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Specializing in seller financing, Dawn is a visionary real estate professional who gets families into (or out of) homes and investments in a way that empowers and enriches them, as well as the communities in which they live… with or without banks and regardless of market conditions. Dawn is the antidote to America’s addiction to Wall Street’s financial opium. She makes the powerful, non-bank, strategies usually reserved for sophisticated investors accessible to everyday people, making or saving them thousands and instilling hope as she illuminates hidden opportunities. As a seasoned note investor intimate with seller financing and the secondary market for private mortgage notes, she provides mission-critical expertise that is extremely rare in today’s marketplace. Sellers: know what your note will be worth before you create it. "Landlord Liberation", "Buyers: The Seller is Your Bank" and "Note Investing for Newbies" are key gateway books for those wishing to engage with The Realm. Visit www.NoteQueen.com.
It it was almost $700,000, and so we we put a a 100 down. After we made payments for about six months, we met with her again, and she saw what we were doing, how we were renovating the properties, and how it was really turning out to be much better than she anticipated because it had been in her family for many years, and her her dad had owned the property. So so we had a conversation, and I explained to her how we could make this because there's three duplexes together, we could make this part of a revitalization and actually put her dad's name on the building as
Dawn:Nice.
Jay:As as he was that. So she was she was so appreciative of that that she wanted to know if she could just stay with interest only on on the property. She'll take just a little bit of money every year to pay her taxes, and she's she's in it to it for, for income.
Dawn:Alright. Well, welcome, everybody. My name is Dawn Rickabaugh. This is Property and Paper live. I can't believe we're at the third week in June or or, I mean, May already.
Dawn:I mean, we're already almost to the half of the year is gone. I don't know what happened. It was like, whoosh. Just like that. The you know, today, this is where we talk about real estate, owner financing, and note investing because they're they're all connected.
Dawn:Right? So when we understand the discounted market for notes, the amount of solutions we can create and the investments that we can, provide ourselves and others with, just magnify incredibly. And today, I have kind of a special guest who, Jay Davis from Georgia, and we've been dialoguing a bit. He's been in real estate for a very long time. And I asked him to come on and if he would just share his experience and then a little bit of how we're, we're pounding out.
Dawn:We're talking about how we can do some sort of a joint venture that helps everybody involved. So but I don't wanna waste any more time. Jay, would you just, go ahead and come on? And, hopefully, your audio is nice and strong. And just tell us about yourself and, you have a rich background and kinda where you're at, where you were, where you're at now, and what charges you up for continuing to go forward.
Jay:Well, thanks, Dawn. It's, you and I have been connected for seven or eight years, I think. Maybe it was pre COVID, ever how long ago that was. And then I've lived in 11 states. I was never the smartest guy in the room, but now I'm always almost the oldest person in the room.
Jay:So I my first real estate deal was in 1986. That was also the year I got my license. And my first the first time I got a license, I've owned rental properties, small commercial buildings, did some primarily focused on investment and and commercial real estate for for a few years, and then other people have had jobs. I changed careers. So I've I've done everything from financial services, worked worked for a major brokerage company, worked for a major insurance company, worked as a financial planner, and always have been interested in real estate.
Jay:And my wife and I had a portfolio of rental properties, and we liquidated that and and retired. And we both keep failing at retirement. So that that's it in a nutshell.
Dawn:Yeah. So, are you still licensed?
Jay:I am. And I was I'm debating whether to renew this year, because it it's continuing it is a hassle. And in Georgia, you you don't grandfather out, so I'm I'm gonna have to keep doing it. But I last year, 2025, I was a key part of 11 transactions for a portfolio I'm helping someone do. So I'm probably gonna hang in for maybe for another year and a half or so.
Jay:I I'm I'm I'm about a year and a half away from a zero birthday, so, you know, that's the only ones that count now. And so we'll we'll see.
Dawn:Hop over the rest. Yeah. So, basically, you've been doing real estate a long time. Right now, it sounds like you're helping someone who's wanting to position in real estate, and you're helping them build their portfolio. Why is it that, and also you're helping a a younger real estate agent, sounds like, get started over there as well.
Dawn:What is it about the conversation where we started talking? What what about this seller financing and note investing aspect? I think people would kinda wanna hear why you wanna focus on that some more.
