Or is it just raising ingeneral?
It doesn't matter which whichroad someone's going down.
Speaker 2 (02:19):
Great question.
So everything I do, everythingthat I share and teach about how
I do, it's all called one-offs.
So this is specifically what Iteach, specifically for
single-family houses.
So I'm not raising money forsyndication, I'm not raising
money for a fund.
Typically, you're going to dothat when you're in the
commercial world, as you are,tony, and you're going to raise
(02:42):
money for apartments orrestaurants or self-storage
buildings and stuff.
But in this world of singlefamily houses, there's what we
have one of.
So there's a private lender, ormaybe a couple of private
lenders that are funding thedeal for a single family house.
They each have their ownpromissory note.
They got their own here inNorth Carolina, their own deed
(03:04):
of trust.
Most states call it a mortgagehere in north carolina, as you
know, in wilmington's, a deed oftrust, however.
However, if someone's listeningto this episode and you're
interested primarily incommercial, guess what?
It's the same money.
It's the same money that youraise.
It's just a matter of how youstructure the deal and how you
(03:25):
use the money and how yourprivate lenders, you know, get
compensated and how they gettheir return.
Like in this world of singlefamily, there's no back end,
there's no joint venturing,there's no equity.
All the private lenders get astraight interest rate which, by
the way, is right now 8%.
No points, no origination fees,no junk fees, no extension fees
(03:46):
, straight 8%.
And so, yeah, not raising moneyfor syndications.
It's individually privatelender and for a single family
house.
Speaker 1 (03:58):
Okay, so you're saying these are private lenders
for single family and 8% withno origination fees, and this is
raising from privateindividuals, and what your
course is going to do is trainsomeone how to basically find
and interact with these peoplewhere you don't even have to ask
(04:20):
for the money, the money isjust going to keep flowing right
to you.
Speaker 2 (04:24):
Am I right?
Isn't that amazing?
Speaker 1 (04:26):
Yes, that's fantastic .
So tell us a little bit more.
This is too interesting.
So you're saying that you'regoing to be able to train
someone in seven days to be ableto go out there who has never
done this and be able to getsomebody to give them money?
I was just on the phoneyesterday with a person who I'm
(04:47):
quasi-coaching, just kind ofhelping him go through his first
deal.
Is this something for his casethat someone would loan for a
construction loan for building anew home, single-family home?
Speaker 2 (05:00):
This is not for a construction loan, and here's
why Not for a construction loan.
And here's why.
And here's why we're giving ourprivate lenders the collateral
so we're not borrowing unsecuredmoney.
Now, you can you can borrowunsecured money legally, but I
don't do it right Because I wantto give my private lenders
collateral.
So this works best the way thatI do it and everybody that I've
(05:23):
taught.
It works best for existinghouses that are already there,
that you're buying at a discount, because most of them that we
buy do need some type ofrenovation or rehab.
Or if you're doing a buy andhold, it might just need rent
ovation.
There's a difference betweenrent ovation and renovation.
If you're doing it, Right.
Speaker 1 (05:43):
I thought you'd like that.
Know if you're doing it right.
I thought you'd like that one.
Tony, that's pretty good.
Speaker 2 (05:49):
So, uh, yeah, so this is, this is how we're
structuring these dealsProperties are already there.
Speaker 1 (05:57):
Yeah, that's great.
So the properties are alreadythere and what you're saying?
It could be a property in goodshape or something that needs a
value add or a little uplift.
Speaker 2 (06:05):
Absolutely.
I mean, you know, sometimespeople will say to me say, jay,
I don't need any private moneybecause I'm buying pretty houses
on terms.
I'm buying pretty houses thatdon't need much renovation, and
I'm well.
Here's the answer to that.
In my experience, tony and I,and my wife and I, we've been
full-time here in eastern NorthCarolina since 2003.
(06:27):
We've rehabbed over 500 houses.
But I buy on terms, I buysubject to the existing note and
seller financing and all thatcreative stuff.
But here's the deal.
I'm a pretty good negotiatormyself.
I've had the sameacquisitionist for 18 years, for
goodness sakes.
And here's what I've discoveredin reviewing thousands of
(06:48):
property lead sheets frompotential sellers Only 13% of
those FSBOs for sale by ownerswill sell to me creatively, you
know, subject to sellerfinancing.
What do the other 87% of thoseoff-market sellers require?
All the cash, right?
(07:09):
So private money.
You're going to use privatemoney when the seller requires
all the cash, and of coursethat's in the majority of cases.
And you know there's nothing inthe multiple listing service
these days anyway, there hasn'tbeen anything for sale in the
multiple listing service.
That's a deal.
I mean there for sale in themultiple listing service.
That's a deal.
I mean there's something in themultiple listing service that's
like super crazy.
