Heads up, everyone!
Massive numbers of foreclosures are coming our way!
Jay has an upcoming FREE webinar where he teaches the 5 steps of his foreclosure system. https://www.jayconner.com/training/finding-deals-webinar-standalone/
Watch this video now and equip yourself with the knowledge that will take your business to the next level.
Timestamp:
0:01 – Teaser: “ Get Ready To Be Plugged Into The Money”
0:21 – Introduction
0:33 – Jay’s New Book: “Where To Get The Money Now” – https://www.JayConner.com/Book
1:50 – How Jay started with the foreclosure business.
3:52 – Two categories of foreclosures due to Covid.
4:46 – Jay’s predictions on the upcoming foreclosures.
6:09 – Different ways of buying a foreclosure
9:14 – Large inventory available on the market.
10:58 – Why Jay’s foreclosure system works.
14:48 – Jay’s free foreclosure webinar: https://www.JayConner.com/Foreclosure…
16:58 – How should a real estate investor prepare for the upcoming big number of foreclosures?
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
What is Real Estate Investing? Live Cashflow Conference https://youtu.be/QyeBbDOF4wo
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Jay Conner (00:22):
Welcome to another amazing episode of Real Estate Investing with Jay Conner.
I'm Jay Conner, The Private Money Authority.
I have got a free gift for you here today. I just recently launched my new book, which is titled “Where To Get The Money Now”. The subtitle is “How and Where to Get Money for your Real Estate Deals Without Relying On Traditional or Hard Money Lenders. And guess what?! It hit number the top 50 or so books on Amazon, the day that I released it under Real Estate Investing.
Listen, you can go to Amazon, pay 20 bucks to get it, or I'll just ship it to you for free. Now I am going to be totally transparent here. I am going to ask you for a couple of bucks to cover the shipping and handling. But this book lays out exactly how I was able to attract over $2 million in private money when I first started using private money back in 2009 and how you can duplicate the process as well.
Go to www.JayConner.com/Book and we will get this book shipped right out to you.
Jay Conner (00:22):
On this episode of Real Estate Investing with Jay Conner. I thought we'd do something different. That is, I would share with you how Carol Joy, my wife and I started in the foreclosure business. Locating foreclosures, helping and serving a lot of people. Helping them out of financial distress all the way back to 2004.
Now,what I want to do is invite the executive producer of the show to come up here with me. That is Scott Paton. Hello, Scott, welcome to the show!
Scott Paton (02:30):
Happy to be here. Hello everybody! I'm excited! We're going to be talking about one of my favorite topics.
Jay Conner (02:35):
I will tell you Scott this, ever since Carol Joy and I have been investing in real estate here in Eastern North Carolina. I cannot think of a time where using our foreclosure system is more timely. Also because we've been into COVID now for over a year and foreclosures are getting ready to open up. What better time for real estate investors or those that want to get into the business to prepare themselves in order to take advantage of this opportunity. That's getting ready to open up to help a lot of people out of financial distress and make a lot of money while doing it at the same time.
Scott Paton (03:19):
Right? Well, and there's a lot of people who haven't been paying their mortgage or they haven't been paying their rent for a long time. Iit just seems like they keep pushing. It's like there is a big problem and nobody wants to deal with it. It keeps saying it's going to be extended until the 31st to the 30th to the next 31st. But it will come to a point where they can't do that anymore.
Jay Conner (03:45):
Yes exactly. Before I go to my prediction there's two categories of foreclosures because of COVID.
The first category is all those people that were in the foreclosure process had already started before COVID came along in March, 2020. COVID comes along and now those foreclosures that were in the process were put on pause, the whole foreclosure process stopped. Then since COVID, all the millions of people that lost their jobs they have stopped paying their mortgage payments as well.
The pandemic has created this whole new, great big category of people that have gone into foreclosure that ordinarily would not. It's important for everybody to understand those are the two categories.
Now, to the prediction. I believe it's going to be in a very few short months before we really start to see foreclosures. Opening up the process, opening up to where, as I said, we're going to have an opportunity to serve a whole lot of people. My prediction here is it's probably going to be opening up within the next 90 days to six months, for sure.
Scott Paton (05:15):
Right. That would take us just before Christmas.
How do you prepare? We've got this situation where we have low demand because a lot of people have said, “ Hey, I'm not letting people come into my house and spread COVID. So I'm not selling my house or I don't want to move anywhere.”
And then of course, we've got people leaving condos and leaving cities going into smaller areas. I guess that's causing a lot of demand. You have a lot of demand, but not a lot of supply. Do you think when foreclosures open up, we're going to see massive supply hit the market?
Jay Conner (06:00):
The thing is, there's two different times to help these people out and make a lot of money while doing it. There's two processes that you can buy a foreclosure.
