Justin B. McClelland

Yoooo! So I’m running out of money fast and my deals are forever getting postponed.  So I’ve made the decision to move back to my Mom’s house back in Saint Louis.  Funny thing is that it wasn’t a hard decision at all.  I’ve been in Champaign for almost 5 years and am soooo sick of it, it’s not funny.  Not to say Saint Louis is that large of a city, but at least there’s more to look at besides corn during the growing/harvesting season.  And plus, I don’t spend as much time with my Mom as I should since my Dad passed away as I should, so this will be a good thing.  Literally, about 85% of what I do in Champaign can be done virtually anyway, so I’ll be straight.  Plus, I’m thinking about expanding into South STL anyway.  If I can get a no BS realtor on board, I’ll be good (they’re extremely hard to find).

So, the 4/19 deal didn’t happen, of course.  But it may not be dead.  Who knows.  I have a strong feeling that the seller doesn’t really know how much she owes on the properties in her portfolio.  So therefore, she has no grounds to say that she can sell a property for 40K, when she doesn’t know that she owes 44K and doesn’t have 4K to bring to closing.  And besides that, despite her property portfolio being in “Lis Pendens” status, she’s not eligible for a short-sale due to the fact that that her and her husband (soon to be ex) make too much money.  This situation is extra Sticky due to a pending divorce and such.  But, I’ma stick with it.  Besides, I do know she ordered the  mortgage payoff amounts of each property late last week.  So maybe later this week, we’ll know where we stand.

On a much brighter note, I had my first meeting with 3 property scouts about 4 hours ago.  It went pretty well.  I’m developing a training program at this moment that will help in guiding them towards the right kind of properties and property owners in the right kind of situations.  The program that I have is sooo lucrative for the property scouts, I think I’m onto something.  Anyway, we’ll see how that goes.  I’ll keep yall posted.

- Peace Out

Real Estate Lis pendens, Mortgage, Property, Real Estate

I spent 6 hours in the U of I undergrad library today getting some work done.  The majority of the time was spent looking up information of possible cash-buyers.  I have a list of Section-8 landlords in Champaign County and the properties they own.  I was able to get this list by calling the Section-8 office and requesting a registration packet.  The additional information regarding Section-8 landlords was requested extra, not sure how highly guarded this information is or if the lady I spoke to was supposed to give it to me, but I got it.  The list doesn’t contain all of the information I want, mainly just rental property address and owner name and phone number.   Therefore, I’ve been cross referencing everything on the Champaign county assessor website.  When I have my contact list together of Section 8 landlords, they’ll all be receiving a letter from me, instructing them go to my company website and enter buying criteria.

Real Estate Property, Section 8

It’s official, I’m 29 years old now and I have exactly 1 year left to reach my 7-figure net worth goal. I’ve come a long way from where I was last year, but I still have quite a ways to go. My strategy remains the same as it was a year ago; wholesale properties until I have a positive net worth of approximately 30K and then diversify by investing in short-sales and rentals. In October of 2010, I’ll be investing with a partner in tax lien certificates. I also have an internet marketing company in the works.  So the 1M won’t all come from Real Estate.  I admit, my plan is somewhat vague at the moment, however I realize now that trying to calculate every move is a wasted effort. For me, it’s best that I just have a template of a plan and adapt when necessary.

1 year, 1 million dollars. Sounds like a stretch, but seriously that’s not even that much money. This time next year maybe all of my friends will truly understand why I spent nearly every weekend and weeknight for two years working towards my business. But right now, I don’t think they get it.

So on to current events…I was all excited about my brochures and my flyers until it was pointed out that there is a word redundancy within them. They have the headline, “Need to sell your your house fast”. That was kind of a buzz kill. But oh well, I honestly didn’t notice and the damn things are already printed. I brought it up to the designer and she offered to have them reprinted. But granted that she charged me about 1/3 of what she could’ve charged, I wasn’t going to do that to her. The reprint probably would’ve taken her profit and left her in the red. So we negotiated a company-credit towards the next project. I feel like that was fair.

