Real Estate Jay Jonez on what he is doing in this market & the future - RET Ep#27
#realestate #negotiation #dealanalysis #creativefinance #jointventure #propertyinvestment #investing
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In Episode #27 of Real Estate Talk with Randy Stedwell, the spotlight shines on an insightful interview with Real Estate expert Jay Jonez. Jay Jonez, a seasoned investor and realtor, shares valuable perspectives on his current position in today's dynamic real estate market. Listeners can expect to gain valuable insights into Jonez's experiences and strategies as he navigates the challenges and opportunities presented by the market. From his unique vantage point as both an investor and a realtor, Jonez offers keen observations on the current trends and provides informed predictions on where the real estate market is heading. This episode promises to be an engaging and informative discussion for anyone interested in the intricacies of real estate investment and the evolving landscape of the market.
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TITLE: Real Estate Jay Jonez on what he is doing in this market & the future - RET Ep#27
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#realestate #dealanalysis #propertyinvestment #negotiation #jointventure #realestatetips
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© Randy Stedwell.
Hey everyone out there in YouTube land and Facebook and our own
Facebook group Metro Detroit off Market Real Estate Group um I'm really really
happy to uh bring on this guest today that I've known personally for a while
um in my wholesaling business as well as you know I've I he's helped me out a lot
I like I hope I've helped him as much as I can so um but you know we've had him
on the podcast before it was over a year ago so I wanted to bring him back on if
you haven't seen that uh prior you know go back and archives in our in YouTube
and check it out um so without further Ado Mr J Jones how you doing today
what's going on Randy Ram I'm feeling good man I'm feeling really good awesome
so you're a not only a uh entrepreneur a
investor a real estate agent and you still have a day job yes sir that that
is right one more one more a YouTuber as well and and I YouTube yes sir yes sir there's never uh
never enough time in the day man uh but yeah yep those are those are my income streams and that's what I'm that's what
I'm working on that's awesome so I'm really really excited to kind of get
your take I every time you go live it basically I try to watch it so um you
know when you started your channel uh you started way before I did by the way
um but I you you're it was just real estate now you've gotten into some
reaction videos as well and but you still bring in real estate into it so um
you know so why don't we get you know tell us we we want to because we have a we've done a video before with you
telling your whole origin story and everything and if you want to check that out you know please I I'll link to it
somewhere if you're watching the replay that is um but where uh just give us a
quick overview of how you got started in real estate and you know how you got to where you're at now yeah so um man now I
get to really really tell my story uh from Vantage Point which is great so I
started off um in 2018 so I was 27 years old um and I started off wholesaling
right okay like I said like a lot of people figure out how to get started into real estate they don't have much
money um but I knew I had the hustle I had to grind and and I was willing to fill out figure out this wholesaling
thing so I started off at 27 and for two years I strictly did wholesaling um I
didn't try to fix flip I didn't try to do any creative financing I just wanted to learn wholesaling and that's all I uh
focused on and um after I wholesal and I learned that skill uh I then third year
started to get into my real estate license right um After figuring out
opportunities that I passed up on and how I could become more of a real estate uh professional and entrepreneur I
decided to become a real estate agent year three and in that same year which is covid I uh was able to obtain my
first fixing flip so then I became an investor um okay and then I started fixing and flipping some homes um and I
started using all those skills from wholesaling then I was listing properties um helping buyers find homes
as well as uh flipping houses so I started to kind of mix and mingle the
three and found a way to be able to do it um almost kind of seamlessly you know with my marketing and just be able to
have multiple ways to skin a cat um and so that's kind of what I'm doing and
then now I'm finally at the point of investing into rentals and I became I
like to say an investor landlord um and so I've got my third um property a
rental property that I'm working on and listed and so then I started getting into creative financing so I kind of
slowly progressed into different things but I started off wholesaling which is still the foundation of my business and
how I learned real estate um and that's my story and I have a nino5 as well and
I still work at nino5 till this day um I utilize that ninet to-5 as my business
partner um and so uh it's it's some days are very very hard but I just happen to
figure it out man and so um I'm able to juggle those and it's All About Time blocking for me and that's what works
and that's kind of my story you know and um you know real estate and how did your how did your YouTube follow up into that
the YouTube end yeah so when I first started my YouTube Journey it was really to document the process right so as I
was starting wholesaling I know I would make videos of me going and meeting with
the seller walking through homes and then I even started doing some of my uh projects and so it was document the
process thing and uh I enjoyed it and then I started to like you said uh
started doing more like reaction videos I just started to Pivot right you start figuring out certain things aren't
working what is working and then y I figured it out and like you said I always try to wrap in real estate so I
give them what they want but I always put the medicine in the candy is what I call it and then I give them real estate
we talk finances and and uh money and that's kind of what I've been able to do but realist I mean the YouTube was
always just to be able to um show what I'm doing and document the process so I
can look back and see like oh wow I've been doing this for four or five years look where I started and I have done
that I have done some reflection so uh and then I turn it into kind of
