Thursday, November 12, 2020

Chad McCall on Finding the Deals! - Real Estate Investing with Jay Conn...


Chad McCall was only 14 years old when h purchased his first property.

You can never be too young or too old to start investing, all you need is the right plan and a system to follow. He created the system for anyone looking to build wealth in real estate all you need is the drive to get started!

https://chadmccall.com/
https://www.restrategylab.com/podcast

Real Estate Cashflow Conference:

 https://www.jayconner.com/learnrealestate/

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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.

#RealEstate #PrivateMoney #FlipYourHouse

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Jay Conner (00:00):
Well, hello there. And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, your host also known as The Private Money Authority. And I’m so excited, the guests that I have on today’s show, we’re going to be talking about finding deals. You know, that’s the two, one of the two most popular questions that I get as I train and coach other real estate investors. The first question is how do I get money for my deals? The other question is, is how do I find the deals? Well, I’ll be introducing my guest here in just a moment. So you want to be sure to stick around for the entire show, because we’re going to be diving deep on what’s working today on finding the best and most deeply discounted deals. So if you’re new to the show, a very special welcome to you here on the show, we talk about all things that relate to real estate investing.

Jay Conner (01:01):
As I said, finding deals, funding deals how to sell houses fast, how to automate the business. So you’re running it, It’s not running you. So we love your feedback. If you haven’t subscribed to our show yet, be sure to like share and subscribe and leave us a five star review if you can. And so, as I said, we talk all things real estate investing. Now, if you’re new to the show, you may not know why it is that I’m known as The Private Money Authority. Well, from 2003 to 2009, I was investing in single family houses here in Eastern North Carolina, January 2009, I got cut off with no notice from the local banks. Well, very quickly I learned about what private money is, and I’m not talking hard money or hard money brokers. I’m talking about doing business with individuals who loan us money from their investment capital or their retirement accounts.

Jay Conner (01:57):
That’s a whole another subject right there. So I learned about private money. I was able to attract over $2 million in less than 90 days. And since that time I have not missed out on a deal for not having funding for my deals. Well, if you’re a brand new real estate investor, never done a deal before, or you are a seasoned real estate investor, my guess is you can use some more funding. That’s got nothing to do with your credit, your experience, nothing to do with what you know, it’s got nothing to do with traditional banks or mortgage mortgages or lenders. This is all a different kind of funding. And so I’m got a gift for everybody right here on today’s show. And that is I’m going to give you 33 days of access into The Private Money Academy membership. So, here’s the way this works.

Jay Conner (02:48):
I’m live training twice a month, all the Academy members on how to get funding for your deals and all kinds of education is in the membership side as well. So here’s how can take advantage of getting three free days, 30 days for free at www.JayConner.com/Trial. You go on over to that website after the show and sign up for your free access. And I’ll be looking to having you on the next Zoom coaching call. Well, on today’s show, I’ve got a very, very good friend to join me here. And he’s got over 20 years experience on all different kinds of methods on finding deeply discounted houses. Well, he started his real estate investing career all the way back when he was only 14 years old, and he’s also a fellow North Carolinian.

Jay Conner (03:47):
I’m here in Eastern North Carolina. He’s from the Western part of the state. Well, he’s been doing real estate full time since 1998. He’s been involved in over 3000 house transactions all across the country. And he has been speaking on stages and five countries with audiences sometimes over 7,000 people. Well, he’s way too young for me to say this next statement, but he’s been retired down in Arizona, all this year. He’s married with two kids, got a 15 year old and a 9 year old. Well, he’s not retired, he’s staying busy. Well, let’s bring him on out of the green room. My good friend, welcome to the show, Mr. Chad McCall. Hello Chad.

Chad McCall (04:33):
Hey, Mr. Jay, how are you buddy?

Jay Conner (04:35):
Man, I am doing fantastic. And mercy. I see a great big smile on your face does that got anything to do with you just like working whenever you want to these days?

Chad McCall (04:46):
Oh my gosh. I think I’ve gotten busier since I was joking around saying, Hey, I’m retiring down to Arizona because of the land of Arizona, from where I came from, I was like, it’s retirement country, but I’ve gotten busier this year. And I’ve only been here since January and Man, 2020. It’s nuts, but it’s gotten busier for me. As you can see, my hair keeps getting more and more gray. Yeah, I’ve got more gray hair than you do, Jay.

