Jay Conner is joined by The Real Estate Preacher, Randy Lawrence.
“I’ve seen and done it all in real estate. Now I want to help you achieve the success I’ve enjoyed.”
– Randy Lawrence
– Randy Lawrence
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Investors with financial freedom: Double-digit returns with zero capital loss and excellent tax benefits to our private investors for 17 years via asset-backed real estate investments.
Investors with financial freedom: Double-digit returns with zero capital loss and excellent tax benefits to our private investors for 17 years via asset-backed real estate investments.
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Jay Conner (00:02):
Well, hello and welcome to another episode of Real Estate Investing with Jay Conner! I’m Jay Conner, the Private Money Authority, also the host of the show. And I wanna welcome you whether you’re a brand new or you’ve been following the show for some time. My lands! We’ve launched back in June, 2018, tracking fast over 300,000 downloads. Thanks to you. And I do need your help. If you find this episode to be valuable, and you can use this information in your real estate investing business, then please help me out. Let’s share this information, like share, subscribe, write, and review whether you are on iTunes or watching on YouTube or any of our other platforms. Well, here on the show, we talk all things that relate to real estate investing. We talk about how to find deals. We talk about how to fund the deals without relying on local banks, mortgage companies, or even hard money lenders.
Jay Conner (01:11):
We talk about how to sell houses, rehab houses, and how to automate your business to where you’re actually running it. And it’s not running you. But as I mentioned, I’m known as the private money authority. I became an expert on raising private money and I’m not talking about doing business with brokers. I’m talking about actually attracting hundreds of thousands and in the millions of dollars in funding, that’s got nothing to do with your credit, your verification of income, or actually even the number of deals that you’ve done. If you’re interested in getting more funding for your deals to where you never miss out on a deal because you didn’t have the money, I’ve got a free gift for you. Yes, I have got a new monthly membership that I launched that I’m going to show you how to get free access to the membership. It’s called The Private Money Academy, and on the, or in the membership twice a month, I am live on Zoom with coaching for all of the Academy members.
Jay Conner (02:11):
We’re tracking fast to a thousand members. Right now, we got about 150 members. And as a matter of fact, the next live Zoom coaching call is within the next week. So I’m going to tell you how to get in, you get the live coaching. We also put someone, one of the members in the hot seat where we analyze your business, figure out your challenges and fix your challenges to where you’re able to take your business to the next level. And we also have new content and training in the membership every month on finding, flipping, automating funding, selling, et cetera. We also cover all in the membership, all types of real estate deals. We cover single family houses, commercial land, self storage, and you name it. We got it covered. So here’s how you can take advantage of checking it out for free. Go to www.jayconner.com/trial.
Jay Conner (03:10):
Again, that’s JayConner.com/Trial. Look forward to having you live on the membership Zoom conference calls. Well now in addition to that, if you’ve been tuning in for any time, you know that here at Real Estate Investing with Jay Conner, I have amazing experts. And in fact, the guests that I have on today’s show is a good friend of mine and is a fellow member of a very top and mastermind group where we have about 120 real estate investors from all across the nation. We get together about four times a year and help each other out on our businesses. Well, let me tell you about my friend. First of all, he’s an entrepreneur with over as of today, 24 years of experience, and he has four very successful real estate investment companies.
Jay Conner (04:08):
In addition to that, my friend and I have got the same, same heart, and we’ve got a lot in common. He’s a pastor and also a founder of multiple life-changing ministries. And as of this day in the last 15 years, he has impacted and then blessed impact over 40,000 people. He’s been seen on CBN, NBC, CTN and featured in the St. Petersburg times Tampa Tribune. And he’s known as the transformation expert. In addition to that, he’s experienced his own life transformations as well, overcoming the upbringing from a broken home and his life as a drug dealer to becoming a successful entrepreneur, pastor husband, and a father. In addition to that, his spiritual breakthroughs led him out of the economic collapse and the financial collapse of 2008. And man can, I not relate to that! Took him from bankruptcy to a real estate rehabbing business, generating a seven figure annual income, again, something else that he and I have in common.
