Flipping America

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Beyond Wynn, Motivational Speaker May 07, 2018

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FAR 047 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News: For months I've been predicting a slow down in rising prices. Specifically I targeted first or secong quarter of 2018 before we would notice things cooling off. Today I have the first evidence. From Seattle, the HOTTEST market in America and the fastest rising prices. http://www.seattletimes.com/business/real-estate/foreign-buyers-drop-off-as-seattle-housing-market-hits-hottest-tempo-since-2006-bubble/ So foreign buyers are already beginning to taper off a bit in Seattle. Articles on the "hot market" Plano Texas Austin Texas Seattle Columbus OH St. Louis San Francisco / Bay area Denver Raleigh Durham, NC Nashville New Haven and all of Connecticut Park Rapids, MN Exception: Flint MI. Sales are down, prices are down. Why? People have been told they cannot sell their home with known lead and pipe issues. It may not be true, but the other problem is no one wants to move there before they get their water issues resolved. Meanwhile in Toronto: Prices are down, median price fell from 919k to 793k last month. Why? Because of a new 15% tax on foreign buyers. Tax any behavior and it will decrease. Politicians tax where they see dollar signs, without regard to the above statement. Prices elsewhere in Canada are like those in the US. Markets are hot. It won't be long before you start seeing "sky is falling" articles about the markets being overheated. What will happen? People will listen. The euphoria will pass, builders will catch up with inventory and the market will settle in at normal rates of appreciation, roughly tied to inflation. High prices are squeezing out lower income buyers. So what will happen? Where there is a market, enterprising builders and investors will move to lower prices. They want to make money and have to sell in order to do it. Scams: Rental Scam: Advertised on Craigslist - price VERY reasonable. Credit card required for viewing. "Landlord" promised to meet them at property. Then didn't show, claiming son was ill at hospital. But now he has the credit card #. Others have actually rented out the house, taken the money, signed and lease, and let the people move in. Except the house belonged to someone else. Investor Uh-OHs: Let's call him Bill: I bought a house that needed quite a bit of work, but had everything worked out and a plan. Unfortunately both my contractor and I missed a significant foundation issue. The integrity of the structure was compromised and the cost to repair was more than it would cost to tear the house down and build new. I ended up selling at a significant loss. Lesson: When buying an older house, hire a home inspector, $400 well spent. Emails: Leonardo from Sandy Springs, GA "I need something to help me completely figure out my costs and the possibilities with a property. I started trying to put something into a spreadsheet but I can't seem to get it all in there. I heard your show and decided to ask if you knew of anything out there." Frannie from Rockford, IL, "Tell me about using Land Trusts to hold title to your investment properties. Why do that and how does it work?" Interview Guests: Beyond Wynn

Top Cities May 07, 2018

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FAR 048 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News: New Report: the Top 20 Zip Codes in the US for Real Estate Investing 16 Cities where income can't keep up with housing costs: meaning - don't invest there. Santa Ana, CA Newark, NJ Bloomington, IN Los Angeles, CA Lynnwood, CA Garden Grove, CA Hialeah, FL Westminster, CA Inglewood, CA El Monte, CA Paterson, NJ Baldwin Park, CA Davis, CA west of Sacramento Hawthorne, CA Miami, FL Passaic, NJ Commercial real estate has been placed on the Feds official "worry list" according to Business Insider online. Investor Uh-OHs: "Sue" bought a house from a wholesaler. The price was 140k. The wholesaler had told her the rehab would be 60k and the ARV is 300k. Sounds great and by our formula she could be all in at 210 and still be doing well. She proceeded to put the property under contract. AFTER closing, the best estimate she could get for the work was 78k. Well, that's a little over budget, but we will still make money. She got the work done for 81k (found a few extra problems) and listed the property. Her realtor said that the best she would get is 280k. She wanted / needed more so they tried a listing at 285k. They ended up reducing over a month to 275 and eventually accepted 270k. If you've been doing the math, she was all in at 221 and selling for 270 so she's ok right? Let's see… Commission: $16,200 Taxes: $1,548 Insurance: $750 Cost of funds: $24,375 Total additional costs: $42,873 Selling price: $270,000 Less purchase and rehab: $221,000 $49,000 - additional costs: $42,873 = 6,127 Annualized ROI is 5% - You would be better off putting your cash into an indexed fund. What you just got for your money was a $40,000 course in the Real Estate Investing school of hard knocks. Lessons:

DON'T trust a wholesaler's numbers.
DO get a real contractor bid during DD.
DO NOT compromise on your 30% margin.
DO get your realtors' opinion of ARV before entering into agreement to purchase
DO find a way to contain costs without treating your buyers poorly.

