Episode 60: Young, Motivated, Driven: How A Young Investor Is Creating Something Special From Scratch

Host/CEO James Prendamano sits down with Jacob Taylor, host of the Real Estate Money Talks podcast. Jacob is an incredible, young, hard working real estate investor. With nearly no experience, he has been able to learn and do deals with no money down. Learn more about his story and journey here.

Subscribe:


Participant #1:
Being able to think creatively and to say, okay, there's more ways than one to get this deal. And whenever she understood and we agreed to terms, she's happy. And I've been messaging her every day. I've actually had it under contract for three days now, and I've had had probably 30 people reach out to me. Probably five or six of them seem pretty serious. Being able to help people out by thinking like that and doing deals like that and having unbelievable terms is just how they do it. And that's how they're teaching me.

Participant #1:
Welcome, everyone to the podcast. We have a remarkable young man joining us today, Jacob Taylor. He's a 21 year old young man, the host of the real estate Money talk podcast. And believe it or not, an investor at a very, very young age. We're also joined today by our wonderful Rebecca. How we doing, Becks? Hi. All right. Jacob, I've been excited to talk to you because in a sea of what seems to be uncertainty and difficulty mobilizing workforces and folks taking an opportunity to kind of step back at 21 years old, you've gone ahead and started your own real estate podcast, and we were talking a little bit offline before we started recording. You're actually taking deals down already. So I've got a million questions for you, but I'd like to kind of start in the beginning. You're located down in Pompano Beach. Is this where you grew up? No. So I'm actually from Kentucky originally. All right. So you're from Kentucky. How does a young man make this quantum leap into real estate at such a level at such a young age? Was there someone earlier in your life that influenced you? No. For me, it was just I'd always heard real estate, and I had always thought about it, and it was always something that was interesting to me. I'm somebody who doesn't like to necessarily sit and do a regular job. And I think, as you could agree, that every single real estate deal has its own unique way of how it works. And the numbers are different and the people are different. Every scenario is like a project to me, and I love that I get to deal with different people. I get to deal with different scenarios, and I'm always having to think it's not a normal job where you just go in and you know what you're doing every day. So that's something that Beck and I have talked about quite a bit. I've been doing this now full time for 25 years. I think I don't think I've ever had two identical days in this business. It certainly keeps you on your toes. So being interested in real estate is one thing. Starting the podcast and investing is a whole another ballgame. How did this come to be? Was it podcast first, investing? Second or so. Here's my logic. I actually go to school in Mississippi. I'll be a senior this year. I go to Mississippi College. It's a Division two school. I play basketball there, and I was actually home. We get, like, three or four days off for Christmas. And during that time, I was home and I actually said, you know what, what's the worst that can happen, right? What is going to be so bad for me to start a podcast, to start an Instagram Ram? There's nothing that I'm going to say. Okay. This is just a terrible idea. So I said, you know what? I'm going to start it. I actually started it on Christmas Day was my first post, and I said, let's see how this thing goes. And I said, let's go with it. So I started reaching out and I'm reaching out to these people. I've never interviewed anybody in my life. I had no experience. I had no prior recordings to show these people, and they're like, the first three or four. They were like, no, but if you can get a recording in and send it to me, maybe I'll consider it. So I was like, okay, well, I don't blame them. I'm just a kid. I have no idea what I'm doing. So I finally start reaching out to some people who are like, yeah, we'll definitely give you a chance. Let's do this thing. And it's kind of mutually beneficial. Right. So in the podcast, I can learn about what they're doing to make deals without having to go and pay for it, without having to spend the time and money that it's going to take to go to these different places and list different webinars whenever I can have my own. So I strictly asked the questions based on what I felt like people would like to know, and based on what I wanted to know. So what I started doing was just going about finding these people who were doing exactly what I want to do. And I want to see how they're doing it, because then I was able to be able to say, I really like what they did. I really like their mindset. Let's combine those together. And let's put that in me and let's see how it works. So the podcast world, much to my surprise, it's almost like a family. There are so many people out there when we decided to start this. I'm not one for the spotlight. I'm not one to do this type of format, and I certainly had a pretty solid resume behind me. But I never