Jay Conner (05:09):
Hey look, that’s not great. That’s like some beautiful white hair you got going on there Chad. Well hey look, I want everybody to go ahead and know right now. So they stick around to the end of the show. You have got a book. In fact, show them the book that you put together. It’s like a great big coaching manual. It’s a real estate playbook. You got 101 ways to find discounted houses. And we’re going to let everybody know how they can get that book at the end of the show. But in the meantime, I’ve asked you before you came on here to share with us, what are some of the top ways that’s working right here today, this year on finding deeply discounted houses. So I’m going to let you roll with it, Chad, and you know, talk about the different strategies that you want to, and I’ll interrupt when I think it’s the right time to interrupt you.

Chad McCall (06:02):
Great, no problem. Well, it kind of started out like years ago, Jay it’s, you know, like you, you talk about money lending and the importance of funding. Well, I started realizing that if I go out there and I start trying to find money to do deals, the guys that had the money, when I started out as a kid, I didn’t have the money. So I was thinking what’s going to really make them want to give me money because who am I? I’m a kid at the time, right? I’m young. I have no it’s really experience. I wasn’t seasoned enough. I wasn’t old enough. I didn’t have this gray hair that gave me instant credibility with these lenders. I was saying, Hey, what’s it going to make that the ability for them to give me money to do a deal? And I kept hearing that they want a better deal.

Chad McCall (06:50):
Hey, Chad, we gotta have a good deal. We got to have a really, really good deal. That deal doesn’t look as good. And I was like, well, donor, I need to find good deals. How can I find good deals? I started really thinking about ways to eliminate the middleman, eliminate realtors, a lot of times eliminating other wholesalers, you know, getting down to the, really the bottom of the deal, where you’re talking with homeowners a lot of times, and as I’m going through this journey, that’s where this playbook was really created. So being involved with thousands of transactions with my partner, we scoured the country. We were looking at every possible State, County, City, whatever we could do to find really good deals. And all the strategies came from just experience of doing something, you know, actually applying it. And we started thinking of, do we need the internet?

Chad McCall (07:43):
Do we need softwares? Do we need all of these other tools and resources that are out there? Those are all great, but it kept coming back for me to think, as I was doing it, I did it as a kid. I did my first house at 14 years old, the internet wasn’t available back in 1991, you know, there wasn’t Google to go out there and search for a deal to try to find a motivated seller and all these other things you can do online. It was different back then, but the population was still hundreds of millions of people. You’re still talking about 350, some million people probably back then. And so deals were always being done. People were buying and selling and building and rehabbing and doing all that before the internet. So I started thinking about it. I want to put everything I’m doing into a manual or a playbook is what I call it.

Chad McCall (08:30):
We’re actually gonna do step by step and try to really understand real estate at its core, which when you start out real estate investigates all about finding a good deal, because I was always going ahead looking for money first sometimes, but then they were like, well, Chad, go get a good deal. I was like, okay. So how would you find the good deals? And then the money started coming. It was a lot easier for me to have conversations with the lenders. And the lenders really started liking me, Jay. And that’s why you’re expert in funding. That’s why I love you so much and get along so well with you and your strategy because you are the money guy for all the cool things that I find in real estate. When I find deals.

Jay Conner (09:06):
Before you get into some specific strategies, I’m just really curious. And I know our audiences as well. How do you do a deal when you’re 14 years old? So let’s hear the 14 year old first real estate deal story.

Chad McCall (09:21):
Oh, okay. So you guys might. Oh, well, okay. I’ll tell you. So 1991, I was in a car accident. Like you said, Jay I’m from Western, North Carolina, small town, way up there in the mountains. Nowhere between Lenoir and Morganton little town called Gamewell, but it’s pretty much known by Lenoir, North Carolina. And I was in a car accident and long story short, I was in the hospital for a few months. Really, really severe car accident. And I don’t come from a very wealthy family. I come from just a basic family in North Carolina and I got an insurance settlement from the car accident. And my mom and dad got divorced right around that same time. And I took the money from the insurance settlement and I bought my mama house. So a lot of times you hear the stories from people in the South, you know, when their sons are doing something or someone comes across money, it’s just one of those things.