Emails: Questions from College Reunion: "How can I tell if my town is a good place to invest in real estate?" -Are people moving there? Population growing? -Employment opportunities (preferably from more than one major employer) -Are there areas of revitalization/renewal? -Look for the rare below market gems in the best parts of town. Bennie from Boston: "I'm thinking about coming to Atlanta for your one day course. What are you going to cover?" Find Fund Fix Flip Create a Plan for your Business Show you the path to a full-time career (if you want that).

Vacation Properties May 07, 2018

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FAR 049 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. Translating Income Target into Daily activities. News: Steph Curry loses money in Bay Area Real Estate. Emails: Martin from Long Beach California, "I heard you on your last show talking about buying rentals in my area and I agree - it's tough to find a property here that you can rent with any kind of decent return. I'm thinking about investing in recreational or resort properties and renting them through AirBnB or VRBO or something. What are your thoughts about this strategy? Kelvin from Atlanta, "I am thinking of buying a condo in Panama City as an investment. My family would enjoy the ability to get down there several times a year plus we could make some money renting it out. What's your opinion on this?"

Trends May 06, 2018

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FAR 050 Topics: THURSDAY THURSDAY! Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. Trends Watch price increases in your area. Let me know what you are seeing. What to do with malls: Technology Center Business incubator Local community college - or satellite campus Convert to housing Scrape and build something new How do we prepare for technology trends in today's market. What are the trends? *Ride sharing, including car sharing. When ride sharing costs less than car ownership, Urban parking garages will have excess inventory. What can you do with surplus garage space? If you're investing in a REIT, perhaps consider warehouse space over garage space. *Online shopping, including groceries Secure package delivery. Build this into your next flip project and make it a part of your marketing. *Electric vehicles. Make sure you have a place to plug the car in! Baby Boomers are heading toward Senior Living Facilities -- Biz Times calls it "Silver Tsunami" Independent living in senior neighborhoods Assisted living in retirement communities Today's residents, mostly born in the 1930's. The Boomers are coming. There will be employment opportunities. And those employees need to live somewhere. Healthcare may be heading toward single payer. Rationing, long wait times. - Invest in medical office space in the Caribbean - for the wealthy who can and will afford to seek needed treatment elsewhere. Emails: Virginia from Ocala, FL. "I'm recently retired, but don't want to just stop everything. I'm thinking seriously about flipping a house like they do on TV. I know I need to consider the cost of the remodeling work and how much I'm going to sell it for. What other costs am I going to run into on the project?" Costs Associated with the Purchase: Closing costs Utility Deposits Insurance Holding Costs Utilities Maintenance (primarily lawn) Insurance HOA Costs Associated with the Sale Commissions RE Taxes Transfer Taxes Possible share of closing costs Cost of Money Origination fee (points) Interest Angela from Pittsburgh, "I have some money I want to invest in real estate but I don't want to flip a house. That seems too complicated. I DO like the whole process though and the profits seem pretty good and I want a better return than I'm seeing with REITs. Is there a way to invest in a project someone else is flipping and make a good return on my money?" Obviously yes. You need to do some research: Know the property and the process. Know the person doing the work. Or BOTH. Get your interest protected. Encumber the title. Brent from Denver, CO, "What is dual agency? I saw on a website that it's a scam, but I don't understand it." Phil from Long Beach, CA "I'm a new listener. I want to get started flipping houses. I'm thinking about signing up for some training. I went to an event where they wanted more than $30,000 to show me how to do this. I can go to a local group and get the same training for about $500. Or is it the same? I don't really know what I need -- please help. Erik from Tampa: "What's the difference between a mortgage and a Deed of Trust? I want to sell a property myself using owner financing and want to make sure I protect myself in the right way."