(07:29):
Tony, did you know here inlittle old, teeny, tiny Morehead
City, north Carolina, themedium price now is 550 000 here
in Morehead City.
Now, of course that includesthose houses that are on Bogue
Sound and on the intercoasterWaterway and all that stuff.
But anyway, I have no idea howI got on that rant and that rave
.
Oh, yes, I know what you said.
(07:50):
So, yes, I guarantee by the endof seven days in the private
money challenge dot com thatwhen somebody comes in with me
there they're going to knowexactly how I do it and how to
get this money without everasking for the money.
Speaker 1 (08:07):
That's fantastic.
So let's walk through just forsomeone who is, let's say, a
little bit inexperienced in dealsearching and deal finding.
So if someone can find somebodyand give them some money,
that's one aspect of the deal.
But what we're talking about isfinding off-market deals.
(08:27):
So, what type of help do youoffer or support do you offer
for these clients that then needhelp finding a deal?
They've got all the information.
They've got people throwingthem money around the corner.
It's stacks of money behindthem but they don't know how to
find a property.
How are you going to help themwith that?
Speaker 2 (08:44):
I'm going to help them with that.
And here's the thing I tell you, Tony, you know what drives me
crazy.
Now I'm getting ready to saysomething.
Taking a little risk here,taking a little risk, I'm
getting ready to say somethingthat I hope you agree with me on
.
If you don't agree with me,then I'll ask for forgiveness
(09:12):
right now, up front.
But let me just tell you whatdrives me stupid, crazy.
I just want to go slam myselfinto a wall.
Every time I hear it, thesegurus going around on the
platform telling new real estateinvestors quote, unquote oh,
just get the deal under contract, the money will show up.
You ever heard that, Tony?
Speaker 1 (09:26):
That's right, I hear it all the time.
But if you don't already havethe money before you find the
deal, it's too late.
Speaker 2 (09:31):
hey, listen thank you , thank you, thank you.
It's like they say.
You know, I was a guest on apodcast the other day and the
host and I were having thisconversation.
I said I said why in the worlddo they say that lie?
Why do they lie to the audiencethat the money will show you,
get a good deal.
The money's going to show up.
(09:52):
What's it going to do, likerain out of clouds or something?
I said why do they lie to theiraudience?
And they said Jay, I can tellyou why they lie to their
audience.
I said why?
He says because they're sellinga course on how to get a deal
under contract and how to find adeal, and they don't teach you
how to get the money.
I said well, that makes sense,right there.
So how do we find these deals?
So, yes, everybody comes intoprivate moneychallengecom with
(10:15):
me.
I'm going to tell you exactlyhow I do it.
But let me tell you right nowhow I do it and then I'll give
you even more details.
But here, here's the deal.
You see, I like being a big fishin a small pond.
Moorhead City, north Carolina,has only got 8,000 people.
My total target market's onlygot 40,000 people.
I'm here in Carteret County andI invest over in Havelock and
(10:37):
Newbern in Craven County, and soI like to dominate the market.
In fact, you know what driveswhat makes me laugh, tony.
I like to dominate the market.
In fact, you know what driveswhat makes me laugh, tony, is
some.
Some seminar guru will go toGreenville, north Carolina, and
do a half a day seminar andteach all these new wannabe real
estate investors how to finddeals.
All they teach them what to dois go put out bandit signs by
(10:59):
the road that says I buy houses.
Well, every once in a whilesomebody new will show up in my
sandbox here in my area playingin my sandbox and I call them up
and I say hey, this is JayConnor.
Of course I'm getting avoicemail.
Nobody answers the phone.
I get a voice, I say, hey, thisis Jay Connor.
I just want to introduce myself.
(11:20):
I've been buying and sellinghouses here in the area ever
since 2003,.
And I got a problem.
I got hundreds of thousands ofdollars burning a hole in my
pocket with all this privatemoney and I need to buy some
houses.
So when you get a deal undercontract, call me and I'll pay
you an insane wholesaleassignment fee.
Well, I'm lucky if they evencall me back to start with.
(11:40):
But when they do call me back,then I do deals with the
wholesalers.
But how do you find thesehouses?
Well, you can do bandit signs.
I don't do bandit signs, I justlike being friends with the
local government officials,since I'm in a small area, right
?
So how do I find these deals?
Well, I hope if you'relistening, you're taking notes,
but if you're driving, don'ttake notes.
(12:01):
Come back and listen to thereplay.
But.
But here's how I find my deals.
First of all, I got fourdifferent companies that I pay
to do my Google ads.
So what I love about Google andI don't do pay per click.
Pay per click is when you'redoing your own bidding.
I do pay per lead, so I'mpaying an X amount of dollars
(12:22):
for a lead, for a name, aphysical address and a phone
number of an off-market propertyowner, and they're saying I
want to sell my house.
So I love them.