I also met with owner of the rental property today and made an offer for her property at about 70% of ARV. The house doesn’t really need any repairs and is ready for renters so I felt like it was best to not make her an extreme lowball offer, it’s pretty turn-key. She still felt like the offer was low, but I explained my reasoning. I completely explained that to buy it ‘right now’ I’d have to pick it up at a discount. I also told her that she’d be able to get close to full retail if she listed the house with a Realtor, but I also explained that it may not sell until Spring of 2010. So I was very glad that she was receptive and understood my numbers and motives. I was most nervous about how that would go.  She said that she’d run the offer past her lawyer tomorrow and contact me either way. This should be interesting.

I’m fearful that a 30% discount isn’t as ideal as a 40% or higher discount for my buyers, of course. However, my logic is that the house is ready to go. No exaggerations, renters could move in tomorrow. So, that’s got to count for something. I plan on taking a small spread on this, since I think there’s little room. What are the thoughts that yall have on this? It’s not a smoking HOT deal, but it seems pretty solid to me (that’s if she agrees and signs the contract)

Welp…365 days to go.  The heat has been officially turned up.  It’s time to definitely go harder in all facets of life (like I’m not already going hard).  I’m about to go Lil Wayne on ‘em.  Lil Wayne puts out a mixed-tape with new music almost monthly.  He is one of the best Hip Hop artists to have ever done it.  And he is a self-proclaimed workaholic.  He inspires me…believe it or not.

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Real Estate Internet Marketing, Marketing, Marketing and Advertising, Net worth, Property

Man, I have been slacking completely on my blogging. I’m back on it though. I haven’t posted any ‘Accountability Tuesday’ updates lately because as I mentioned, I wasn’t going to do so until I completed the launch of my direct mail campaign. It’s still not launched yet. I’m very close however, as I have the mail-merge setup, all of the stationary, and I’ve selected a college student with nice handwriting to handwrite my envelopes and stuff them (all 900 for $120 or $0.13 each). This same college student is going to act as my phone receptionist and field my calls during the day. I found this girl on CraigsList and haven’t met her yet, however she stands far above the other candidates and just from the looks of her on paper. She sent me her resume and this girl is solid, college senior, great relevant work experience, good GPA, etc. I’m to meet her this weekend so that I can get her the materials to get started on this first project of hers’. I can already tell, this girl is a real go-getter…my kind of people. I’m already loving the idea of having a local assistant.

My attorney is on vacation, so I’m still waiting on some things from him that I have him working on. And it all concerns the usage of Birddogs in Illinois but on a completely different level than you may be familiar with. I’m looking to implement both buy-side and sell-side Birddogs. If it’s possible and safe from being misconstrued as a non-licensed practitioner of Real Estate, he is going to construct a proprietary model for my business to use Birddogs. My bill from him is going to be through the roof, but it will definitely be worth it if I can make this happen in my biz.

On a non real estate note, but business related, I am now a Mozenda affiliate marketer. That may not sound all that special, but I haven’t mentioned that I am the ‘only’ Mozenda affiliate marketer! This came about all because I happened to like their software, I posted a YouTube video about it, they noticed it, they interviewed me for an article, I asked about their affiliate program, they said they didn’t have one, they offered me a deal to become one, and here I am. This is an awesome opportunity, because not only is their product superior to their competition, but they are going to pay me $5 per trial sign-up and additional if those trials convert to memberships. As soon as this arrangement was made my mind started racing on how I could market and expose their product. There are so many voids in the marketplace it is ridiculous, GAME-ON! I did some research on Google and found that for the key term “Data Mining” (which is what this software does) ;245,000 people searched by that term on Google in July of 2009 alone! Let’s just say if I can advertise on Google and other places and send 10% of 245,000 to http://www.GetMozenda.com, which would make 24,500 monthly visitors. Their conversion rate is currently approx. 3%, which means 24,5000*3% = 735 people sign-up, which for me means 735*$5 = $3,675 gross monthly! This is going to take a little of my time away from Real Estate, for good reason as you can see.

I have a phone meeting with a web development firm out of New Hampshire this evening, about working with them and structuring an arrangement that will allow me to outsource my web projects to them, while I serve as the project liaison. Hopefully this will workout. Another source of income doesn’t hurt.

