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Real Estate Investing School Podcast
182. REAL DEAL: Coach Deep Dive with Jaden Connor
00:23:12
Welcome to the Real Estate Investing School Podcast! In today's episode, host Brody Fausett interviews Real Estate Investing School coach Jaden Connor. Jaden and Brody do a deep dive on the Broderick's deal that you heard last week in episode #180...
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- [00:00]
A
If I could attribute their success so far to, like, one thing, it would. It's probably that. The persistency, the consistency, the not giving up, the putting in the work, not letting a few weeks go by and forgetting about real estate investing school and forgetting about booking a call with your coach like they are on top of it and there's no magic pill in whatever it is you're doing. There truly isn't. Like, you put in the work, you're going to see results.
- [00:30]
B
What's up, everybody? Welcome back to the Real Estate Investing School podcast. This is your host, Brody Fawcett. And today we have a real deal episode. For those of you that are just joining us, a real deal episode means we dive into one single real estate deal with the whole intent of learning about that deal. So you can go and replicate the tips, the tricks that kind of come from that. And so it's fun to dive into one specific strategy that a guest used to take down a real estate deal. And it's the best way to learn because you can learn from mistakes people have made so you don't have to make them, and you can learn from successes that people have had so that you can go replicate them. So today's fun because last week we had a guest on here who's a student of real estate investing school talking about a deal that she did. And today we have their coach. So this is fun. And not just from an angle of, oh, this is what you get if you are inside a real estate investing school and you hire a coach, but from an angle of, hey, what are some stuff that she was going through throughout this process that a lot of people are probably going through when they look at buying a deal, executing in their real estate investing strategy. Because I think it's easy to, in retrospect, look back and be like, oh, I did this deal. Yeah, there were some things that came up, but we just kind of cruised through it. But it's cool working with a coach or somebody else that's actually involved in that and helping along the process of. Because they're able to pull out certain things where, oh, no, remember that this almost happened. Or this could have gone a completely different direction, but they were able to do this. And so today we have their coach. So stop right now. If you have not listened to last week's episode, go back, listen to that, and it'll give you context and what we're going to talk about today. With that being said, we have Jaden Connor in the house. What is up, Jaden?
- [02:19]
A
What's up, man? It's always good to be here. Thanks for having me again.
- [02:23]
B
Yeah, thanks for being here again. And go back and listen to one of Jaden's episodes. He's done so many deals, but we actually, we should just start picking apart all your deals. It'd be great. We'll get lots of episodes on here. People can learn from it. And dude, it's exciting because you, you've been working for, essentially working for real estate investor the last, what, five years? Has it been that long?
- [02:48]
A
Yep. Five years. Yep.
- [02:50]
B
And obviously you, you've been doing real estate and doing it on your own, on the side and then doing it inside the business. But then recently you're just like, hey, I'm, I'm full send. I'm going to be a full time investor. I'm no longer working for this other company. It's just me and I'm going to take the leap. So congratulations.
- [03:13]
A
Thanks, man. Yeah. Just a couple months ago, I finally got the courage to get out on my own and it's been, been the best thing ever so far.
- [03:21]
B
That's what you said to me. And is that the truth? Like legit? How do you feel? It's been a couple months. How has it been?
- [03:29]
A
100%. I was nervous. I, I'm a very conservative person by nature and so it took me a little while to, to muster up the courage to get on my own. I had been toying around with the idea of it for a while and then finally due to some circumstances, I finally decided to make the jump. And I was worried about it like, leading up to me leaving, it was always like based off of financial decisions like, oh, if I can make as much or more when I leave, then it was a good decision. If I make less, it was a bad decision. I actually had a mindset shift at the event that you and Mitch put on back in February. And my mindset shift was even if I end up making less money, I will be happier, I will be more fulfilled because there's this level of building and creating that I feel like man is meant to do, to go out and build and create. And so I kind of had that shift and decided to make the jump. And now, like, I actually have made more money the last two months than I, than I have made on the, in the past. So it's, it's been the best of both worlds.