Number one is it has not gone to sale yet at the courthouse steps. They're behind on their payments, either a summons or a notice of default has been delivered to the property by the deputy sheriff. There's this window of time. That window of time varies by state here in North Carolina. There is about a 10 to 12 week window between when they actually have the notice of default served to the house or the summons until the sale takes place. In our foreclosure system, we are communicating with them during that process.
Jay Conner (06:57):
They're behind on payments but the house is not going for sale. The way that we do the business, in fact when we get here to the end of the show, I'm going to give out a URL to where people can go, where they can watch my webinar in detail. It's only about 45 minutes to 50 minutes long. I teach the five steps of our foreclosure system, how you locate these people and et cetera.
One big key is getting up with these people before other real estate investors even know about these potential deals. That's one big category. If they are behind on payments, if the property is not going for sale yet, then the creative strategy on funding that deal is to buy the property Subject- to- the existing Note, which means that you'll have to bring the back payments current.
Jay Conner (07:55):
In my webinar training it goes into detail as to what Subject- to is and how you can buy it using Subject- to. In essence, what it means is you're agreeing to bring the payments up to date.
Also in the webinar training I'm going to teach you how you can buy these properties. Not having to pull any money out of your own pocket in order to make this happen. The seller, the person or couple that's in foreclosure is agreeing to sell the property to you. The real estate investor, subject-to the existing mortgage thing in their name. You are agreeing to make those payments, to keep them current until you sell it and cash out.
Now, the second point in time to buy that foreclosure is if the opening bid was too high or, you weren't able to, you didn't buy it there and nobody else bought it.
Jay Conner (08:54):
Well, now it's called going back to the bank. Bank owned properties are REO's, which stands for Real Estate Owned. Most of the time, those properties, those foreclosures will be in the multiple listing service. You want to use private money, all cash to buy those houses.
In answer to your question, Scott, is there going to be a lot of inventory on the market? I don't believe it's going to be as large as what happened back in 2007, 2008 and 2009 but it is going to be a huge amount. Your average buyer, most buyers are typically not going to want to buy a bank owned property.
Because typically it’s going to need repairs. If you're buying the multiple listing service is not going to want to buy a house that is going to need repairs. There's going to be a big opportunity coming right around the corner for real estate investors to either buy them bank owned or to buy them directly from the people.
Again, my foreclosure system teaches everything from beginning to end of how to locate these people before the property goes to sale. And also how to get up to these people before other real estate investors know about them.
Scott Paton (10:22):
Right. It's important that we get to them before they go through foreclosure. Because if they go through foreclosure, they've pretty much screwed up their credit rating for the next 10 years.
Jay Conner (10:32):
Exactly. If we buy it from them and we're making the payments for them until we cash or sell it out. That keeps a foreclosure off of their record and as long as we are owning that house, we're now helping build their credit back up.
Scott Paton (10:51):
Right.
Jay Conner (10:51):
As a bonus to them because we're obviously going to be making their payments on time.
We've been improving and using our foreclosure system. It's been proven since 2004. There's two main parts to it to make it work. Number one is how we locate these files. How to get up to these people. We get the list and then maintain the list. That's what you call the tracking. That's the tracking of every open foreclosure file in our market. The second part is how do we communicate with these people? That is, I've got a set of eight letters that get a very high response rate. It's because of the tracking and the letters that we may all send sequentially to these people. That we're able to communicate with them ahead of the other real estate investors.
Scott Paton (11:52):
Yes, that's really important. Because you can't just knock on the door and say, “I heard you're going into foreclosure. I want to buy your house at a deep discount.”
Jay Conner (12:02):
We call that “door knocking”. If you are going to knock on doors, you need to know what to say and how to say it.
Jay Conner (12:17):
As I mentioned at the beginning of the conversation, this whole mindset and this whole way of doing business has got nothing to do with taking advantage of people. We really are bringing a solution to these people and a lot of them are in denial. Just hoping and praying that this problem will go away.
By using my foreclosure system, it has a very important and meaningful way to help these people out of distress. I tell you, our average profits on these deals are over $60,000. For those that haven't been tuning into the show Carol Joy and I are saying we're in a very small market here in Eastern North Carolina. Our total market is only 40,000 people. But we do two to three deals a month averaging over $60,000. That's getting ready to change pretty quickly because of this avalanche of foreclosures.
