Real Estate Investing With Jay Conner
Mitch has been a self-employed RE investor for 25+ years.
His real estate investing career started at the age of 23 when he read “Nothing Down” by Robert Allen.
Mitch has purchased well over 2,000 houses in and around his hometown of San Antonio, TX. A high school graduate, who never stopped learning. Books, CDs, seminars, and webinars were his classroom.
Today he specializes in owner financing properties to individuals left behind by traditional lending institutions and giving new life to properties that scar the neighborhoods.
For more valuable information click on this link and watch the complete episode: https://youtu.be/sPCoiBzSJVA- “Mitch Stephen’s 1000 Doors, Real Estate Investing With Jay Conner, The Private Money Authority”
Have you read Jay’s new book: Where to Get The Money Now? It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
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.
What is Real Estate Investing? Live Private Money Academy Conference
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
iTunes:
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Jay Conner:
What does your business look like today? You got a long history, bought thousands of houses, but in today’s economy with what we got going on, what does your business look like now?
Mitch Stephen
Well, I’ve got a house about every four to five days for over two decades and it’s about a hundred houses a year and I want to be really clear on something I know right across the street. There’s somebody doing five times that amount. I mean, there’s always a faster gun, there’s always a bigger guy out there. I’m, just saying where I’m at.. And I’ve been at that level for a long time. It’s a comfortable place for me. I don’t want to do more than that. It’s a challenge these days to do a hundred houses in COVID we only did 83, but there was a point in time there. I didn’t know if I was going to break 40 no one knew what was really going to happen. So I buy houses with OPM, Other People’s Money, private money.
One of the things that Jay teaches, I have $26 million of private money. And it didn’t happen overnight. It happened over a couple of decades and it’s amazing what happens when you borrow money from people and you pay them back, as you promised, they give you more and then they give you some more and they introduce you to your friends that have more than they had. And then, it just kinda keeps ratcheting up. In fact, I had so much private money that I had to start a private hard money loan company to keep it all out because you got access to a lot of money, doesn’t mean you go out and start making stupid deals. So I keep my underwriting the same. And then if I can’t buy enough houses under that underwriting, then I loan it out to my competitors who found deals before me that are 50 cents, 60 cents on the dollar and I’ll finance them.
And I keep that money occupied on short-term notes, so that it’s available for me, if, and when I’m ready and if I’m not ready, it’s out-working and I’m helping my private lenders make a return on their money. My money that I borrow is it’s, non-recourse collateral only, wrappable, which means I can buy the house for $50,000 from a private lender. I use the private lenders money, and then I can sell their finance, the house for a hundred thousand, with 10,000 down, carry the $90,000 balance at 10% for 30 years. And I don’t have to pay the underlying lien off. No, that’s hints wrappable, someone who buys my house owes me 90,000, say they owe me 850 a month. And then they send the payment to me. And then I have to send 350 of that, 850 over to my private lender.
And I get to keep what’s in the middle, but I’m not the landlord. I’m a bank. They’re sending me their mortgage payment. And when the air conditioner breaks, it’s not my air conditioner cause I sold them the house. And so today with all the glitz and glam and the TV shows and the flip this and flip that, everybody’s a house if you notice that everyone’s a home investor, I mean, it’s like must be the most popular side gig on the planet. So we really had to buckle down and hone the fine art of finding distress and motivated sellers and also had to refine the art of moving quickly to get to them and also had to open up our wheelhouse. It’s not just houses anymore. It could be land, we can buy land and owner finance raw land to people that want to put something on it, which is what I look for.
I don’t want to just financial bunch of land because in the event there’s a debacle and I get the land back and maybe it’s tight economic times that land’s not moving. Then it’s a little hard to make raw land produce an income. So I owner finance my land only to people who want to put improvements on it now and they’re putting their improvements on top of my collateral so that if I ever get the property back, It’s worth a lot more and or I can rent it or put someone in it to make an income because there’s improvements it’s on it now, hopefully enough improvements that I can collect some rent. And then mobile homes and land, I became very, I’ve always been, I’ve always taken the lift into the mobile homes when the recession hit or when the competition for houses got big.
So I know mobile homes where really well and mobile homes and land offer a great opportunity, especially if you’re in a culture, say like the Hispanic culture who values an acre or two over a postage size stamp, you know, residential lot. And of course these things are outside the city limits out in the outer parts of the County, if not just outside the County where there’s very little restrictions and you can do what you want, because a lot of these people that want these half acre, three quarter acre places, they want goats, chickens, sheep, burrows, cows, horse, they what all kinds of things and they don’t want some HOA telling them what they can do. So if you drive through my portfolio from house to house to house, it, parts of it looked like a third world country, but Hey, the payments are coming in and these people got stuff to eat. So if you don’t think they have something to eat, just look in their front yard, there’s animals walking around everywhere.
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