entertainment yeah that's always good and the thing is the thing I like that yeah you did pivot to some reaction
videos but like you said it still brings in tie you still tie in real estate and
it's not like these are not your opinions the I mean they're your own opinions and and you you know you just
get to get a little bit further in depth into it so if anybody does want to go
watch this channel it is linked in the description but it is at uh at real estate J Jones J Jones is with a z just
like you see on the screen um and you uh check them out on YouTube but all of his
links his Instagram his Facebook and his YouTube links are in the description I
did add those so um you know so with
that is you know now you're now you got the YouTube going you got uh your
rentals going now what's your criteria for a rental to be able to cash flow
like after everything's paid is a couple hundred bucks are you looking for a home run like $ th000 doll a month uh you
know like what is it you're looking for yeah like minimum I try to shoot for at least $500 uh a unit right for single
family and so that's that's what I aim for um anything over that would be just excellent um but that's what I that's
what I go for so okay when I run the numbers of course I'm trying to make sure that okay yeah if it starts off at
you know like the one house I have now in Oak Park um awesome deal it's a subject to um it's going to make me
after expenses about s to $800 a month right nice yeah uh but when I start it I
always put in my capex my maintenance and I'm like after all of it said and done am I gonna make at least $500 a
unit right and so that's kind of my my way of doing it um when I run those
numbers on a on a rental so when are you gonna use these strategies and go into multif family
yeah man that's a great question um when I feel like you know I'm still I'm still early in the single family game um so I
still get up some single families but that multif family is like right here in the back of my head and so I still wanna
just like how I started off wholesaling I just want to focus on just the single families do really well Master it go
through the landlord processes you know and then um once I feel comfortable enough then I definitely know I'll jump
into the multif family so I'm just at that point where I'm just like yeah just get this get your units up you know to
where I want to kind of cash flow them up and then I want to get in multi family absolutely so I heard it like
this that um I Heard it actually from Jerry Norton who's a famous YouTuber and
self-proclaimed um you know master of you know wholesaling and all that so
yeah um but he and I'm I'm sure I got that saying wrong but
whatever but he's a great guy to learn from I will say that he's a great guy to learn from so I but you know he had it
where you know think of it like a four-year freshman sophomore junior
senior okay and H freshman is like wholesaling okay
and it's like e even parts of fix and flips like holet tailing and things like
that yeah and then going in the sophomore is like a a Fix and Flip you know
um being able to to get as much of that possible and then then going into junior
is like uh you know being able to hold rentals where you're getting some
passive income you know I and then Senior is like okay now we're going in a
multif family where there's some bigger numbers here some bigger returns things
like that so even maybe some syndications you know like you know you
can start getting a little more advanced um but yeah I think everything needs its own attention you know and yes um if you
if you happen to expand on that um on that stream then great but yeah like you
said you know like just start off here do that Master it do your thing and then move up and you kind of do it's like a
natural progression too I started to notice yeah most definitely now one
thing that I've noticed is you know like at least for me system
are a huge thing like you said the time blocking okay time blocking and systems
are like my two biggest things that I what helps me succeed in in this
business uh so what systems have you put in place to kind of help you manage all
your everything that you're doing from your real real real estate business to
your investing business to YouTube to um even your day job yeah so
like um on the you on the like let's say like the wholesaling end um my biggest process and that's kind of how my like
all my deals start off with is wholesaling meaning the marketing from wholesaling so code calling sending out
mailers so I kind of start there step one with everything um because I've been
able to take say one seller because I'm calling people that are tax delinquents or pre-foreclosures or probates
that might end up becoming an agent lead right or might become a wholesale lead so I always start there um because I'm
marketing and I'm just getting my message out there hey I'm hey do you want to cash for your home or are you looking to list your home right so I
start there for my wholesale business and then that can Branch out to other things um and and one of my biggest
things really that's helped me as far as a real like realtor real estate agent wholesaler is my title company the title
company that I use has made made my life so much easier because once I'm able to
get that deal together rather whatever kind of deal it is then it's a matter of
okay Title Company what do I need to close this thing they're a big part of my process right so uh shout out to
Michigan investment title out in Romeo um most definitely I've heard nothing but good things about them by the way so
yeah I've been using them for years so they're a big part of my process when it comes to getting a deal closed uh code
calling is a big deal a big thing for just getting leads in and then me being able to figure out what type of lead
it's going to be um okay and then you know as I as I bring them in um for the
fixing and flip it's funny because I have a whole contractor guide in my Microsoft One Note of what kind of
toilets can I buy how much is that toilet um vanities uh contractors so
when I do a fixing flip um because I've done a couple already I literally go right to that thing and I say okay I
already know what toilet I'm going to get so there's no need for me to go in there right I already kind of know how much it's going to cost so when it comes
to my Fix and Flip which also kind of goes into my Rental process as well yeah I already know what materials I'm
looking to use um so I like those are things that I've developed and like you said I'm a processes are everything it
