Join Jay Conner every Friday, live on Facebook for Free Coaching Friday where he will teach you strategies that will help you take your real estate investing business to the next level.
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Today’s strategy: “What Makes A Great Fix and Flip?”
Timestamps:
0:01 – Get Ready To Be Plugged Into The Money – Free Coaching Friday!
1:20 – Jay’s new book – “Where To Get The Money Now? – https://www.JayConner.com/Friday
2:54 – What is Free Coaching Friday?
3:43 – Who is Jay Conner?
7:19 – Where do you find the deals?
7:45 – How do you get the funding for your deals?
9:08 – “What Makes A Great Fix and Flip?”
9:29 – Buy a property in a market where houses are appreciated
10:00 – Great business relationships
10:22 – Private Lenders
12:27 – Realtors
14:12 – Real Estate Attorney
14:55 – General Contractor
15:42 – Jay’s formula for calculating the Maximum Allowable Offer
17:07 – Home Inspector https://www.JayConner.com/Trial – join the Private Money Academy
Private Money Academy Conference: https://jaysliveevent.com/live/?oprid=&ref=42135
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
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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.
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Real Estate Investing – Jay Conner – Private Money
Jay Conner (00:09):
Are you a new real estate investor that’s still struggling to get your very first deal because you just don’t have the money to fund your deal? Or are you a wholesaler and you’ve wholesaled some real estate deals, and you’ve made some assignment fees, but there’s deals you want to stay in and you haven’t been able to because you don’t have the money to fund the deals? Or are you a seasoned real estate investor? You’ve done a ton of deals and you just want more funding for your real estate deals? Well, if you answered “yes” to any of those 3 questions, don’t go anywhere because I’m getting ready to plug you into the money and all the funding you would want for your real estate deals. Welcome to Free Coaching Friday. I’m Jay Conner known as the Private Money Authority here in Morehead City, North Carolina, and you’re on Free Coaching Friday.
Jay Conner (00:59):
What happens? We talk about all things real estate and on Free Coaching Friday, I always give a strategy that will hopefully help you take your real estate investing business to the next level. If you’re a seasoned real estate investor or need help getting your funding for your first deal. Well, how in the world am I going to plug you into the money? I’m getting ready to give you a free copy of my new book, “Where To Get The Money Now,” just recently released. I need you to help me get this book out to everybody that we can. Tap the share icon below your video right now, and this works, whether you’re watching on the live stream right now or you’re watching on the replay.
Jay Conner (01:53):
So go ahead, tap the share icon and help me get this out. So this book, “Where To Get The Money Now: How And Where To Get Money For Your Real Estate Deals Without Relying on Traditional or Hard Money Lenders.” I will ship you this book to you if you just pay a couple of bucks to cover shipping and handling. The book is free, that’ll save you about 20 bucks on Amazon. And here is the URL to go get the free copy. You can go to www.JayConner.com/Friday. And we’ll ship the book right out to you
Jay Conner (02:51):
And we’ll ship the book right out. So again, you’re on Free Coaching Friday. We talk about all things real estate, and I love to know who is watching here on Free Coaching Friday. So before I give you today’s strategy. I’m going to teach you how to identify or “What Makes A Great Fix And Flip.” In fact, where this question came from is one of my LinkedIn connections that sent me that question earlier this week. They said, “Jay, in your opinion, what is it that makes a great, you know, fix and flip deal?” And I said, “Well, that’s a really great question.” So I answered that question to my LinkedIn connection and I said, “You know what? This would be great to share on Free Coaching Friday.” Well, anyway, if you haven’t heard of Jay Conner, who in the world am I? And why am I qualified to share this information with you?
Jay Conner (03:50):
Gefore I answer that question, I’d love to know who’s tuning in. So whether you’re watching on the live stream right now, or you are watching the replay of this live stream, type in your city and state where you are tuning in from. I’d love to know where you are watching from, city and state. And right after that, I need lots of love and some thumbs up. So when I say something here on Free Coaching Friday that you really like, hit the thumbs up.
Jay Conner (04:40):
And then right after you do that, hit the love, hit the red heart and send me lots of love. So who in the world is Jay Conner? Why am I qualified? Well, Carol Joy, my wife and I, we’ve been investing in single-family houses all the way back to 2003. So this is like the 18th year we’ve been doing it here in Eastern North Carolina. We’ve rehabbed right at 450 houses since 2003. Well, how is it that I’m qualified to write this book and share it with you, “Where To Get The Money Now,” private money? And by the way, we’re not talking about hard money. From 2003 until 2009, I relied on local banks to fund our deals and for those first 6 years, that worked out great. But you may recall what was going on in 2009.
