Flipping America

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Choices May 18, 2018

Show notes

FAR 153 Expected Air Date: 05/17/18 Opening What has life handed you? Is it really that easy to make lemonade when life is a bowl of sour cherries? Today I'm going to share with you an essay I've written on the subject of Choices. Our lives and even our eternal fates are completely dictated by choices. I would say more but I'll save it for when we get to the topic. Thanks for joining us today. On this show we try to give you the most complete and up-to-date information about real estate, real estate marketing, and real estate investing. We bring you the news, the trends, the styles, the markets, and the demographics to help you have an edge. We don't encourage to drop what you are doing and start flipping houses like you see on TV but we do encourage everyone to have real estate as a part of a balanced investment portfolio. On this show we have documented at least 85 ways to make money in real estate, but they all boil down to 3 broad categories. 1. Active purchase and re-sell, 2. Buy and hold for cash flow. And 3. Passive strategies including lending, partnerships and REITs. We can help you tailor an investment strategy around your personal goals, needs, and life situation. And we do this for free. All you need to do is go to the website, flippingamericanetwork.com and click on the big blue button that says "Click here for a strategy session". How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

Lunch with me every Wednesday. Yesterday was the last day at Baraonda for awhile. We have opened up offices in Sandy Springs and moved our studio. So we will be doing our lunch networking at a place closer to the new offices and studio. Stay tuned for the exact location.
Flipping America App is in the app store. You can listen to the show, read the show notes, and soon the entire catalog of shows will be available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

News!

Topic: Choices In life there are laws and then there are implicit rules. For example, gravity is a law - and it will happen whether you believe it or not. Retaliation is an implicit rule. We naturally think that it is the only option we have. On the basketball court one player pushes another. The other pushes back harder. The first player throws a punch. Other players jump in, punches thrown, benches clear and the brawl is on. But retaliation is NOT a law. Not one of the participants HAD to jump in. Those that did, made a conscious decision to do so. Wait, what? We often respond so quickly it just seems automatic. You lash out at me, I lash back. You cut me off in traffic, I'm obliged to show you the results of your last IQ test. We respond without thinking, so how are we supposed to control that? I submit that you react that way because you've already done your thinking. And somewhere along the way you've concluded that retaliation is your only choice. Not only are you wrong, you are living your life under the control of anyone who might press your pre-determined trigger. Has anyone ever deeply wronged you? They made you angry right? You were angry and there was nothing you could do - the decision was completely out of your hands. So you had no choice but to be angry for like - a day or two - or a week - or five minutes. How long were you angry? Well that depended on the severity of the injustice right? Or whether something else distracted you? Or something nice happened that changed your mood? So what will it be? Angry for 5 minutes, a week, or the rest of your life? The extent of your anger is the full extent of that person's power over you. Okay okay, what about something like sadness? Have you ever lost someone you love to death due to unexpected circumstances? There can be a sadness that grips your life and profoundly impacts the way you live the rest of your days. Unavoidable right? No one plans on bad things happening in their lives, but we somehow instinctively accept that when these things happen, our lives are controlled by them. This may come as a surprise to you but this is not true. You are not a victim of your circumstances or even other people's choices. You always have a choice about how to respond to whatever life hands you. Now I'm not saying it's easy, especially if you are not used to living this way, but you DO have a choice and what you choose matters. What you choose to think, to act, or to react, is the sole determiner of the outcomes of your life. Life is 100% choices. In today's world, your mother even had a choice about whether to bring you into this world. Here's a challenging thought for you. From about age 15 onward, your life is increasingly the direct result of the choices you have made and are making. Someone right now is saying, "but Roger you don't understand my circumstances." That's probably true but it doesn't matter. Your current circumstances exist largely because of your choices and your way out, around, over of through those circumstances will come from the choices you make going forward. Yes you have circumstances, I have circumstances. We ALL have circumstances. But whether you remain "under the circumstances" is a personal decision. You can choose not to be under them. You can choose something else. If your life is filled with drama, it's because you choose and even embrace drama. If your life is a struggle, it's because you choose and embrace struggle. If your life is peace, it's because you have chosen peace. If life for you is filled with complexity, it is due to the fact that you have added complexity to the simple process of breathing. Can it really be that simple? Nah - unless you think it can be. If you think it has to be tough, it will be. If you think you need to be sad, you will be. If you think you are content with wherever you are and whatever you have, you will be. This is true whether your choices are positive or negative. This fundamental reality doesn't rise to the level of self-fulfilling prophecy. Deciding you will respond to injustice with rational thought rather than out-of-control anger is a choice that is manifested immediately by rational thought. If you choose to focus on the things that anger you, you will be angry. If you choose to focus on the things for which you are grateful, you will be grateful. Should you somehow try to condition your brain to ignore everything negative in your life? Quite the opposite. You can't do that and you really shouldn't. Some of the negative things coming your way are warnings. Don't ignore the negatives, don't ignore injustice, don't ignore your feelings. Embrace these inputs into your life with a determination to respond to them with intentionality. Occasionally anger is the proper response. But this is best delivered through the filter of reason and self-control. Sadness and loss are givens in this life. Embrace this as a part of life. Feel the feelings deeply within you. Recognize the inevitability of loss and focus on the sadness as a teacher, allowing catharsis, and showing the contrasting value of the moments of joy. Choices have consequences. Small or large, every decision has consequences. They aren't always easy to predict, but most are much easier than we think. Choose to live beyond your means and you'll always be broke and financially stressed. Choose to spend your time with others who wreck their own lives with bad decisions and you will find yourself entangled in the wreckage. Spend time with people you admire and you'll be more like them. Seek out people who are smarter, or who have the type of life you seek and you'll find yourself on that path. It's up to you. Don't tell me "but I love him/her." This too is a choice. Love is not some cosmic force that overpowers you. You tend to love based on previous choices you've made about your ideal companion. I do believe in love at first sight, but even that love is determined by standards, conditions, and desires that both parties had established beforehand. I tell my wife frequently that I've been in love with her since my teen years although I didn't meet here until after I was 50 years old. I can say this because I had an image of my ideal life partner. It took awhile to find her. Your current circumstances are the direct result of the choices you have made up to today. Your future will be the direct result of the choices you are about to make. So choose wisely. Motivational Thoughts for the day