just makes things a little bit easier you don't have to second guess stuff and I'm big on creating a process reworking
it until I I get it right because you really never get get a perfect process but when you can get it to work that's
all I'm trying to do and it makes things easier to run when I'm a real estate agent a wholesaler or I'm fixing a
flipping because I know that where it's starting and where it's stopping oh most definitely and that's
the biggest thing is is that I the the processes that you use and how
you go from start to finish now out of these processes how how many of them are
are you pretty much hands off on um probably the when I do a Fix and
Flip um those are ones I'm like hands off on right so I'll order the materials I'll get them shipped there um I usually
have my team you know pretty much go and tell me what I need and I verify so I'm
pretty like hands off on The Fix and Flip part of it I'm always um going to the property though and checking up and
making sure things are done but I'm pretty hands off like I'm not touching a hammer or or picking up a drill real um
in the in the agent side in the wholesale side I'm pretty Hands-On because again I'm co- calling um so I'm
kind of waiting to generate those leads so I'm pretty Hands-On in in that area when it comes to the lead generation but
when it comes to like the fixing the flipping and the rentals I'm a little more hands off because I'm just like
trying to exit trying to just go to my exit strategy and um and you know at that point you're kind of pushing checks
right pushing checks and making sure you get inspections um but I'm like way more Hands-On when it comes to like the
wholesale part and and uh just being an agent you know um so that's that's the
part I'm kind of more hands off on is the fixing flips and stuff that's awesome though so because the my thing
is this the more hand so you you develop processes so that you can become hands
off okay yeah now it's not to say you're taking yourself out of everything is to
say okay I'm going going to put a process involved where maybe I'm in the
beginning I may be checking it up on the middle and I'm in the end yeah and
everyone else is doing work in between where that frees my time up to do other
things yeah and that's like even when I had a virtual assistant um I've had a
couple virtual assistants and that they have helped me be hands off right I don't have one now but I did have um one
I had for like almost two years then I a co-c caller and an admin and at that point they were just doing doing their
thing and I was just kind of you know checking up on them making sure we were getting leads in and we were getting um
you know things skip traced um and I did enjoy that I did enjoy it a lot you know
um it is just work though you know you have to always follow up with them but um that is one way to become more hands
off if you don't want to do the marketing which I kind of enjoy a little bit but if you want to be more hands off
virtual assistant were great though and I just actually she just reached out to me earlier at the gym uh looking for
work and I was like you know what hit me up at the end of February because I think I might need to use her um so that
I don't have to do admin work you know and she could do that and I could just kind of focus on something else most
definitely and and so I have a few students that I'm actually teaching about wholesaling um at the moment and I
actually went through a I we went through a um solid course about systems
and and part of the systems in there basically we talked about virtual
assistance and I went over on how to hire a virtual assistant and how to
interview them how to talk with them and you know whether it be somebody from
here whether it be somebody from another country it's all the same you know so um
the biggest thing is now you're stepping into a role of somebody doing things to
now you're stepping into the role of a boss and and it's not for you to act ignorant or do anything now you got to
be a teacher you know you gotta be you know you got to be a teacher and know
when things are being picked up pretty fast and then when things are just being dragged out absolutely so you know I
always say like hey I'll give anybody the chance but I'm going to be pretty
quick to like if you don't work out I'm going to be quick to fire you sorry M yeah slow to high fire slow Fire Man I
mean that's how it goes yeah yep so um you know now with that being said
obviously you've had uh virtual assistance you've had uh so going
through this do you have anybody here like uh any working for you fulltime say
whether it be an assistant or whether it be a um contractor or anything like that
or do you sub everything out yeah so no I don't have like an assistant or anyone
full-time um but when it comes to my fix and flips yeah I have like uh my contractor who's pretty much my main guy
right he's my go-to guy um and I have uh pretty much a go-to plumber um so go-to
plumber go-to electrician um and we all kind of work in sync so um when when I
do get a property under contract and I'm like hey I'm looking to buy it you know we have a process and I have a guy call
them and then we have a whole thing that we do so as far as on like the renovation side yeah I definitely got a
team team of people that that I can call and they're the pretty much the same team that I've been working with from
you know U my first house and then I've kind of got a solid team to where it's like I know this guy's GNA go out there
and do his thing just go and trust and verify pretty much Y and then you know get things moving so on the renovation
side yeah I got I got a team and they're pretty solid man they're they're great they work with me till the end um yep
you know and they're and they're willing to even teach me right and I'm always learning every house that I get man I'm
like I'm kind of like you know I'm kind of looking to learn and they're always telling me things like hey next time
look out for this or you know even buy material so they help me as well so they're a big part of my team and that's
who I always go to when it comes to my fix and flips I I definitely would love to go through maybe one of your sub two
deals as well just to kind of see how you structured it and things like that so you know what I came this channel
because I want to talk real estate man I enjoy it I love it so yeah man I would love to talk about that deal because
that was a sweet deal man so yeah I'd love yeah um now quick question I don't
want to Pivot away from that but I you know are you with all your with your
rentals that you have are you managing them yourself or do you have a um