I love them because they'relooking for me, they're looking
for you.
They're going to Google andthey're saying, hey, buy my
house fast, sell my house fast,fast.
There's 75 different keywordphrases that they use, but I
(12:46):
love those leads because theyare looking for us.
In addition to google paidleads, I do facebook ads, so
I've got my favorite, bestperforming facebook ad.
Now, this is not a facebookpost, this is a facebook ad that
just shows up in people'snewsfeed.
And my best performing Facebookad, tony, is me standing here
(13:08):
on a street in Moorhead Cityholding a yellow bandit sign in
front of my chest and it says Ibuy houses and it's got a phone
number and that's it.
So Facebook paid ads.
In addition to that, I got afull-time, 40 hour a week
outbound caller, and so she'soutbound calling.
We use calltoolscom,calltoolscom.
(13:31):
We used to use Mojo, butcalltoolscom is a lot better.
She'll call thousands ofnumbers a day and talk to them.
So you know we're callingout-of-state owners, absentee
owners, tax delinquents,inherited properties.
You know, everybody listened tothis episode.
You know all the lists to callUm and and I just recently
(13:54):
bought a house off of highway 24.
That, uh, that came from one ofmy outbound callers, or one from
my outbound calling list, andit had a double motivation it
was an inherited property and itwas back due on taxes for two
years.
So we had quite a bit ofmotivation going on there.
I just got another propertythat I bought last Thursday, a
(14:16):
week ago, and it was a oceanfront at Atlantic no Indian
beach, tony over there on theisland and Oceanfront at Colony
by the Sea.
And this one was inherited aswell and it was going to the
foreclosure sale on thecourthouse steps on June the 6th
.
So we were able to buy that oneand that came directly from our
(14:40):
off market.
But talk about this property,tony, for goodness sakes.
I bought it for $425,000.
All I had to do is $11,000worth of interior paint and some
sheetrock repairs.
It's beautifully, totallyfurnished with luxury furniture.
Oceanfront bought it for$425,000, $11,000 in paint.
(15:01):
I'm putting it on the marketweek after next for $625,000.
Hallelujah on that one, anyway.
So outbound calling.
We've direct mailed allforeclosures in our county.
We've been tracking every openforeclosure file ever since 2004
.
And about 50% of our businessnow is the foreclosures.
(15:24):
And so those are the, and I dopostcards.
I use investormachinecom for mypostcard direct mail.
Now, if you're listening tothis episode, you don't need to
be doing all these differentchannels and all these different
funnels.
Start out with one.
And, by the way, I'm going togive you two words that you
don't want to miss out onconsistency and measurable.
(15:48):
Consistency and measurable youknow, if I don't have, if you
don't have consistent sellerleads coming in your pipeline
every day, every week, you havea hobby, you do not have a
business, so we want consistentseller leads coming in all the
time.
And yeah, that covers it, tony.
Those are the two mainquestions we hear all the time
how do you find the deals andhow do you fund the deals?
Speaker 1 (16:11):
Absolutely.
So you went through some greatways to market for them.
You also went through somegreat ways and great things.
You're doing.
So when we're talking, forinstance, you specified direct
mail for foreclosure propertiesand then, jay, you brought up
consistency and measurable.
(16:33):
So what we're talking about andwhat Jay's saying here is you
know, you could go start doingmailing and a lot of times
people will go they'll do mails.
Let's say, they do a couplemailings, then they start
getting the calls, then they'renegotiating.
You have to consistently mail.
So by the time you get throughall those leads and then you
let's say, oh man, I'm out ofleads, I'm going to mail again.
(16:54):
Well then you're going toalready have a gap.
You have to mail, somebody hasto get the mail, then they have
to open the mail, then you haveto wait for leads to come back.
If you didn't consistently keepmailing, then your leads dry up
and you're starting all overagain and then, like he's saying
, it becomes a hobby becauseyou're going to have getting
inbound calls from your leadgeneration of sending out
(17:15):
mailers.
So you have to commit to weeklyprogress on something.
So that's fantastic, jay, andthat's some very good tidbits
that you're giving people withproducing Google ads, facebook,
so he's giving you, on a highlevel, what you would get much
more in depth on a course.
Sounds like you know your stuffand someone that's done 500
(17:36):
homes.
That's rather impressive, soobviously you have some
experience.
That's great.
Um, so could you?
Is your wife in business withyou?
Speaker 2 (17:46):
yes, so carol joy, she's got her office right down
the hall.
Brenda smith, our officemanager, uh, sits next to her.
And then I have my executiveassistant, ashley, who manages
my calendar.
And I'll tell you somethingelse that makes this business
fun and scalable, and that isautomation.
You know, when I startedgetting out of my own way,
(18:09):
that's when the business reallystarted to take off, years ago.
I remember we'd been in thisbusiness.