- [04:35]
B
Yeah. That's so cool. Yeah, I believe that. I feel that same thing happened to me like, long, long term sales company, same company, eight years. And like it's it's scary, right? It's scary to, like, leave anything, especially when it's, you know, feels like guaranteed money because you've gotten good at it. But props to you. And I think it's good having you say that and other people, because that's one of the questions I get asked all the time is how do you know when it was time to leave? How do you know all these things? And I think at some, at some point along the journey, there's no way of really knowing. You kind of have to take that leap, right? And the cool thing about real estate as a side hustle, as you're working this active income job, is you can kind of build up this safety net. So it's like jumping off the cliff. But if you fall and your wings don't work or the plane doesn't work, you're not going to die because you have a safety net. You might, like, get hurt and it might not feel good, but you're not going to die. And so I think real estate is that safety net. Once you kind of built that up, eventually at one point you just take the jump and it's cool. Like, there's even a couple students, I think of one in particular that was saying, hey, I want to quit my job. Want to quit my job. Want to quit my job. Got fired. They let a bunch of people go and went and 3xed his income that year because he went all in on real estate. And so sometimes it's a decision you make, sometimes it's decisions made for you. But either way, I think it, it kind of becomes pressures of privilege and you're put in a situation where it's like, hey, I hope these wings work. Like, let's go for full send. So that's awesome, man. Yeah, yeah.
- [06:11]
A
100. I agree.
- [06:13]
B
Well, in relation to that, tell us kind of how, how I guess specifically the process was working with Morgan on this deal because such a cool deal in general and you got to see it firsthand and be a big part of it. So what was that like?
- [06:31]
A
Oh, I. I love it. It's honestly one of my favorite things as a coach. And I am not here to take the credit because I almost, almost had literally not her success. She's. Her and her husband Darren are go getters and they just get after it and make it happen. So in no way, shape or form am I here to say, oh, like, because of me, they're able to go and see the success. But I do want to point out some of the things that I feel like they could have used as excuses, but because they're go getters and because they went and got after it, there were no excuses. They probably had. I can think of four off the top of my head, things that easily could have prevented them from going out and doing this deal. And it probably would prevent the average person from going out and doing this deal. But they're not the average person. They're exceptional at what they do. And so because, because they were able to get over these roadblocks, not obstacles, they were able to go out and make it happen. And they're, they're realistically going to make. We'll see. Right. The deal's not over. I don't, I don't like to count my chickens before they hatch, but they realistically could make 70 to $90,000 on this one deal, which is more than they make in an entire year. So it's truly life changing. Even if they make half of what they're projecting to make, it'll still be completely life changing for them. So I'm hyped for them.
- [07:47]
B
Yeah. That's so awesome. That's fun. Super rewarding. So you said four things. You think off the top of your head that would hold back the common person or the average everyday person, they'd probably back out. Let's maybe dive into that and what those are so that people can be aware of them and see if they're making those same mistakes or how to kind of avoid them. Yeah.
- [08:10]
A
So the first one is kind of broad, but just like the lack of experience, to take that a little bit further, it's like not knowing how to run the numbers. Right. So this is a flip that they're, you know, that they bought, they've already closed on it, they're in the process of doing the remodel. And the average person could look at this property and say, oh, like I don't even know how to run the numbers. And so it just prevents them from taking the action. But instead of they got out, they, they knew, they understood that they had a due diligence period. So while they had it tied up, they were, they were able to get those numbers dialed in. They were able to reach out to, to me, to real estate agents, to people in their market to make sure that they feel comfortable doing it. So the first one is just like, I think a lot of us use our lack of experience or the lack of knowing the numbers or whatever it may be. Lack of experience could be a number of things. Right. But rather than using that as an excuse. They just went full speed ahead and just realized that they were going to figure it out one step at a time. And eventually they got to the point where they felt really comfortable with the numbers. And even though they didn't have a ton of experience, they were able to kind of mitigate a lot of that risk of the unknown by leveraging professionals and agents and other people to help them feel really comfortable with it. So I'd say that's probably the first thing.
