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REIM 130
Welcome to yet another great episode from the Real Estate Investing Mastery Podcast.

We’re back again with high school sweethearts, investors Jay and Annie Adkins, for Part 2 of our conversation together. We covered loads of terrific info in Part 1, so make sure you check it out: episode 128.

Jay and Annie have so many valuable tips to offer, in part, because they’ve actually been on the unfortunate side of a foreclosure and have that interesting perspective to share with us. They say being in that situation has helped them do better deals now and enables them to help other sellers in that same situation.

And, with 15 years of REI experience also in lease options, wholesaling and rehabbing, they’re giving us even more useful REI info, including why you’ve gotta play by the rules – legal rules – that is, to do this the right way. Jay got burned and he wants to help you avoid it!

Let’s get to it…

Listen and enjoy:

What's inside:

  • 1:00 – Jay tells us the types of deals he and Annie are doing now
  • 5:28 – How Jay wholesaled a lease option
  • 11:10 – Jay explains the distinction between advertising the contract but not the property
  • 12:25 – The funding Jay uses for his deals
  • 13:30 – Jay’s big mistake, how much it cost him and how he avoids getting burned again
  • 18:58 – Jay’s marketing strategies and the interesting online resource where he finds deals
  • 23:40 – Why Jay loves car signs and why it works so well for him
  • 26:13 – How many deals they average a month from bird dogs
  • 31:11 – The new list Jay is targeting with direct mail

Mentioned in this episode:



Download episode transcript in PDF format here…

Intro:   Welcome, this is the Real Estate Investing Mastery Podcast.

Joe:   Hey everybody, welcome back. This is part two of our interview with Jay Adkins on the Real Estate Investing Mastery Podcast. This interview went a little long, so we broke it up into two parts. I'm just going to let you jump right in and listen to part two of this episode. And I think you really going to get a lot out of it. Remember, go to RealEstateInvestingMastery.com to get a bunch of really cool free bonuses – our Fast Cash Survival Kit, to get all the transcriptions and show notes of these episodes. Stay tuned as you are going to enjoy this episode, and we'll see you on the other side. Take care.

Joe:   So what are you guys doing now? Are you doing wholesaling deals, lease options deals? What does your strategy look like?

Jay:    Yes.

Joe:   All of the above? Okay.

Jay:    Yes.

Alex:   The transaction engineer.

Joe:   Transaction engineer.

Jay:    Right now, we just finished rehabbing a house. The carpet is going in. Another one is probably a week away from being finished. Another one’s being finished today. And we had a number of other properties lined up but we don’t have enough…

Annie:    Guys…

Jay:    …Guys to cover rehabbing all those so we wholesaled. We are wholesaling our third one this week. It was supposed to close Friday but it got delayed from a judgment lien that popped up. But yeah, so we are doing a little bit of all of that.

Joe:   Okay.

Jay:    We wholesaled… The checks I showed you, one of those was a wholesale to our first-time investor. And we made, I think it was around $7,200 somewhere around there.

Joe:   Nice, that's a good pay day.

Jay:    Yeah, we did a double closing on it because I didn’t want the owner to know how much I was going to make on it.

Joe:   Sure.

Jay:    So…

Joe:   I'm sorry. You are still doing lease options, correct? Are you… In your marketing, are you specifically targeting lease options or is it just an option, one of the offers that you give?

Jay:    It's one of the options, like a couple I did this summer I offered to do the lease option and he said I would rather try to sell it first. So we went ahead and listed it, and it actually sold in a week. And then another one… So that one was a retail listing. And then another one I did was a little bit worse condition. It was in a great neighborhood but the house needed a little bit of work and it was one of those work-for-equity, like they gave us around $3,200 or $3,500 down and then they did a little bit of repairs to the place themselves. So we gave them some extra down payment credit for that. And that one we’re making about… We got $32 or $35 up front, and then they are paying us $1,000 a month and the mortgage payments is $637.

Joe:   Okay, so this was… Did you buy this property or how do you control this property?

Jay:    That one we had leased optioned from the owner.

Joe:   Okay.