Carol Joy and I had been inthis business for maybe a year,
and it was on a Saturday nightat quarter to nine, for goodness
sakes.
We were at Lowe's HomeImprovement picking out stuff
for a house and gettingknickknacks for staging.
And I looked at Carol Joy and Isaid what in the world are we
(18:32):
doing at Lowe's Home Improvementat quarter to nine on a
Saturday night working?
Why did we get into thisbusiness?
Well, we got into the businessbecause we wanted some freedom,
right, wealth.
You could be making all themoney in the world.
And if you're not enjoying thejourney, then why in the world
are you?
You know, are you in there?
So you know, automation,getting out of my own way.
(18:55):
And you know, I started outthinking well, nobody else can
do anything better than I can.
Well, that was sort of stupidright.
I actually found out when Istart delegating and becoming a
3D person, which is dictate,delegate and disappear and get
out of the way and let them dotheir job, and, of course, you
got to have accountability inthere as well.
(19:16):
You can get so much more doneand you know most of what gets
done in this business.
Everybody else is better at itthan I am, in fact.
What do I do?
I mean, what do I do?
Well, my responsibility thatI've chosen by choice is make
sure the marketing machine isturned on, and we got seller
leads of single-family housescoming into our funnel every day
(19:38):
.
What else do I do?
I make decisions.
Well, what kind of decisions doI make?
Well, I make decisions on whatI want to offer on properties.
I don't go out and estimaterepairs.
My project manager does that.
I got the same project managerfor 16 years that's been
estimating repairs, and then thegeneral contractor gives their
budget sheet and everything.
So what decisions do I make?
(20:00):
The only decision I make iswhat do I want to offer on
properties?
And, truth be told, I coulddelegate that out to my
acquisitionist, because all I dois punch my calculator on my
iPhone for about 30 seconds andrun my calculation as to my
maximum offer.
I could give that to her.
But I sort of like the fun ofmaking offers and, by the way, I
(20:24):
don't make the offers, theacquisitionist makes the offers.
And you know I don't even talkto my acquisitionist, except
maybe once every three months.
All of our communication isthrough the software.
That's a big way that I got outof the way and automated.
So we use reisoftwarecom.
That's a small boutique company.
(20:45):
Marla Harmon owns it and what'sbeautiful about it is that all
the communication, all of ourleads, all of our pipelines is
in the software and the entireteam communicates.
I got a full-time lead managerfor the past five years.
The job of the lead manager isto make sure no leads fall
(21:05):
through the crack.
I tell you, tony, when Istarted out I was the most
disorganized mess on the planet.
I was trying to run thiscompany off Post-it notes.
I had so many Post-it notes Ihad them on my forehead trying
to remember everything to do.
But with this software thetasks are in there.
In fact every lead that we havecome into the business
(21:26):
automatically goes into the REIsoftware to where nobody
manually has to put the leads inAll those Google leads, all
those Facebook leads.
Everybody manually has to putthe leads in All those Google
leads, all those Facebook leads,all those postcard leads.
All that stuff automaticallygoes into the software.
By the way, if somebody'slistening to this episode and
you want to check outreisoftwarecom, you go there,
(21:47):
you talk to Marla and you tellMarla to give you the Jay Conner
discount because she's a really, really nice girl and she'll
take good care of you.
Speaker 1 (22:00):
But anyway, that's how we automate and get out of
the way and get more done.
That's fantastic.
And yet in this market you knowif you're not able to work
through these methods to findinga property, you're not going to
find a deal.
That's the reality.
The market is still toocompetitive.
There's not enough inventory onthe market, so when something
is listed right now, it's listedat a deal.
That's the reality.
The market is still toocompetitive.
There's not enough inventory onthe market, so when something
is listed right now, it's listedat a premium.
(22:21):
Things aren't on the market longenough for sellers to struggle
and even if they do struggle,they're so overpriced while
listed on the MLS that when theydo a price reduction it still
doesn't pencil.
Nothing would pencil when youfind it on here.
So the only way to be a realestate investor of single family
property is to do exactly whatJay's going through and you have
(22:44):
to have multiple differentpieces coming together in a
stacking software.
I'm assuming this REI is astacking software.
Is that correct?
Or is it stacking yourdifferent lead trackers and
putting and then showing whichis the hottest lead you should
pursue?
Or what is REI of full stacking, where you're bringing other
softwares in?
Speaker 2 (23:05):
Well, let me share my ignorance.
I don't even know what stackingsoftware is.
Speaker 1 (23:09):
Oh, okay.
Well, that's where you'retaking.
Let's say, delinquencies areshowing up for a property on a
couple different sites, or whereyou have delinquency late on
taxes, you have mortgage defaultand it's been inherited and
those are all coming in togetherand it's stacking that you have
(23:31):
these multiple, as you stated,on your other property where you
had inherited and it had taxliens.