- [09:31]
B
Yeah, yeah. That's so, so good. That could be like one of the most common things that people struggle with is, I'm not ready yet. It goes back to like, you know, leaving the W2 or whatever. @ some point, you know, it's never gonna just align perfectly where, hey, this is an easy decision to make. It always might be a little difficult. And I think when we think of like, fear and lack of experience, they go hand in hand, right? Because a lot of times it's, oh, I'm scared to do this, but because I'm not qualified, which really just comes down to lack of education. And so I think that the way you explained it was perfect. Where it's, they, they knew they had a due diligence. It's like little baby steps, right? So let's just take this step and then we'll figure it out. Right. We don't have all the answers. Let's rely on experts. And you slowly start to get more and more education, which eliminates a lot of that fear. Because now you, you start to know, right? It's why. Why are people afraid of the dark when the lights go out? They don't know. They don't know what's behind there. Right. It's a lack of, like, that knowledge. They think something's going to pop out and scare them, but once they realize it's safe and good to go, then all of a sudden, you know, it's not as scary and it's easier to do it. So. Love that. Number one. What was another thing that kind of was a breakthrough for them?
- [10:41]
A
Yeah. Another thing was the lack of money. So they, they didn't have a ton of resources, capital wise to go out and put, you know, 10 to 15 to 20% down on an investment property to go buy. Whether it was hard money or a conventional loan, they didn't really have those resources. And so while they were under contract, they were able to go out and raise a lot of the money from friends and family. And not only, not only were they able to raise a lot, all the money for the down payment, but they ended up, I think they ended up using like $700 of their own money so far. And typically, like I, I come from like the off market, the flipping world where most people go and use hard money where they're paying 2% origination, they're putting 15 down, and then they're paying 12 interest. If I remember right, I think they got, they got their in laws to fund the down payment interest free for an entire year, for an entire 12 months. And if they can't, or maybe it was just for the rest of the year, I can't remember. But either way, it was either till the end this year or for one full year. And then if they, if they reach their deadline, then it bumps up to 2% interest only. Like, do you realize how insane that is? The. It's crazy. It's basically free money that they went and raised. And it literally fires me up because I guarantee everybody listening to this podcast has somebody in their sphere of influence that knows that has money. Somebody in their sphere, in your sphere of influence. If you're listening this podcast has money and will happily give it to you. Maybe they won't give it to you for free, and maybe they won't give it to you for 2%, but I guarantee if you're willing to pay them a little bit of a return, you can go out and get the money. Like, stop using no money as an excuse. So it just fires me up. Not only were they able to go get it, but they basically just negotiated the best hard money loan that I've ever heard of ever. So it's pretty awesome.
- [12:49]
B
Yeah, that's. And, and I, I think it's so cool because it's so funny. Things happen in general, right? And I feel like there's one or two people, one, they take that circumstance of that thing and life happens, you know, to me and this happened and da da, da, da da, versus like life happens for me. And I think hearing that, you know, you get some people that are like, oh, well, yeah, if my in laws would have done that, or if my parents or if I knew someone that would give me this, this good of a deal on money, this good of terms, then I could go do the same thing. And then they never do that because that's their excuse for not getting in the game. And so I like how it's phrased of just like, yeah, like there's, there's someone out there that's willing to go do something similar to that. And if you can't find that Then the deal also might not just be good enough, you know? And so now work on. It's a you problem. Right. Of figuring out, hey, how do I go to a better deal where someone wants to be a part of it or somebody. There is no risk or whatever it is. Don't make it an external problem. Make it an internal thing that you can control. So good. Okay. So I love that. Not letting the money hold them back or lack of money hold them back. Anything else that kind of stood out in this process of working with them that you're like, oh, people could learn from this. Yeah.