Jay:    And then we did a sandwich on it.

Joe:   But it needed some work. Did you…?

Jay:    Yeah.

Joe:   Did you do any of the work yourself, initial work yourself?

Jay:    We did none of the work.

Joe:   Okay, and then when… how long would the time frame be before that tenant buyer buys the house?

Jay:    We gave them a year and we tell them, “If you pay on time and we don’t have any issues with you, we'll renew it automatically for another year.”

Joe:   About how much profit would you make on that kind of a seller lease option deal?

Jay:    At the end, there's about $10,000 profit at the end, and then we are making $363 a month. And then we made just to say $3,200 on the lower end. I can't remember if it was $32 or $35. So we'll make about $4,000 in the next year, $4,000 to $5,000 in monthly payments, $3,200 up front, so that's like $8,200, and then another $1,000 at the end. So about $18,000 if they just stay in it one year.

Joe:   Okay, not bad. And if the numbers don’t work and you get it under lease option, you can wholesale the lease option. Have you ever done that?

Jay:    Yeah, I did one… The lady… Actually, this is when I first signed up for your stuff. I was already doing lease options but I saw your automation and I wanted to buy it because I figured that I would learn a number of things, which I did, so thanks for putting the course out.

Joe:   Well, good. I was going to ask that did you learn anything. Okay, good.

Jay:    Yeah, so I had never wholesaled a lease option until I bought your course and this…

Joe:   And when was that? What year did you buy it?

Jay:    Oh, it was just back in February or March.

Joe:   Oh, okay.

Jay:    Yeah, so this lady in particular had very little equity and her monthly payment is really high because she still has like a 7% loan. So before I bought your course, I told her, “I'll lease option your property.” She had already moved out so she was paying like $700 a month for an empty house. Then I had told her, “I can only rent your property for probably $850 and so I need to make some monthly spread, so I'll pay $550 of your mortgage and then you got to pay the rest of it.”

Joe:   And what did she say to that?

Jay:    She said, “Yes, I'll do it.”

Joe:   So wait a minute, you can't do that. How could you actually tell…? I'm being fastidious; I have a real bad sense of humor. But how could you do tell the seller that you'll pay them less than what their mortgage payment is? I mean that doesn't work, does it?

Jay:    Right, it is.

Joe:   But that's not the end of story. Go ahead and finish.

Jay:    Yeah, so I got your course and I figured out from your education materials that I could wholesale it to someone and just assign it to that person. So I ended up saying, “Hey, I got a better option for you. What do you think about this?”

Joe:   So you up the rent a little bit. You up the rent to what her mortgage payment was?

Jay:    Well, the rent was actually going to be $850. Anyway, I just wasn’t going to…

Joe:   Okay.

Jay:    I wasn't going to stay in a deal and lose money.

Joe:   Good, okay.

Jay:    So that's why I told her she was going to have to pay the difference.

Joe:   And she was okay with that then?

Jay:    She was fine with that but then when I bought your course I was like, Whoa, I could just wholesale this and then I don’t have to worry about monthly. So I told her, “Hey, let's try it this way. And then you don’t have to pay anything per month. And I'll still do all the qualifying. I'll get the person in there and get it filled, and then after that you are on your own. But if something happens, call me and we'll do it again.”

Joe:   I like that because you went into the deal with the intention of staying in the middle and I have been teaching that a lot lately to folks. Well, because of the whole brokering issues and I know you have your license. I'm assuming when you do these deals you do them as an investor, right?

Jay:    Right.

Joe:   Okay, so it is important whether you are doing regular traditional wholesaling or lease option or whatever, that you always come into the deal with the intention of keeping the property. But the cool thing about it is if you change your mind or decide, “You know what? This isn’t going to work, the numbers don’t work,” you could always assign or sell your interest in that contract for a fee.

Alex:    On a traditional sale, wholesalers will, like that $40,000 one, right? I went in with the intention of fixing it up and doing the work but somebody came along, I mean without too much effort, and he was like, “Yeah, I'll give you this for it,” and then I said, “Okay.”

Jay:    Done.