So that's where a stackingsoftware would come in and be
like okay, this is a good leadbecause you have multiple
avenues of a problem for thisindividual.
Speaker 2 (23:44):
Yeah.
So you know what?
I didn't know I had stackingsoftware until right now.
Yeah, I do have stacking, Ijust don't know what you called
it.
So every lead is like a whitebox with black print in it, when
in the software and in thelower left hand corner it shows
all the motivations that theyhave responded to Right.
(24:10):
The reason I know that Colonyby the Sea oceanfront condo was
inherited and going toforeclosure on June 6th is
because in the lower left-handcorner of the lead it told me
that it told me what theirmotivations were.
In fact, I got some leads.
They got like five motivations,you know, and I'm going we
(24:31):
better talk to them pretty fast.
Speaker 1 (24:34):
Right, yeah, and that's the thing.
And then you know it's beingable to talk to someone fast,
right, yeah, and that's thething.
And then you know it's beingable to talk to someone.
You know, jay, you're verypersonable, obviously, just
sitting here talking to you.
You're easy to talk to.
That's the thing.
You have to be genuine and easyto talk to, where you're not
trying to rip someone off ortake advantage of someone.
You're actually helping someoneand if you approach it with the
(24:55):
right manner, you're actuallyhelping someone.
And if you approach it with theright manner, that of what
you're doing is not, you know,taking advantage of anyone.
You're helping them out.
So, for instance, what you'rejust mentioning, if something
goes to foreclosure, what kindof positions is that going to
put them in?
You could come in and save theday for them.
Keep them from having to gothrough the full problem of a
foreclosure.
How they're going to deal withthat on you know, their credit
(25:19):
report, how they, what they haveto do.
Do they, you know, claimbankruptcy?
Do they have to do all theseproblems?
You're solving a problem andgetting a deal, and it's going
with some learning from someonelike you, jay, who's been doing
this, for it sounds like over 18years.
Right, doing this for this longof a time?
That has the experience andunderstanding that when someone
(25:41):
gets with you and they get somekind of a deal, they run into an
issue they are not answering.
They have someone reliable theycan reach back out to and say
hey, here's what I've comeacross.
How the heck do you deal withthis, right?
Speaker 2 (25:53):
I'm assuming.
Speaker 1 (25:55):
I'm sorry, go ahead.
I'm saying I'm assuming and I'dlove you to expand a little bit
more.
Is that something that you'rehelping your clients with, that
join up with you?
Speaker 2 (26:05):
Absolutely.
I'm so glad you brought that up, for example.
So what we're talking about isleading with a servant's heart.
Leading with a servant's heart,and I tell you what in this
business, as with any business,is gonna be successful.
It ain't about reaping.
It ain't about reaping.
It's all about sowing first andgiving value first.
(26:25):
So, for example, how do we leadwith a servant's heart in my
organization?
Well, I'll give you an example.
When Carol joy, my wife, and Istarted this foreclosure
business all the way back in2004, 2004.
We started in 2003, but westarted focusing on foreclosures
and helping people facingforeclosure back in 2004.
(26:45):
We committed to each other.
We're going to do everything inthe world that we can to serve
these people facing foreclosure.
I mean, for goodness sakes,they're stressed out, they're
emotionally strained, they'refinancially strapped, or they
wouldn't be in the predicamentthat they're in.
And so what are we going to do?
We're going to come along andhelp these people.
(27:07):
So how do we help them?
Well, here's the first examplewhen they respond to our letters
.
By the way, we've got eightletters that we mail
sequentially here in NorthCarolina.
We mail them three days apart.
It takes 24 days to go throughthe cycle of all the letters and
we start mailing to thesepeople immediately after the
substitute trustee opens a fileat the clerk of court's office
(27:30):
in the county where the propertyis located.
So we start mailing theseletters.
We get a 57% response to theletters which, by the way, if
anybody's done any direct mail,you know that's stupid, insane.
Like 57%, if you get 2% or 3%,you're knocking it out of the
park, you're not getting 57%.
Speaker 1 (27:48):
That's unheard of.
That's fantastic, it is.
Speaker 2 (27:50):
Well, but the reason it's so high is number one
sequential mailings back to backto back, and the message
matches the market perfectly.
But anyway, when they respondto one of these letters, one of
the first questions we ask themis do you want to keep your
property, do you want to keepyour house house?
(28:18):
And if they do, and if we cangive them an idea on how to keep
their property, is thereanything in that for me or my
wife or my team directly?
No, there's nothing in it forus directly.
But you know what?
That's another characteristicof a successful real estate
investor and entrepreneur, andthat is you must have an
abundant mindset and not amindset of scarcity.
There's plenty to go around.