Jay Conner (05:34):
In January of 2009, I picked up this phone right here and called my local banker. I had 2 deals under contract and needed funding. And I learned right there that my lines of credit had been closed with no notice. And it wasn’t because I didn’t have a great credit score. I had a great relationship with my banker, but it was like the spigot turned off overnight. Funding was gone for everybody. So I knew I had to find a better and quicker way to fund my deals. And my definition of coincidence is God’s way of staying anonymous. In less than 2 weeks, I was introduced to this world of private money. And since that time I have not missed out on a deal for not having the funding. So, I mean, my favorite reason for using private money is there’s no application process, you’re already approved.
Jay Conner (06:27):
This book will show you exactly how to locate the private lenders and get funding from them for your deals. Your credit’s got nothing to do with how much private money you can get. Your credit score has got nothing to do with it. Your verification of income’s got nothing to do with it. Your experience got nothing to do with it. It’s because these private lenders are loaning money out because all the money that you borrow on these deals, the money is collateralized by the real estate. Because the real estate is backing the deal, then they loan this money out. So again, I learned about private money. Once I learned about it in less than two weeks of being cut off from the bank, I was able to raise over $2 million in less than 90 days of being cut off from the banks.
Jay Conner (07:18):
So, you know, the two most popular questions that I get particularly from new real estate investors is, “Where do I find the deals? How do I find the deals?” And of course, that’s very important in this market because you’re certainly not going to find the deals in the multiple listing service. Most of the deals that we do these days are what we call off-market deals. These houses are not even listed in the multiple listing service. And the other question that I get most commonly is, “How do I get the funding right now?” You may have been exposed to and know about buying houses on terms, right? Creative financing, either buying houses, subject to the existing note, or seller-financing. Well, it’s been my experience after reviewing thousands of property lead sheets, it’s been my experience that only 13% of FSBOs, For Sale By Owners, will sell to us creatively.
Jay Conner (08:17):
What do all the other sellers want and require? They require all the cash. And that’s why this book is so important for you to get plugged in on the money. If you’re just tuning in here to Free Coaching Friday, I will ship you this book. The book is free and you can get it at www.JayConner.com/Friday. By the way, the number of deals that we’re doing in our market right now, I only do 2 to 3 deals per month, but our average profits now are $71,000 per deal that we’re doing. And our total target market’s only 40,000 people. When you’re averaging those kinds of profits, then you don’t have to do that many deals.
Jay Conner (09:08):
Well, let me move on to answering the question that I’ve told you about upfront. And that was the question that one of my LinkedIn connections asked me early in the week. And they said, “Jay, what is it that makes a great fix and flip? What are your requirements?” And so I answered their question. I thought I’d share that here with you on Free Coaching Friday. And here’s my requirements that make a great fix and flip. First of all, I want to be buying houses in a market where prices are appreciating, going up, right? I don’t want them flat. I don’t want them going down. I want prices going up. The good news is in today’s market across the nation, pretty much it doesn’t matter which market that you’re in, houses and prices are appreciating, but that’s my first requirement. And then the other requirement that makes a great fix and flip deal all comes down to the relationships, my business relationships that I have with other people in other businesses.
Jay Conner (10:12):
And these relationships that I’m going to share with you right now are so important for you to have in place for your fix and flip business if that’s what you’re doing. First of all, the very first relationship or relationships that I want in place are the private lenders. Now, right now, Carol Joy and I, we’ve got right at 47 private lenders that are funding our deals. And of course you don’t need anywhere near 47 private lenders, right? This starts out with one or two, but here’s the deal. You know, some people say, go ahead and get the deal under contract and the money will show up. Well, I don’t subscribe to that formula, right? I want the money ready to go. I want the money to be deployed right now and ready to go. So I want to have the private money pledged. It’s just a verbal pledge.
Jay Conner (11:07):
I want to have the private money pledged, whether it’s 100,000, 200,000, 500,000. And when you’ve got that money, so to speak, burning a hole in your pocket, you think you’ll be more confident, right? So back to answering the question, “What relationships do we need in place, ready to go, to do the fix and flip business? Private lenders, I always teach in our practice, the money comes first. The money comes first. And by the way, speaking of getting the money, if you just tuned in, I will ship you a free copy of my book, “Where To Get The Money Now,” that I plug you into the funding and you can get it at www.JayConner.com/Friday.