Joe:   Yeah, right. And this is something a guy named Jeff Watson out of Ohio has been talking a lot about. Are you familiar with Jeff Watson?

Annie:    Yes.

Jay:    Yeah, he is one of my attorneys.

Joe:   Okay, smart guy and I want to get him on the show. So if you see him tell him that Joe McCall wants to interview him. But I heard him talk about this and I have his phone number. I need to give him a call. He knows us. But this is something that’s really important to think about because there's a right way and a wrong way to wholesale deals. And you got to make sure your ducks are in a row. Would you agree?

Alex:    Especially in Ohio.

Joe:   Especially in Ohio.

Jay:    In Ohio, yeah, like even when just to go quickly do the wholesaling side, when we wholesale a property our intention really is that we are going to buy it and fix it up and sell it. And if somebody comes along that wants to buy it and it’s profitable, we'll sell it to him. But we actually already have a contract estimate. We got a contract estimate sheet prepared. We have all of our project estimates done. And we have a projected profit so we already know what the numbers are. And we'll market that to other people and say, “Here are the numbers we are going to keep it, but if you want to buy it we'll sell it to you for a certain price.”

Joe:   And you are advertising the contract, not the property, right?

Jay:    Right.

Joe:   Explain that distinction, would you? What does that mean to you guys, advertising the contract but not the property?

Jay:    Yeah, so you are actually advertising a contract for sale. You are not advertising the property itself for sale. So you are selling the right to purchase the property; you are not selling the property.

Alex:    You are selling a legal instrument just like the mortgage company that signs mortgage all the time, right? So…

Jay:    Exactly.

Joe:   Well said.

Jay:   But you want to make sure that you have had in place the… No, you want to be able to show that you have the intention of purchasing the property. So that's why when we go through each one, we analyze them and figure out what's it going to take to fix it up and sell it. And that’s just another exit strategy for us.

Joe:   Yeah, do you get hard money or private money in place to buy the property then?

Jay:   We use both private and hard money.

Joe:   Okay.

Jay:   Yeah, and I'll do that. I have some friends of mine that like to… They like to loan me the money for one-day funds. And if it's under $50 grand, that'll charge me $1,000 bucks to use the money for the day.

Joe:   What's their name and number? Let's talk after this?

Jay:   I can't give out that information, Joe.

Joe:   That's a pretty good deal.

Jay:   Yeah, because most places want at least $1,500.

Joe:   Yeah, that's a pretty good deal.

Jay:   So…

Joe:   Yeah. Alex, have you seen that issue in your markets, the real estate commissions starting to crack down on this kind of stuff?

Alex:   No I have not, knock on wood.

Jay:   Yeah, I think Ohio’s like a beacon for all of these changes.

Joe:   Yeah.

Alex:   Yeah, but the thing is you just got to make sure, like you said you got all your ducks in a row and…

Jay:   Yeah, make sure you do it right the first time I did not.

Alex:   Like with anything. Oh, did you get pinched?

Jay:   Oh, yeah, I got pinched by the division because I brought someone through a house that I had under contract. And I said, “I have it under contract. I'll sell it to you.” And they got mad about my pricing that I was trying to make this profit and they actually called and filed a complaint. So I had to go to the ‘Realtor’s courts’ as I call it and they said, “Yeah, you have misrepresented because you tried to sell a property that you didn’t own yet. So you misled these buyers, and so we are fining you $1,000.”

Joe:   What year was that?

Jay:   That was three years ago.

Joe:   Okay, so what could you have done differently in that situation?

Jay:   Well, I could have marketed just the contract.

Joe:   But could you have still showed them the home?

Jay:   Yeah. Well, looking back, I just wouldn’t have showed them the house at all. I just would have said, “I'm keeping the house,” but I happened to be there at a specific time I was walking through, trying to walk on the rehab estimate and they happened to walk through the house and they said, “Can we come in and look?”

Joe:   What? But again though, what could you…?

Alex:   Potential buyer was one of the ones that didn’t like it?

Jay:   They told me that moving forward that I will need to let people know that I am not representing them or their best interest. I am not their realtor and that would avoid a lot of that in the future.