(28:38):
And you know, tony I don't knowif you're old enough to
remember him or not, but ZigZiegler, he was one of my heroes
.
And Zig Ziegler said you know,if you help enough other people
get what they want, you going tohave all you want.
You don't have to worry aboutyourself.
So if they want to keep theirproperty, I'll say uh, or my
acquisition will say, well, haveyou talked to your lender?
(28:59):
Unfortunately, most of the timethey haven't talked to their
lender because they're in denialand they're like the ostrich
with the head in the ground,with their butt up in the in the
air, where you're going to getkicked right.
I will say well, here's what Irecommend you do.
Call your lender and it isexactly what you tell your
lender.
Now, this is, if they believethey can make payments on a
timely basis, now if they can'tmake payments on a timely basis,
(29:19):
no need in having thisconversation.
But if they had a bump in theroad, call your lender, tell
them your situation.
I promise you your lender wantsto hear from you because they
do not want your house back.
I promise you they do not wantyour house and call them up and
say look, I can now makepayments.
What do I do to apply for aloan modification or a deferment
(29:42):
program?
And maybe they can work withyou if you can prove that you
can make the finances.
I never advise anybody to filebankruptcy because I'm not an
attorney and I can't give thatadvice.
But obviously, if they filebankruptcy, if that's in their
best interest, that's going tostop the foreclosure as well.
So if we can give them an ideaon keeping their home, then
(30:03):
we're going to give them theidea.
Unfortunately, most people donot have the financial
wherewithal to do it.
Now how else do we serve thesepeople?
Well, we buy these propertiesand here's how you're going to
fund these properties.
You're going to fund yourproperty when you buy a
foreclosure.
You're going to buy it subjectto the existing note.
That's nothing new.
(30:24):
It's on line 203 on the HUDsettlement statement.
It already says mortgagesubject to existing mortgage.
It's already there.
Your attorney doesn't have tocreate anything.
And buying subject to theexisting note is very simple.
The seller of that property,the sales you the property.
You take title into your entity.
They leave the mortgage intheir name and you agree to
(30:47):
bring their payments currentbecause they're in foreclosure,
and to make their payments on atimely basis.
You say who in the world wouldallow you to do that?
I can tell you who would allowyou to do that Somebody that
needs debt relief, that can'tmake the payments anymore.
So how else do we serve them?
They many times will sell usthe property for what they owe,
(31:09):
but guess what?
I don't buy it for what theyowe.
If I'm making an average of$82,000 per deal, for goodness
sakes, can I not put a fewthousand dollars in their pocket
and help them get back on theirfeet.
Well, of course I can.
So we'll put $2,000 to $4,000,depending on the deal in the
seller's pocket to help them getback on their feet.
(31:31):
It's all about win-win-winscenarios.
My dad, wallace Connor, who's91 and a half years old right
now he'll make sure you know yougot the half on that he told me
years and he's in a slight slapdab in the middle of a housing
development right now.
Tony's building 350 houses andat 91 and a half years old.
He's got it halfway built outhere in Newport.
But anyway, he told me decadesago Jay, if everybody's not
(31:55):
winning in the transaction andif everybody isn't getting some
meat off of the bone, don't dothe deal.
Speaker 1 (32:03):
Absolutely.
That's a fantastic way to lookat it and you know, when we're
talking about this, people mightsay, well, why doesn't this
person just call a realtor andlist it before they go to
foreclosure or when they'refeeling this?
Well, the reason, typically,that that's not the case and
these aren't the homes for beinglisted, is these homes are
(32:25):
probably in some type ofdistress, have not been
maintained properly.
If they're inherited, they'refull of junk, might've been a
hoarder and it's justoverwhelming for someone to go,
and especially if they're infinancial problems or financial
disarray, they don't have themoney to fix it, to list it, to
get everything cleaned out, toget it all ready for listing.
(32:45):
So when you don't have thefinances to pay the mortgage,
you surely don't have thefinances to get it prepped and
ready to list.
And maybe they're embarrassedthat they can't do that, so they
don't want to call a realestate agent.
Or maybe that they don't want abunch of people traipsing
through the home because of thecondition of the home to sit and
(33:06):
tell them all the problems whenthey don't want to deal with
all those things.
You're like a superhero, comingin when you give them this
letter and then when you'recoming and saying okay, I'm not
only going to buy this house,take over, help you out of your
problem.
I'm going to give you somemoney so you can get set up in a
new apartment and establishyourself and get started all
over.
You're like a savior.
(33:27):
So, yes, zig Ziglar is a fine,a fantastic individual and is
all about helping everyone elsein order to help you.
So, just like with settinggoals, he's very good on that.
Build up, as many people helpeach other get what they want,
to help you get what you want.
So Zig Ziglar is fantastic.
I love that you read him.
(33:48):
He is a classic and, yeah, Ilove that you've done that and
also it's very impressive.