Chad McCall (10:17):
What do you do? You buy momma house? It’s kind of a common thing. I’ve got a lot of friends that are athletes and, you know, professional sports players and different things. And they always come to me. They always say I bought momma house. So you know what? I followed right along with it. And I bought momma house, Jay, when I was 14 years old with the money that I got from the insurance. So when I wasn’t old enough to sign on the contract, so my mom was the co-signer for that house. I remember Gamo Heights. A lot of my friends you’ll have people watching this. They’ll remember that same house that I purchased. And it was a HUD home that I ended up buying back then. And that was when I started talking about my first real estate deals where HUD properties.

Jay Conner (10:52):
That’s awesome. Okay. Well, I didn’t want to slow down the momentum there, but I just know people want to know how you buying a house at 14 years old. So all right. Back to you.

Chad McCall (11:03):
All right. Got it. So I got back to the strategies and saying, how can we break it down to the most basic form of how to get started on the deal? And the strategy started out like 10, 15, 20, then over time, Jay, these are the numbers of ways that we found properties caught up to 101, and this is the revised version of the playbook was at 90 for the longest time. And then we found a little bit more, but I call it Grassroots Real Estate Investing for some reason, it’s kind of a little nickname that I got to because if you can’t go out there and you can’t find a deal with out a computer, then it’s going to be just as hard sometimes to find it with the computer. You don’t know, it’s almost like talking to, you know, having conversations with people too, a lot of strategies are gonna involve human interactions.

Chad McCall (11:49):
Some won’t, some are gonna involve computers. Some won’t, some will involve marketing. Some don’t some involve, you know, investments of money into marketing and your business. Some don’t that’s the beauty of it is there’s so many ways you can find deals and it doesn’t matter where you live. Doesn’t matter if you’re on the ocean like Jay, right by the water, right next door to it. Some of the most expensive real estate in the country is by water. Like where you’re at Jay, or you can be in the rural mountains, up in a cabin somewhere. It doesn’t matter where you are, you can do deals. And if you can find a great property, money’s easy and actually profiting in your real estate, investing business, hitting six and seven figures is very easy too if you find the right deals. So I spent my time really honing in on the strategies and the ones that I like.

Chad McCall (12:35):
But what’s really interesting is you start to really see the markets shift. You start, when you’re looking and you’re talking to sellers. It’s very interesting when you’re on the ground looking at deals or you’re doing this business virtually. So there’s different strategies, depending on if you’re remote or if it’s in your backyard, but there’s always a strategy for any person, regardless of your money, regardless of your credit, regardless of your location. We have a lot of people, Jay, that are international investors that take the playbook and they’re investing here in the United States and they don’t, they’re never here. They do it all virtually they pick a few strategies and they just stick to it and they use those strategies over and over and over again to do their deals.

Jay Conner (13:16):
That’s awesome. You know, there was a popular book, I don’t know, 25 years ago, maybe 30 years ago. You remember when the book Guerrilla Marketing came out?

Chad McCall (13:26):
Yeah. Oh yeah. I think I’ve gotten it somewhere. Yeah. It’s over here. It’s all camouflage book. It’s around here in my desk somewhere.

Jay Conner (13:32):
Yep. And and I remember that book, and as you were talking, I was thinking, you know, when you used the phrase, grassroots. So, you know, some of the best ways to find deals in my experience has, does not take a lot of money. Right.

Chad McCall (13:50):
that’s right.

Jay Conner (13:50):
May take some time of your own or time from a team member to do it. But I was just curious and we’re going to find out here, you know, what, you know, what percentage of your hundred and one different ways of finding deals would you say are actually a Grassroots or a Guerilla marketing kind of thing?

Chad McCall (14:10):
Oh, a majority of the margin where they don’t really require a lot of money. And I want to take, let me tell you the difference, what I say, money free equals work. Okay. If you’re not going to put money out there into like a marketing budget, which a lot of investors are new, they don’t have marketing budgets, which is okay. But if you’re going to do it that route, it’s going to take a little bit of time and going to take a little bit of work, which if you’re , if you don’t want to work, then you know what, get together a little bit of a budget now, budget, meaning a majority of the strategies, you know, you’re talking $10, $20, $50, $75 or so a month, or over several months, I had a person spend $70 over 90 days in marketing, Jay. And she closed three transactions on $70 of spent.

