https://www.jayconner.com/tom-mann-road-house-deal-real-estate-investing-minus-the-bank/
Scott Paton (00:54):
So in four minutes, are you going to tell us about a deal that you’ve closed recently?
So in four minutes, are you going to tell us about a deal that you’ve closed recently?
Jay Conner (01:01):
I hope you and your editor can go in and like snag these little stories, right?
I hope you and your editor can go in and like snag these little stories, right?
Scott Paton (01:06):
This is why I’m asking you these things.
This is why I’m asking you these things.
Jay Conner (01:10):
So let’s see here. A recent deal. Well, let me put on my thinking cap. Let’s see here. One of the guys, one of the crew and the contractors working on. Yes. So okay so we just started rehabbing this house last week, small house in a Newport and it’s probably only got like barely a thousand square feet. So this was how I found the deal was it was an ad, an actual payday ad on Facebook that I was running. And it’s a picture of the ad is a picture of me where they yellow bandit sign in front of me in front of my picture and I’m holding this bandit sign and it says, full price for your house.
So let’s see here. A recent deal. Well, let me put on my thinking cap. Let’s see here. One of the guys, one of the crew and the contractors working on. Yes. So okay so we just started rehabbing this house last week, small house in a Newport and it’s probably only got like barely a thousand square feet. So this was how I found the deal was it was an ad, an actual payday ad on Facebook that I was running. And it’s a picture of the ad is a picture of me where they yellow bandit sign in front of me in front of my picture and I’m holding this bandit sign and it says, full price for your house.
Jay Conner (01:57):
[Wow!] And the phone number. Right? And so, and there’s a picture behind me or I’m standing in front of, you know, some houses, et cetera. So the daughter of the elderly lady that was living in this home contacted me from this Facebook app and I were contacting my acquisitionist. And so the story is, the lady that was living in the house, she had been living in this home for like over 30 years, maybe 40 years long time. And she got into the point that she just could not keep it the house anymore and she was needing to go move into an assisted living somewhere. Which of course, thank goodness when I bought the house corona virus and not shut everything down. And so she contacted us and the after repaired value on this home is approximately $140,000 I bought it for $52,000.
[Wow!] And the phone number. Right? And so, and there’s a picture behind me or I’m standing in front of, you know, some houses, et cetera. So the daughter of the elderly lady that was living in this home contacted me from this Facebook app and I were contacting my acquisitionist. And so the story is, the lady that was living in the house, she had been living in this home for like over 30 years, maybe 40 years long time. And she got into the point that she just could not keep it the house anymore and she was needing to go move into an assisted living somewhere. Which of course, thank goodness when I bought the house corona virus and not shut everything down. And so she contacted us and the after repaired value on this home is approximately $140,000 I bought it for $52,000.
Jay Conner (03:05):
But it is about a $30,000 rehab. So $52,000 purchase, $30,000 rehab we’ll have between purchase and rehab 82,000, but still, yeah. The after repaired value is right 140,000. The reason that rehab is so much is because we’re actually moving rolls around and opening up the kitchen and making it larger. But here is the interesting part of this story as to why I got the deal. An actual competing real estate investor, and there aren’t many of them around here in a small area, but an actual competing real estate investor offered five more thousand dollars than I did. So how is it that I got the deal? Two ways you see, as long as you can understand where the seller is coming from and what their motivation is? You’ll get more of your offers accepted. You see, I knew this lady had no where to move.
But it is about a $30,000 rehab. So $52,000 purchase, $30,000 rehab we’ll have between purchase and rehab 82,000, but still, yeah. The after repaired value is right 140,000. The reason that rehab is so much is because we’re actually moving rolls around and opening up the kitchen and making it larger. But here is the interesting part of this story as to why I got the deal. An actual competing real estate investor, and there aren’t many of them around here in a small area, but an actual competing real estate investor offered five more thousand dollars than I did. So how is it that I got the deal? Two ways you see, as long as you can understand where the seller is coming from and what their motivation is? You’ll get more of your offers accepted. You see, I knew this lady had no where to move.
