Fred Rewey on Real Estate Investing Minus the Bank

https://www.jayconner.com/fred-rewey-on-real-estate-investing-minus-the-bank/
Fred Rewey (00:00):
I guess we can get started. I guess we're live. We're live right now. We're, we're like, people can talk to you. Talk to us. You know, that was behind the scenes folks. That's what happens in the high tech world of doing interviews. I forgot about that. I forgot. We're completely live.

Jay Conner (00:12):
Well yeah, I just don't know. I don't know where we're streaming to to tell you the truth. I have no idea.

Fred Rewey (00:20):
Bu all right, well let's go and get started then. I'll just take a break and then I'll just roll into it and we'll just ask some questions and if there's anything you want to say, we'll figure however long it goes, whether it's five minutes, 15 minutes, whatever it works out to be. We'll go with that. That work.

Jay Conner (00:33):
That sounds good to me.

Fred Rewey (00:35):
All right. Everybody had some time here and cornered the man himself kind of cornered Jay Conner here about the boot camps and you probably started to hear about these. So I wanted to kind of get them on the zoom cause we can't, you know, get together right now. And actually this is a little bit about what your whole event's about, but before we talk about your events I actually wanted to have everybody kinda maybe, you know, tell a little bit about yourself and who you are and what your background is, for anybody that may have not either seen you yet or didn't catch your cash flow expo this year, which by the way, if you haven't seen that session, go back and look at it. But just tell us you're welcome and tell everybody a little bit about yourself.

Jay Conner (01:13):
Sure. Well, thank you Fred. I appreciate you having me on here for a few minutes. So I'm here in Eastern North Carolina in a really, really small town called Morehead City North Carolina population, only 8,000 people. And my wife Carol Joy and I started investing in single family houses back in 2003 and the first six years we were in the business from 2003 to 2009. January, 2009, Fred, I relied on the local banks and mortgage companies to fund all of our deals. And I called up my banker the third week of January of 2009, I had two houses under contract to purchase earnest money back then that I couldn't get back. And I called my banker to tell him about the deals. I'd had this kind of conversation many times from my banker for the first six years, told him how much money was, to fund the deals from the club was my banker went silent on me, which was never a good sign.

Jay Conner (02:17):
And I learned in that conversation that all my funding and lines of credit had been closed with no notice. So myself and the rest of the world investors, I was cut off. Well, within two weeks of being cut off from the banks, I was introduced to this wonderful world of private money. And so I put my Private Money program on Steroids and I was able to raise $2,150,000 in less than 90 days. I learned it about private money. So since February, 2009, I haven't missed out on a deal because I didn't have the funding. I don't do a lot of deals. I'll do 2-3 deals a month here in our local market, total target market is only 40,000 people, but our average profit, Fred per deal is $67,000 per single family house. And we're doing that with a median price point of only 225,000. So obviously we have to find these very attractive deals and we have to have the funding ready to go.

Fred Rewey (03:24):
Right, right. So how with us all filtered in place and you know, I guess this is going to be a two part question cause I'm gonna talk about really what are you doing now? Cause we know what you were doing before all this started. So how has this affected your business in the last, say three, four months and also then, you know, are you still able to do it business and then also what about going forward, what are you seeing for the rest of 2020?

Jay Conner (03:50):
Yeah. So a two part answer to how it's affected the business. As far as the private money and the funding. I actually have more funding for my deals chasing me than I did prior to Corona virus. I mean, people have lost a lot of money in the stock market and they're looking for a site place to put it. And real estate has got that answer. As far as the amount of transactions we're doing, it's not going up, it's not going down. We're getting just as many. Actually I'm getting a few more motivated seller lists and it's all off market, off market for sale by owners. Most of the people still want us to come take a look at the house. And so in our area, you know, we're not in like total shutdown mode where we can't go to houses. However, I've got a number of students across the nation that are doing virtual showings. They're used to know Google, duo app they're using face time for the virtual showings. So our business has not slowed down one bit.

Fred Rewey (04:58):
So what I mean going forward, you know, the rest of 2020, I mean, obviously everybody's worried about, you know, the economy people were worried about potential of the real estate market. What do you kind of, you know, and I know there's no magic crystal ball, but we all agree on one thing and you and I have talked about this before. We all agree that there is an unprecedented opportunity or a rare opportunity going forward, like every decade, every two decades. You know, when something happens this much of a significant economic shift only happens once in a while. How do you see that playing out for you in the rest of the year with the potential of, you know, unemployment or you know what real estate pricing may be?