Alex:   Absolutely, a simple, “I am not representing you. I am not representing any owner, co-ownership or owners in this deal.” It’s, “You, buyer, beware. Let me know what you want to do.”

Joe:   You’re saying because you’re licensed. You should have had them sign some kind of… what do they call that?

Alex:   Disclosure.

Jay:   That’s a disclosure.

Joe:   You should have had them sign a disclosure before you showed them the home.

Jay:   Yeah, yup.

Joe:   Man, I tell you. Wholesaling is illegal, immoral and fattening. You should not do it.

Alex:   Wow. What if we take that out of context right there, Joe, in a sound bite?

Joe:   Yeah, our mutual buddy is going to do that too, I know it.

Jay:   Yeah.

Joe:   They’re going to take that sound bite. But so interesting, I want to just tell people too listening to this, don’t be scared. There is a right way and a wrong way to do it. You’ve got to… It’s important to understand the rules. It’s important to always give full disclosure. Never pretend to be a realtor, right? Never…

Alex:   That is true, common knowledge that you don’t pretend something that you’re not.

Joe:   Well, sure, of course. And it’s important to remember when you’re going into a deal and we’re going to get Jeff Watson on the podcast if, as long as he is willing to do that. We’ll probably have to sing the praises of Realeflow to get him on the show but that’s okay.

Alex:   Oh, is he part of Realeflow?

Joe:   Yeah, I think he’s one of the owners.

Jay:   Yeah, he’s one of the owners.

Joe:   Realeflow is a good program. It is.

Jay:   Yeah.

Joe:   I like it. I think you use it, Jay, right?

Jay:   I have used it. I am not using it currently. But yeah, I used it for a few years.

Alex:   Isn’t it called something else now though, Joe?

Joe:   I don’t think so.

Jay:   No, it’s still called Realeflow.

Jay:   Yeah, they’ve made some good updates too. I’ve looked at it. I used to have a subscription to it about a couple of years ago and they have made some really good changes. What I have seen so far is good, really good, right?

Jay:   Yeah.

Joe:   Yeah, this is… So this is an important topic to think about with wholesaling. You’ve got to make sure that you have the means and that your intent is to buy the house and that could just mean as simple as getting making sure you have hard money in place, transactional funding.

Jay:   Yeah.

Joe:   I remember one time we called the real estate commissions in Arizona and Wendy Parting and I did this long time ago. We asked them, “What are the rules for wholesaling in Arizona?” and they said very clearly in their opinion. They don’t have an issue at all about wholesaling deals. They just want you to close on it first, and then you can sell it one second later if you want. That was what they told us. It’s up to interpretation but anyway enough of that. Let’s see. What else was I going to ask you guys? What do you guys…? How are you guys finding your deals now? What kind of marketing is working for you guys now?

Jay:   We’re really using, and this is great for the people that don’t have a lot of money for marketing so you want to listen to this pretty intensely. We just don’t spend a lot of money on marketing. We have a lot of people bring us deals, bird dogs that bring us deals, and we get a lot of deals off of Craigslist, and off of Facebook, for rent and sale walls of local Facebook pages.

Joe:   I saw you mention that. This is really interesting. Talk about that for a second. You go to Facebook and what do you do?

Jay:   Yeah, so for instance, a group here we live just outside of Columbus in Licking County. As an example, we have homes for rent/sale in Licking County and surrounding areas. That’s a group that was started for people to sell their properties and rent their properties and people to find properties to rent and to sell or rent and to buy.

Joe:   Nice.

Jay:   There’s probably… I am guessing but last time I checked, there were around 5,000 members. We actually bought a house off of there last year. It’s $100,000 neighborhood. They said, “We want to sell our house for $34 grand,” and I saw the message. I was actually… At the time, I was still primarily doing most of the stuff in our business on my own so I was posting a property that I had for rent and I saw that one and I was like, “Can I come buy right now? I have cash.”

Joe:  Wow.

Jay:   We went and bought the property for $33,000 and we put about $30 into it so we got like $63 in it. And we lease optioned it for $105 and we got $5,000 down and $1,100 a month for rent.