If your ship doesn't come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you're from!

Candace from Kennesaw, GA, from lunch yesterday, "We are looking to get started, should we focus on wholesaling or fixing and flipping?"
Hector, Topeka, KS "Please tell us when you'll be holding your next FlipStarter. Are you coming to middle America anytime soon?"
Emma from Austin, TX "I'm about to buy my first rental. I'm following the exact process suggested by a local guru here in Austin. I'm buying the property for $149,000. I'm prepared to make a $30,000 down payment. The loan amount would be $120,000. My principle and interest payment is $638. The rent on the house is $1000/month. This seems like it works to me but (mega-bank) won't approve the loan. I have a 750 credit score, and good income. But they cited two reasons:
- Debt to income ratio: insufficient income.
- Debt service coverage ratio is insufficient. What the heck is debt service coverage ratio? I looked it up but don't understand what I'm reading and why didn't the guru talk about this? When I asked the banker she told me she just processed the loan and didn't make the decision, but it has something to do with a 30% expense factor. None of this makes sense to me.
- DSCR = NOI / debt costs. 8400 / 7656 = 1.09
Francine, Long Beach CA, "If you were buying rental properties anywhere in the US, it probably wouldn't be CA. Where would it be?"

Malhar Bhagat, LIVE! May 18, 2018

Show notes

FAR 152 Expected Air Date: 05/14/18 Opening Guest EMCEE Mike Smith "Live from Atlanta, Georgia, it's Flipping America!" Hey everybody, how's it going? We are happy to be back with a live group for Flipping Atlanta, the local meetup chapter for Flipping America. We have a great show lined up for you today. As you know we try to bring you the most up-to-date news and information, demographics and trends, methods and investment ideas to help you make the best possible decision in your real estate investments. We don't encourage everyone to drop what you're doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of a balanced investment portfolio. Part of what we do here at Flipping America is feature top investors from around the country, talk about what they are doing, learn from their approaches, their lessons, be entertained by their stories, and benefit from their experience. Tonight we have one of my good friends Malhar Bhagat. Malhar has been running a successful real estate company for over 10 years and has completed over 200 deals in that time. Living in NY, investing locally and out of state, Malhar has integrated various systems learned over the years to develop properties in multiple US markets. Success in real estate has allowed him to accomplish many life goals, both professionally and personally. He has learned that as in life, real estate presents daily challenges; how one moves through them is what the game's all about: mindset. Following his business and passion, Malhar and his wife/partner moved to Atlanta to continue to rapidly expand their operation, M2REST. Currently, Malhar and his team simultaneously run multiple renovations and new construction projects. He's going to join us right after the first break. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Guest: Malhar Bhagat Motivational Thoughts for the day