Jay:Well, I started focusing on seller financing in the nineties because I was trying to buy properties. And one of my good deals that I got was I was I was working for a major insurance company as as an agent. I had I had been in management, and one of my guys retired. So I so I I I bought his his agency, and I I found an office building that I wanted. And I asked the the seller if or the the owner if he would consider selling it.
Jay:And he says, well, I was just talking to my wife about that last night. And I said, well, let's let's talk. And so I asked him if if he would consider seller financing if if I was able to get 10% of of the money as a down payment. And he said yes. It just so happened that he was on the board of directors for a local bank.
Jay:And I went to the local bank and said, I'd like to have a a 10%. You know, I'd like to borrow enough money to to buy this property. And we went through all the paperwork and the the assistant vice president, you know, banks have all these different titles. So he said, but you're not bringing any money to this. And I said I said, he's on your board of directors.
Jay:I said, I it's up to you if you wanna question that. And bottom line, he didn't wanna question that, so I was able to get a a six unit office building that was five units rented or no money down.
Dawn:Wow. So the same bank that the guy was president of or whatever loaned you the the money for the down payment.
Jay:Yes.
Dawn:That's fantastic. You know, that's similar to me where my my first owner finance deal was a little commercial building where, now, honey, I know you want this property, but we are not gonna take cash, just so you know. We don't plan to pay those capital gains, and we need this for retirement. But that's fantastic. And then more recently, Jay, you and I have talked on the phone a couple of times.
Dawn:Mhmm. And describe your experience, like, talking you're you're calling these owners of investment properties. So let's just go there and repeat that.
Jay:Yeah. So what what I try to do now is find people that are out of town or don't waters for or in into or what whatever the the current phrase is and find ways to help them get what they want. The most recent deal that that we did was a person had a duplex for sale on the MLS, and I looked and noticed that that this owner had two more duplexes. And so I made an offer on all three. The agent did not want to give us she kept she kept telling me that my offer was too low.
Jay:And I finally said, you know, you you really it it really would help if you just went ahead and gave me the offer, and they said no. So we waited about four months, and and they kept reducing the one that they had on MLS. And I finally came back to the agent, and I said, it would really be helpful if if we had a conversation. I said, I'm not trying to steal your client. I just wanna be able to talk to them and explain why I can't pay what they're asking, but how I can really get them maybe more money than than they anticipate.
Jay:So we had a conversation with the seller, and I explained, you know, how we were acquiring some properties where if she would be willing to sell or finance, we would give her a small well, a 6 figure down payment. And and once we did that, it it was almost $700,000. And so we we put a a 100 down After we made payments for about six months, we met with her again, and she saw what we were doing, how we were renovating the properties, and how it was really turning out to be much better than she anticipated because it had been in her family for many years, and her her dad had owned the property. So so we had a conversation, and I explained to her how we could make this because there's three duplexes together. We could make this part of a revitalization and actually put her dad's name on the building as
Dawn:Nice.
Jay:As as he was that. So she was she was so appreciative of that that she wanted to know if she could just stay with interest only on on the property. She'll take just a little bit of money every year to pay her taxes, and she's she's in it to it for, for income. She she she just wants to have the interest only and and eventually, you know, in maybe four or five years, we'll eventually pay it off. So
Dawn:Got it. So was that 700,000 for all three?
Jay:That is correct. Yes.
Dawn:Okay. Got it. And so she you gave her a 100,000 down on all three. And Yeah.
Jay:Interest only. Interest only. So the With a thirty year amortization.
Dawn:A thirty year. Well, is it interest only or a thirty year
Jay:Well well, we started off with with a thirty year amortization, and she converted to interest only.
Dawn:Okay. Because she wants the income. She wants to reduce the taxable
Jay:Yes.
Dawn:You know, consequence. And because you were rehabbing it and doing justice to the legacy, basically, that of her father left her or grandfather.
Jay:Her her father. Uh-huh.
Dawn:Her father. So then you they she just I bet she if she would've had any more property, she would've thrown them at you gladly.