did anything like this either. And we found that there is such an unbelievable community of people out there that are just crushing deals, innovating folding in technology, creative finance, all different interesting ways to play the game a little bit different as real estate continues to decentralize throughout the country. And it's had such an unbelievable impact on me that we're putting an outline together for a book about that first year or year and a half of people that I've connected with in doing this once a week for I don't even think it's been a year and a half now. How long has it been? It was a year, the end of June. All right. Only a year and a couple of months in a year and a few months in. I have made more connections and pulled more triggers on innovation within our company than I did the 24 years prior combined. Wow. That's a testimony right there. I applaud you for this. It's going to take you to places you never thought it's going to connect you to people you never dreamed you'd be connected to. And not only are they going to jump on your show, they're going to give you some amazing Golden Nuggets along the way that I thought I'd seen it all in this game and from a deal perspective, maybe I have. Maybe I haven't. But from the other side of the transaction, man, it's an exciting time to be in real estate. It really is. You can do it so many different ways right now with Covet, you can make all the excuses in the world for yourself and to people out there who have lost family members. I'm terribly sorry. I know it is such a bad time. It is such a hard time and uncertain time, but it's now or never like, when are you going to get at it? When are you going to get after? Real estate is always going to be there regardless if it crashes, if it's up like it is now, there's always something you could do in real estate. Yes, well, I've been through quite a few cycles now. I've seen this market turnover in 2008. We saw it after 911. We saw it hyper local, but after Superstorm Sandy, we saw it here and now Coronavirus, we're seeing it again. And I can tell you that the folks that are putting the work in now to get positioned do the absolute most damage in the worst market. You can imagine if you put the work in now and you subscribe to delayed gratification and you put some of that money away or all of that money away when the proverbial shit hits the fan, there's opportunity, man. In every corner. One of the first cycles we went through, we said no one's trading regular real estate now. So let's study up and start doing defaulted notes. One thing led to another. Next thing you know, we're negotiating short sales with almost all of the large traditional institutional banks. 100 million dollar notes we were selling for 2020. 1 million. And it was as plain as the nose on my face that if the capital was available with these assets, you are going to have massive sell offs when things stabilize, people forget that in times of crisis, it's just a moment in time. This, too, shall pass. And this has certainly been one of the worst we've ever seen. But things have a way time does legit heal all wounds. Markets do turnover and the opportunities that will be available when the music stops. Jacob, it's hard to quantify how unbelievable those opportunities will be. You've now had several episodes on the podcast, which I want to get to. But you're actually taking deals down now, right? Yes, that is right. I can give you a little bit about that. So the story actually is like you said, all the years you had done this without the podcast doesn't match up to the year that you did. So I always said, I'm going to do this podcast. I'm going to meet people that are going to be just like me that are going to be willing to help me. Well, Jen and Joe Della Fave through Creative Finance playbook shout out to them. I did an interview with them on my podcast, and they really caught my attention. It was so different and unique the way that they invested. I mean, this guy's doing deals with literally no money down in a market like this. And I was like, Man, I got to keep connected with you guys. Let's keep this going. And I manage a social media account that was my way in. And I got all of their videos for free. Their videos are like, $79, and that was my way to get in the door and to learn and actually be in the room and see what they're doing. It was a month contract we had signed. And the last meeting, I sat down and I said, hey, what are we doing with this thing? Do you want to keep going? And they were like, yeah, definitely. Let's keep that up. And I just reached out and said, hey, How's your website going? And they said, Well, actually, Jacob, it's not. What are you talking about? You guys have been talking about what you guys are doing with this website forever. And they said, Well, we had our person who was on it. She left and no warning, no, nothing. I said, really? So that was my opportunity. I said, okay, well, I in high school and in College, I've had Shopify stores. I've had all kinds of accounts, and I had to run ads. And my parents used to be like, you just bounce around too much. You do too much stuff. Why are you building websites? Why is that relevant? I said, I really don't know, but I kind of like it. And that led me from one thing to now I'm building a