property manager yeah I'm doing them myself right um I only have three uh I
figure after maybe five or so I can kind of maybe figure out if I need to have that conversation um but the two that I
have because I'm looking to rent out the third one right now yeah they are section8 um so you know
relatively um pretty pretty decent yeah but of course are they easy are do you
have like a an app like you know like there there's um like are you taking
cash underneath the table putting underneath your your your suit like how are you getting the funds from there you
know from the tenant you know uh in order to make everything recordable to
kind of get everything on the up and up you know so yeah things like that yeah so with the section A tenants um they
get a voucher um and that voucher basically says hey I can they can afford this much um and they pay either
everything or you pay utilities I usually say hey they pay everything so that voucher will say hey um I can
afford $1,700 a month um and as long as it fits my you know rental criteria and
and rental rates then that voucher will pay me every month um on the first so
you know that's how I'm getting the money in so you know I have my LLC setup and then they y put the money in there
and that's how I get it recorded and um you know it's you know it's it's Section 8 so you know you you deal with a
different type of tenant um all your are all of them section8 at the yeah yes the
two that I have are section 8 and the one that I'm going to be putting under contract I'm uh screening tenants now
but I would like for that also to be section A and I have two people lined up so yes the two that I have are section a
awesome okay so that is that's really good to know because actually you know
um homeowners or not homeowner uh landlords they don't sometimes they
don't like Section 8 tenants and because it has a bad bad rap but in my opinion
it's guaranteed money you know who all during Co when
nobody was paying who was paying section a section A landlords and you know what
you brought up a very very great Point um what was his name he was an electrician on my first flip um he I
remember I was speaking to him and I was like you know freaking out about the Electric electrical at the house and he didn't he hit me up and said yeah you
know I got some section A houses in East Point and Warren and he's like I'm I'm still getting paid you know my other
friends that have properties during covid he was like y they're struggling to get payments and I was like and I was
already thinking about Section 8 about two years before he said that and I said you know what you know and I got a nine
to5 and I'm thinking about the expenses and I don't want to miss payments you know definitely have mortgages on these
properties and I'm like well at least if I can get five section A homes in my my
eyes then I'll go cash Ted after the five is what I would like to do but yeah I mean the money's coming in man money's
coming in and I mean it's it's hard to beat yes you still got to screen your
tenants um you know like you would do a cash tenant but it's it's guaranteed money and uh the two the Housing
Authority that I had to deal with I mean they were pretty pretty good to deal with um once I got past their inspection
section 8's inspection it was like money's coming in every every first of the of the month I get my email they're
gonna pay me on the first cool money's there most definitely I I just can't I can't beat it I don't
have to you can't beat it you know it's like why why it choose some uncertainty
you know and here's here's the one thing that I now can speak on for Section 8 so
there is a way to get 100% of your rental funds so section A
normally pays 70% and then the tenant is responsible for the 30 so you got to go
chase down your 30 from the tenant but if your tenant goes there and they say
hey I had a seasonal job and I lost my job they then just file a piece of paperwork that says employment change
and then you'll get a letter back from section 8 and this happened to me on both the homes we're gonna pay at
100% wow okay like obviously I'm like well you know hey guys you know get back to
work but I just got a letter that you're gonna pay me 100% the rent and I and this is 100% true and and
it's happen on both my properties so you can get I just got to worry about the utilities them paying the utilities you
know so yeah yeah you know and they got to pay the utilities pay the water you know and I tell them you know if I get a
bill that comes to my house you are responsible for this you know and and you got to pay this you know but and
they happen to find a way to find that money when it comes to utilities so you know it is what it is well yeah because
that's the good thing about section8 is nobody wants to get off that program you
know you know because it it's I mean that your rent is your biggest expense
you know so um you know they're going to be homeless you know if that they if
they happen to lose this voucher from a business standpoint um they need this
voucher right you're a cash tenant and you can vet them out effectively and and they'll be sometimes they're good um but
they they can just up and leave and then you got to go find them in order to sue for them and get the money these people
they need this voucher they're a little more appreciative of you giving them the home because if they lose it most
definitely they don't have anywhere to go and so they don't want to lose their
voucher they want to stay there and so now as a landlord you're like okay they want to stay here they're incentivized
to stay here because they lose the voucher and I can get possibly 100% or even 70% of the rent which is going to
still cover whatever mortgage that I got on it right and still cash flow like man
I'm taking a deal most definitely and I mean why not
as a landlord you it just makes 100% business sense you know yeah yeah I mean
you're gonna have to fix the house up you know and all those things they're goingon to come those things happen with tenants um but look man I can get the
rent 100% or even 70% man I'm I'm in it man yeah now Ro Roo brings up another
interesting question this is is subject to easy to come AC cross okay I really
appreciate you putting and anybody who does have any questions go ahead and put them in the chat whether you're on Facebook or you're on YouTube go ahead
and put them in the chat we'll answer them as we go um so you know is subject
to easy to come across I know as a wholesaler I pitch it all the time but I haven't had a deal yet with it you know