Chad McCall (14:59):
And here only one of them deals that she did, or the three came from the $70 that she spent. So, yeah.

Jay Conner (15:06):
I love it.

Chad McCall (15:06):
So it doesn’t really matter. One thing, Jay is in the playbook here. I break down the cost of each strategy. I give you how much it’s going to cost you. I tell you affordability and if you can pick the best strategies for you based on your budget. So I’ve taken 101 ways, and I’ve put those all down into 10 different categories. So you can focus on the category and then get inside the specifics of each category and find the right strategy for you.

Jay Conner (15:33):
What’s an example of a category?

Chad McCall (15:36):
For example, one of the categories here is I call it The Judicial Strategy. Then I have niche strategies as one. So I have retail strategies as one. I have B2B, which is another strategy, you know, a category. So these are categories. And then inside of those categories have detailed strategies and how to apply the strategy in your market. So it’s not just, Hey, go put out some signs. That’s not really a strategy. It’s if you’re going to do that, how do you do it? How cheaply can you do it? Like, there’s so many things. It isn’t just about putting out a sign. If you’re going to drive for dollars or doing those types of things, there’s a way that you do it to where you can get the best results you just don’t want to get in the car and drive around, or use an app on a phone out there.

Chad McCall (16:18):
Like that’s really common nowadays, you see an app on a phone and people say, Oh, I’m driving for dollars. I’m going to send postcards. And this, well, just doing those things randomly, you don’t have really a purpose. So what I really like to let people know is in real estate investing, you have to have a purpose for the actions of what you’re doing. So if you’re going to go drive across, where are you driving? Why are you driving there? Who are you going to see? Why is that a good market? Is that an area that’s going to be good if you do get a deal from it? Cause a lot of times, Jay, I’ve been in markets where I can find an amazing deal, but there’s no buyers for it. And if there’s no buyers for it, why would a funder want to fund me on that deal? If they think it’s too risky.

Jay Conner (16:55):
Exactly. As you’re talking, one word comes to my mind and then I want, then I want you to, I know our audience is biting at the bit that they hear the first strategy that you’re going to talk about. But one thing that comes to mind is a word that is critical when we are in real estate investing and we are locating deals to do. And that’s the word, consistency and measurability. And when I say consistent, it’s like, you know, if you’re like, okay, I get up today. Well, what am I going to do to go find a deal today? That’s not how it works. In my world, you got you get the education, right? You gotta, you gotta, you need to hang around somebody that has already learned how to do it and implement, you know, put the plan together. Okay, what strategies am I going to start testing? What’s my budget and consistency. You know, activities going on every day of bringing in, you know, some are leads. And along with that, we can’t set it and forget it. We got to continue to measure it. And we got to have a mechanism on measuring. What kind of return are we getting in our investment of dollars and investment of time, you agree?

Chad McCall (18:13):
Oh, you have to measure what you’re doing. And that’s when I tell people, it was like a lot of people, Jay, that I run into say, Chad, I’m so glad I found this playbook. You know, I did direct mail though. And it didn’t work. How long did you do it? Well, I did it for two months. I was like, well, if you pay attention to the strategy, it’s going to last a lot longer than that. You know? They’re like, well, I sent out postcards, you know, not versus my yellow letters. And well, how long did you do it? And some people, they just, they jumped around from strategy to strategy. They ever get the consistency out their day, like you’re talking about. And I always tell people, if you do something consistently, just like you said, you can get a predictable result if you can measure.