website. And the turnover for that is they're my mentors now, as far as if I need something, I call him up and I'm like, hey, Joe, what do you got for this number right here? And I had my first meeting with him last Thursday, and he was like, I want you to do 25. You contact and actually call and talk to 25 people a day. And I was like, Man, that's kind of a lot in the first time. I'm doing this, and he wants me to talk to 25 random people a day, and I was like, okay, I can do that. The first day I only messaged 25 people and I got eleven or twelve responses. Second day I only messaged 25 people. And I said, this isn't what I'm supposed to do. Well, the third day I had set up all night, I said till about 01:00 and I had done my pre. I pulled my list and everything and I reached out to 55 people. Well, I had five extra people from the days before reach out, and I had 30 people from that day reach out. And I was swamped with messages. I looked down at my phone. I've been talking to the seller for an hour, and I have ten messages I haven't replied to for an hour, so I'm like, oh, my goodness, this is just overwhelming, but at the same time they like to say, and I like to say it's controlled chaos. You know, something's going to get done. The more people you reach out to, the more chances you're going to get at getting a deal. That's what was happening. I just locked up. I have under contract to deal, and you can Mississippi, if anybody wants that property, I bought it on terms. It will be a wholesale deal for me because I try not to do any money down, and the money down for that property is going to have to be $20,000. She needs to relocate. She needs to get out. But the term is amazing. It's $300 a month for seven years, and she once had bought at 175. It's a four bedroom, three bath, has two shops in the back, and those shops can be converted into apartments. I've had several people reach out to me saying, hey, man, is this area for Airbnb? I said, yes, it is because it's right on the border. It's right next to the river. It has tons of potential. It is really nice home, but at the end of the day, what are we able to do? I was able to help her out. She wants to get down. She wants to get out. So being able to think creatively and to say, okay, there are more ways than one to get this deal. And whenever she understood and we agreed to terms, she's happy. And I've been messaging her every day. I've actually had under contract for three days now, and I've had probably 30 people reach out to me and give or take probably five or six of them seem pretty serious. So being able to help people out by thinking like that and doing deals like that and having unbelievable terms is just how they do it. And that's how they're teaching me. Like I said earlier, though, too. I have that other one in Meridian. I actually have to send her contract and she wanted $80,000, but we agreed to 70. And with that being said, I'll just take over her mortgage payment, and I'll be buying it with no money down. Hopefully if she accepts it. So we'll do a wrap mortgage on it, and we'll get a tenant buyer in there and we'll get it all figured out from there. So what is the housing typology of that second deal? What is the asset class? Is it a one family? A two family? Yeah, it's a single family. Single family. Okay. So I've got so many damn questions here. I do, too. Go ahead. Okay. All right. So it's interesting. All of the things that you're doing currently while being in school. Have you always had this type of drive? And you mentioned that you were doing websites and stuff in high school, so it sounds like this is something like you've always aspired to be doing a lot of things, and I'm just very curious. Yeah, definitely. So I think that's my mom, she's very logical person. She bleeds in. She's done very well for herself, and she is very smart, but she's always like, you're doing too much. Why are you doing this? You need to decide. Stick to one thing. I'm like mom. I can't help it right now. I'm getting off the ACL injury. I have basketball coming up, and I'm over here trying to make deals all while getting ready to go into school for 19 hours in a semester. So I don't know. I like the chaos. And I'm thinking after I graduate, I'm already going to be running. I'm not going to have to say, okay, let's get into the workforce and try to find a nine to five. Now I'll already be running and say, hey, we're moving here. I have the funds. So that's my motivation. That's why I do it. I want to get out of my parents pockets. They really have done so much for me, and I'm so blessed to have them. But at what age are we able to say? Okay, enough is enough. Like you guys have killed it for me. So let me get out. And that's my motivation to do it

Participant #1:
again. For 21 years old. You're so wise beyond your years, man, I have to ask, what is your crew, your friends, your circle of influence are all your guys? Are you all hustling? Are you all going and hitting it, or are you the stand out? So I actually talked to Beck about this in my podcast. I don't really have a group of friends that I just we go do everything with. I'm kind of a loner. I always have been. My dad was my best friend in high school, and we did everything together. And I have two more friends in high school that I still connect with on a regular basis. And outside of that, I don't have anybody. I have a girlfriend. She's my best friend, and her brother is pretty close to me. But outside of those people, I don't really have anybody that I look up to. And Besides, a bunch of older people, I have a mentor from school. Actually, he's a broker in Mississippi. He's 72 years old, and I go to his house all the time. I'll text him, hey, what are you doing? Because, like, the knowledge that people who have experienced everything that you want is so much more beneficial than saying, hey, you want to go party? You want to go drink? We're in College. That's what we're supposed to do. I'm trying to say, okay, let's skip those years and put these years now and then, whenever you guys are working your regular jobs, I'll be able to go and party. I'll be able to go and enjoy myself, and my family will be able to take these trips and do whatever. So as far as friends, I don't really have a big group of friends. I don't have anybody that I would consider, like my age to be really close to me. That's a hustler like me. Well, you're better off to be perfectly honest. I was very much the same way. I've always been ahead of myself in years, if you will. And at that age in particular, it's very easy to kind of monkey see, monkey do. And you're certainly a standout man. So just keep hitting it. I think I certainly understand Mom's desire to kind of settle down onto something. But I'm 46 years old, and I'm still trying to figure out what I want to be when I grow up. That's okay. Just keep hitting it until you find what you absolutely love the most. And once you do, you'll find that it's cliche. But it's true when you love what you're doing, you're not working, man. You're out crushing you're, enjoying it. So I wanted to get back to the deal specifically because I just can't help myself. I'm a deal guy leading up to this deal. Jen and Joe had said, speak to 25 people a day. So could you walk the audience through what people? Where are you sourcing these people to speak to, right. So as many of you might guess, I'm a broke College kid. I'm not necessarily broke. My parents help me out a little bit. I do work during the summers, whatever. I have extra money in the pocket, but I don't have any money to go and download prop, stream and pay that every month and skip Trace and all that. So I actually went on Zillow and I went to the very last page, and I did for sale by owner as the search target, and I unclicked everything else. So I went to the state of Mississippi because that's where I'll be for school. And all these deals came up and I said, okay, well, obviously the ones who are listed one day ago are not going to be as interested and willing to sell as people who have listed 208 days ago. So I went to the page 30, and I have an Excel spreadsheet that I fill out all their information, and they always have their number. If they don't have number, they have email or whatever. And I would jot down every single property that was within a range. I like to get around the average of that wherever that property is. I don't want to try to go in and do a seller finance deal on a million dollar home because the audience to get that is way slimmer and few and far between. And I'm just not there yet. I know Jen and Joe have done one in New York that was above a million, but yeah, I just went on Zillow, went to the end, did all the numbers, filled out everything and contacted them. Now who told you to do that? Jim and Joe, they gave me a walk through pretty much everything I said, look, I don't have money and you all know I don't have money. So how can I do this thing? And they have so many different ways where they really emphasize the Facebook page. They have a Facebook page that they really try to run everything through and Facebook business page. And they go on there and show what you're offering. Get on the groups I follow probably 60 or 70 groups from Mississippi, and they're all garage sale groups, investor groups. They're literally everything. And whenever you're on those groups, you post in there and you say what you're doing and you know, it's just like in the podcast, if you're saying, hey, I'm on this podcast. I want to talk about real estate. People know, and they're going to recognize your name with real estate. So the more that you get your name out there and say, this is what I'm doing. The easier it is to have those kind of deals and to have a good background, even at 21. All right. So I'm going to get in trouble for saying this, but it's my podcast, so I don't give a damn what you're doing right now as an owner of multiple businesses, I can tell you that over the last year and a half, we have watched time and time again folks that were with you prior to the pandemic, and some new folks that have been brought into the mix across everything from real estate to restaurants, fall off and opt to take a check and sit home instead of get up and get it going again and get back to work. What that's created and what they don't realize is entrepreneurs like us and innovators are going to solve for the labor shortage. We always have. And we always will. And as we're solving for this labor shortage, what we're doing is we're creating ways to outsource and to automate things that people before used to do. And when the