Joe:   Nice, I'm looking at a group here in St. Louis and you see a lot of Realtors listed properties. But if you kind of weed through that stuff, I’m seeing some investment investor deals here.

Jay:   Yeah. And you’ll see there… A lot of people will be shocked. There are a lot of people that do not want to work with a Realtor.

Joe:   Sure.

Jay:   They’ll like do anything in their power to sell their house on their own even for thousands and thousands and thousands of dollars less if they do not want to list it with the realtor. I am not sure why but they have some misconception about realtors that they’re not good and they don’t want to help them sell their property. We get a lot of deals like that shockingly enough. I am a realtor but I don’t come to them like, “Hey, I can list your house or I can buy it.” I come to them as an investor. “I happen to have a real estate license but I want to buy your house.”

Joe:   Good.

Jay:   You know it’s a little bit of a mind shift there.

Joe:   Sure. And there is also on Craigslist… I thought you mentioned this earlier or maybe it was somebody else. In the housing section, there is something called Housing Swap. Is that what it is? I think it’s Housing Swap, where you actually see people posting homes on there who just want to swap their home for another home or what is it? Its different little areas. I think it was rooms and sheers or rooms wanted sublets. Do you ever find homes in those other little smaller peculiar areas off Craigslist?

Jay:   They may. When I say they may, I mean my bird dogs, that’s usually where they’re going to look multiple different areas on Craigslist. And of course I told them. I never even thought of it before, but when you… when I bought your course and you mentioned this is low for rent, just asking those people, “Hey, would you be interested in selling?” we’ve got them looking there but we also have about… In total, we have about 50 car signs out…

Joe:   Car signs.

Jay:   Yeah, we love the car signs.

Joe:   Now I’ve got to ask you about the car signs because I have friends who have tried them and bombed with them and I’ve had from guys like you who love them. What makes it work for you?

Jay:   I don’t know if it’s what they’re putting on their car or if people I know in St. Louis have a lot of people doing it, so it could there’s just so many but hardly anybody in our area is doing it.

Joe:   Well, I know these are guys in the other markets.

Jay:   Okay.

Joe:   That it… So tell me a little bit about what it is.

Jay:   Okay, so it basically says full-price offer for your home, right? And then underneath that, it says ‘We Buy Houses Any Condition,’ and then under that it says, ‘Free Recorded Info,’ and then there is a number with an extension and each driver gets their own extension and it’s their call capture system. So when they call in, it gets registered to that vehicle, that person.

Joe:   Okay.

Jay:   Then from there, I will negotiate a deal with them and we usually offer them a few different options like, “We’ll pay you this much cash,” or, “We’ll do this as an option.” That way, they can pick which one they think works better for them. Then when we sell it or either buy it, fix it and sell it, or buy it wholesale it or do an option on it and the option that’s with someone else so a sandwich option, we’ll give that driver 10% of our net profit.

Joe:   You give the driver of that car 10% so that is like a marketing fee or…?

Jay:   Yeah, marketing fee, yep.

Joe:   Cool.

Jay:   Yeah, so not only that. But once they sign up, then we train them how to find deals like how to drive around town and find deals. How to find deals on Craigslist, how to find them on Facebook and then we give them business cards with their own extensions and they can pass them out. They can pass out flyers with their extensions so they have multiple ways to send us deals and we just give them 10% of the profit of any deals that they bring to us.

Joe:   Okay, and how…? Talk numbers, I mean how many deals a month do you get from bird dogs, would you say?

Jay:   I would say our average is one or two.

Joe:   Nice, and that’s…

Jay:   It’s not huge.

Joe:   Sure.

Jay:   But then again, we only have about 50 signs out.

Joe:   Okay.

Jay:   You know, my buddy, Ruben Perez. You know Ruben?

Joe:   Yeah, that name sounds familiar. I don’t know if I have talked to him.

Jay:   Okay. Well, he’s the one that created the course, the BanditSignOnWheels.com. It’s his.

Joe:   Well, I’ve heard of that, yeah.