Chad McCall (18:52):
So you gotta be consistent. So you have the ability to measure. Then that’ll give you a predictable outcome, you know? And I learned from you Jay, you guys. I went in the field with Jay. Jay, probably that’s about that. I came out, went around Jay, show me what he’s doing. We talked like, this is what people do that are in this field. The experts I learned from Jay too, of how to be better on my side of finding deals, because I know that I’ve got to go to people like Jay and say, Hey, I need more money for deals. And if he knows what I know, and I know what he knows, it makes that so much easier to have that conversation with a funding person or to help me line up funding or referrals to other funders to do deals. So that’s the relationship that you want. You want to understand your market. You want to understand things and then give yourself time to be consistent enough. So you can measure. Then you can get a predictable result. Cause Jay will know that Chad gets this type of deal. Chad’s doing this type of size houses, this location, they get very, very comfortable with you. Then they start doing a lot more for you. Then they start giving you a little bit better rates sometimes. All of those things work out when you’re consistent with business for them. Right, Jay,

Jay Conner (20:01):
You got it. All right. Let’s talk about a strategy. That’s one of your favorites.

Chad McCall (20:05):
Oh man. I got so many, you know, I don’t know. Well, I’ll tell you one right now. That’s really hot. And some people are going to say no way, but Airbnb is a really hot strategy for motivated sellers.

Jay Conner (20:20):
Okay. First of all, why is Airbnb so hot right now?

Chad McCall (20:27):
Okay. I own Airbnbs in several States. I love the Airbnbs, but don’t get me wrong. But Airbnbs for motivated sellers because rules, regulations, you know, things are going on out there in the world. The reason why I say this is I filtered phone calls from at least 30 to 40 owners of Airbnbs, because they’re worried about what’s going to happen. Okay. And I’ll give you an example. What’s the most common conversation I’ve had with them is Chad, am I going to get sued? If someone catches Corona virus from one of my properties? Well, no one knows, right? But there’s a fear factor that could possibly happen. We haven’t seen a court case yet of that. Jay, we don’t know, and we can’t prove it. And we don’t know contact tracing and all the other things that can be involved with it. So homeowners, if they did get sued for that, what are the chances that they’re going to be able to weather a storm of a financial crisis like that the average person can’t. So that good investment now may turn into a longer term investment.

Chad McCall (21:25):
They don’t want to deal with the management or the maintenance or anything that they’re going to have to do because cleaning costs. A lot of the cleaning company with Airbnbs are increasing their prices. Instead of that $75 to clean your unit or a hundred dollars after each visit, you’re going to have to spend 2 to $300, get a certified person. They got to use the right chemicals materials. And therefore that costs is going to increase on to your sellers, and to your rates and things. Right? So now if you have turnover in your property, we’re used to get two nights a month and then, or three night minimum stays. You’re gonna see a lot longer. Minimum stays with Airbnb week, two weeks because they don’t want to have to keep paying these costs of cleaning fees and everything else. Then you’re going to also see in certain areas like condos, town homes, the HOA’s are going to start changing rules due to what’s happening for traffic and people coming from out of the country.

Chad McCall (22:14):
If you have a resort or a destination location, Airbnb. So I’ve noticed that you can get a lot of great deals on Airbnb’s right now, furnished and have great conversations with Airbnb owners that are just, you know what, yeah, I’m interested in doing that or taking over some of their properties subject too, because we’re not just out there finding deals to get funded. Jay, I know you love to fund all my deals for me, but I just, I find deals and I figured out ways to structure deals that aren’t necessarily the best for funding too. I may end up working on a short sale with someone taking over a subject too, working on a, you know, at least option something more creative as well when you have that motivated seller, because not all my deals are going to have the largest amounts of equity, but the ones that don’t, there’s still a way to work those deals.

Chad McCall (23:00):
And there’s ones that do, always wait to wholesale and get them funded and rehab, et cetera. So Airbnb’s are great right now. And it’s very easy to find those and look at them because checking on the calendar, seeing which calendars have been booked out, which you know, locations are, I mean, there’s so many out there across the world and there are so many things going on with Airbnb and vacation rentals being up in the air right now. And again, it’s not every one of them, but you can have a very targeted, very qualified list. If you get the right message to those owners and you let them know that you’re interested in buying their property or putting a long-term rent in place as well, Jay, where you can rent it for two years at a thousand a month, and then you rent it out, you know, and you were on the Airbnb business on that charge 14, 15, 16, $1,800 a month, renting it out two or three times a month is all, where you can create your own little amazing cashflow business just from going out there and having the right conversations with Airbnb owners.