Investing in Others May 06, 2018

Show notes

FAR 051 Topics: THURSDAY THURSDAY! Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. Two rules you should ALWAYS follow when investing in someone else's project News: Zillow and Redfin going at it: Zillow says, "Redfin is a threat to organized real estate." Something I saw for the first time: an owner occupant going to networking meetings to find a property. Story in Bloomberg. Note the headline and sub-head Billionaires in a mobile home park? Emails: Questions@flippingamericaradio.com Tell us where you're from!

Angela from Pittsburgh, "I have some money I want to invest in real estate but I don't want to flip a house. That seems too complicated. I DO like the whole process though and the profits seem pretty good and I want a better return than I'm seeing with REITs. Is there a way to invest in a project someone else is flipping and make a good return on my money?"
- Obviously yes.
- You need to do some research:
- Know the property and the process.
- Know the person doing the work.
- Or BOTH.
- Get your interest protected. Encumber the title.
Keith, from Anaheim, CA, "I want to follow up on the question about investing in someone else's flip. Tell me more about how it works and what kind of return I could expect. Also, can you provide a sample of the paperwork I would need?"
Phil from Long Beach, CA "I'm a new listener. I want to get started flipping houses. I'm thinking about signing up for some training. I went to an event where they wanted more than $30,000 to show me how to do this. I can go to a local group and get the same training for about $500. Or is it the same? I don't really know what I need -- please help.
Erik from Tampa: "What's the difference between a mortgage and a Deed of Trust? I want to sell a property myself using owner financing and want to make sure I protect myself in the right way."

Managing Contractors, Part One, Stacy Rosetti May 06, 2018

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FAR 042 Topics: Hiring and Managing Contractors Interview Guests: Stacy Rosetti - LIVE at Flipping Atlanta

Managing Contractors, Part 2, Stacy Rosetti May 06, 2018

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FAR 052 Live from Flipping Atlanta! Interview Guests: Stacy Rosetti: "Hiring and Managing Contractors, Part 2"

News Notes and Lease Options May 06, 2018

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FAR 053 Topics: "FlipStarter" is September 23-24. EJ Lashlee Jennifer Hammonds Jay Conner Bruce Mack Banks Brazell Roger Herring Karen Anderson What you need to know to jump on one of the best business opportunities in America. Trends: Use of Technology. Tell me how you use this tech in your business! Questions@flippingamericaradio.com Tell us where you're from! News: The Hamptons again - High end properties are just sitting there. Today's young wealthy don't appear to want the mega mansions. Matt Laurer just reduced the price on his home in the Hamptons by $2M. Scams: You've been approved! Edutainment Story of the day Joey went out and inspected the two brand new HVAC units at his flip. He then went back to the office and cut the check to pay the contractor for them. He was back out at the property two days later and the brand new units had been stolen. It didn't look like an amateur hack job. Someone had taken the time to properly disconnect the units. After filing the police report, what did Joey do next? He led the police to the home of his HVAC guy and lo and behold, there they were, sitting on his trailer. The HVAC guy at first claimed they were not Joey's but had just been purchased for another job. How did Joey prove his case? He produced his phone with multiple pictures of the units, and the metal tag with their serial numbers! Motivational Thoughts for the day Overcoming Fear: Set your goals Make your plans Mitigate Risks Mentor Up Dip Your Toe(?) Make the Plunge Emails: Questions@flippingamericaradio.com Tell us where you're from! J.M. from Nashville, TN. Please explain the difference between "Lease Purchase" and "Lease Option". Which should I use in leasing out a property I want the people to buy. The house is about a 45 minute drive and I don't want to run out there and replace light bulbs or unclog toilets." Carl from Sandy Springs, GA "I can't tell by just looking at a house how much it is going to cost to rehab. And if I don't know that number I can't use your formula to make an offer. Please help. I'm stuck."