Jay:She she definitely would. In fact and then for us, we took they they were duplexes and upper upper and lower with two bedroom, two bath. As they have become vacant, we converted them to three bedroom, two bath. And so the rents are a lot higher than she was getting, and it's it's cash flowing extremely well. And when she's ready to cash out, we'll be able to refi, and life goes on.
Dawn:That's fantastic. If there's anyone who wants to ask Jay questions, be and it's not noisy in your background, go ahead and unmute or or chat. Jay, can you expand a little bit on how you talked? I mean, that's pretty, that's pretty difficult to get through an agent who's the gatekeeper who I mean, it's their okay. Agents, it's your freaking job to submit offers.
Dawn:Don't do this. Right? I mean, it's your job to submit offers. Yes. But then you were very delicate about it, but I think if you could expand on the language you used with the agent as well as the seller.
Jay:Well, the the agent I had met many years ago, but we did not have a close relationship. And so what I had to do was to be able to convince, this is a husband and wife team, that I really did have the interest best interest of their client. I I was not going to try to browbeat their client and say, know, this is there's no way you're gonna get the money. What I won't what I always tell the seller is I wanna be able to get you as much as as possible if and but if it's not something that that we can make money on, I'm not gonna come and tell you if you've gotta reduce it. I'm just gonna tell you that it's not gonna work for us.
Jay:So it might work for someone else. But in the meantime, if I can help you do whatever it takes to get as much as you want as well as maybe more because of the income involved or or not paying less taxes. Would you be interested in in discussing this further? And eight out of 10 times, they're they they do wanna talk about it more.
Dawn:And How long how long was she on the market?
Jay:Probably about seven months, between six and seven months on that one unit. And and she she didn't have the other two units on the market. And so I was I really wanted all three. I told her I don't want just one. I want all three.
Jay:Oh, okay. We
Dawn:And what what did she have the one listed at?
Jay:It was listed she started at $2.95. We wound up paying about two sick $2.50 for that one. The others were and it it had a partial rehab that was, one word definition, atrocious. And so we we still rehab that, but then it's when we started on the others that we were able to to make the value go up. And so they
Dawn:You know what? That that's pretty close to asking. It's not much of a discount. And then with the interest and the tax savings, you know, her being able to stretch her tax savings, she actually came out ahead. Right?
Jay:She's she's very happy that that we met. And you're right. If if she had other properties, we we would be in line to get them.
Dawn:Yeah. So it's so important the type of person you are. And then, you know, you get people basically eating out of the palm of your hand. Please buy this other one with income. They want people to trust.
Dawn:It's it's what they need. Right? But they're not gonna something that they don't trust. Did you end up, developing a better relationship with the agent?
Jay:Oh, yes. We do. And, in fact, I have a meeting scheduled early next month to just go sit down with them and say, you know, this lady is very happy. Who else do you have that that you know, I I wanna make you a lot of money.
Dawn:Right. Yeah. Let let me earn you more commissions, get get better outcomes for your clients, and you earn higher Yes. You know, better commissions. Yes.
Dawn:Or do you want more you wanna market it for the next six months? Another six months? You wanna market it for six months?
Jay:And and they're not they own a little bit of real property, but they are not wanting to continue working as hard. They they they've been on a couple cruises, one to Europe, one to The Caribbean this year. Well, late last year and this year. And so, you know, work is not high on their priority list. So I won't be able to work's always high on my priority list.
Dawn:Yeah. Well, I don't know. For some of us who live on the island of Misfit Toys, this is fun for us. It's not really work.
Jay:It's Exactly.
Dawn:Know? Or you can be a freak like that. Right? Like, I I don't even know what retirement means. Clearly, you don't.
Dawn:You've already said that you failed miserably several times
Jay:Yes.
Dawn:At retiring. But
Jay:I have one other thing that that I'd like to I I think you have talked about this in the past. You have a Roth IRA or other types of IRAs that you're putting rental properties and notes in?
Dawn:I I would say the the the notes go in there, but not the rental properties for me.
Jay:Oh, okay. Alright. Because we've done that. We've we've put rental properties and notes in inside IRAs and four zero one k's. And I mean, maybe the people on the call know.
Jay:But if you have a a solo four zero one k, if you have a rental property in it and you decide that you get a loan on it, a nonrecourse loan, you do not pay UBIT on that the same way that you do on an IRA. That that can really exponentially grow a four zero one.