Chad McCall (23:53):
But there’s a way to do that. There’s a right way to have that conversation. So that’s a great strategy right now with what we’re facing,

Jay Conner (24:00):
Right? How do you initially communicate with the owners of Airbnb’s to you know, sift and sort those that might be interested in selling?

Chad McCall (24:12):
Okay. So I do a lot of this myself. I designed my business where I can do everything in my business on my own before delegating it. But with Airbnb’s, I always have my VA go out there and start searching for my properties that are having no bookings. So on the calendar dates, when they’re not booked up and they always have availability or they have the lowest rates on their rental nights, that shows me they’re very motivated. So then I look for the lowest rates and the most calendar vacancies. That’s two things. So you can almost start to calculate, is this owner going to be making any money anytime soon or not? And then a third motivation indicator that I look for Jay is the ones that have really bad furniture. So if it’s really cheap, really bad furniture and old calendar invites, how are they going to pay to do all the cleaning up and things that they’re going to have to do?

Chad McCall (25:01):
And it’s more of a burden for them sometimes again, not every one of them, but what we’re looking for, you can easily find a 20 to 30% conversion rate talking to those. And that’s a great conversion rate when you find the right type of motivated sellers, motivated landlords that have had those properties. And then I go a step further, Jay, I check and see how long those individuals have on those properties. So I look at the deed dates and if I can have a deed date, that’s so long, 10 years or more , then I know there’s some equity in there in that situation to have a good conversation, to write them a check for that housing from Jay Conner. When I say, Jay, I got a great deal, give me 50 grand, that’s worth a hundred. And you say, sure, Chad, I know, you know what you’re doing. And then we’d go out there and I sell it. I pay your money and I’ll walk with a profit. There you go.

Jay Conner (25:48):
These properties that you’re buying that are currently being marketed as Airbnb. When you acquire the property, what is typically your plan of this you know, disposition? You know, what are you going to do with it?

Chad McCall (26:01):
Oh, resell. Totally. Unless they don’t want to sell it to me yet. I can get a longer term lease. Do I like a lease option? If I’m a limited financially, then I can work more of a creative deal with them, Jay, but I’d love to just take those properties. They already have traffic. It’s usually in a nicer area. That’s why they’ve held the properties for such a long time. So it’s very easy to resell. Plus the homeowners. Usually aren’t going to want to do any of the work that it takes to get those properties up to market standards because they haven’t made any money with their Airbnb. So they need to come out of pocket with 20 grand. They’ve not made the 20 grand that they were thinking they were going to make with the Airbnb. And so there you go. You have an upside.

Chad McCall (26:42):
Now, one, the things that most people don’t realize is Airbnb. A lot of these properties after this year, there’s so many properties it’s estimated to over 40% of Airbnb owners are defaulting on their mortgages right now on those properties. So with the high increase of that, that’s a lot of homeowners, insurance policies are going to be going in saying, what’s going on here. All it takes is for the homeowner insurance policies to know that they weren’t getting the right type of policy for a vacation rental or short term rental policy. And you’re gonna have a lot of owners that are gonna be freaking out about that too. So you’re going to catch some motivation from some of these sellers at the right point, and you can make a full time business on Airbnb from motivated sellers. If you want.

Jay Conner (27:27):
Now in your playbook, you got 101 different ways to find discounted real estate in today’s market. If someone is like really, really tight on a budget, don’t have much money to invest. What’s one of your top one or two strategies in your playbook for people that are short on budget?

Chad McCall (27:45):
Well, the easiest thing, Jay is the most public information that you can have out there is going to be a delinquent tax properties and code violations. I love both of those strategies because it’s free and you can always find some type of motivation. Now let’s just take code violations, for example, this strategy it’s public. I was just looking today, yesterday, and one location Jay, one city. And I’ll just give you an example. So Pennsylvania, so we’re talking Pittsburgh. In Pittsburgh do you have any idea of how many code violations have been filed in the last five years in Pittsburgh? Jay like, would you have a guess? Let’s just talk about like code violations. Like what would you do.

Jay Conner (28:28):
I don’t have a guess, but before you answer, before you let everybody know, give everybody some examples of what a code violation is.