News and Questions May 06, 2018

Show notes

FAR 054 Expected Air Date: 8/17/17 Topics:

"FlipStarter" is September 23-24.
EJ Lashlee, author of the True Trust Book and The Protection Book, Asset protection through Private Asset Trusts.
Jennifer Hammonds, Jennifer Hammonds show. Realtor and investor extraordinaire.
Jay Conner. America's private money authority
Bruce Mack. Founder of Platinum Finance
Banks Brazell, ReBuild Co,
Roger Herring, The Investors Accountant
Karen Anderson, Digital Marketing and List Consultant
Mike Ventry, Advanta IRA, How to use your self-directed IRA to create potentially tax-free income.
What you need to know to jump on one of the best business opportunities in America.

Trends: Questions@flippingamericaradio.com Tell us where you're from!

Stacy from Atlanta: I use Social Media to showcase our before and after pictures from our flips. SEVERAL people had this response.
Bill from Akron: I use mobile apps like Takl and TaskRabbit to find people for smaller jobs in my business.
Francine, Lancaster PA. I use videos to show work in progress on my houses, stream to FB, and send a copy to my private money lender. It builds credibility and provides a good update.
Donna from Atlanta: Everyone gets a TON of email every day. I send out my wholesale deals via text message. They get read almost every time.
Mark from Tallahassee: I use a service that allows me to leave a voice mail on someone's phone without ever calling them. I use this to remind them of our meetup group, announce when I have a wholesale deal, or anything important like that.

News: Headline: "Will the hot Texas real estate markets ever cool off?" Biggest Non News: REIT is about to pay out a dividend of $0.02 per unit. Fastest Growing RE Companies in the Fortune 500 Ethereum Based Crowdfunding REX - the big news of the day Emails: Questions@flippingamericaradio.com Tell us where you're from!

Carl from Sandy Springs, GA "I can't tell by just looking at a house how much it is going to cost to rehab. And if I don't know that number I can't use your formula to make an offer. Please help. I'm stuck."
Bernie from Ocala, FL, "I own 23 rentals free and clear. I'm ready to sell them and I'm willing to owner finance. I want the income. Can you find me a buyer?"
Not a realtor, but out of the 2 mil or so who might be listening I imagine we have a few buyers. Contact us here and we will put you in touch.
Victor from Colorado Springs, CO "I found you on iHeart radio and love the show. I know I'm asking something that's been asked before, but I'm looking at an abandoned house that got partially burned about a year ago. I'm wondering how to figure out how much to offer.
Melanie from Pittsburgh, PA. "I have been looking for funding for my deals. I found this source online that is offering to set me up with a $4M credit line. I filled out their application and was approved the next day. We are ready to go to a closing, but I am supposed to pay a 1% 'success fee'. They want that money before they will schedule the closing. That's $40,000. I don't really have that much right now. They suggested I borrow it from a friend and repay the friend once I close on the line. This doesn't feel right. Your thoughts?"
Anderson from Hammond, IN "I applied online with a hard money lender. They appear to be reputable and I have some friends who have borrowed money from them, which is how I found them. They are asking me to pay a $500 application fee which they say will cover the cost of the appraisal and opening up a file. I remember you saying to never pay a lender up front, but this seems legit to me. Am I getting ready to make a big mistake?" Anderson named the lender in his email, which we are not going to name here, but we researched them and Anderson, they are a legitimate company. This amount is actually normal and customary.

Insurance for Investors, Steve Gebhardt May 06, 2018

Show notes

FAR 055 Expected Air Date: 8/19/17 Topics: "FlipStarter" is September 23-24. EJ Lashlee, author of the True Trust Book and The Protection Book, Asset protection through Private Asset Trusts. Jennifer Hammonds, Jennifer Hammonds show. Realtor and investor extraordinaire. Jay Conner. America's private money authority Bruce Mack. Founder of Platinum Finance Banks Brazell, ReBuild Co, Roger Herring, The Investors Accountant Karen Anderson, Digital Marketing and List Consultant Mike Ventry, Advanta IRA, How to use your self-directed IRA to create potentially tax-free income. What you need to know to jump on one of the best business opportunities in America. Trends: Questions@flippingamericaradio.com Tell us where you're from! The New Normal in Real Estate Marketing for 2018 Live Streaming Content Marketing Digital Showings Social Media Marketing Drone footage and stills Interview Guest: Steve Gebhardt

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