I I try to but yeah I'll speak for myself as well um I've pitched it a lot
over the five six years um I've probably gotten a couple times at bat maybe three
maybe four right of people that have really considered it um and then I've
actually went to the home seen the house and then start talking a deal um but really out of all those subject two
deals I came across one that made sense so to me no they're not easy to come
across for me right y um I do see some wholesalers or investors that are coming
across these deals a lot in other markets for me it's a little tough right
um but I've gotten better at questioning to open them up to it but it's not I don't think it's easy personally right
um but it's I think higher the price point the higher the price point might be the easier it is to talk to them
about it it could be yeah because I mean I love to talk about the deal that I got
the subject the subject two deal that I got if you want to go into that most definitely just real quick the CEO I
love the name by the way on YouTube uh hey Randy hope all is well bro thanks for all the videos appreciate all you're
doing for us so that's awesome so and then Roo says is it possible to do a
subject two deal on a foreclosed property so oh yeah absolutely you can
um I haven't had much success with it because normally by that time the seller
is in is in um a bad situation they don't want to answer your phone until the week of uh the auction and then you
really can't strike I mean you can strike a deal you know if you got the funds but you know a lot of times they
don't they don't hit you up in enough time to be able to structure a deal um so the answer to that question is yes um
and from my experience when I've tried to do that and Pitch it to them it's already become too late um and they're
already in that situation so from what I've seen and heard about that is yeah like you said it is
possible just know that you're probably gonna be paying more to get the deal
done what I mean more out of pocket yeah so um usually subject two deals are
let's get as low as out of-pocket cost as possible right um but you're probably
going to be paying not obviously the full extent but you got to bring uh all
the rear is up to normal okay so that's the key thing is with that um
and it's really interesting about that uh and I'm you know if it makes sense it
makes sense if you're only like three months behind and they're foreclosing it might be worth it yeah
you know uh but if you're if you're like a year behind like you were with covid
or two years behind behind and now you're at $220,000 unless that house is you know4
or $500,000 which it could be yep then it might not be worth it you know yeah so
unless it has a low interest rate so so there's the the pros and cons
everything has a a balance yeah okay so am I gonna overpay for something like
that no but if it has a a good interest rate
and now I'm doing a little bit more out of pocket then it'll be it's possible yeah
but that's why I love that's why I love creative financing man and then Aros are normally not assignable would require a
double close or transactional funding is correct but we're not talking about reos
here not Bank yeah not Bank own these are it's completely different so um why
don't we go ahead and talk about your deal and I love to hear about this and I
would go from there yeah so I call this the subject two deal um I'm gonna actually put it on my YouTube channel
I'm gonna work on that video Sunday I absolutely from a number standpoint love
this deal and the reason why and I came across this um Co calling and just went
through the normal questioning you know um you know the lady she at the time she was sick and she had a few houses and
she just wanted to let this one go beautiful area in Oak Park and I just asked her you know hey you know do you
have a mortgage on the house she says yes she tells me the mortgage amount and then I go and see it's worth 240 and she
owes about 171 and so I go okay and then I start
figuring out how much work needs it needs I'm like ah crap you're only gonna make like $10,000 on it I'm like not
worth it and then I hit her up and I said well um would you be open to um if
I took over the payments uh of the property you know and you know then I own the home and you don't have to make
any pay any payments and then I also bring up your credit score um because you haven't made payments and this is
what I did so here's the here's the meat here's the potatoes $5,000 behind she was behind
well was she behind no no no no no she was not behind she was not behind and
this is why the deal was so green for me it was like it was incredible she was not behind but she was having a
financial hardship where she was like I'm getting to that point where I'm not GNA be able to make any more payments
right right because she was already becoming late but she was just before the 30 days and so then I said well I
can give you $5,000 down right um and then uh what else did I do so $5,000
down her monthly payment is 930 a month um and and the rental rates over there
are 1,900 U now the house needed some work right and I just calculated all my
numbers and it cost me about $21,000 to fix her up um okay and then the interest
rate it was crazy it was 40 years because she did a Malone mod in 2016 so
40 years at a five I think five and a half five and a half percent okay not
bad so it's not bad interest rat at the time were 7% yeah I was like and I
called and I actually called and verified and that's what the deal was they said this is a conventional loan This is 40 years 9:30 and I'm like yo
this is crazy and then I'm like the spread on the the the rent was nice and
I said okay I gotta I gotta take the deal I was like I gotta take the deal and I was like and then the the rehab
was just you really just needed a kitchen right you really just needed a kitchen um new furn was in there AC unit
is a little questionable the roof is good hot water tank and then I had to update the plumbing and I was
like it it just it just it just worked bro and it was in a beautiful location in Oak Park and it was just like check
mark after check mark and I got a whole deal uh deal calculator I think I might have showed you before oh yeah I
actually use yours as a reference for the deal calculator that I created so
yeah yeah so I used that thing and worst case scenario numbers turned out green
and when I say green like rate of return and then how much I'm getting in cash flow and I was like I was like man I got
to take it so and then I I was like I'm about to invest into it I was like what else am I gonna do with this money that I got sitting here that I made all my