Chad McCall (28:35):
Okay. Code violations or anything that you’re going to be in trouble for, from the exterior of your property, primarily, unless there’s a complaint on interior. Now, the interior complaints come from vacant properties, obviously a complaint from the city, meaning you’re not uphold into the building and standards, arrangement, or agreement that you have with the city. And that’s a big deal. Okay. They have the, it’s like the police that drives around and looks for reasons to, like, for me in North Carolina, Jay, you know, we’re out in front of the Western, North Carolina. It’s not very uncommon to have a couch sitting on your front porch or a car that’s been broken down in the front yard for 20 years. And hasn’t been moved. Okay, very common where I’m from, but that’s a code violation. You’re going to have to move it. They’re going to find you, they’re going to charge you for it.

Chad McCall (29:23):
Busted out windows garbage, debris, grass is a very common one. A lot of those things, you know buildings without permits. This is a really good one too Jay that so when you’re looking at code violations, so I’ll give an example. One of this is the last five years there was 15,000 code violations filed the last five years now in the last year, there was 4,500 of those in the last year of the 4,500, this one city, okay. 900 were major code violations. And this, when I say major, this is over 7, 8, $9,000 to me based on this area. So now those aren’t legal complaints. They’re filed. People have to fix it. In other words, it’s a fix it ticket. It’s like, Hey, if you don’t fix this, you know, we’re going to not give you an occupancy permit to be able to live or rent in this property.

Chad McCall (30:21):
So now that’s a major deal for a lot of people. Now, I will say that what we’ve seen is an unprecedented times right now in the pandemic, there’s a lot of major cities that have had some vandalism has had problems, things going out there, and guess what? That’s not going to stop the landlords and the code violations and everone’s not having to fix some of these problems, but they’re going to make sure they’re a very aware in certain areas of vacant properties. Now you’re gonna have a lot of people out looking for damage. They’re going to be looking at vacant properties, they’re going to be finding just because of the circumstances they’re going to be catching on to other landlords that had vacant properties sitting there. Other landlords that have think there got away with problems before they’ve been letting it sit there.

Chad McCall (31:03):
And just the problem didn’t fix itself. It’s going to be doubling up. So you’re gonna have a lot of court cases coming up here. The first of the year that are going to be happening in the code violation world that are going to be thousands and thousands of dollars. And this is a legal proceeding that’s filed. And so one of the categories like the Judicial Category, it’s going to be a legal proceeding that’s filed. Legal proceedings, they’re going to be assigned the case number., they’re going to be assigned a court date, all public information. So if you don’t have a big marketing budget or brie, you just go to the date that they have, the court cases there, you can look up, who’s going to be having you look up what violations that they have. If you really want, if you can point and click on Google, you can easily find them.

Chad McCall (31:41):
And then there’s your conversation. You know, the problem that they have with the house, you can easily find out if it’s an owner occupied property or a non-owner occupied property. Jay, very simple. It just takes a little bit of rolling up your sleeves. Get back to Grassroots Real Estate code violations has been around forever. I didn’t invent them. Jay didn’t invent them. They’ve been around hundreds of years. So easy to find those it’s legal. It’s all public information. You can roll your sleeves up. You’ll have more leads and you’ll know what to do with them. Just like that. One city over 900. All you need is one seller to say yes. Right Jay? Just one.

Jay Conner (32:18):
You got it. Now you mentioned another strategy along with code violations. And what was it that you said

Chad McCall (32:25):
You know, I have kind of run out a good strategy today. I think I gave too much.

Jay Conner (32:32):
That’s awesome.

Chad McCall (32:33):
Other one, Okay. So let’s talk about your delinquent taxes. Okay. A lot of.

Jay Conner (32:38):
That’s what we said, delinquent taxes.

Chad McCall (32:41):
Yes. A lot of times now this isn’t going to be the same in every single City and County and State it’s different. Okay. But if you’re limited on budget, Jay, this is what I was thinking of. You know, that’s a situation where properties that are delinquent on tax. I’m not talking about chasing at the tax sale or anything like that. Right now. I’m going to give you an easier way to talk about it. Is you have, what’s called land banks, repository lists. You have struck off lists in North Carolina. Jay, I mean, you know, you have the upset bids in North Carolina, right? I mean, that’s a really big one where upset bid. So let’s just talk about North Carolina, my home state. I love North Carolina go Blue Devils and Tarheels both. Okay. you’ve got struck off. So you actually get to see the properties that go to auction.