Dawn:Yes. It certainly can. I think for me, the things I have in Roth's solo four zero one k, in particular, our notes, some precious metals, and and crypto, my crypto holdings. Because I don't wanna pay taxes.
Jay:Right? No.
Dawn:Okay. So, yeah, I don't wanna pay taxes. I don't know. So, anyhow, now, you know, I was telling you, Jay, when we were on the phone, and I've been putting together some materials. And just when I did, then I engaged some coaching people that are helping me re refine my my messaging to owners of investment property and your quintessential tired landlord.
Dawn:And after, at the last half of this call, if we have time and people are interested, I'll share some of the market research that, I came up with, and you guys know only the first half of these calls now go out on the Internets, and, only people in the citizens of the realm community can watch the back. So I'm gonna save some of that juicy stuff that I paid and take some money to get dialed in because I want to figure out, you know, better how how I can get people to understand because it it sorta seems like and tell me what you think, Jay, or anyone else wanna jump in on the call. It's like either sellers came from an era where they still remember that it was just the most natural thing in the world to go from a real estate portfolio to a paper portfolio to seller carry out of their position. Some just already know that. Like, it was just in their blood and they're aware.
Dawn:And other people, they like the idea of what it could represent, but they've never heard of such a thing in their entire life. And they're not gonna hear it from any professionals in their their in their cadre of trusted, advisers. So, Jay, you had talked about that you were trying to call these investment owners, and it seemed like there was some resistance in talking to you and and like, oh, you're a broker. We don't wanna talk to you. We already know what you're about.
Dawn:You know? And you thought maybe if I talk about that and why you you said, hey, Dawn. Let's do this thing where I'm you send me materials when you get done noodling forever trying to get it perfect. I'm gonna send these out and just talk about that a little bit.
Jay:Sure. Well, one as you can see, I'm I'm from a generation where we used to call people on the phone all the time. One of the things that I did in the insurance business was train agents to call people. And so I'm I I love dialing for dollars. The way our society has changed now with with cell phones and with social media, people are trying to withdraw from from actually answering the phone.
Jay:So it we don't get as many people answering, and then they don't respond to text like they do. And as as a property owner, I was bombarded with constant text about you we wanna buy your house. We wanna buy your property, and they didn't know anything about it. I wanna make an offer. So people don't really know what's real and what's not.
Jay:And so in the event I do get to speak with someone, I can just say, hey. I know I'm a I'm a real estate broker. You can either hang up or you could spend a few minutes talking to me. What would you like to do? And so they they do have an interest at that point because and and I and I can say, you know, if you want to sell your property, you know, I have an agent that I work with, and she can take care of that.
Jay:Or if you're interested in in selling it and maybe carrying a note, I have a buyer that would be interested, or I might be interested. So I said it's it's not that I'm gonna get a commission off of it. It's you're there's gonna be more money in your pocket. And so when I do get that, what I would love to have from you is a document that says, I am the queen of real estate notes, and I would love to tell you how to get the most money out of your house. And so when they don't answer the phone, I could just mail them that document and let them respond to that because all of a sudden, it's not some some broker in Georgia.
Jay:It's some lady in Nevada saying, I know how to you can make money on this house. And so, you know, it's it's just a way of getting another voice involved that is non confrontational. It's not one of these people that says I mean, it it's amazing the number of people from foreign countries that are are telephone marketing for for real estate. And so sellers are just turned off by that.
Dawn:Right. Yeah. So you're figuring it would be a soft way to maybe shake through either some more leads for, this this guy that you're helping put together a real estate portfolio. Mhmm. Possibly, if it's good enough yourself.
Dawn:And thirdly, to give help, this agent you've taken under your wing to get more more listings.
Jay:Well, she is a
Dawn:Thank you for engaging with my content. If you'd like to hear the rest of the replay, please go over to citizensoftherealm.com and join our free community. If you'd like to participate live, be sure to subscribe at notequeen.com. And if you have a situation where you could use some one on one help, check out notequeendeepdive.com and schedule a private consultation. I guarantee that one hour with me will either make or save you thousands.
Dawn:Take this information and go out there and create financial solutions just one mom and pop to another. See you next time. Take care everybody.