stimulus runs out, they're going to start knocking on doors to come back to work. And two things are going to happen. One, the job is not even going to be a job anymore because it's been automated or outsourced. And two, the few select who are going and crushing it right now and getting back to work, we're all paying attention. The fact that you're not sitting on your butt at 21 years old with all the craziness in the world. Believe me, when I tell you, people are watching and Sky's the limit for you, man, you want a billion dollars fund, you can go do a billion dollar fund. There's a certain thread or theme that we have found in serial entrepreneurs. Sports is one of them that we found. But you've got a talent that cannot be taught. It can be polished, it can be through education, it can be expanded. But you've just got that certain Genesis quois that most people don't have. So keep hitting it, man. You've got literally your future is so bright. I'm very excited for you. I wanted to mention to you for those deals. Have you heard of Pad Split? No. All right. So these are guys we just had on the podcast. Okay. In markets where you can do Airbnb, what these guys have done is they took the Airbnb model, and they are renting rooms. So they're taking a four or five bedroom home or a home that turns into four or five bedrooms that would rent at a market cap of $1100. They're renting those rooms out for several hundred dollars a week, and they're turning $1,100 revenue into three $4,000 revenue. They're finding the tenants. They're vetting them. They are collecting the money for you. They're handling the management. They're sourcing local repair people. They're sourcing local real estate folks. So you may have an opportunity there to cash flow these things once you kind of turn the corner out of the wholesale game. If you want to hold on to some of these things. Remarkable stuff these guys are doing. And it's basically the Airbnb infrastructure. They're just looking at real estate from a little bit different perspective. So just keep that in mind again. Pad Split, we just had them on. Yeah, it's airing tomorrow. Yeah, it's going to air tomorrow. Yeah. All right. Okay. So are you familiar with the market down in Pompano? I'm curious what's happening down there. It's as crazy as everywhere else. Literally, everything is going. I mean, the properties here are insanely high, and it's funny seeing the price difference between here and Mississippi is just like night and day. So is it residential product only or is it residential and commercial? Everything? It really is everything. They just finished an apartment complex here, and I think it's already rented all out. And I think it's like $2,000 a month for single family or single one person bedroom kind of thing. It's pretty wild. It is wild. It's crazy. You talk a lot about the financial freedom on your podcast. I was wondering, what does that look like for you being able to really wake up in the future, with family and with kids and with my wife and the dogs at a house and say, you know what? Hey, let's go do this thing today to be able to not work and not worry about money, to be able to have those properties paying for my expenses and then some to build. I like the way Jen and Joe put it. They put it the other day. It's legacy, wealth. I want my kids to have money. I want my kids, kids to have money. And when you think like that, like you said, the sky really is a limit because you're so focused on not just what you want, but what your kids might want or what your kids, kids might want or whatever. Have you? Well, it certainly is within your grasp. Have you had anyone on the show yet to talk about goals and the importance of the many different exercises you can go through. But have you gotten into goals yet? Yes. Definitely. Jen and Joe had a whole series about how they got through their goals, the progressions. Austin. Lenny. I don't know if you guys know him. He's my. Oh, really? My coach. Yeah, I interviewed him. I'm waiting to release that. Just like, I'm waiting to release ours with Becca. Yeah, I've gotten with him, too. So definitely have a lot that we've learned from him. So Austin is a remarkable guy with an amazing story. Nobody knows this. So we might as well share a little bit of it. But we had done the podcast, and when we were done and we went off air, Becca was still on, and Pete was still on. And Austin, you've done bullshitting me. Who's gold are you talking about? He's a great guy, and he's really helped me and Becca get the pieces in place to get rid of the busy busyness what I talked to you about before we started. Are you busy or are you busy busy to get rid of all that silliness and have a real clear path. So good for you. That's a great connection, man. And he knows, like, everybody. Yeah, he does. He's a grinder, though. Like, he said, his story is so unique, and I was talking to him. He's like, yeah, my first year doing this podcast, I released the 360 of them. I'm like, Huh? He's like, yeah, whenever I decided I wanted to do the podcast, I would just schedule stuff from nine to five every day with people interviewing them. I was like, wow, because there's a lot more in the podcast than just recording it and being done and putting it out there. Yes, sir. He's not afraid of work. That's for sure.