Scott Paton (13:38):
One of the things that occurs to me too, we've been working together for a number of years now. I think one of the things that people don't really think about is you're buying a house that is distressed, not just because it's going into foreclosure, but usually because the people, if they can't pay the mortgage, they certainly can't pay to get the heating fixed, or the roof fixed or the painting done, not saying major things necessarily have to be done, but places get a bit run down. Sometimes you can just spruce it up, give it a little facelift. And all of a sudden, what was a dumpy house becomes a beautiful home, a little bit of landscaping and that sort of stuff. That's one of the things that really amazes me about what you do, is you go in, this is kind of the value of the house. You have a way that they're working through that so that they understand why that's the number. Then when you go and do the rehab, the landscaping, the painting and the showing of the house, all of a sudden, it's kind of like you take the ugly duckling to a Swan.
Jay Conner (14:45):
Exactly. I'll tell you what, Scott why don't we just go ahead and give out and post the URL in case somebody has to jump off early. I don't want them to miss out.
I've got this free training. A free webinar. It goes into the detail of how Carol Joy and my team used the foreclosure system and how it works through the process.
The url for my free webinar is www.JayConner.com/ForeclosureWebinar.
Scott Paton (15:53):
Right. I was just looking at some chart of foreclosures over the last 10 or 12 years, Jay, and in 2009 and 2010, it hit about 2.2%.
Jay Conner (16:06):
Right.
Scott Paton (16:07):
And last year it was 1%
Jay Conner (16:16):
You mean, as far as the, the number of foreclosures that actually went to sale or finished the foreclosure process?
Scott Paton (16:31):
No. It’s because they kept stopping. The courts were closed. They kept saying we're gonna extend the foreclosures.
Jay Conner (16:42):
Exactly. Well, Scott I think that's the overview of the foreclosure. The way that we do the business. Any other questions come to mind before we have this episode a wrap?
Scott Paton (16:57):
The only question I can think of Jay, is how can people prepare for what's about to come?
Scott Paton (17:04):
So if you're a real estate investor, Like what?
Jay Conner (17:07):
That's a good question. How should a real estate investor prepare?
You're going to need to know exactly how the foreclosure process works in your state. My foreclosure system works in any state. How closely you meld them together will vary from state to state. The tracking that we do and how we get up to these people before they're all set investors even know about these opportunities to serve that works in every state. The timeline differs from state to state.
What I did when I was preparing myself to enter through the foreclosure business is I hired my local real estate attorney and sat down with him. I said, look, I assume I don't know anything about the foreclosure process in the state of North Carolina, which was pretty much the truth.
Jay Conner (17:58):
I didn't know that much about it. And I said, walk me through the entire process. So I'm going to encourage anybody that's interested in the foreclosure business to do the way we do it. You want to do that. You want to hire your real estate attorney to walk you through the process step by step. For example, one big mistake that new real estate investors make is there might be a bid at the courthouse on this property. It would be like super low, where you never want to place any kind of bid on a property or buy a property. Even from someone that's in foreclosure until you have had a title search done by your closing agent, your real estate attorney. Make sure that you are buying the first mortgage and not a second mortgage. If you're the winning bidder or you're buying the home and taking over payments from a seller and it's a second mortgage, guess what?
Jay Conner (18:55):
You just inherited the first mortgage. That's a great big mistake that everybody should be aware of and avoid.
How do you prepare? Watch my free webinar and training. It’s www.JayConner.com/ForeclosureWebinar. Go watch that webinar. Any kind of questions you can think of. There'll be a way for you to reach back out to us. On the webinar, you'll learn about how you can get the letters, use the letters, and the whole tracking process.
How do you prepare? Get educated by the right person. Aain, we've been doing it nonstop since 2004. Even though there's been a stay over the past year on foreclosures, we still track them.
Jay Conner (19:55):
I knew foreclosure will come on the record, but it won't go through the process. We stayed on top of it by still tracking every foreclosure, even though they've got it on pause.
How do you prepare? Get educated, also learn about private money because you'll need private money if you buy it as a bank owned.
Get my book at www.JayConner.com/Book. We'll ship that book out to you as well.
Jay Conner (20:31):
Get educated, get prepared, read the book, take the webinar. We also have a live event coming up in a month or two.
Scott Paton(20:41):
Yes. It's right around the corner. The next one is on June 23rd, 24th and 25th. You're in Eastern North Carolina. So that's coming right around the corner.
Scott Paton (20:53):
That's a big way to get educated, rub shoulders with Jay and learn everything. I mean, the event is amazing. You learn everything there as well.
Jay Conner (21:03):
Awesome. Well, Scott, thank you so much for joining me on this episode. I appreciate it.
Scott Paton (21:09):
My pleasure. I look forward to coming on again and again.
Jay Conner (21:13):
Sounds good. Well, there you have it folks. This wraps up another episode of Real Estate Investing with Jay Conner.
I'm Jay Conner, your host, and The Private Money Authority here's wishing you all the best and to taking your real estate investing business to the next level. I'll see you on the next show.