- [14:10]
A
I mean, this kind of ties into the other two. But they live in. In Price Utah, which is central Utah, teeny little town. There's not a lot of options. Like, we've been looking at trying to get them a house hack. We've been looking at a few different options, and they were starting to get a little bit discouraged because they're like, oh, like, do we need a broaden or, like, yeah, do we need to broaden our buy box? Maybe expand our range of location? And I remember having that conversation at least once or twice with them. And so again, another excuse that they could easily have is, oh, there's just not enough good deals out there. Like, we're in Price Utah. Sorry. Like, I mean, I guess we can just chalk it up to where we live. Like, we can't invest in our own backyard. This property was listed for, I think it was about a year. And they ended up negotiating a pretty good deal. They ended up getting it well under asking price. And this wasn't the first offer they made. Like, Morgan and Darren have hit me up multiple times saying, hey, like. Or they'll. We'll hop on a call, or they'll text me with, like, multiple questions. Because they were consistently pursuing opportunity, and they eas. They had plenty of opportunities to just, you know, throw in the towel. Right. Oh, sorry. I live in Price Utah. There's not a lot of opportunity out there. But they stuck with it and continue to be persistent. And eventually they. They landed one. And so if Morgan and Darren can do it in Price Utah, you can do it wherever, whatever market you're in. I promise.
- [15:44]
B
Yeah. Yeah. I love that I even fall victim to that sometimes. Like, oh, this isn't a good flipping market because there's not a lot of rundown homes or whatever it is. Right. I think. I think it's easy to get that the back of our mind. We think a certain way because of xyz, and really, it's Just a self, self limiting belief that we need to fix and change. That was kind of like twofold too, because you also touched on like they didn't give up. Right. They were persistent as far as it wasn't the first offer they submitted. And I love that. I think that anyone listening to this, now's the time to go check back up, like things. You might have saw something that came on the market initially, right away, and you're like, oh, we want that. You put an offer in that made sense for your numbers and it got rejected. And they're like, no, I'm holding strong to this. Well, guess what? A few months go by and you start to feel these shifts in the market in general. And those sellers like, hey, I want to sell this now. I'm a lot more motivated than I was in the past. Or maybe they haven't gotten any offers since and they're, they're a lot more open to doing a deal, making something work than they, they were before. So I think that's huge. That's a good gold nugget that I think a lot of missed opportunities happen because we aren't following back up. And, and I think it's a great way to, to get deals I love. I mean, essentially you're looking for a win win right between you and the seller. And you want to find motivated sellers. You're a motivated buyer, you want to find a motivated seller. And what better way to find a motivated seller than to look for homes that have been on the market for, for longer amounts of time. Yeah.
- [17:15]
A
And honestly, if there is one, if I could attribute their success so far to like one, one thing it was, it's probably that the persistency, the consistency, the not giving up, the putting in the work, like not letting a few weeks go by and forgetting about real estate, investing school, and forgetting about booking a call with your coach. Like, they're on it, they are on top of it. And it's, there's no magic pill in whatever it is you're doing there. There truly isn't. Like, you put in the work, you're gonna see results. Um, and yeah, separation season, I guess.
- [17:52]
B
Dude, that's so good. So good. Yeah, it's, it's like, I think that's a, that's like a good solid one to end on and maybe that one is the biggest. Well, you say all these things like, oh, those are so common, you know, that, that a lot of people struggle with. But I think that one is so huge and it's, it's easy to to throw in the towel when things get hard and it's like, wait, hold on. That's. That's where you actually stand out. And I think the same thing happens with the market, right? It's like, oh, well, when the market gets tough or when we hear certain things, it's easy to throw in the towel and be like, oh, I'm done. This is more difficult than it's worth. This was easier for so and so because of this, this and this. And it's cool to see, like, the way momentum works, right? It's a slower process, but, like, you build it up just like the train. It's a slower process to get going. You're putting the work. It is a grind. There's a lot more friction. It's tough. But, like, you all of a sudden do a deal like this where you walk away with that much money, and that is a ton of momentum. You roll out into the next deal, into the next deal, into the next deal. And so you never can underestimate the work that goes into actually getting that momentum going. And I think a lot of people just quit or give up before the train starts moving. And it's like, hey, no, this is the time to, to go push the train. Whatever season you're in, if that is the season, like, make sure you put your shoulder down and push the train.