Participant #1:
Has fear entered into the equation at all for you? Is there a fear of failure, or is there a fear of pulling the trigger on the wrong deal? No. Because I'm not going to make that decision by myself. I don't have the knowledge to do that yet. So if I make a decision on a deal, it'll be backed by people who know more than me. So whenever I go into a deal, I'm going into it thinking, okay, this doesn't work out. It's because the numbers didn't work and I might not catch it. But if I do catch it like I'm going to learn from that deal. So what's the worst that can happen here? Yeah. So again, remarkable, that fear is not even a factor for you as you're decisioning these things. And it's great that you've got a mentor or two mentors that are helping you through this. A lot of people get locked up in that analysis period. They get paralyzed by it, and that becomes habitual if you're careful, that could become a real issue for you. House hacking. What does that mean to you? So house hacking? I've actually read a few books on it. I've watched the Bigger Pockets episodes on it. House hacking is where you go in, you grab a property and let's say it's a two bedroom house, two bath, you say, okay, well, I want to bring somebody in this house and they're going to pay my mortgage, and I'm going to live for free. And that's essentially what house hacking is

Participant #1:
interesting. Did you have someone who spoke specifically about that on the podcast, or was that just kind of something in passing that you picked up from your guests? Yeah, that was in passing. I don't remember a specific person, but just listening. Bigger Pockets just experiencing other people. I believe I did actually have somebody on that had their first house through house hacking, and then that actually created enough room and equity to take a HELOC and get another house and actually do the same thing. Yeah. And the Burr strategy, that's something you haven't done yet, right. But is that in the future for you? I don't know. The birth strategy involves banks and everything. And I truly believe that in today's era and in today's investing, if you find the right motivated seller, you're not going to need a bank. They're going to be doing whatever you need them to do. And vice versa, you can in return, give that to them. And if the numbers don't work out and I get a deal under contract, that could potentially be a Burr, other investors would tackle onto it. But I don't see myself doing it. Jen and Joe did it. They did probably eight or nine of them. And they said they just had way too much debt locked into those houses. I mean, it's not bad debt, but they just had too much debt. And the bank was like, no, you can't do any more. So it's limited. And they kind of showed me based on their experience, that the first few it might be. Okay. So I might do it. I don't know. It kind of depends on if I could have help or if it's near family or anything like that, then I would probably consider one or two just to have that kind of experience. So this 21 year old young man folks is giving you some amazing information here. There is a whole world outside of what you think exists of people that are very happy to sell on terms and buy on terms. We mean seller financing. Sometimes people fall into their habits, especially agents, where they're so used to a traditional deal. The thought of someone holding a note for seven years with $300 a month with 20 grand down, they think that that's fantasy land, and they're unicorns. But they're not right. Are you finding any shortage of those types of deals? No. I mean, I started really making text messages and calls on. Well, I didn't even make them on Thursday. I was in Hunts, Alabama, and then drove back, didn't get back to one Friday. I didn't do it because I was flying down to Pompano. I did it Saturday. Sunday, Monday. I had my first deal, so I ran the numbers. I'm a big numbers. How many deals does it take? How many people do you have to reach out to to get a deal? And I think I reached out to a total of 100 people, and I had a deal under contract in three days, and I've never done this. I've literally never done this. All right. So when you're finding these deals, you're relying on the digital assets that they have online to vet it out. No. So what I'll do is, I think another thing that's really helped me, too. And I know it's helped you guys. The podcast, like you speak so much clearly, you don't have to stutter. You're not