flips and stuff I'm like I'm about to invest it and then that's what I did and so that deal was dope so $5,000 down
just to give her for a house that's worth $240,000 she only owes
171 um and the interest rate is fixed for 40 years at five and 5.5 now did you
seller finance any portion of uh anymore so was the what was the total purchase
price so the total purchase price would have been the 171 plus the 5,000 so was
176 oh okay so okay so you didn't do too much over that it was just like okay
we'll do you know um so she actually only ended up making five grand
out of the deal you know but she got rid of the house you you you solved her problem she got rid of the house um it
needed work you know um when I first got it man I was I seen rap poop in the
basement I was like oh God no no God no so uh you know I seen all those things
you know we did past control there but you know there just the point where she just was over it like she was done with
it it was too much and then you know she was able to bring it over to me and and and I loved it and that was like my
favorite deal yeah so the CEO says smart man bringing up the the uh credit score
for you bring up the credit score for you so yeah because I mean she she wasn't she was at that point where like
the next two months she was like I'm not GNA be able to pay the mortgage payment and you know she she was actually very
thankful when I closed that deal um because she didn't have she didn't she didn't have anything to do with the
property anymore um so you know I definitely helped her out and as an
investor you can't go and buy that house cash like they would have only made 10 grand on if they would have put $30,000
into it you know even 40,000 so it would have been a deal they would they would have just walked away from yeah and that
10 grand would been easily eaten up by realtor fees closing fees whatever
negotiation fee like absolutely everything out there so um 100% I think that is smoking deal
now did you calculate the the new updated in um taxes and everything yeah
so I I I did include that so um and even after that you know I'll still be in the
green you know once they you know go up because you know it fluctuates for like two years so I'll still be in the green
when it comes to that and so that's why I said all right cool you know and even if I get a Section 8 tenant um you know
I might go down a little bit you know because I got a person right now at 1750 she wants it like I'm really asking for
1900 but again you know if that money's coming in every month and if it's
guarante if she's a decent decent tenant or whatever then you know we can go that route but you know that spread between
what she owed at a $930 payment this was a nice house man this house was, 1600
square feet a three bed bath and a half with a basement um this was actually one
of the bigger homes that I've actually renovated um but it didn't need as much work but it was it was a nice home and
I'm like yo this this is just a nice house bro um so the upside of it is so
nice like right now I could sell and still win you know um if I wanted to
just sell and then you know pay my taxes I probably would walk away with a nice amount but I'm going to keep it as a
rental because if it's 240 now in five years from now that thing can probably
touch 300,000 you know what I'm saying how far into the 40-year mortgage was
she um so she just did it in 2016 so not far at all okay so 2016 you're you're at you
know what six years seven years um you know I'm like okay cool you
still got some of that beginning you know you pay all the interest and everything in the beginning so yeah yeah
but that's good and spread out over 40 years you know not I was like when they told me 40
years and I think I recorded to call them on the phone I was like what so I wasn't too excited but then I'm like
listen man if I can just cash flow this house everything whatever man you know what I'm saying but e if I decide to
refinance down the road if it makes sense then I can just refinance at at a at hopefully a better rate than a five
and a half that's the only way I would do it um and then I could possibly pull out cash or just do a rate in term
whatever you know but as long as it cash flows it's all I care about it's a sub two deal and I liked it man so that was
my second seller finance deal and I love that one and one thing that you're not mentioning that you also make money out
of not there's the cash flow there there's all the rental the appreciation but there's also one more
thing depreciation oh absolutely depreciation like what's that
I wish my horn here man yes I know man I I don't have none of that set up I'm not as fancy as you you know but uh but
depreciation when you're doing fix and flips and you're doing wholesaling that is considered right now money and you
can uh basically you're going to get tax at the highest rate so you have these
properties to put depreciation and now you can bring that down that taxable income absolutely absolutely dude that's
that that is the game of the wealthy man is the depreciation that's why they love real estate because you can make cash
flow so you're making money on an asset and then you can write this thing off against all these other you know things
you gotta pay money on um and for 30 years and so yeah you hit the nail right
on the head right with that now when did you close on this deal so I closed on this deal this was in July I believe
either July or beginning of August so okay yeah so there's enough time that's
gone by here's the big question did they
do the do on sale Clause uh I need some wood man there's
some wood behind me no no no they have't is what everybody's afraid about and I
did switch the insurance I switched the insurance um I forgot how I had to do it I think I had to still have her name was
on there um and I had my name on there too so yeah I switched the insurance they took my payment and then we're
we're going to keep it moving you know the biggest thing that I've seen is is even if you switch the insurance it's
perfectly fine as long as you leave the old homeowner's name attached onto the
insurance as soon as you take off I've heard yeah it's only heay that uh that's
that's what will be a big red flag yeah so yeah that's what I was told as well yeah so that's awesome and you
didn't get the do on sale Clos knock on wood so I just knock on I'm what for you there
so um and if I do I'll just sell it in six months man so whatever I know and
there there's also a different you know when they do the do on sale Clause they're not saying oh give me all the