- [19:15]
A
Yeah, no, I, I agree. I mean, you could probably put the average person in Price, Utah, and we probably could have had a lot of the exact same coaching calls between me and the average person. And the average person probably wouldn't have went and done a deal in pr. They probably wouldn't have even put in some. Put in offers, those types of things. But because Morgan and Darren were consistent and put in the work like they're about to make 70 to 90k on their first flip. And by the way, and I know Morgan mentioned this on the call, but she's literally putting. They're planning on putting $18,000 in the rehab. So on. On an $18,000 rehab, they're gonna make 70 to 90k. And again, we don't know we're projecting that, but again, even if it's half, like, that's gonna be a killer, killer deal. It's. It's life. It's. It's truly life changing. One deal. It's funny because we had a conversation my last call with Morgan. We were just talking about the, you know, their future and how, you know, if they're gonna go scale the flipping business and things like that. But she was like, man, like, if we could make 70k a year flipping, then like we would for sure do it. And they're about to make 70k on this one deal. But it's just funny because like I, I told Morgan, I was like, I guarantee if you quit, if you and your husband quit your job and I'm not, I'm not a proponent for them going out and quitting.
- [20:40]
B
Right?
- [20:40]
A
Like, that's going to be a personal decision for them. But I guarantee that if they both quit their job and went full time in this, they would 100% make 70k or more a year, easily, hands down. But it's just sometimes we get in our head with these limiting beliefs. Right. So I'm really excited to follow them on their journey.
- [20:59]
B
Dude, you're on the Quit your W2 train. I like it, but I've had it.
- [21:03]
A
I've had a friend that's right.
- [21:06]
B
I think it's so awesome. I've had a few friends that kind of done that in the last couple of months and a couple people from my mastermind group and they just know that I, I celebrate that stuff. It gets me so hyped because it's like, dude, you're, you're in control. And I, I'm just a, I'm a huge believer and people have way more potential than, than what they think. You know, you're, you're worth way more than getting sold on this safe X amount of dollars per year type income. And it's like, no, you're, that's. That might feel safe and feel like good but you worth so much more. Don't let somebody else buy, buy you out. And obviously you do it smart. You don't do it stupid. You make the right decisions when you do it and build up that safety net. But so awesome brother this is. And, and once again, props to you because I know you're a humble guy and I know you don't give yourself a ton of credit, but all of your students rave about you and it's huge, man. It's, it's, it's one thing when you're doing it on your own and you feel like you're on this island, especially when you're just getting started or trying to scale, especially when things get tough and you run into different situations. So thank you for being, being a good coach, helping them along the process of it. And it's changing lives like ultimately that, that one deal like makes such a dent that it's gonna impact everything else moving forward in their entire lives, in their kids lives. It's so cool that you're, you're a huge part of that. So thank you. Yeah. Oh, of course.
- [22:35]
A
It's an it's an honor to be here to cheer him along. So. I love it.
- [22:40]
B
Awesome, brother. Well, we'll link your, your socials and whatnot so people can connect with you as well. Just in the show notes, but thanks for jumping on here, man. Thanks for talking through this. I think that this is really good. It's real, it's raw, and it's going to help a lot of people that are going through, really, the real estate grind and journey right now. So thanks again.
- [23:03]
A
Yep. Absolutely. Thanks for having me.
- [23:05]
B
We'll catch you guys on the next one.