Chad McCall (33:27):
You get to see what the highest bid is. Look at those properties. If you liked the property better, you’ve been a little bit more. As soon as you bid a little bit more, you’ve got several days where you’re the highest bidder, it’s like eBay for real estate. And it’s very easy because a lot of properties on the upset bid list, where if you like one of those, pick it up. It’s very easy. You say, Hey, Jay, I’ve got a property. I’m the bidder on this. I’m going to close in the next week. It’s worth 120,000. I’m going to pick it up for 60 to 70. Will you lend me money on it? You’re going to be like, that sounds like good. I think if the ARV numbers will workout, I think we’re good on that. That’s an easy way to do it.

Chad McCall (34:06):
And it all started with unpaid taxes. Now I’m talking about, you can chase them there, or you can get them later in the process after they’ve already been a couple steps further in the process for delinquent taxes and over to this struck off list. So you can easily do things like that and find properties that are available. If you’re in a state with a land bank, they’ve got properties that are sitting there right now for you to pick up and purchase and you can rehab. Maybe you can cashflow some of them. If you’re in a repository state like Pennsylvania, you don’t, that’s another area there’s properties readily available for you if you want. So there’s areas you can find properties right now that most investors don’t look, they don’t think of looking that you can make a decision on right now, if you have access to someone like Jay Conner for all your money needs, he’s right there, right? You’re you’re the man they’d asking when they find a good deal, Jay. But those are easy ways that are really free and really cheap. And they don’t require any budget for someone Jay that’s free.

Jay Conner (35:04):
That’s awesome. So we mentioned the beginning of the show, your playbook. Let’s go ahead and tell everybody how they can get a copy of your 101 ways to find these deeply discounted houses.

Chad McCall (35:18):
So if you want to get a copy, go to www.REStrategyLab.com/Podcast. Okay. So www.REStrategyLab.com/Podcast for a special offer for Jay. Now, if you don’t go there, you’re not gonna be able get that offer. Okay. You’re, it’s what it really is, is www.REStrategyLab.com/Podcast. You’re going to be able to get this for a dollar, a strategy, pretty much Jay. And I don’t think there’s anything else like it out there. I know there’s nothing else like it, but I don’t think there’s anything that’s going to carry the value of a dollar, a strategy for your real estate investing business. So again, here’s what it looks like. It’s 175 pages of what to do, how you get involved, what you’re doing, doing it. And I’ve even got some of my best marketing things in the back here as well, Jay, like some of the scripts and things that I’ve used, some of the, I mean, certain letters and mail and you know, you name it, they’re all in here.

Chad McCall (36:15):
Like what I’ve done response rates, how I do it. There’s ways I even talk about how to get free postcards, you know if you’re ever going to do marketing and things. So there are ways you can do it. So affordable and cheap and zero, if you really want, you don’t have to have these huge marketing budgets with a playbook like this. You can compete with anyone out there in the real estate investing business, no matter how big or small your company is, you can do it. And if you’re a seasoned investor, this is the best thing for you. It’s like your Bible for real estate. If you want to scale or grow. And if you’re new at real estate, you can pretty much need this. So you don’t make a big mistake and go out there and do something wrong and not get a return on your investor.

Jay Conner (36:53):
Well, there you have it. Folks get on over to www.REStrategyLab.com/Podcast. Chad, thank you so much for taking the time to come on the show today, to share your experience with our audience and a parting comments.

Chad McCall (37:11):
Thanks for having me, man. And you were awesome on my podcast too. I mean, and just your nuggets and knowledge of money and lending in 2020. I’m glad that people that are here listening, pay attention to Jay. He knows what he’s doing. He’s been doing this for so long and your experience that you have. I’m just glad I can be part of the Jay. And I appreciate all you do. And thanks for helping me in my business too.

Jay Conner (37:34):
You got it, Chad. Well, there you have it folks. There’s another episode of Real Estate Investing with Jay Conner and here is to taking your business to the next level. We’ll see you on the next show.

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