money tomorrow or we'll take the property it's they're going to give you a time frame yeah you know so now you
can um put backups and you know what okay de it back to them and do it as a
land contract for the exact price there you go you know so that's one way
to do it um and you know so does your paperwork go over all of these you know
if these problems occur what happens or if you stop paying what happens so on
and so forth yeah so they have defaults yep so there's there's defaults in um
the paperwork we signed at closing that states you know if I miss a payment um
and she comes back and she proves that I missed a payment she is able to then get the house back okay so that is in there
right there yep there's consequences you know for for me missing a payment so you know that that just incentivizes me to
stay on top of it and then you know once you get it rented out you know you just go ahead slap that thing on auto pay and
make sure the payments are coming out you know are you using a Servicing Company or just doing it yourself
logging into your account and doing yeah I'm just doing it myself um so I'm I got her access to her online banking or not
online banking but online for the mortgage and then I just have that thing come out um so no I'm not using a
Servicing Company but you can like another Escrow Company um I just chose
not to right so if you get multiple of these
you're probably gonna want to do a Servicing Company it's only a few bucks I believe so it's not it's not highly
expensive but one thing a Servicing Company from what I hear does is it it's
helpful for the seller because say six months or a year down the road they want
to go purchase a new property well it's still going to be in their debt to income ratio and with you showing that
the Ser through the Servicing Company that you've been paying the mortgage for
a year six months they can they can prove that you that you're basically
responsible and they can take it off their debt to income ratio yeah yep and there's I think there's a letter so I've
never actually ran through this process so I can't speak to it 100% but from what I've heard I haven't either so this
is just what I've heard yeah I've heard from I think about two investors they were like there's a letter I think you
have to get written up and notorized um that states that you're paying it and then the underwriter of that house that
they're going to have to buy uh it's kind of up to their discretion to you know kind of say okay yeah um you know
this yeah and I think you're going to have to still show that payment history coming out of your bank account then that letter and then it'll show that
okay they're the ones actually paying it but like you said you know um anything that you can kind of do to show
paperwork would be you know in your own benefit and then good for the seller right the seller can then see that you're
paying exactly and now that you know hey when when you make a payment not only do
you get the email but the seller gets the email to to verify absolutely
so I'm actually dealing with this with my Mo with my mother house at the moment
where I had to now I have to basically log in and pay her mortgage and do all
that so it's uh it's interesting because we had a we had it set up with a
ladybird deed with her house yeah so basically all it states it's a Qui it's
a quiet claim deed that all it states is in the in um if I were to pass away in
the in my death this this property goes to this person yeah so if I were to ever
go sell it to do anything like that it's filed recorded all I got to do is provide her death certificate gotcha and
the properties in my name so you know yeah I've heard of that before through
an attorney the probate attorney yes it helps keep us out of probate to be honest so that's the
honestly that was the only asset that she really had was the house so so she
wanted before she passed away we set that up and so that any credit card or
credit card debt or any creditors or whatever couldn't they couldn't come back so yeah
smart yeah so um we are we're coming
about we got about 10 more minutes I I'd love to talk with you all day but I want to be respectful of your time um you
know I try to keep it to an hour um and you
know what are you planning on doing in the future what is your future goals at
the moment and how can we help you in this community to kind of reach your
goals in the future yeah um so what I'm really focusing on um is growing my real
estate agent side of the business um I'm really looking to to strengthen that
income stream a little bit more because what I'm starting see um again when I'm
making these calls and I'm marketing I'm starting to see that okay this can turn into a buyer and I've sold some listings
through those so I'm looking to ramp that back or ramp it up so that I can do
more deals um of course that's more deals to invest uh and then those relationships will just keep that thing
rolling and uh eventually turn it into a referral based business down the road so
that's really what I've been focusing on you know just doing more agent deals uh just to do more investing really uh
and that's that's what I've been focusing on and and being an agent to be honest with you it's not as bad as a lot
of wholesalers like think um it actually just adds a tool to your tool belt you're able to look at things a lot
different you know and when you're talking to a seller you can give them like three and four different options
and then a lot of times they may say you know what I want to list my home so now you got a nice home you don't have to
walk away from that deal and that's why I want to ramp that business up because uh it's just it's just good to be able
to get that income coming in so that's really what I've been focusing on for the next year yeah most definitely and that's the
biggest thing is is even as a wholesaler you have all these different tools that you use from when you're talking to
these sellers and being a realtor is just another tool in your tool belt I think that most wholesalers should get
their realtor license okay because you will eventually need it okay yep um now
you can have your realtor's license and just not use it yeah so that's the thing like it's not it's a tool in the tool
belt I will I have not gotten mine but I will eventually get mine um I still have
my day job my nin to-5 and speaking of that when do you plan on leaving your nin to-5 oh man that's a
good question at the moment um I'm a little different than than everybody else is going to tell you uh I'm
planning on using my job and I'm just going to plan on using them until you know I don't need them right see this is
