Flipping America

Pat Dornan is Guest, Ultimate Rehab Estimator News You can use: Washington Post: Article on Selecting a Realtor, Ilyce Glink Very good - Some differences with selecting a realtor to work with you as an investor Treat house as inventory, not home Daily costs Cash flow Opportunity costs Forbes: How To Get Rich In Real Estate - Without Being A Landlord REIT: If you’re good with a 4.5% return, go ahead. Book Review and Notes: Donald Trump: The Best Real Estate Advice I Ever Received. It's not just location. It's also price and product. Go where wealthy people are living and playing Fit buildings to the area Know your point of indifference. When it is crossed, walk out. Commit to win. Don't count on luck. Take your profit and move on.   Know the local conditions and traditions. 98% of real estate is the same everywhere. For the 2% you must have to win, find a local person who is knowledgeable, reliable, and trustworthy. Buy the neighborhood, not just the house. Watch the pennies and the dollars will follow. Pup

Jim Beach is a serial entrepreneur with success in building large companies with the systems to support them. Jim started his first company when he was 25 years old. He was the Co-founder and CEO of American Computer Experience, which he grew with no capital infusion to $12 million in annual revenue in 2000 and to over 700 employees, operating in 39 states and three countries. American Computer Experience became the world’s largest technology training company for children, and enjoyed sponsor tie-ins with Microsoft, Intel, Lego, NASA, and many others. The Atlanta Business Chronicle recognized the company as one of the fastest growing companies in Georgia for both 1999 and 2000. In 2001, Jim was selected as one of the “Forty under Forty” most influential citizens by Georgia Trend magazine. He sold the company in 2000 and joined Georgia State University teaching International Entrepreneurship. Jim’s first book, School for Startups, was published by McGraw-Hill in June 2011. He was featured in the Wall Street

FAR 008 Marty from Dayton OH: I’m looking at 4 or 5 possible deals that I can buy for less than $20,000 each. I can buy two of them. All of them are in the same area - it’s not a great area, but it’s not a war zone either. The realtor tells me they will rent well and the return will be pretty good. My concern is the value of the property isn’t going to increase much over the years. What are your thoughts? Begin by reviewing your personal goals. If it is long term relatively passive cash flow, these may be a good option. One good question I’ve learned to ask myself over the years is this: “How could this property kick me in the fanny?” Your answer to that question may guide you. In many cities there is an ebb and flow to neighborhood quality. They are either improving or declining. This is less often the case in suburbs or small towns. Look at the larger trends in the area. A similar question is to consider the upside. What are the potential rewards? Barnesville, GA, 2009, $8000. $650/month rent. Unless you b

FAR 010 News Commercial Markets are bullish on Trump. Article in bizjournals.com. In 2014, 100% of the brokers surveyed said they were uncertain with the federal government’s policies and how they would affect markets. In their most recent survey that number is down to 37 percent feeling uncertain. I don’t know what that means but the article states that this is a sign that the commercial real estate industry is generally bullish on President Trump. I don’t know whether a decreased level of uncertainty is actually a measure of anything. We all know or should know that much of the market is driven by consumer and investor confidence. This article is an example of a survey with rather nebulous logic being used to try to create positive momentum. The rest of the article suggests a commercial building boom is in our near future. It concludes with an authoritative sounding quote from Mark Stapp, Executive Director of the W.P. Carey Master of Real Estate Development program. But his quote is basically his opinion

FAR 011 Announcements: Email and website are down. Email has a temporary fix. Website will be up soon. Emails today: Billie Jean from Meridian MS. One of my rental houses has developed a mold problem. The tenants are refusing to pay the rent and are threatening to sue me. Lorna from Atlanta: I want to make an offer on a house I found on Craigslist. The seller doesn’t want a realtor involved. That means I can’t get access to a standard purchase and sale agreement. Where can I get one? We are sending you a sample contract that we know works in Georgia. Fran from Boulder, CO: My husband and I are ready to sell our rental properties and retire. We have 12. They don’t give us many problems but we are about to hit our 70’s and we just don’t want them any more. We’ve thought about listing them, but would not want to displace our tenants. Some of them have been there for years. What are your thoughts? Guest: Charlie Fowler, Legal Shield

Today we are joined by local Atlanta entrepreneur and investing legend Joe Thompson. Joe leads a group of investors that over the past 17 years have conducted more than a half billion dollars in real estate transactions with each other.  