So, I’ve got a lot going on. I’ve been slacking on my other areas because of it. I think I gained about 7 pounds since I’ve been so busy. I need to quit eating the garbage and get my ass back in the gym regularly, no excuses. I’ve only taken like two weeks off and I feel like a bum, you HAVE to workout to keep yourself up. But anyway, that’s it for now. Stay on your grizzy.

- Justin

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

Another Friday night posted at my favorite spot; On the couch, with my laptop on a TV-dinner table. I fell asleep, after going for a long-run (7 miles and could’ve ran more, I still got it!) after work at around 10pm and now I’m up at 3:43am. Don’t know what that’s all about. I’m trying to decide if I should go back to sleep or start Saturday now. Either way, I’m blogging in the meantime.

I just checked out my Thursday post and found that I forgot to post again providing details of the past 8 days. Well you see that I received a follow-up mailing from the city of Champaign about the bandit signs. I thought that was amusing, especially the detective work required to find my home address and such to mail to. The Champaign zoning administrator probably RSS’s this blog for all I know. Sometimes, I feel like I disclose way too much. But I really don’t care. That’s what makes this blog different. I’m keeping it real 100% and sometimes “keeping it real goes wrong”. But it’s all in fun to me, life is not that serious.

The video I made about using Mozenda to screen-scrape got noticed by Mozenda, so I thought that was pretty cool. After finding my YouTube video, the company interviewed me and I am featured in an article about their software. Which reminds me, maybe I’ll make a video tonight about the data obtained using Mozenda for my direct mailings. Actually, first I need to find out why my damn audio gets out of sync with my video when I do recordings.

I’ve got the key to a commercial property in town. The owner, who is in Chicago, wants to get rid of it and gave me a call. I told him that I don’t normally invest commercial, however that I’d check it out. I have a buyer who buys both residential and commercial. The owner has the property listed, but also has the option to sell it FSBO (executive-agency listing). Communication between me and the buyer was lovely prior to receiving the key in the mail, but now that I have it, I can’t get in touch with the guy. He said that he wanted to view the property, perhaps I’ll drop the key off at his office. Yeah, I just thought of that right now. Why do I need to tag along anyway? He can check out the property and then tell me what he would want to buy at. I can then go from there and compose an offer. I wonder if I need to look into different contract forms, since it’s not a residential property offer?

I’ve been active on CraigsList. I posted an ad looking for an investor-friendly Realtor , I also posted an ad looking for a phone receptionist to take my incoming calls. I’ve received one call from a Realtor who seems pretty legit, perhaps we’ll be able to establish a lasting business relationship. I hope he doesn’t fall off into the abyss like so many other Realtors, I’ve come across. You communicate with them for a few days and then they just stop responding to you. Just unprofessional as shit! As far as the phone receptionist, I’ve received quite a few replies about this job and have yet to start screening candidates. But this should be a great alternative to PATlive and easier on the budget.

I’ve decided to start a Web Development Company. I used to freelance web design on the side of my nine to five, I’m now finding that my time is much better spent dedicated towards real estate. However, I still receive prospective client leads and requests for bids on projects. While I don’t have the will or the time to spend time designing and programming, I’m going to leverage my connections and sub-contract the development work. I realized that I should be doing this after spending entirely too much time on web projects and also having to turn a few projects down. I’m in talks with a few prospective sub-contractors currently regarding this joint-venture. This will be very hands-off for me and all I would have to do is act as a liason between the client and development team. Easy money, don’t know why I’m just now thinking of this. Not too early to start diversifying my investment portfolio right?

That’s all for now. Have much more to write about, so perhaps I’ll post again later today.

- Justin

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

I haven’t updated for a week, as I went to D.C. last weekend and every time I go out of town it throws off my rhythm. That D.C. trip should be my last out of town trip until probably October. So, I should be able to work without interruptions for a quite a while. I’ve got a lot to write about from the last 8 days. I’ll post with some details later today.