tense. You're not stressed. You're just talking. And I think that podcast has really helped me talk to sellers. So what I do is I'll get on, I'll talk to him. I'll say, what can we do for you? We have a script Jen and Joe gave me, and it really works. Well, it just asks questions to get the answers, and then you kind of you don't really negotiate. You just ask them questions. Is that the best you can do? Oh, okay. Well, we can do that now. We can't do that. Why can you not do that? Whatever. And their script really is. It worked really well. I mean, I have almost two houses under contract, but, no, there is no shortage at all. Some of the biggest mistakes you can make when you're trying to put a deal together is talking too much. Oh, yes, definitely 30%. Your expectations have a way of being pressed upon your counterpart if you don't learn to shut up and ask questions and listen. And when you listen, man, sometimes you're surprised at what people are comfortable with. Yeah, really? Did you ever get boots on the ground on these properties or no, no. So that's what I meant to bring up. But I get to talking and lose my train of thought. So what I did was we went through the scripts. She was okay with everything. And I said, okay, now let's do this. Gin and Joe during the pandemic. Joe actually has a really unique story as Chrome, I believe, and he couldn't work. So he had to do everything online. So they figured out, hey there's, Zoom there's Facebook. I met with the girl on Facebook Messenger because she didn't have an iphone. So I went on there and just click the little FaceTime button, and she walked me through her whole house, walk me through the whole property, showed me everything. And then after that, I sat down with her while she was on the phone with me. And I discussed all the terms. I discussed the numbers. I discussed everything with her, and if she had any questions, we could go over those things right then and there and work it out while I'm on the phone with her instead of trying to text about it. So once she agreed to everything, then I sent over the contract, and it was easy for her to sign. So you drafted the contract. So I actually got a contract sent to me from Jen and Joe and what I did, because obviously, like I said, first time, I sent it over to them and said, hey, check everything. And they got on a call with me before I called them or called the seller, and they said, okay, this is what you need to check. This is what you need to ex sign here. Okay, put this. Everything looks good. Send it to her. So I sent it to her. And while they were telling me how to explain it, I remembered the major questions that she would probably have. And those are the things that I really try to make sure I address to her

Participant #1:
again. You're doing everything right. A huge mistake is relying on the counterpart to produce the contract. A lot of times, people think, well, they may feel more comfortable if they produce the document. No way, man. Again. It's Jen and Joe. Becca, we got to talk to Jenna. I know. Creative Finance playbook. Okay. I'll reach out to them. Yeah, because you're doing it. All right? You're using your document, and then you send it by DocuSign, I guess, and then knock it out, send it back. All right, so let's try and help you wholesale this thing. What are you looking for? For the deals. So for this deal, it's in Yukon, Mississippi. It's $175,000. She needs $20,000 down. I have a $10,000 assignment fee. And after that, $300 a month pay it off. In seven years, there's going to be a balloon payment. You could either get a big balloon payment. You can pay ahead of time, which is what I would do if you do an Airbnb in this property, there's no problem at all paying this thing off in seven years. So I think that's what I told her. I said a lot of investors, we don't make money until we pay you off because that's whenever the real cash flow comes in. So obviously we're not going to wait 20 years to pay you off. So you can either wait until the end of a balloon payment renegotiate it, which probably I wouldn't want to renegotiate that if I was the seller. So I would probably get the property back. But it's definitely going to be paid off within that seven years, I believe, because an Airbnb would be perfect in that location. Is the $300 a month interest only, or is it interest in principle? So there is taxes and insurance, but we got it for 0% mortgage, so that $300 a month goes straight to principal.