Jay Conner (05:16):
Also he, and I’ve got another yet person. That’s a mutual friend and mentor back in 2013, he co-authored a book titled Dare To Succeed with Jack Canfield, who is the co-creator of Chicken Soup For The Soul detailing in this book his personal and professional rise from the ashes, his mentors and his coaches include world renowned business leaders, authors, international speakers, such as Les Brown and also John C. Maxwell. He also is an active member contributed to the same mastermind group that he and I are a member of. Comprise, as I mentioned of nation’s elite real estate investors, beyond that he passionately believes in God’s promise of abundance and freedom, and he uses his unique strategies to help transform lives like yours by unlocking spiritual, mental, and tactical financial potential through real estate investing. He also has a very popular podcast titled The Real Estate Preacher on the podcast. He shares his successes and his failures along with his proven strategies and techniques that help build systems that work he’s proven them to work. And he does this so others like you can achieve their own seven figure incomes and their own abundance, just like him. Welcome to the show. My friend, Randy Lawrence also known as the Robo State Preacher.
Randy Lawrence (06:47):
Awesome! My brother. Good to see ya.
Jay Conner (06:49):
Good to see you too, man! Would you reach around please? And like scoop up a little energy and bring to the show to grab a little more
Randy Lawrence (06:59):
After that intro I’m ready to jump up and run around the building Man! Praise the Lord!
Jay Conner (07:04):
Randy, you’ve got quite the story, quite the backstory at one time you were a drug dealer you were bankrupt. You were like, you know, you were like slap dab in one time. And the financial collapse of 2008.
Randy Lawrence (07:19):
Yup!
Jay Conner (07:19):
So, before we get into those pieces of your story how about give us your backstory and little an overview as to.
Randy Lawrence (07:29):
Yeah
Jay Conner (07:30):
Where you’ve been in, what you went through to get you where you are now
Randy Lawrence (07:34):
For sure, man. Well, so my background, I come from, you know, a broken home parents divorced it, you know, four or five years old that kind of led to, by the time I’m in middle school, high school doing my own thing, kind of wayward with the wrong crowd, wrong group, doing the wrong things and just, you know, partying and all like that. Went on through college, got my degree in finance, minor in economics, went into the stock brokerage business right after that really kind of continued on with that same kind of money and partying lifestyle and all. And it was probably about 27 that I, you know, had had success in, in that respect, but really wasn’t fulfilled. And it was at that time that I really kind of found through reading a book Norm Miller chairman of Interstate Batteries, where it outlined about faith in God.
Randy Lawrence (08:25):
I put my trust in Christ. It really just complete 180 from my life, Got involved in the church locally and then got met my wife there. We got married and then, you know, God called me in the Ministry as well. And so I’m running a money management company that I started and then also ministering there at the church and probably around about 2003, God, just really, Has showed the power of the difference of what real estate can do versus, you know, stocks, bonds, option traditional money management. So really started focus on that. And you know, that was really the beginning of where things took off for us. We sold our money management practice in 2006 and moved out North of Tampa to start a church. And then of course that’s where we were having gone through that economic collapse that happened here in Florida.
Randy Lawrence (09:17):
And it was just quite the incredible journey because I was simultaneously pastoring the church, also running the real estate business and navigating the economic collapse that the whole country went through. So really kind of an incredible time at that moment in time.
Jay Conner (09:34):
Did you say you met your wife at church?
Randy Lawrence (09:36):
I did. You know, it’s funny. My dad always used to ride me now again, he was in North Carolina, we’d see each other, maybe once a year, talk on the phone once a week, I’d be going to the bar at happy hour after work, you know, and talk to him on the weekend. And he’s like, what’d you doing? That’s all, I’m going out with some friends at a ball game. And he’s like, man, you should go to church. I’m like go to church? He’s like, well that’s where you going to meet you a right girl. And I’m like, yeah, that’s not the kind of right girl. I want to meet, but he was right. You know? And so yeah, I was blessed to meet my beautiful wife, Sarah Jo there. And we’ve been married now 21 years coming up in October.
Jay Conner (10:16):
Did you say her name is Sarah Jo?
Randy Lawrence (10:18):
Sarah Jo? Yeah. She’s.
Jay Conner (10:20):
We got two things in common, We both met our wives or our to be wives At church.
Randy Lawrence (10:25):
Yeah.
Randy Lawrence (10:25):
And both of them have good Southern devil names. Mine’s Carol Joy,
Randy Lawrence (10:32):
Okay.
Jay Conner (10:32):
And yours is Sarah Jo, you want to know something else we got in common?
Randy Lawrence (10:36):
ah.
Jay Conner (10:36):
So in your bio in 2013, you coauthored a book with Jack Canfield named Dare To Succeed.
Randy Lawrence (10:44):
yup!
Jay Conner (10:44):
Well guess what? Two years later in 2015, I got certified as a Jack Canfield trainer by Jack Canfield.