Jay Conner (05:34):
There's going to be a huge opportunity to serve a lot of people in foreclosure for two reasons. Number one as we know, foreclosures you know, have been shut down for a while. They put a stop on that. But as my grandmother would say, Fred, all they're doing is saving up spit. That stuff ain't going away. Right? So we've got this buildup of foreclosures that are people that are already in foreclosure. And then on top of that, with the millions of people that have been laid off, there's going to be even more people going into foreclosure because of that. So there is going to be a way, I don't know how big, but it's going to be bigger than it's been in probably 10 years. There's going to be a wave of foreclosures coming along and it's for that reason, it's one of those free events that we're going to talk about that I'm spending a whole day on the foreclosure business, how people can get ready to serve a lot of people and to you know, profit as well.

Fred Rewey (06:42):
Yep. Now you just, you just led into my next question, which talked about you have three events coming up, three free full day Boot Camps. So when you told me about these and you said you're doing these free, you know, three Fridays in a row. And I thought, okay, great. You know, what are you going to do an hour or so? I mean these are full days and there's no cost to go to them. So tell me a little bit about the events and what made you even think of doing it. And certainly, I mean there's the give back, the guy that donates an hour, there's another, when you're talking about three full days, that's a lot. And they're not the same thing. Three different days.

Jay Conner (07:14):
That's right. So the first free day, so these are three Fridays in a row, May 22nd May 29th and then June 5th and they are full days. 9:00 AM to 5:00 PM going to be virtual. So you know, your people, as we just said, we'll be able to register for free the very first Friday on May 22nd all that is. So all three days, Fred are going to be framed around how to not only survive but thrive in the midst of having to stay at home in the midst of Corona virus and all that. So the first Friday is going to be focused on private money, getting funding for your real estate deals, for their single family houses, commercial, et cetera. And how to be positioning yourself to get this funding ready to go. So that when the big opportunities do come right around the corner, you're going to be able to take care of it.

Jay Conner (08:10):
I mean, hard money lenders buy larger, shut down. Banks have tightened up even more so private money. And that is my specialty right there. Private money deals, nothing to do with your credit, nothing to do with your verification of income, et cetera. So that first part is focusing on that. The second, free Friday on May 29th, as I mentioned, I'm going to spend a whole day focusing on the foreclosure business. How to locate these opportunities to serve people before other real estate investors even know that these properties and opportunities exist. How to position yourself to not only find them, but how to have conversations with these people that you know, and just in shutdown mode. And how you can also get your deals funded on these deals without even having to necessarily use private money on these particular foreclosure deals. The third free Friday is going to be focused on what I call free private money, how to find free private money and get more funding for your deals as well.

Jay Conner (09:18):
Again, how to do this in the midst of Corona Virus. And even though our country in certain areas is starting to open up and is opening up, in my opinion, we're not going to be coming out of this as far as the economy goes and et cetera for some time. So how to position yourself. These three Fridays Fred are for brand new real estate investors and also for seasoned real estate investors that are looking for more funding for their deals and as well how to find off market deals of motivated sellers. Again, in the midst of and on the other side of the corona virus.

Fred Rewey (09:56):
I like it! And I want to congratulate you for, you know, giving back so much of your time. Like I said, a lot of people are, you know, doing an hour here, webinar and stuff, and we're all doing what we can, but three, three full days for free is pretty impressive and obviously a lot of content and you can't, you can't have a lot of fluff when you're doing that. So I think it's going to be pretty neat. I think definitely everybody whether they're, you know, think they're in real estate or whether they're looking at their own strategies going forward, I think everybody's gonna have a lot of takeaways from it. And that's really what it is. I mean, I go to a lot of these things. I walked a lot of the things like I can get just one really good idea that I can implement. Then it makes a difference. And if you've got three days, well then I'm sure I'm going to have a notebook full at that point though. I know you're busy. I just wanted to say thanks. I wanted everybody in our audience to kind of know who you are, know about the opportunity to know about the three free days to attend. Is there anything else you wanted to mention before we sign off here?

Jay Conner (10:47):
That's it you know, folks, if you have not gotten registered yet, you want to get registered right now because I know that we will fill up and so you want to go in and take advantage of it right now if you haven't already. And Fred, I know that you're going to be participating and joining us on at least one of the Fridays. Tracy, I think Tracy is doing a panel

Fred Rewey (11:09):
I think what you guys are looking forward to that look, we've been buying notes for over 20 years now, so we see opportunity and we bought real estate before. We see opportunities on all sides of this, so we're looking forward to it.

Jay Conner (11:21):
That's awesome. I look forward to seeing you and seeing Tracy there and thank you so much for having me on.

Fred Rewey (11:27):
All right, thanks.

Jay Conner (11:29):
All right.