If your ship doesn't come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you're from!

Francine, Waukesha, WI, "How can you tell the condition of a roof while standing on the ground? Can you give me any other guidance about pricing out a roof?"
Patty, Buffalo, NY, "Thanks for the show. We don't get you on the radio here, but love the podcast on iHeart. Question: Would you start with fixing and flipping or rentals? Oh, and how do you know where the people are from when they send in emails?"
Marcus, Colorado Springs, CO "I have questions about the AirBnB strategy. I didn't really know there was a strategy. Can you talk about this?"
Allen, Lancaster, PA, "I'm brand new, just found your youtube channel and website and then saw you are on the air here in Lancaster. So cool! I'm really new, but fired up. What should I do to get started?"
Corey, San Bernadino, CA "I'm having a hard time getting started. The properties I want to buy are all 400-500k and although the numbers look fine, the costs of the hard money loans are enormous. One lender told me I would need to bring 78 thousand to closing. How do I overcome this? I have about $50k available for this.
Alex, Jacksonville, FL. "I hear all the talk about no money down deals. Is that a real thing or just a come on for some program or course. Can I really buy a house with no money down and none of my own money?"

Your Home is a Stage, with Krisztina Bell May 18, 2018

Show notes

FAR 150 Expected Air Date: 05/07/18 Opening Good morning everyone. If you've ever watched one of the house flipping shows on TV you notice that when they finish the rehab work they will move in some furniture and decor items in order to stage the home. This practice is a relatively recent development in the industry and if your only source of information about this is TV, you might assume it's an industry standard. I have the privilege of being connected with hundreds of actual home investors and for them it's a different story. I have not conducted a study of my own network yet, but I can tell you without hesitation that most of the investors I know do not stage their homes this way. There's no question that with some well-placed furniture and decor, the house you want to sell will look much more like a home someone wants to live in. But is it truly worth what it costs? We are going to look into that today and in a few moments I'm bringing in one of the industry leaders in home staging to discuss the topic with us. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Guest: Krisztina Bell Motivational Thoughts for the day

Only YOU can change your life. No one else can do it for you. Carol Burnett

The Market Report, John Durham May 18, 2018

Show notes

FAR 150 Expected Air Date: 05/07/18 Opening Good morning everyone. As you know I'm a firm believer in the necessity of real estate agents. They provide great value not only in getting our properties sold, but also correct pricing and quite often they are able to provide direction with regard to style and remodeling decisions. A good realtor knows not only the market conditions in the territory you've chosen but also knows the subtle differences from street to street that only someone with extensive local knowledge can give you. Can you do this business without a Realtor? Probably, but why would you want to? There are inherent risks in this business and your realtor play a huge role in mitigating that risk. A good realtor will make sure you know your ARV before you buy, will help you set the right price when you are ready to sell, and will take care of the marketing strategy that will get your house sold. I was fortunate early in my career to meet a realtor who has the right stuff. John Durham showed me a strategy for pricing and selling a house. He introduced me to the technologies that were state of the art at the time and over the past 12 years or so of our friendship has stayed on top of all the newest truly useful developments. I've gotten John involved in fixing and flipping and he's probably done a couple hundred or more houses of his own. John is now an operating partner with Keller Williams and he and his team sell several hundred houses every year here in the metro Atlanta market. John will be joining us after the break and we are going to talk about the market, where it's been, where it's going, and what investors should be working on right now. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Guest: John Durham Motivational Thoughts for the day