Jay:   Yeah, people can go there and buy it. I am good friends with Ruben. His program’s great. It gives you all the contracts to use with the drivers and shows you how to put the stickers on and all that. I mean he, it’s a lot of…

Joe:   What’s the website again?

Jay:   BanditSignOnWheels.com.

Joe:   BanditSignOnWheels.com, very cool. Okay.

Jay:   Yeah, so they can buy the course. I think it’s like $1,000 bucks and shows you everything how to set it up. He’s got probably almost 400 car signs out.

Joe:   Wow.

Jay:   I think he’s doing between 7 and 10 deals a month.

Joe:   Yikes.

Jay:   Just offer that. That’s all he does, the car signs.

Joe:   I am looking at his website. I’ve not seen this. This might be somebody else that I am thinking of.

Jay:   Ruben use to be in our titanium group. Ruben was in our group, our Lifeonaire group.

Joe:   Okay, all right. Okay, very cool. I am looking at his site now. I see a video of him.

Jay:   Yeah.

Joe:   That’s interesting. I would say to guys who are thinking about this, you’ve got to take it seriously and treat it like a business just like anything else that you’re working on. Anything, other kinds of marketing, you’ve got to be consistent with it, and if you take it seriously you can do really well with it. With that, I am glad to see that he has the system here that he’s using, and it looks like on his website it’s more than just real estate. It can be for anything.

Jay:   Oh, yeah, it could be. Yeah, you could use it for anything. We have one girl that is using it for her hairstyling business. And yeah, her business has really grown a lot. I mean if you think about it, the upfront cost is $1,000 to buy a system and have it already set up an easy way to plug and play it. And then the car signs were buying for under $10 a piece, so 50 car signs, it’s a $500 one-time fee and those stickers last like seven years.

Joe:   Excellent.

Jay:   You literally have 50 billboards driving around.

Joe:   Very good.

Alex:   Therefore, if a sign said 1-800-Fair-Offer, how memorable that would be?

Joe:   Well, the problem with that would be how would you get the credit to the person with the car? How would you know who it was?

Alex:   Oh, okay, doing okay, I got you. Yeah, do you know who Dave Zahaller is or Steve Zahaller?

Jay:   Yeah, I know both of those guys. They have a REIA.

Alex:   I have heard that from when they were doing their vanity numbers back in the day.

Jay:   Okay, yeah, the extensions work because that way, you can. You want to make sure your drivers get paid.

Joe:   Yeah, you could maybe put another number if you’re going to use 1800-Fair-Offer. You could still put a… You know you could. I guess you could still put an extension on that number, right?

Jay:   We’ve actually looked at putting extensions into the mix. It’s a way of reprogramming the auto router and all that stuff but we looked at that so…

Joe:   But you know the operator or whoever answers the phone could ask them what the extension on that number was?

Jay:   Yeah, the other thing we do just to make sure is because once in a while someone won’t push the extension.

Joe:   Yeah.

Jay:   They’ll just call in. But we call them right away and ask them what the make and model of the vehicle was and just… And we can actually pin it down to a couple of vehicles, and if that happens we just split it between those partners.

Joe:   Yeah. Well, that’s cool.

Jay:   They’re happy to get something, half over nothing at all.

Joe:   All right. So you’re getting a lot of deals from bird dogs. Are you doing any marketing things like with post cards or direct mail?

Jay:   We’re just starting to do some probate mailings.

Joe:   Okay.

Jay:   Well, I mean we’re just starting so we don’t have any results back from that yet.

Joe:   That’s cool. I'm still impressed that you’re doing as many deals as you are without doing direct mail.

Jay:   Yeah, well, we also get a… I mean I bought three this month off the MLS.

Joe:   Okay.

Jay:   We have our… We do the similar thing with… that you show everybody in the beginning on how to find the hottest zip codes.

Joe:   Yeah.

Jay:   Then I have saved and searched in those hottest zip codes with the stress property so anything that’s in a state had – short sale, VA-owned, bank-owned, auction, absolute auction, or any type of auction. And then I have key words and it’s also for regular listings like as-is or needs work or handy man, all of that stuff. So anytime anything like that comes on the market or they do a price drop, we get an email alert.