Randy Lawrence (10:53):
Awesome. Yeah, it’s a, it’s amazing how many things, you know, it’s like the commonalities that the Lord, when you surround yourself with great people, it’s like you attract those similar qualities. And then here it is, you know, that we’ve been together through CG and the friendship there. And then now as we connect together with that further, you find all these backstories that line up with the identical things. That’s just pretty cool.
Jay Conner (11:22):
Well you know, I don’t know who came up with the idiotic idea, In my opinion, that opposites attract that’s stupid.
Randy Lawrence (11:29):
yeah.
Jay Conner (11:29):
I want to be around people. That’s like me. It’s like birds of the same feather flock together. Right?
Randy Lawrence (11:34):
For sure. Absolutely. And that’s, you know, we’re really, as you begin to have the synergies, the thinking is the same, the thinking that elevates one another and pushes each other to higher levels. That’s when I heard your intro about the monthly mentorship program, it’s like, man, that’s what people need to be a of because you know, you just, you come together with great thinking and then it inspires your thinking and then you see these actions that others are doing, or, you know, it’s just a win, win. It’s like the synergy of one plus one, it’s more like, you know, two times two equals four and then it just expansively grows, you know? And that’s the thing, man. So,
Jay Conner (12:15):
Yeah, exactly. So would you say, first of all, were you raised going to church or no?
Randy Lawrence (12:21):
I was not. You know, both my parents, you know, kind of by the time I was in middle school, I was kind of given ability to start making my own decisions and, you know, good parents, but this not focused on, you know, religion or, and again, as a broken home you know, they were just trying to do the best they could do to do their thing. And, you know, so that left me to my own accord and left them on accord. I probably connected together with the wrong group and ran with the wrong crowd and all that kind of stuff.
Jay Conner (12:53):
So I want to speak for a moment to people listening in or viewing whichever platform they’re viewing as someone or listening. My best guess is the majority of people out there like you and me went through a time in their life. The majority, not all, but a lot of people went through a time in their life or an extended time in their life that was very dark. Right? And I went through my dark time. My dark time lasted from the time I was 21 years old until I was 24 years old. And it just progressively got darker and darker and darker. Here’s my question for you. Did you have a wake up call? If so, what was it?
Randy Lawrence (13:42):
Yeah.
Randy Lawrence (13:42):
And if you did, what was it?how did you get out of it?
Randy Lawrence (13:50):
Yeah, So I was, you know, in that period for me would probably been 13 through 27. So like 14 years kind of like a Joseph in the journey, the two kind of coming out of the pit and all like that. But it was really at 27. I was helping take care of my mom. She had gone through numerous health challenges with failed back surgeries and all like that. And I had gotten a DUI charge, you know, for driving home apparently intoxicated. And again, I’m like, no, you know, that’s not the truth, but really what it was for me at that moment was it was this wake up call that here I am, 27, I’m facing the possibility of losing my license for six months. And, you know, I worked at a brokerage firm in Tampa. I lived in Seminole there with my mom helping to take care of her.
Randy Lawrence (14:43):
There were these recoveries and health things she’s going through and it just hit me like, you know, good Lord, man. I’m nowhere near where I want to be in life, cause if I lose this thing, now I’ma have to ride my bike to the 711 and maybe get a job. There not knocking people to work at 711, but that was not my aspiration. And I’m like, what I’d aspired to become and to do and achieve is nowhere near the realities. And the truth of the matter is it’s because of where I’m at in my life and the choices. And so that began to be that process to me, to see it’s like, what I’ve been doing is not the right thing. And so in short order, I laid my hands on a book, another friend of mine and I we’d started in an automotive garage and in the we sold interstate batteries.
Randy Lawrence (15:33):
And so the interstate battery salesman dropped off a book called beyond the norm. And it was about Norm Miller and his journey. I thought it was a sales success book, but it was his journey on how he came to faith in Christ. And then they became the number one battery reseller in the world and went on to such great success. And when I read that book, I’m like, that’s it, he’s got a beautiful wife, he’s got success, he’s got fulfillment. He’s in, he’s found it all in Jesus. And I’m like, wow! And I’m like, you know, Lord, if that’s true, and this is real come into my life, come into my heart, show me the direction you want me to go. And it was just like wham! This giant Volkswagen that I’ve been carrying on my shoulder for 15 years was just released. And it was just an incredible thing. And I, I knew I didn’t know what exactly happened, but I knew something happened and that my life had been changed. I could just feel it at that moment,
Jay Conner (16:31):
If you would like to follow Randy Lawrence and his story, you can follow Randy at www.TheRealEstatePreacher.com So Randy what does your, so how’d you. So when did you start in real estate? How did you get into real estate and what is your business model look like today?
