NOTES with Jay Conner Success
7 Lessons in a $70K Deal
I believe that every deal is an opportunity to learn something new. Even after 15 years in the business, my wife, Carol Joy, and I are still learning and relearning lessons in every deal we make. I kicked off 2019 with an amazing deal that highlighted not one, not two, but seven important lessons every real estate investor should know. These lessons are from 506 Quailwood Court, here in Carteret County. The listing price on this house was $209,000. After my Realtor and I visited the property, we determined the after-repair value was $290,000. Here are the seven lessons you can learn from my adventures at Quailwood Court. Lesson #1 Have your Realtor set up an automatic drip. I would not have been able to close this deal if it weren’t for the fact that my Realtor, Chris, set up an automatic drip that notifies me every time a bank-owned property hits the market in my target market area. The Realtor you work with has access to software that will automatically send you an email when bank-owned properties hit your market and when previously listed properties drop in price. You will even be able to set certain parameters for these notifications, including price range, zip code, and property type. For example, if you aren’t interested in working with mobile homes, you can ask your Realtor to make sure you don’t get notifications about mobiles homes. This is an incredibly useful tool, and as long as you have a good relationship with your Realtor, they’ll be happy to set up this automatic drip for you. Lesson #2 Have your Realtor watch the hot sheet. Realtors have access to what we call the “hot sheet.” They are emailed, in real time, every time a new property is listed in the MLS, (multiple listing service), and whenever there’s a price reduction on an existing property. Establish a relationship with your Realtor so they are on the lookout for ideal properties for you. When a property in your target market appears on the hot sheet, have your Realtor contact you right away.
the hot sheet helps you double-check new listings so you don’t miss a good deal. With this property on Quailwood Court, Chris sent me a text about the property even after it went through the automatic drip, just to make sure I didn’t miss it. Lesson #3 Time is of the essence.
I cannot stress this enough. When I started
out in real estate investing 15 years ago, I learned the hard way that if you snooze, you lose. Once you determine the property has a nice spread, get out there right away. It was less than 24 hours after Chris notified me before he and I were at Quailwood Court to check out the house. I travel a lot, so sometimes I can’t check out a property myself. In these circumstances, I will send Chris out there with one of my contractors to estimate the cost of repairs. But I never let there be any excuse to drag my feet. When it’s a hot deal, you can bet there’s going be multiple offers on it. Don’t let any grass grow before you or your team are out there yourselves. Lesson #4 Learn how to accurately estimate repairs. When I say estimate repairs, I don’t mean putting together a budget with line item after line item. I mean you should be able to look at a property, determine what repairs need to be done, and estimate how much those repairs will cost within $5,000. This doesn’t mean you have to memorize every possible repair cost down to the decimal. When I look at a property, there are some strategies I use to get a close estimate. Chris and I spent about 15 minutes at Quailwood Court and determined the house only needed some cosmetic repairs. When estimating how much interior paint will cost, I calculate $2 per square foot. And when a property needs new flooring, I calculate between $2–$3, depending on whether I Continued on Page 3 ...
“But Jay,” you may be asking, “why does my Realtor need to check the hot sheet if I’m getting the automatic drip?”
The truth is you don’t want to rely solely on the automatic drip. It might take you some time before you see the email. Having your Realtor watch
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