Joe:   What do you do then? Do you just go and call a Realtor listing agent or do you just fax in an offer?

Jay:   Okay, so our first step is when they come across, when they come active, it goes to our assistant and she runs comps on it to see the difference between where the property is priced and the retail sales.

Joe:   Yeah.

Jay:   If there is not at least a $25 or $30,000 difference between where that property is priced at and the retail comps, then we don’t even bother looking at it.

Joe:   Okay, but then…

Jay:   Then we just have it priced. They have a price too high.

Joe:   When you do want to look at it then? Do you call the listing agent up? What is the next step? Do you go look at the house?

Jay:   Next step, I’ll spend a day or two a week and my assistant will schedule all the properties. And myself and/or Annie and/or some of our coaching students will go look at all the houses and we make offers on all of them.

Joe: Okay, so you will look at them first?

Jay:   Yeah, I will go look at them first.

Joe:   Okay.

Jay:   Yeah, we’ll go look at them. We’ll price up quick. We can do a rehab estimate in about 10 minutes.

Joe:   Sure.

Jay:   Because we’ve done it for so long, we know what the pricing is for everything. And so we’ll input it and we’ll make… If we look at eight houses, we’ll look at… we’ll make eight offers and…

Joe:   Well, how do you make your offers? Do you have a formula or a spreadsheet you put all these numbers in?

Jay:   Yeah, after we do it, we put them in an Excel spreadsheet and it will have the property address, the list price, what we offered, the repair estimate and the date we offered it, because a lot of times they won’t take our first offer so we have it in our system that a month later that we’ll resubmit another offer.

Joe:   Now how do you calculate the offer though? Do you have a spreadsheet for that?

Jay:   Yeah, we do the after-repair-value and we multiply it by 65%, and then we take out the rehab cost and then that is our maximum allowable offer.

Joe:   Cool, good. And are these…? What kind of neighborhoods are these in? Are they rental neighborhoods or retail owner-occupant neighborhoods?

Jay:   They are primarily retail owner-occupant neighborhoods.

Joe:   Right, because that is important. That ARV formula sometimes, I will say most of the times, this doesn’t work in the rental neighborhoods.

Jay:   Right, yeah. And we’re using private money, so if you haven’t used private money before they don’t like you to loan your money out for too long.

Joe:   Okay, yeah.

Jay:   We need to know that we can sell these in under 30 days, so we’re trying to target hotter zip codes that are 30 or 45 days average days on market or less.

Joe:   Got it.

Jay:   Because our plan is to buy it, fix it and sell it. We do about… Our average is about 20 to 24 rehabs per year.

Joe:   That’s not bad, good. Okay, great, I wanted to ask you just a couple more questions because we need to get off her. My internet is a little shady. I wanted to ask you about Lifeonaire. How did you find out about Lifeonaire?

Jay:   I went to the Ohio REIA Convention two years ago on October and I met Shaun and Steve there. They were selling their short-sale course and wholesaling course.

Joe:   Yeah, I was one of the speakers there I think at that time.

Jay:   Yeah, you were there too, actually.

Joe:   They haven’t invited me back. I wonder why. No, I…

Jay:   Oh, well.

Alex:   They… I'll tell you why.

Joe:   I don’t want to know why, actually. No, I’ve been there twice. They haven’t invited me back to speak. Yeah, I think one of the reasons to be honest is there is all these issues with the brokering stuff. They’re a little nervous about the courses that teach wholesaling but anyway…

Alex:   Are they out of Ohio?

Joe:   Yeah, it’s the Ohio Real Estate Convention.

Jay:   Yeah.

Joe:   It’s a great group. Vena Jones-Cox I think still runs it and…

Jay:   Yeah.

Joe:   I don’t remember if we’ve had her on the show or not. I think I have. I’ve been on her show. She’s a great lady, great investor, above board. She’s really good.

Alex:   Smart.