the thing this is how I look at my 9 to-5 so people want to quit abruptly emotionally and I'll keep this short but
there's a lot of things that you get from your job right you're 401k if your job has one you get benefits that's very
costly um some people may have a HSA which is like Health Savings Account um
you can have a daycare Flex spending account which I have kids um there's a lot of things discounts and perks that
you get from your job um you just have to learn how to use them for yourself right and so that's why I'm G to
continue working as long as I can continue doing what I'm doing um if it if I don't reach that Crossroad where I
have to make a decision I'm just going to keep doing both I mean why not you know and then the 9 to-5 still takes
care of my living lifestyle and then my investing is just padding my being an
agent is just more padding so that I can do more investing and buy more properties so that now my passive income
stream will be able to take care of me so I'm gonna continue working man I mean
like I said I look at my 401k and I'm like this is just the benefit you know they're giving me free money right you
know I do a match you're giving me free money and I'm gonna keep working and I'm gonna work that thing up to the point
where I can Max that thing out and I don't I don't have to and I enjoy my job I'm in it so it helps me you know um and
I like traveling and stuff too so I'm going to continue working most people probably tell me stop do whatever but I
can do both and uh I haven't really reached that part where you know it's gotten super overwhelming so your job is
more flexible than say most most other people's jobs and that's the good thing
yeah yeah I travel a lot um yeah so yeah it's flexible for sure and I think you
know you actually like your your day job as well there's you know that might be a different answer for somebody who
doesn't like their day job you know exactly I like my day job so I'm gonna be I'm just as same as you I'm gonna
keep doing it until I have passive income basically replacing my income and
even then you know the only way that I would really say okay no I'm I'm gonna make
the jump is if okay now my day job is being h urance to my passive income
exactly exactly I mean that's the only that's the only reason if you got that that that that Crossroad but other than
that y I'm gonna keep running up you know the ninet to5 until I can and and it's just the that's just how I want to
do it like I said there's those things that people don't think about when they leave insurance is expensive right um
and those are the things where if I can continue to have that while having passive income and investing I'm just going to keep doing that most definitely
so uh that's awesome we've gotten some really good you know we got bmac on here
you know just doing you know signing papers over here I appreciate that I appreciate you commenting you know um I
appreciate everybody who commented in in the in the chats and adding to the discussion I really do appreciate it um
you know so how can people if they want to get in touch with you they wanna hey
I want I want real estate J Jones to be my realtor so how can people get get a
hold of you if they have deals that they want to sell you if they have deals they want to work with you on with JV or
anything like that um how can they they get a hold of you yeah so you can uh
reach me out on Instagram um at real estate jjones uh Jones is with the Z uh
I'm on there and then also Facebook um if you type in real estate J Jones I'm there as well um so yeah you know uh I
could be reached on Instagram Facebook and then if you want to see any content of course I have a a YouTube channel and
that's real estate J Jones as well so yeah if you want to you know use me as your realtor you know reach out to me on
Facebook or Instagram love to help you know I love to educate and I love to get deals done so you know that's where you
guys can me uh reach out to me up that's awesome and when you know by the way I
have all three of those links Linked In the description below um and one quick
question before we go we still got a few minutes left yeah but have you thought
about doing you know investing out of state no I haven't no man I want to I
want to take care of my backyard first um there's so many deals in Michigan there's so many deals right here in in
mcom and Oakland County I I I still got a uh a lot to pick up
there that's awesome okay see the only way I would be doing out of state is if
it was I had my systems in place it was a a multi family where I'm partnering up
with somebody who's done it before you know things like that so yeah it's no
point in jumping forward if you haven't already mastered your backyard in my opinion in my opinion but yeah that's me
that's awesome so I really do appreciate you coming on I know this was a last minute you know um decision for us to
come together but I know anytime I I can call you you're right there for me so I
appreciate it talking real estate man I love it man I can talk about it because you know man this is a small world bro
and when you start talking real estate to people they start saying all right what but I just love being able to interact learn new things see what
people are doing and then share what I've learned so I love it anytime I can come on here and do that I'm always
available and that's one thing I love about uh me you we way we talk things
like that but not only that but our community so you know I I just posted
this uh today or or yesterday I can't remember which I think it was today um
we just crossed 6,000 members in the Facebook group so that is awesome and
6,000 members in the Detroit area or at least people working in the Detroit area
so um it is crazy I'm telling you um and
and the CEO yes real estate J Jones just like that on Instagram Facebook and
YouTube so um and you know uh it's it's
crazy I I love this community and I love giving back as much as possible hence
why we are doing this live I actually started this whole podcast because of my Facebook group and we built the YouTube
channel on top of that so um I'm happy to to bring everybody out here and bring
everybody to the YouTube world as well um and the CEO yes on YouTube as well
the same same spelling so yeah um but you know I am I'm gonna bring you down
and then we'll have a quick closing and then I we'll talk in just a minute but
all right thank you everyone for joining and I really do appreciate it I'll see you in uh two weeks from today uh we
will have another guest all all right have a good day let's all do deals together