Randy Lawrence (16:52):
Yeah, so we started in 2003. I bought my first multifamily property with little small duplex in 99. And you know, just really loved real estate even while I was a stockbroker and a money manager, you know I just loved real estate. And the more I looked at it, I saw the power of the returns you could generate in real estate with a really a lower adjusted beta or better risk adjusted return than what we were getting with our stock portfolios. And so it was 2003. I mean, God just really helped me to see that’s the direction. And so we bought our first small apartment complex in 2003 and began buying more properties. Now in Florida, it was a real white hot market. So it was tough to get properties. My first mentors had a several thousand doors that they own in apartments.
Randy Lawrence (17:41):
And so that had always been our focus, but you know, we probably started in five and six rehabbing houses just cause there’s so much, you know, money that could be made in that arena. And so we started building that business and also, you know, owning the small multi-families and 2008 hit. We went through the decline here in Florida you know, thankfully it was a great retooling that helped me to just learn a lot through that process. And so we came out through that process where a lot of people just left real estate. We did a huge short sale business, helped hundreds of people. And then, you know, 2011, 12, 13 started rehabbing houses again. And then 15 started focused back on large multifamily. So now to this day, kind of fast forward, we have over a hundred million dollars in apartment complexes on our commercial multifamily side. We have probably three more complexes under contract. Now we’ll buy eight more complexes next year. It’s kind of a velocity approach that we use. And then we still on the residential side buy fix and sell about 70 houses a year.
Jay Conner (18:53):
Wow! That’s quite an operation for both single family and your commercial, what size operation do you have as far as employees that are with you full time and numbers size is your team?
Randy Lawrence (19:08):
Yeah. So our internal team here in the office, we’re based in Largo, Florida, which is kind of the Tampa Bay area. We have seven employees in our internal office team. And then we have right about 28 employees that are through our multifamily side, through our management partnership so that, you know, they’re, they’re not direct report to me, but they work for our company through our management operations. So with every property that we buy, cause on the apartment side, our complexes tend to be 75 units to 200 units is the range kind of the sweet spots, probably a hundred, 110 15. And so every one of those complexes, we always have a full time manager and a full time maintenance. And so with every complex we buy that adds two more people to the mix. And then we have a regional manager that oversees them. And then one of our internal asset managers that oversee them as well
Jay Conner (20:07):
On your apartment complex projects is your business model to search for distress properties that you can fix up and get the rents raised and then turn them for a profit or what’s your business model would like, are you staying in the deal long term or what?
Randy Lawrence (20:24):
Our focus typically is about a three year hold. We look for kind of the threefold, the Holy grail, if you will, that we’re looking for the, the property that has a, you know, original type condition. So we focus on workforce type housing. So that’s people making between 30 to 60 grand, you know, real C, C plus type property. These people are, you know, typically blue collar or lower end white collar workers, you know, just good quality working Americans. They need a good place to live. So that property typically built in the seventies, early eighties, original condition on the interiors. A lot of times, a little bit of deferred maintenance, you know, where they’ve owned it, but they just haven’t really fixed it up and kept it spruced up on the outside. They’re typically, you know, keeping the cashflow and then operational areas where we can improve efficiencies.
Randy Lawrence (21:15):
Cause we have a more corporate structure, you know, large scale discounts. So with that, we’re able to go in upgrade the units so that they’re for about $3,800. We’re able to make them like new two thousands, you know, paint the cabinets, new floor, new lighting and then bring the rent because if they’re renting at 800 and the market’s at nine, it makes sense. This place is a little tired. The place is not updated. So we’re able to update the units on the turn. So that keeps cashflow consistent. It keeps us to be, you know, positive out of the gate so that we’re not running a negative. And it also is much more secure because we’ve got positive cashflow from day one. So on a hundred unit property, it takes us probably about 18 months to cycle through the rent roll, renovate the units. The first 90 days though we renovate the exterior. So it gives it a fresh pop and looks nice. So, you know, you know, the first three months you pull up on the property, looks like a new place and we’re able to start methodically working through the rent roll to improve the interiors during that time as well. And then that prepares us to be done within 24 months and then operate it for another 12 months to really improve the the T 12 and prep it ready for sale.
Scott Paton (22:37):
I think we lost Jay for a minute there, Randy. So.
Randy Lawrence (22:42):
No problem. Well then, you know, so just kind of carrying forward with our business model on it. So typically those properties, you know, we’re buying them at 85, 90, 95% occupied, and we have people that invest with us in the complex. So, you know, we’re buying a, let’s say a $10 million complex, we get a seven and a half to $8 million loan. And then that additional 2 million comes in the form of our capital as well as other people investing with us. And you know, it’s a typically like that is a three year hold period based on the model that I just share.