Joe:   Very smart and anyway it’s a good group. So that’s where you heard Steve and Shaun talk about Lifeonaire.

Jay:   Yeah, and they ended up saying at the end, “We’re going to talk about Lifeonaire,” it’s totally different. And my… One of my other business partners was with me besides Annie.

Annie:   I was not with them actually.

Jay:   She wasn’t there but we decided to sign up for the 3-Day Get-A-Life event. And we went to that and took our wives and that totally changed out whole perspective on everything.

Joe:   Yeah, for the better, right?

Jay:   Oh, yeah, I was probably working 75 hours a week at that time. And now I work about 25 to 30.

Joe:   Good for you.

Jay:   Yeah, and I used to do everything by myself and now Annie has been helping me for a year-and-a-half. And we have two full-time assistants and two construction crews.

Joe:   Excellent.

Jay:   So it freed up a lot of our time and we’re actually starting our own group now.

Joe:   Your own Lifeonaire group?

Jay:   Yeah.

Joe:   Good for you, awesome.

Jay:   Yeah, and then we've launched our website as VisionFocusedLife.com.

Joe:   Good. Yeah, I was going to ask you what's a good website for people to get more information about you. It’s vision what?

Jay:   VisionFocusedLife.com.

Joe:   Nice. Okay, I'll put that in the show notes, VisionFocusedLife.com.

Jay:   Yeah.

Joe:   Ride on.

Jay:   Yeah, and then our books hopefully are going to be done and coming out next month, and it's going to be vision-focused life.

Joe:   Excellent.

Jay:   And we pulled in… It's about four or five other people into the book. So the whole idea is living your life how you want to live it and the importance of surrounding yourself with other people who are like-minded to get yourself there in the quickest manner possible.

Joe:   Excellent.

Jay:   So the importance of your network and then… So in the book, we talked about our relationships with a number of people and how that’s affected all of us.

Joe:   Very good. Well, cool, I see your website here. It looks good. And people can find you on Facebook as well, I'm assuming.

Jay:   Yeah, Jay Adkins or Annie Adkins, A-D-K-I-N-S.

Joe:   Annie, how do you spell your name?

Annie:   A-N-N-I-E.

Joe:   Good. I got it right. All right, VisionFocusedLife.com. You can look out Jay and Annie on Facebook. And Jay, your last name is Adkins, A-D-K-I-N-S?

Jay:   Yeah.

Joe:   Thanks for being on the show and I know we kind of went through things kind of quickly and there's probably a lot more that we could have talked about. But then I think this is a good time to call it a show. I appreciate you being on. Is there anything else you wanted to say before we ended it?

Jay:   No, I would just encourage people to find a mentor. It will greatly increase your success rate, and your result will come much quicker.

Joe:   I agree. Alex, are you there?

Alex:   I am here.

Joe:   Will you be my mentor?

Alex:   Yeah, if you paid me $50,000.

Joe:   I want to be like you, Alex.

Alex:   I want to be like you running all over the world with no house.

Annie:   Yeah, really.

Joe:   Yeah, I'll have a lot to share when I get back. It's been a fun ride.

Jay:   When are you coming back, Joe?

Joe:   In four-and-a-half weeks.

Jay:   Okay.

Joe:   Yeah, it's cool. We are going on a cruise next week. We are leaving Friday to go to Venice, Italy. And then we are going to cruise down the Mediterranean, go to Croatia, a couple of three Highlands in Greece. And I think one more place in Italy and come back. It's going to be a lot of fun. I'm looking forward to some nice R&R. I'm looking forward to being somewhere where my cell phone doesn't work.

Jay:   There you go.

Joe:   All right. Hey, good. Thank you, Alex. Thank you, Jay and Annie. I appreciate you guys being on the show.

Jay:   Yeah, thanks for having us, Joe. We appreciate it greatly. So enjoy the rest of your trip.

Joe:   Yeah, thanks I will. Well, see you guys, take care.

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  1. Really enjoyed podcast with jay & Annie Adkins. I appreciate the sharing of tactics that are working their business. I'm a wholesaler in the chicago market & looking for ways to increase deals monthly.

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