FAR 013 Announcements: Remember the website and email have been down. If you sent an email and it bounced back, please re-send. Today’s show We a  re going to finish the conversation about Contractors, contracts and vital construction documents. Updates: The other day Joe Thompson: “If at first you don’t succeed, then go back and do what your coach told you to in the first place.” Eriq: doing exactly what I tell him to do. Last week he drove several subdivisions, found 60 possibly vacant homes. Did his research, mailed letters, and over the weekend made 27 offers. Today he reports that two of his offers have been accepted! Remember, he’s 20 years old. Does he know what to do next? Nope. But that’s the beauty of our training. I’m working with him on the next steps and the ones after that until we have fixed the properties and sold them to new homeowners. Anna from Houston writes: “I can’t get realtors to find deals for me. I’ve told them I want to buy several houses but I never hear anything back from them. Wh

Malhar Bhagat joins us today and shares his amazing story of how, driven by desperation, he began investing in real estate and turned his life around. Stay tuned for his amazing story.  

Today we are joined by Erik Barlow and Avery Rucker from FundSource. Find out how you can get your deals funded. Editor's Note: Yeah we were a little thin on "show notes" sometimes in the early days.

FAR 020 Benjamin Franklin, Signer of the Declaration of Independence "[O]nly a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." This thought is brought to you by the Foundation for Renewal, working with communities to impact and improve lives. On the web at RenewalFund.net. Emails: From Stan in Boulder, CO. “How do I fire a contractor?” Loaded question! Hopefully you have a written agreement. Make sure you follow it carefully. And hopefully your lawyer checked out the agreement before you signed it. Your Legal Shield attorney will review this agreement and any other contract you want her to see for free. Notify in writing of default and intent to fire. If default not cured, terminate as soon as possible. Preferably in person. By phone is ok., not text. Follow up conversation with email. Make sure you have made all payments due, provided evidence of payments made, documented reasons for termination, especially any dispute over payment, Make sur

FAR 020 Email: Angelina from Austin, TX writes, “How can I take your training? I’m in Texas. Coming here soon?” Franklin from Boulder, CO asks, “You mentioned one time that you had hundreds of properties for sale across the country. Could I get a list?” FFR Quotes: President Dwight Eisenhower said, “"Our whole theory of government finally expressed in our Declaration...said...Man is endowed by his Creator...When you come back to it, there is just one thing...that a man is worthwhile because he was born in the image of his God...Democracy is nothing in the world but a spiritual conviction...that each of us is enormously valuable, because of a certain standing before our own God." This thought is brought to you by the Foundation for Renewal, working with communities to impact and improve lives. On the web at RenewalFund.net. Interview Guests: Scott Krone, Founder of Coda Design / Build in Chicago Peggy Burke, Southeast Mortgage

FAR 022 We like to talk with people who are getting it done in the industry. Today we will have conversations with two successful investors, one from Austin, Texas and the other from the Washington DC area. We hope you will be informed, inspired, and encouraged to make the best decisions possible in your own real estate investing. We don’t encourage everyone to drop what you’re doing and start flipping houses like they do on TV, but we do encourage everyone to have real estate as a part of a balanced investment portfolio. Emails: Andre is from South Africa. Heard our show while visiting friends here in the US. He writes, “Roger I’m interested in this whole idea of investing in real estate back in my home country. Do you have any idea how I can get started here?” Juan from Long Beach, “I need rental properties, but they are just too darned expensive here in California. Where can I go to find more reasonably priced cash-flowing properties and how would I go about it?” Interview Guests: Jamie Cook, from the Wash

FAR 023 You need money to do this business. If you don't have your own money, you need either an investor or a lender, but somehow, you have to find the money. The best source of money for an individual deal is a Private Lender. But how do you find private lenders? And how do you get them to commit to funding your deals? Learn how today in my conversation with Jay Conner from Morehead City, NC.  Emails: Elinore from Milwaukee writes, “We have just finished our first project and it’s time to list it. My husband and I are considering whether we should hire a staging company. What are your thoughts on staging?” Randall from Boulder, CO writes, “Properties are so expensive here, the cost of a hard money loan makes it very difficult to find a deal that will work. Any suggestions?” Pay close attention to today’s guest, Jay Conner, talking about Private Money Consider flipping remotely in other areas. Consider a Joint Venture. Make sure you trust your venture partner(s) Make sure the paperwork is airtight (Legalsh