Only YOU can change your life. No one else can do it for you. Carol Burnett

Tax Liens with Chantelle Owens May 18, 2018

Show notes

FAR 149 Expected Air Date: 05/05/18 Opening Last time we talked about the mortgage foreclosure process in Georgia. We are following up today with a conversation about the Tax Lien process here in Georgia. Our guest is Chantelle Owens, lead instructor at the Georgia Tax Lien Bootcamp. Chantelle has been investing in real estate since 1999 and has been a full-time real estate investor since 2001. She began her real estate investing career as a credit investor which eventually escalated into No Money Down Deals, Wholesale Deals, Fix & Flip and Buy & Holds as a landlord. In 2008, after going through a second real estate market crash, Chantelle found her passion with Tax Lien Investing and has made this her primary niche. After 10 years of investing in GA Tax Liens, Chantelle is an expert Tax Lien Acquisitions and the go-to person for this type of information in GA. She currently invests in Tax Liens full-time and is also a Real Estate Mentor & Coach and teaches workshops through various Real Estate Investing Associations (REIAs) and the GA Tax Lien Bootcamp. Our next Three Day training camp is coming up May 9-11 and it's not too late for you to join us. However, since our program is invitation-only, you have to jump through a couple of hoops in order to receive that invitation. Hey it's not like getting into law school or anything but we just need to talk. You can schedule a call with me by going to your web browser and typing this in exactly: bit.ly/TalktoRoger When you do that you'll have access to my scheduler and you can pick a time. Then you will be given instructions for accessing a conference call you'll need to dial into at the appointed time. It doesn't matter to me where you are. I look forward to helping you in any way that I can. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- I'm off the road for a couple of weeks while we plan for our next Mentoring Training here in Atlanta May 9-11.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Guest: Chantelle Owens Motivational Thoughts for the day

It does not matter how slowly you go as long as you do not stop. Confucius

News and Questions May 18, 2018

Show notes

FAR 148 Expected Air Date: 05/03/18 Opening This week was the foreclosure auction here in Georgia which means we were busy analyzing properties right up to the last minute before 10 am Tuesday when the auctions began at every courthouse across the state. We get quite a few questions about how to buy foreclosed properties so that will be one of our topics later on. We appreciate all the questions you are sending - some of them are very good questions. If you have questions about anything real estate related, send them to questions@flippingamericanetwork.com. We answer every question that comes in. And some of them get answered on the air, as you will hear in a few minutes. Our next Three Day training camp is coming up May 9-11 and it's not too late for you to join us. However, since our program is invitation-only, you have to jump through a couple of hoops in order to receive that invitation. Hey it's not like getting into law school or anything but we just need to talk. You can schedule a call with me by going to your web browser and typing this in exactly: bit.ly/TalktoRoger When you do that you'll have access to my scheduler and you can pick a time. Then you will be given instructions for accessing a conference call you'll need to dial into at the appointed time. It doesn't matter to me where you are. I look forward to helping you in any way that I can. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- I'm off the road for a couple of weeks while we plan for our next Mentoring Training here in Atlanta May 9-11.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Motivational Thoughts for the day

It does not matter how slowly you go as long as you do not stop. Confucius

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you're from!

Warren, Augusta, GA "Can you talk a bit about the foreclosure process and how a person can buy houses at the public auction?"
Anna, Columbus, GA "Help! I bought a house at the foreclosure auction. The people are apparently still living there. What do I do?"
Matthew, Blue Ridge, GA "I don't see how you could buy a house that you've never been inside. How do you come up with a repair budget. You don't know what you're getting in there - I don't see how anyone ever takes this risk. Since you have in the past, can you shed some insight?"
Carolyn, Atlanta, "I have a hard time with the foreclosure process. It seems like you are profiting from someone else's pain. You seem like a nice man, but this is a cold-hearted way to make money. How do you live with yourself?"