Scott Paton (23:18):
Cool! So I have a question that’s of interest to me, and that is, is the, if I invest in your deal or your project, is it interest that comes back or interest plus a percentage of profits? Or how does that?
Randy Lawrence (23:33):
So how it works on the majority of our properties, we have a preferred return model where you’re getting a 12% preferred return. So you get 7% paid on cashflow. So that’s a quarterly check every quarter. And then you get another 5% appreciation that is then a preferred return so that you, for example, put in a hundred grand, you’re getting 7,000 a year paid quarterly and then another 5,000 a year that’s accruing as appreciation so that when the property sold in three years, you get the hundred grand back plus another 15,000. That’s the appreciation. And then meanwhile, you were paid 21,000 through the cashflow during that three year hold period. The interesting thing with apartments too, and this is one of the greatest elements to it because you’re an actual owner in the individual apartment, you get a K1.
Randy Lawrence (24:24):
And so instead of a 10 99, you get a K1. And on that K1 because of the depreciation, you’ll get you typically on a hundred thousand, about a 40,000 depreciation loss. So you actually got 7,000 of income, but your tax statement shows you lost 40 grand. So you don’t pay any tax on that 7,000. So it really is a highly favorable and tax efficient investment vehicle.
Scott Paton (24:48):
I don’t understand why anyone would buy stocks, just listening to you right now. But Jay has returned.
Randy Lawrence (24:54):
Awesome!
Scott Paton (24:54):
I’m going to step away and make room for him right now.
Randy Lawrence (24:58):
All right. Very good.
Randy Lawrence (24:59):
So I don’t know what happened, but poof! I’m going poof I’m back
Randy Lawrence (25:05):
Yeah.
Jay Conner (25:05):
So, You may have already answered this question, Randy, but one more chance, your favorite way to find your apartment deals and how many of you got the analyze to buy one?
Randy Lawrence (25:14):
Yeah, they’re very good questions. So really, you know, we network in any market. So like if you focus on a market that you want to be in, we want to be in high growth markets cause that’s where demographics and jobs are coming. So in that market, you’re going to have typically three to five people that are the majority of the brokers that sell the big projects. Right? And so we develop a relationship with those people. They know that we’re no BS shake on it, we get it done. And with that, we’ve developed a very clear track record and a confidence. So when a deal comes that’s like, I just got an email yesterday, guys like, Hey, we’ve got an amazing property that it’s off market. The sellers looking to want to sell it. We want to get your input on it. First we get that kind of first shot at stuff that other people aren’t going to get because of the relationships we’ve developed and the performance that we’ve done in executing, you know? And so that’s really the number one strategy that is yielded the results that we’ve seen. And then currently we own 11 complexes right now just over a thousand doors. And then we have three more complexes under contract right now. That’ll bring us right to about 1400.
Jay Conner (26:34):
Awesome. And how many deals you’ve got to analyze to buy one?
Randy Lawrence (26:37):
Oh yes. That’s the question right there. So it probably is anywhere from 30 to 40, a lot of times, you know, we’ve developed a system where I have a full time acquisitions person. We have a two 10X14 double spreadsheet and he’s just going through property after property, after property. And so on a weekly basis, kind of the crap that’s on the back and it migrates to the front. So now when you get to the front page, the top 5 to 10 are right there for me to look at. And then we say, okay, dive into this one, this one, this one. And that’s a process that we’ve refined and developed so that we’re able to go through that kind of ball on, because you got to shift through the chafe, define that, you know, nugget of gold and you know, and that’s really been the key.
Randy Lawrence (27:26):
And so I think a lot of times people looking at apartments, you know, they mistake well like, Oh, well I look at this one or look at that one. And it’s like, that’s really not how it works. You’ve gotta be willing to 1, be accurate and understanding the dynamics that go into it. And then 2 have the volume ability to be able to look at a lot of deals.
Jay Conner (27:45):
Excellent. Well, Randy has been such a pleasure to have you here on the show and folks to stay connected with Randy Lawrence, go on over to his website at www.TheRealEstatePreacher.com. God bless you, Randy. Thank you so much.
Randy Lawrence (28:04):
Thank you so much, brother. You have an awesome day. God bless.
Randy Lawrence (28:07):
You too. There you have it. Folks. This wraps up another episode in show of Real Estate Investing with Jay Conner. 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 I’ll see you on the next show!
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