Jay Conner (04:07):
She was going to need to move, but she hadn’t even gotten any plans together on where to move. So here was my offer. I pay her all cash. I was free and clear so there was no way to buy such do the existing notes. So we paid her all cash, I plaid all cash with private money, closed on the deal. And my offer was, I’ll pay you $52,000, but you can go ahead and get all your money now and you can live in the home for free for two months after we closed and give yourself plenty of time to find, you know, somewhere that you would want to move to. So that gave her the cash flow, gave her the money and cash in her pocket so she could, you know, move on with you know the rest of her life. And still stay there in our home for a couple of months. It was because of that offer we got the deal accepted.
She was going to need to move, but she hadn’t even gotten any plans together on where to move. So here was my offer. I pay her all cash. I was free and clear so there was no way to buy such do the existing notes. So we paid her all cash, I plaid all cash with private money, closed on the deal. And my offer was, I’ll pay you $52,000, but you can go ahead and get all your money now and you can live in the home for free for two months after we closed and give yourself plenty of time to find, you know, somewhere that you would want to move to. So that gave her the cash flow, gave her the money and cash in her pocket so she could, you know, move on with you know the rest of her life. And still stay there in our home for a couple of months. It was because of that offer we got the deal accepted.
Scott Paton (05:07):
Yeah. So it’s not always only about the money?
Yeah. So it’s not always only about the money?
Jay Conner (05:11):
That’s right! That’s right! In this case it was getting the money quicker, cause I told her she got, have all of her money in seven days. [Right]. So getting all the money, getting it very, very quick, and then allowing her to live there for a couple of months.
That’s right! That’s right! In this case it was getting the money quicker, cause I told her she got, have all of her money in seven days. [Right]. So getting all the money, getting it very, very quick, and then allowing her to live there for a couple of months.
Scott Paton (05:26):
And what was the after repaired value again, Jay? [140,000].
And what was the after repaired value again, Jay? [140,000].
Scott Paton (05:34):
So 52 for the house, 30,000 to fix it up. And you’re going to sell it for 140, [correct!] So you can make your usual profits. [Exactly! On a small house] on a small house.
So 52 for the house, 30,000 to fix it up. And you’re going to sell it for 140, [correct!] So you can make your usual profits. [Exactly! On a small house] on a small house.
Jay Conner (05:49):
And of course we were able to buy it in such a discounted price as there was no mortgage. It was free and clear, no mortgages on it.
And of course we were able to buy it in such a discounted price as there was no mortgage. It was free and clear, no mortgages on it.
Scott Paton (05:59):
Right. So there’s the details 52 to buy it, 30 to fix it and sell it between 130 and 150.
Right. So there’s the details 52 to buy it, 30 to fix it and sell it between 130 and 150.
Jay Conner (06:10):
Yep. Yeah. This is the Tom Mann Road House.
Yep. Yeah. This is the Tom Mann Road House.
Scott Paton (06:27):
Just to make sure I got that right.
Just to make sure I got that right.
Jay Conner (06:29):
Two Ns sorry MANN to be exact. That account will shoot Corey a text and tell him we are ready when he is.
Two Ns sorry MANN to be exact. That account will shoot Corey a text and tell him we are ready when he is.
Scott Paton (06:48):
So Jay, you would seem pretty obvious that housing prices are not going to be going up for the next little while.
So Jay, you would seem pretty obvious that housing prices are not going to be going up for the next little while.
Jay Conner (07:01):
Well, actually they are according to a wall street journal that article I read last week and here’s why. You got a lot of people that had their home in the middle of a listing service for sale and now. A share of those people are fearful and don’t want people in their house. So they take their house off the market and now you have a smaller supply and when you got smaller supply of houses, prices goes up.
Well, actually they are according to a wall street journal that article I read last week and here’s why. You got a lot of people that had their home in the middle of a listing service for sale and now. A share of those people are fearful and don’t want people in their house. So they take their house off the market and now you have a smaller supply and when you got smaller supply of houses, prices goes up.
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