The Smart Home May 18, 2018

Show notes

Make sure you also watch the video of this interview. Don actually shows the products he talks about! FAR 147 Expected Air Date: 04/30/18 Opening Hello everyone and welcome to another week of Flipping America. This is the show that teaches you how to make money in Real Estate. We bring you news, information, trends, markets, styles, We also like to talk to people who are getting it done in this business and in a few minutes I'm bringing back Don DeRosa. Don is a local Atlanta investor and mentor. He has a workshop on just about any topic you need when it comes to fixing and flipping houses. Today I've asked him to join us and talk about the Smart Home. He's going to share with us how he turned his own home into a smart home and what he does in all his renovations to add another WOW factor. And you're not going to believe how much you can do for very little money. It blew my mind and I think if you are not already doing this it will blow your mind as well. Our next Three Day training camp is coming up May 9-11 and it's not too late for you to join us. However, since our program is invitation-only, you have to jump through a couple of hoops in order to receive that invitation. Hey it's not like getting into law school or anything but we just need to talk. You can schedule a call with me by going to your web browser and typing this in exactly: bit.ly/TalktoRoger When you do that you'll have access to my scheduler and you can pick a time. Then you will be given instructions for accessing a conference call you'll need to dial into at the appointed time. It doesn't matter to me where you are. I look forward to helping you in any way that I can. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- I'm off the road for a couple of weeks while we plan for our next Mentoring Training here in Atlanta May 9-11.
- Lunch with me every Wednesday at Baraonda.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

Guest: Don Derosa, The Smart Home You can watch the video of this program on your YouTube channel. You'll be able to follow Don's slide show and see him demonstrate the actual devices he referred to in the show. Topic - Motivational Thoughts for the day

It does not matter how slowly you go as long as you do not stop. Confucius

Your "Why" Understanding Your Own Motivation May 18, 2018

Show notes

FAR 146 Expected Air Date: 04/26/18 Opening Hello everyone. It's a beautiful spring Thursday here at our studios on Peachtree St in Atlanta, GA. We're going to talk real estate investing for the next 60 minutes, but we are going to approach it from a slightly different angle. Over the last few shows we've been talking about a Place to Begin, Hitting Your Stride, and The Next Steps. Today we will continue with some thoughts about Purpose. What drives you today? And I'm not talking about that driverless car you may be in. And I'm not asking you what drives you nuts! I'm asking you to think a bit about your motivation in life. We will dig into that in a few minutes. I also have a stack of questions to answer, including a ton of questions about our Mentoring Program. Our next Three Day training camp is coming up May 9-11 and it's not too late for you to join us. However, since our program is invitation-only, you have to jump through a couple of hoops in order to receive that invitation. Hey it's not like getting into law school or anything but we just need to talk. You can schedule a call with me by going to your web browser and typing this in exactly: bit.ly/TalktoRoger When you do that you'll have access to my scheduler and you can pick a time. Then you will be given instructions for accessing a conference call you'll need to dial into at the appointed time. It doesn't matter to me where you are. I look forward to helping you in any way that I can. VIP lunches at FlipStarter - Lunch with me every Wednesday at Baraonda. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- I'm off the road for a couple of weeks while we plan for our next Mentoring Training here in Atlanta May 9-11.
Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Topic - Understanding Your Why Why are you doing all this? Ask the question. Keep Asking until you get to an emotional level. Drill down to the core of your motivation. Why? Because this brings Focus Determination Clarity A sense of purpose will guide your business plan, your short term goals, and even your daily schedule. If you are constantly aware of your underlying motivations and life goals, they will inform many of your difficult decisions with guidance. Motivational Thoughts for the day

"Never Give Up, Never Surrender". -Jason Nesbitt, Captain, Galaxy Quest.

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you're from!

Carl, Oconomowoc, WI, "Do you still use other people's money in your own flips? If so, why? Wouldn't it be better to just use your own cash at this point?"
Cindy, Westchester, PA, "I heard you talking about the advantage of leverage in real estate deals. How do you reconcile this with Dave Ramsay's teaching that we should never borrow money - ever - especially for real estate investments?"
Chastity, Birmingham, AL "How do you calculate the cost of a hard money loan?"
Scott, Lancaster, PA "Have you ever been in a multiple bid situation when buying? Is this a time to break the 70% rule?"
Joe, Fredericksburg, VA "My wife and I are a bit at odds with a rehab we are doing and wonder if you could help. We agree with the idea of a 'wow' factor in the house, but she has ideas for the kitchen, the master bathroom, and the deck in the back yard. My argument is this is basically a first-time home buyers house and we should focus on just one of these. We want to make it great but we also want to make as much money as we can. We both would appreciate your thoughts.