FAR 024 Topics: Re-selling your own home. Ideally, move most of your stuff out. Consider a service like PODS who will bring a storage unit to you, then move it to their secured space until you find your new place. Put EVERYTHING you won’t need for a few months in it. Paint neutral colors. Buyers might like your color choices, but they also might not. A “blank canvas” is likely to appeal to more buyers. Hire home inspector, make needed repairs Fix up the lawn. Do everything you can to increase that curb appeal. Consider upgrades to the kitchen and/or master bathroom. Interview agents, hire one that has a complete marketing plan for your home. Even in a hot market, take nothing for granted. Emails: Gershawn from Greenville, SC “I want to bid on a foreclosure being sold at the courthouse steps in June. How should I go about this?” Do your homework. Visit the property. If occupied do a “drive-by” repair assessment. Premise: The condition of the outside is a reflection of the condition of the inside. Assume roug

Yes the zero-down deals do exist in real estate investing but you will have to pass up 100 good deals to find one. In the meantime, you need operating capital. Our guest today, Bruce Mack, will show you how to have the capital you need to start your business, do your marketing, make your down-payments and interest payments on the houses you buy. All of this takes money and Bruce can put it into your hands. Editor's Note: We are continually developing sources for your deal and business funding. Check the website for updates!

FAR 026 Topics: Reading from the Book: “The Ten Day Real Estate Investor” Introduction Chapter One Emails: Ron from Austin Texas, “I can’t find any deals that fit the formula. I’ve been looking at properties for about 2 months and I’ve made 3 offers, but to no avail. Please help.” Elsa from Albuquerque NM, “I have the capacity to do one deal at a time. However, I have two great deals in front of me right now - both of them are about the same profit with the same level of difficulty. What should I do?” Amy from Madison WI, “Do you sell many houses over the winter down there in the south? I’m especially curious about the holiday season. I usually just plan on shutting down during the last two months of the year. Peter from Ocala, FL, “I’ve been hearing about a subject-to purchase. Can you explain what that is? I’ve also heard it’s illegal in Florida.”

FAR 027 Announcements: Tuesdays at 2. Free online coaching from the Flipping America guy Contractor Fails Two Renewal Quotes Topics: Is Home Ownership a good investment? The top Ten Real Estate Deals in American History The best time in History to invest in real estate? Jeff Reeves, a columnist for MarketWatch says yes. It’s a Healthy Market, not a bubble. Realtor.com has create a “bubble index” Prevalence of house flipping Price to income ratios % of buyers using mortgage financing Foreclosures are at the lowest level since 2000. Innovation is lowering barriers to entry for investors. Online research Online funding Innovations in lending for investors Comparatively, stocks and bonds aren’t looking that promising at the moment 10 year treasurys are at 1.6P% annually and investment grade corporates aren’t much better. Emails: Susan and Jonathan write in from Pittsburgh. “We are newly married, both college graduates with decent incomes and a plan for a family. We are considering buying our first home an

One of the biggest challenges facing investors who are either not Realtors or are out of their market area is active valuation. Our guest today, Mark Jackson has developed a solution for this problem. Hear about that and much more coming up.

This is the long awaited show -- your stories about Contractors and their failings. Sometimes dishonest, sometimes incompetent, always the source of -- let's say -- interesting situations with our rehabs. To be fair, there are plenty of good, honest, hard-working and competent contractors out there. They may even be in the majority, but the horror stories are prevalent. It usually takes some time, but after sufficient time has passed, these stories can be a source of entertainment. So, enjoy! ...and try not to cringe. Lessons: Clear and detailed Scope of Work Due your diligence on the contractor References The NOT References Insurances, GL, Workers Comp License Clear contract Clear payment policy, including interim lien waivers Monitor the progress Monitor the property, vary your schedule. Protect your investment Emails: Ron: Contractor was hired, asked for money to get started. Never showed up to do the first bit of work. Raymond: Contractor completed 41,000 in work and was paid. Still lacked 2000, but after