Jay Conner (12:14):
And we’ll send the book right out to you. So you will have the private lenders in place. And I tell you, you’re going to be more confident and you’re going to make more offers, all-cash offers once you’ve got the private money lined up and ready to go. The second relationship that I want in place is my relationship with my realtor. Now, here’s how, here’s part of how the relationship works. Before we even go look at a house, I want my realtor to give me a CMA, which of course stands for a “Comparative Market Analysis.” And my realtor gives me that CMA, assuming that if I buy the house, I’m going to fix it up and totally rehab it and make it look like a brand new home, right? Therefore he doesn’t have to go look at the house in order to give me the comparable market analysis.
Jay Conner (13:14):
All he does is he pulls sold comparables, houses that have recently sold in that area, about the age of the subject property house, and he’s going to assume I’ll be fixing the house up to look absolutely gorgeous, ready for Southern Living magazine pictures. And he can get in the after-repaired value estimate, what would the house be worth in its after-repair value state after I fixed it up. Once I have that figure, I can now calculate and use my formula as to what’s the most I would pay for this house, all-cash. And then just a second, I’m going to give you that formula that I use right now today on calculating the maximum that I’ll pay for a house and using private money. So I want my private money relationships in place. I want my realtor relationship in place. And the third relationship that I gotta have in place is with my real estate attorney.
Jay Conner (14:19):
So I’m not going to close on a house and take title and ownership to it without my real estate attorney handling the closing. And if I’m putting a bid on a foreclosure at the courthouse steps or any kind of auction, I’m not going to put any kind of bid in place until my attorney has checked the title and is making sure that the title is clear and I’m clear to bid on the property. So I got to have my real estate attorney relationship in place. My realtor, my private lenders, and then my general contractor. So I got to have a relationship in place for the general contractor. I don’t want to go buy a house and as good as I am at estimating repairs, I’m not going to actually close on that property. Now I’ll put an offer in, would make it just doing my own estimation of repairs, but I’m not going to close on the property and actually buy it and take title until my general contractor has actually been to the property and has given me their bid as well, just to make sure we’re on the same page and the same ballpark on the money.
Jay Conner (15:32):
So what relationships? Private money lenders, realtor, real estate attorney, and general contractor. Now I mentioned a moment ago, I was going to share with you, what is the formula for what’s my maximum cash offer that I’ll make. The maximum cash offer is figured like this. And so you’ll want to write this down. This is called the Maximum Allowable Offer. And here’s the formula: You take the after-repaired value – that’s the figure that you got from your realtor, okay? You’re going to multiply that x 70%. That 70% that you’re multiplying x the after-repair value, that accounts for your profit and that also accounts for some carrying costs, right? So after-repair value x 70%, then from that figure, I’m going to subtract repairs. The repair or the rehab estimate. And then that equals what we call the Maximum Allowable Offer that you would make on that property.
Jay Conner (16:46):
Then I’m going to subtract at least an additional $10,000 from that figure, just to allow for Murphy. And I’m sure you’ve heard who Murphy is, right? Murphy says if something is gonna go wrong and the unexpected is going to show up, then it will. So another relationship that I want to have in place is with the home inspector company. So when I’m rehabbing a house, I do not want to close on a house until my home inspector has been there and also identified any, you know, surprises that myself or the general contractor did not catch. In fact, what I really want to do is I want to have the home inspector do their report. And then I get the home inspection report to the general contractor who will use that report as part of their estimate on figuring their bid on the rehabbing of the house.
Jay Conner (17:42):
So there you have it. They’re the relationships that need to be in place for a great fix and flip profitable deal to take place. And of course, that very first one is private money. So again, I want to rush you the book, “Where To Get The Money Now.” You can get it at www.JayConner.com/Friday and we’ll rush it right out to you. Well, I hope you learned some valuable information that you can use in your real estate investing business. Well, look, it’s great being here with you. There you have it, another episode of Free Coaching Friday, I’m Jay Conner, the Private Money Authority wishing you all the best. Here’s to taking your real estate investing business to the next level. And we’ll see you right here on the next Free Coaching Friday. Have a great one and we’ll see you soon.
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