The Next Steps May 18, 2018

Show notes

FAR 145 Expected Air Date: 04/23/18 Opening Hello everyone. What a great day we had Saturday at FlipStarter Atlanta! It was my honor to share some of my best secrets for Fixing and Flipping Houses to the group there and welcome new members into the Flipping America Mentoring Program. If you couldn't make it we missed you and I want you to know that later today I'm going to put up a link on our home page that will give you the opportunity to buy the FlipStarter workshop on video. So head over to FlippingAmericaNetwork.com and check it out. Speaking of the Mentoring Program, our next Three Day training camp is coming up May 9-11 and it's not too late for you to join us. However, since our program is invitation-only, you have to jump through a couple of hoops in order to receive that invitation. Hey it's not like getting into law school or anything but we just need to talk. You can schedule a call with me by going to your web browser and typing this in exactly: bit.ly/TalktoRoger When you do that you'll have access to my scheduler and you can pick a time. Then you will be given instructions for accessing a conference call you'll need to dial into at the appointed time. It doesn't matter to me where you are. I look forward to helping you in any way that I can. VIP lunches at FlipStarter - Lunch with me every Wednesday at Baraonda. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- Tonight I'm at Atlanta REIA West at 6:30, Cherokee Cattle Company in Marietta. .
Details on the website and at FlipStarterEvent.com

News!

Topic - The Next Level - Passive Income We started last show talking about Hitting Your Stride. Today I want to talk about what you do when you are operating Active Income business at peak efficiency and are throwing off excess cash. You will want to consult your tax professional and if you don't have one, it's time to get one. What we are talking about today is creating Passive Income and heading toward true financial freedom. You are not necessarily free when you are making really good -- or even great money in your business. Because when you stop operating that business - even to take a week or two vacation, your pipeline feels the effect and depending on your product cycle - in this business 4-6 months -- your income is going to take a hit. If you need this money to pay your bills and maintain your lifestyle, then you will feel the pinch and suffer. No you have financial freedom when your passive income pays the bills and your lifestyle can continue whether you are working or not. When you reach this point you may conclude that you no longer need disability insurance, although you may want to continue coverage for long-term illness or injury -- this would be a question for your insurance professional and made in consideration of your health and lifestyle. Motorcycle riding may indicate a higher need for various health care additives. So how will we get to financial freedom? Let's consider a couple of approaches that I will have time only to outline, but these are topics we cover in much more depth in our Passive Income Mastery course.

Free and Clear Single Family rentals. Flip 3 or 4, buy one.
1. Buy small, brick or low maint. Exterior.
2. Consider area, stability, upside.
3. Try to buy where there are good schools.
4. Locate near you for better management.
5. Educate yourself on how to manage or outsource.
6. After you have 10, consider outsourcing management anyway.
7. The only truly cash-flowing single family rentals are free and clear.
Borrow money for SFR
1. Know the loan constant. Cost of payments (1 year) / loan amount.
2. Know your expense ratio and calculate NOI.
3. The spread is your cash flow.
4. Most people fail at this. Either paid too much or poorly structured debt - the property never actually cash flows.
5. It could be OK if you have plenty of cash to cover AND you are speculating on greater than market appreciation.
Buy small multi-family. Up to 5 doors
1. Finance like SFR
2. Cash flow better, typically.
3. Higher turnover anyway, so upside matters a bit less. Usually single or newly married, no kids. Schools not much of an issue.
4. Convenience to employer is more important.
5. Solid employment opportunities
6. Stable or growing population.
Buy apartments
1. Distressed props, force appreciation, re-fi.
2. Use syndication to do A.
Loan Money
1. Flip loans
  1. Rate and Term
  2. Equity Partnerships
2. Rental loans
  1. Long term
  2. Steady income
3. Watch your loan to value - keep it below 70%.
4. Borrower pays for appraisal when needed.
5. Borrower provides proof of insurances, pays taxes, etc. and provides proof.
6. An entire section of our Passive Income Mastery Course.