- Justin

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

I’m waiting now for a call from a website client at the moment and just thought about some more info to share. I started implementing my craigslist campaign a few days ago and had some frustrating experiences. The post I made initially, “Your stupid if you don’t buy from us” got flagged almost within the hour. This at first, alarmed me. I thought the po po’s were going to show up at my door or something. As I was scrambling to hide the guns and dope, I realized…”maybe there is more to this”. I did some research and found an article that hipped me to the game. You can check it out here:

http://activerain.com/blogsview/616225/craigslist-flag-war-what-is-it-good-for-location-location-location

After reading the article I reposted my ad and it got flagged/removed within another hour (but I forgot to re-word it). The third time was a charm and my latest post has remained visible for a couple of days now. I’ve received a few leads, through the post so the efforts are paying off. I almost need someone to flag it again so I can repost it. In the world of internet forums, it’s like everytime they remove a post it gets made ’sticky’ or is ‘bumped’.

Not only did I post an ad to gain buyer leads, but I also posted an ad in search of an investor-friendly Realtor and I posted an ad looking for a phone receptionist to take my phone calls and complete lead-sheets (no mo PATlive). These posts are still fresh, so I’ll tell the results in time.

Peace Out,

Justin

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling

So I forgot to post yesterday. I’ve got a lot of things going at once. I think I’m going to drop the Accountability Tuesday idea and just make Accountability Updates every once in a while. Actually, scratch that, I almost coped out just then. I’ll just have to remember to make those weekly posts every Tuesday. It’s just frustrating to review my posts and see things still pending due to others. When people don’t get in touch with you when they say they will, they deserve a three-fingered slap. I’ve got folks holding up my progress!…that’s my job…not anyone else’s…I guess they didn’t get the memo.

They say, when you start making money you attract more money and I truly believe in this. Oh, how the tables will turn when business picks up and people’s commission/pay check depends on me. When I have folks begging to do business with me I will only do business with those who are on top of their game. None of these folks who say, “I’ll call you tomorrow” or “I’ll shoot you an email by the end of the day” and FAIL to do so. I should have the right to fill a tube sock with sand and hit those people upside their heads, like Homey the Clown used to do on “In Living Color” back in the day.

Or better yet, how about some good ole’ fashioned hazing. To do business with me you have to endure an intense ’screening’ process.

HAH!….but I digress. So here is the accountability update:

1. I didn’t place my Virtual Bird Dog course order because of a bit of a cash-flow issue. I’ve reprioritized this and I’ll have to do this after my check arrives from the freelance project I completed.

2. Completed the freelance web projects for the most part so that’s a huge plus.

3. Dropping the VA idea for now. This is due to the postponement of the implementation of my web strategy. I will officially launch my huge web marketing campaign after deal #1. I feel like I have a decent web presence right now that can hold me over until then.

4. Additional squeeze pages are being postponed. This is due to the fact that I’m still waiting on my lawyer to get back to me with some crucial information. The information is regarding birddogs and his information will determine the copy for the ads that will attract birddogs who will in turn send prospects to the squeeze page.

For the next week. I’m going to solely focus on getting out my direct mail campaign to homeowners in SW Champaign. This is tied to the purpose of the Mozenda videos I made a week or so back regarding screen-scraping the Champaign county assessors’ website. I plan on using a Yellow Letter campaign including handwritten letters and envelopes. However, I’m going to do this all with a computer and with my own handwriting and I’ll use mail-merge (no way will I write by hand to 450 people). This may not make a lot of sense right now, but I’ll post a video about it soon.

Peace Out,

Justin

Real Estate 61802, 61820, 61821, bandit signs, banditsign, Blog, Buyer, Carleton, Central, Champaign, ChampaignHome, ChampaignHomes, Cheap, Colin Egbert, Entrepreneur, Entrepreneurship, FHA, Guru, home, Homes, House, Houses, HUD Appraiser, IL, Illinois, Investment, Investor, Justin Bernard McClelland, justinmcclelland, Landlord, Nathan Jurewicz, Preston Ely, Properties, Property, Real Estate, Realtor, Rehabs, Rental, Schwaps, Section, Sheets, ShortSaleKid, sign, Urbana, Wholesale, Wholesaler, Wholesaling