Participant #1:
Yeah. That's one of their little ways as well that they taught me. It's one little question and they're like, oh, yeah, that's it. That's crazy. That's awesome. So at the end of this, there's a balloon somewhere around $127,000, correct? Yes. If they waited that long to pay it off. Yeah. And I assume you have the ability to prepay. There's no penalties with that, correct. No penalties at all, folks, for $10,000 and $300 a month, you can own a home here. So what steps are you taking in the marketing of the wholesaling? Are you building out any kind of infrastructure for that? So I actually met with Jen and Joe yesterday or maybe two days ago. I don't even remember. And we sat down and I have 27 pictures that she had sent me. So I picked out the best ten to twelve, and I put a little ad out on every single group. That's why I said it's important to be in those Facebook groups. And I have the Facebook business page, and I have my own business page that is separate from the Jacob Bob. It's just Christopher Taylor, and I posted in probably 15 groups yesterday that are local to that county and local to that area in Mississippi. And then today I reached out to the rest of Mississippi. Tomorrow is going to be Tennessee and Alabama, because it's right up in the northeast corner of Mississippi. So it's really close to people from around that area. So I'll be reaching out to them as well in the Facebook groups. And once I get a like or a comment, I'll reach out to them on Facebook Messenger, and I'll say, hey, I see that you're interested in this property in Yukon, Mississippi. Is there anything I can help you with? Is there anything you'd like to know? And a lot of them have been reaching back out. I had one guy, I put it in the Pace Morbi, create a finance group, and he reached out and was like, hey, I'm looking to partner on this. I was like, Well, man, all I got to do is find one more partner, and you got yourself a deal because he wanted the Airbnb, and I had another guy actually reach out to me today. I was like, yeah, I'm actually an investor. I do create a finance a little bit, and I'd like a partner. So I'm going to see if I can match those two together and close this thing. So in time, I could see you with a website for yourself and chatbots. Right. Put the chatbots to work. When you're reaching out, chatbots, automate it. Let them talk to your chatbot. It's a pain in the ass to set the script up. But once it's done, it's a beautiful thing. They'll throw your waterfall and you'll end up getting offers in without ever even speaking to people. It's remarkable, man. What you're doing, it really is amazing. I assume at this point, you're not looking at emerging markets or anything like that. You're just looking for deals. That makes sense, right? Correct? Yeah. Absolutely. And because you're buying a payment, you're really not buying a house. You're buying a payment. Are you bothering to dive into the comps or are you just gripping it and ripping it because you know that you can net on a deal like that. I think worst case, you're going to net 4500 a month. So is that the strategy at this point? I do pay attention to comps for the seller's sake, because I like to make sure that she's happy and she gets what she wants. I mean, the ARV on this property is anywhere from 225 to 240. So, I mean, it's a heck of a deal, but she started off with 175, and she was like, look, I'm not going to negotiate the price, but with what I do, the price isn't really that big of a deal. If you want 175. And I already know we have that much wiggle room. If an investor gets a hold of it, they can sell it for 240. They're going to get the deal. So, you know, she just wants it sold. So in this instance, it's a perfect scenario. She was like, Look, I'm not going to negotiate the price. I just need 20,000 to move. And that's literally, like, all she wanted. So we're going to do that for it again. You're buying a payment. I'm at a loss for words. I'm so impressed with you, man. If you come across as you go through your process here, if you come across any bigger stuff, like multifamily commercial deals, please flip them my way. We're all in for the bigger stuff. Okay, Becca, I don't know. Is there anything else you wanted to hit on with Jacob? No, I think we're good. Just from talking to you when I was on your podcast, you so impressed me. And I was so excited because I knew James would really enjoy speaking with you as well. And I see big things for you in your life. Yeah, without a doubt, man, how do people get a hold of you, Jacob? So you can reach out on real estate money talk on Instagram. You can reach out on Facebook at JacobBy. That's my page. You can even reach out through email realestatemontalk at gmail. Com. Jacobies Seven at gmail. Com. If you have anything, I love the Gmail because they're free and they're easy to set up and separate. So. Yeah, definitely reach out on there if you guys have anything, folks. Jacob Taylor, host of the Real Estate Money Talk podcast Investor Entrepreneur really appreciate you coming on today. Thank you guys. So much for everything and all the words. I'm a big believer in the affirmations and hearing it from seasoned investors like you guys, it really means a lot to me, so thank you all for your time today. You earned it, pal. Best of luck. Absolutely. Thank you. You guys, too. All right. As always, everyone. One. Please stay safe.