Jane, I'd like to get a littlebit of an understanding.
We're talking and I understandthat you've done that and also
it's very impressive.
Jane, I'd like to get a littlebit of an understanding.
We're talking and I understandthat you have delegated out.
Because you've been in businessso long, how have you adapted
over the years?
It was a completely differentindustry in 2003, 2005.
(34:08):
And then you went through theforeclosures.
If that's what you did in 2004,was fantastic.
But how have you adapted to allthe transition of technology
over the years, because Iimagine in the beginning were
you doing door to door knockingalmost.
It was, like you know, drivingfor dollars back then is what
everybody was doing.
Speaker 2 (34:27):
Right, right.
Well, how I have adapted is twoanswers come to mind.
Adapted is two answers come tomind.
So how did I adapt when all thefinancial debacle was going on
in 2007, eight and nine, and allthose people had mortgages that
should have never gotten amortgage, and then the market
was flooded with foreclosures?
You see, tony, when Carol Joyand I started out, I never heard
(34:49):
of private money.
I never heard of hard money, Inever heard of subject to the
existing note.
All I knew to do, tony, from2003 until 2009, was go to the
local bank.
I had the same banker for sixyears, 2003 to 2009.
All I knew to do, tony, is goto the local bank, get on my
hands and knees, put my handsunderneath my chin and pull my
(35:12):
skirt up so my banker could seeall my personal assets and my
financial statements and sayplease fund my deal.
Please fund my deal.
That's all I knew to do,because, you know, the banker
made the rules, the lender madethe rules and all that.
Well, I remember it like it wasyesterday, tony.
By the way, you may find itinteresting here in Moorhead
City, north Carolina, we stillhave handsets on telephones with
(35:35):
cords attached, can you believe?
But anyway, I picked up myphone January 2009.
I'd been in this business forsix years.
My banker's name was Steve.
He knew me very, very well andI called him up, tony, I had two
houses under contract, one inNewport, one in Moritz City.
I called up Steve.
(35:57):
I said, steve, I got thesehouses under contract.
I told him about the deals,like I'd done for six years,
Told him when I wanted to closethe funding required for the
deals.
And Steve went quiet on theother end of the phone, which is
never a good sign when yourbanker goes quiet.
Anyway, he finally spoke up.
He says, jay, I'm sorry to tellyou, but the bank has closed
(36:20):
your line of credit and youdon't have a line of credit.
And I thought to myself to besure I did not hear what Steve
just told me on the telephone.
I said, steve, what do you mean?
The bank has closed my line ofcredit.
We've had a great relationshipfor six years.
What in the world is going on?
Steve says, jay, don't you know?
There's a global financialcrisis going on right now.
I said no, but now you justgave me a global financial
(36:41):
crisis because I can't fundthese deals.
I got under contract, so I hungup the phone and here's part of
the answer to your question,tony, of how do I adapt.
I sat here at the, at my desk,and I thought for a moment I'm
getting ready to share aquestion that I asked myself
that will help fix any problemyou got in your life going on
(37:02):
personal health relationships,financial business, it don't
matter.
I sat here and I asked myselfthis question.
I said, jay, who do you knowthat can help you with your
problem?
And, by the way, these peoplegoing around saying every
problem is an opportunity, thatmakes me want to throw up as
well.
I didn't have no opportunity.
I had a problem.
I couldn't fund my deals.
(37:23):
So when I asked myself thatquestion and, by the way, I love
the book, it's it's who, nothow, it's who, not how.
So I asked, I asked myself thatquestion who can help me with
my problem?
I immediately thought of JeffBlankenship, dear friend of mine
, and Carol Joyce.
He lived in Greensboro, northCarolina at the time and I
called him up.
I said I told him what happened.
(37:44):
He said well, jay, welcome tothe club.
I said what club?
He said the club of the bankshutting you down.
My bank shut me down last week.
I said well, how are you fundingyour deals?
He said you ever heard ofprivate money?
I said no.
He said you ever heard ofself-directed IRAs and how
individuals can use theirretirement money to loan to real
(38:05):
estate investors and earn taxdeferred or tax free income
unlimited per year?
I said what in the world areyou talking about?
So I studied private money, howto do business with individuals
that can loan money, investmentcapital, retirement funds, and
I learned about self-directedIRAs and I established a
relationship with aself-directed IRA company to
(38:26):
where I could refer individuals.
So how did I adapt?
I asked who could help me withmy problem and you know what,
tony, it actually did end upbeing the biggest blessing in
disguise in this business.
Our income and our businesstripled in 2009 over 2008
because you had all theseforeclosures and the banks were
(38:46):
not lending money and you had tohave all the cash to buy those
foreclosures.
Well, my lands, literally themoney was raining out of clouds.