Motivational Thoughts for the day

"Never Give Up, Never Surrender". -Jason Nesbitt, Captain, Galaxy Quest.

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: Questions@flippingamericaradio.com Tell us where you're from!

Carl, Oconomowoc, WI, "Do you still use other people's money in your own flips? If so, why? Wouldn't it be better to just use your own cash at this point?"
Cindy, Westchester, PA, "I heard you talking about the advantage of leverage in real estate deals. How do you reconcile this with Dave Ramsay's teaching that we should never borrow money - ever - especially for real estate investments?"

Hitting Your Stride May 18, 2018

Show notes

FAR 144 Expected Air Date: 04/18/18 Opening Hello everyone. Last time we talked about getting started in Real Estate Investing. Today I'm going to continue the topic with a program titled "Hitting Your Stride." The phrase "hitting your stride" is an expression that means you have reached an optimum pace that you can maintain easily and where you function optimally and competently. This is a big part of your goal in your career -- any career, but especially so in owning your own business. When you hit your stride in the real estate business you will have mastered a set of techniques and an asset class to the point that you can conduct your analysis mostly with your eyeballs and your brain. Yes, you will still continue to use the analytical tools that got you there, but they will be your backup, not your primary analytical approach. For example, if you are fixing and flipping houses, you will be able to estimate repairs by simply looking at pictures of the house or in some cases by merely driving by. You'll know the value of the property because of your familiarity with that area and the market. You'll know the streets and features of your territory better than the back of your hand, because really, who spends a lot of time looking at the back of their hand? When your fixing and flipping skills are well developed, you will be able to review and analyze deals so quickly, make offers so confidently and move so efficiently, you might get a little bored. And that's a dangerous place. Why? I'll cover that in just a few minutes. First some announcements, then some news, and then we will get to the topic. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

My upcoming speaking engagements:
- We had mentioned that we were going to talk about virtual staging. We are postponing that a bit to focus an entire show to the topic.
- April 21, FlipStarter Atlanta
Details on the website and at FlipStarterEvent.com

News!

Topic - Hitting Your Stride We started last show talking about the Getting Started Fixing and Flipping. I want to continue with that theme today but want you to understand that the principles I'm about to share would apply to just about any business or career. We are talking about hitting your stride. Young Exec - Old Exec Oscar Wilde, "Experience is just another name we give our mistakes." I want you to make mistakes. I just want you to have a mentor so you can avoid the soul-crushing, business destroying mistakes. Without some mistakes, you aren't really pushing yourself to your limit. And your limits grow a bit each time you push yourself. So venture onward and outward. How to Hit Your Stride.

Begin. Don't begin thinking or talking. Begin.
Follow instructions. Don't ask too many questions at first. Do what you're told.
Start small, start slow. Master the pieces.
Repeat. Stay with very similar projects.
Think about why and how it works. Now ask questions - they will be smarter questions at this point.
Increase speed, accuracy, efficiency through repetition.
Consider slightly dissimilar projects, expanding one skill at a time.
Reject the belief that every idea is a good one.
Reject the notion that mastery in one process and asset will automatically translate to another. Danger - Will Robinson!
1. Rehabbers are not developers.
2. Developers are not retail owners.
3. Airlines do not make good resort property owners.
4. The math may be similar once you get to the math, but it's like sitting in front of a math problem in algebra 2 in high school and not knowing which formula to use in solving the problem. The people who have developed mastery in this area or asset will walk circles around you while you are trying to figure it out.
Does this mean you can never branch out? No, but when and if you do, go back to the beginning:
1. Get information
2. Get a mentor
3. Follow a proven path
4. Repeat the above steps as if you are a rank beginner
5. Do not risk anything in the new venture you can't afford to lose.
Rather than branch into other areas, continue mastery by attempting to help someone else. Take on a mentee. You learn best what you attempt to teach.
If Fixing and Flipping, consider your passive income opportunities:
1. Lending
2. Rentals
Develop passive income to the point that it pays for your lifestyle. You have then achieved true financial freedom.

Motivational Thoughts for the day

Life is 10% what happens to you and 90% how you respond to it. -Chuck Swindoll.

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message!

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