Now, because I had all thisprivate money, I could pick and
choose the deals.
So let me answer.
So how did I adapt?
I asked other people for helpwith my problem.
Now let me answer the question,because I've I've I've hinted
(39:11):
around at it, but I haven'tanswered the question.
How do I have eight and a halfmillion dollars of private money
?
I haven't answered the question.
How do I have $8.5 million ofprivate money?
I never ask anybody for money.
Well, let me reveal the secret.
What I did is I put my programtogether that I was going to
teach people in my ownconnections people I go to
church with, people I play golfwith people in the Rotary Club,
(39:32):
people I see every week and Istarted sharing my program as to
how they could earn high ratesof return safely and securely.
So what did I do?
Here's exactly what I did I puton my teacher hat, my private
money teacher hat, and I startedteaching my own connections
what private money and uh, andhow they could earn high rates
(39:55):
of return safely and securely,without mentioning any kind of
deal.
You know, tony, desperation hasgot a smell to it and if you're
talking about how people canearn high rates of return and
you're talking a deal at thesame time that you need funded,
you're desperate, even thoughyou don't mean to sound
desperate.
So we separate the conversationof teaching the program how
(40:20):
they can earn high rates ofreturn safely and securely with
having a deal to fund.
So, tony, let's say you're oneof my friends and we've met at
Starbucks and and we're talkingalong and and I start a
conversation, and here's how Ilove to start conversations like
that.
I'll say Tony, by the way, areyou investing in anything these
days?
You see, tony, you think I'masking you for advice.
(40:42):
I'm not asking you for anyadvice.
I'm getting ready to share withyou what private money is all
about.
I say, tony, are you investingin anything these days?
Odds are, if you're investingin anything these days, you're
probably not very happy with it,because the stock market is so
volatile and all over the placeand you can still only get four
or four and a half percent in a12 month CD down at First
Citizens Bank.
And so I'll start aconversation I said well, have
(41:04):
you ever heard of private moneyand how an individual can earn
high rates of return safely andsecurely, or tax free or tax
deferred?
Of course you don't know theanswer to that question.
If you're, you know, just anaverage person, and so we'll
talk about private money.
So once you tell me you'reinterested in this program and
you tell me how much you got toinvest, then how do I get my
(41:25):
deal funded without asking youfor money?
Well, here's the secret sauce.
I call you up with the goodnews phone call.
Well, what in the world is thegood news phone call?
Well, the good news phone callgoes like this hey, tony, this
is Jay.
I got great news for you.
I can now put your money towork.
Now.
You see, you've already told mehow much money you got.
(41:46):
If it's retirement funds, I'vealready introduced you to the
self-directed IRA company that Irecommend.
You've already transferred yourmoney over and you're waiting
for the good news phone call.
You're not making any moneyuntil I put your money to work.
I'm ethically bound to put yourmoney to work now, since you
moved the money over.
So I call you up, tony.
I got great news.
I can now put your money towork.
(42:07):
I got a house under contract inNewport with an after repaired
value of $200,000.
The funding required for thedeal is $150,000.
I know you got $150,000 becauseyou already told me Closing's
next Friday.
So you're going to need to wireyour funds to my real estate
attorney's trust account nextThursday.
I'm going to have my realestate attorney email you the
(42:28):
wiring instructions.
End of conversation.
I'm not asking you if you wantto do the deal.
That's the most stupid questionin the world I could ask you.
Of course you want to do thedeal.
You're waiting for me to putyour money to work because you
already moved it over to theself-directed IRA company and
you ain't making no money untilI put it to work.
And so end of conversation youwire the funds and off we go and
(42:51):
close and I'm going to pick upa big check every time I buy,
because I always borrow morethan I need to purchase and do
the rehab.
That only works if you'rebuying at a significant discount
and the favorite phrase on myreal estate attorney's check
stub is excess cash.
To close, lord have mercy, Ilove me some excess cash.
Speaker 1 (43:09):
Holy moly, jay, that's a way to close out the
call.
Hold me.
My goodness, my goodness, youguys need to reach out to Jay
today.
Privatemoneychallengecom.
Jay, that's fantastic.
You've put a bunch ofinformation bombs out there for
everybody to get started andhave shown by giving all this
value out here for free.
You're well worth someone toreach out to and get a little
(43:32):
bit more information, spend alittle bit more time with.
And so if you're looking for amentor, someone to help you to
learn the ins and outs of realestate, for taking down some
single family properties, pleasetake some time, reach out to
Jay.
Jay, thank you so much fortaking the time to sit and go
through your experiences with usand give great tidbits out to
(43:52):
the people listening today.
I really appreciate it, sir.
Speaker 2 (43:54):
Tony, it's all my honor and pleasure.
Thank you so much for having me, and God bless you.
Thank you, sir.
Have a great afternoon you too.
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