SECRETS TO REAL ESTATE INVESTING SHOW

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SREI 0046 How Whitney Nicely did 50 deals with little to no money Apr 05, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Whitney Nicely. Whitney has been called the Queen of Weird Real Estate in Eastern Tennessee.

Whitney started flipping houses in 2009 with her parents, her mother was a real estate investor and she knew that she would become one herself. The first house that she flipped with her parents is when she fell in love with the process of flipping homes; she also fell in love with this particular house and ended up moving into it instead of her parents selling it.

In 2013, Whitney and her brother were buying houses with cash, like her mom always did. They bought 3 houses and one of them was a total loss. With the two houses that they had left she realized that they had their life savings in them. Also, with only two houses she realized she was never going to get ahead. Whitney knew she had to figure out a way to do real estate without putting any of her own money into the pot. Since than Whitney learned about lease options and did her first deal in the Spring of 2014. Although Whitney has only been using this method for the past 3 years she has done over 50 deals without having to use any of her own money. Currently she has 19 apartments and 7 chunks of land that she hasn’t had to use her own money to purchase.

Holly knows that a lot of people are interested in getting into real estate don’t have a lot of money which is why she is so excited to have Whitney share her success with listeners. Whitney says that her favorite way to purchase a home is through lease options, or as she refers to them as band-aids, because they can fix any situation.

Holly asks Whitney to share with listeners some situations in which a lease option is good choice. Whitney says that when a house is over leveraged a lease option is a great choice to get a piece of property without using any of your own money.

Holly asks Whitney to share how a lease option works and what the process might be like. A lease option is an agreement that allows someone to rent the house with the option to purchase it at a point in the future at an agreed upon price today. Whitney shares that when she was a normal real estate agent she had her license for 18 months and only made $1,200 in 8 weeks using lease option she made $15,000 doing a lease option that she posted on Zillow.

Whitney shares with Holly that she recently found out from her lawn guy that he owned 13 properties, and after talking to him Whitney decided to buy a few of them from him. The first house that she bought was a cracked house-- the house was literally cracked and had been partially burnt. An interested party saw the listing and wanted to buy the house from Whitney. She was able to turn her small purchase into big money by offering the right option to the buyer. When her lawn guy found out that she turned around and made more money on it than he had initially charged her Whitney decided to give him a little more than she originally agreed to. The second house that she got from her lawn guy is not proving to be as successful as the first, but because it is not successful Whitney has decided that she is going to owner finance this house and put a big pink “Whitney buys houses” sign in the front and use it as advertising in that neighborhood. Whitney says that her bandit signs get her a lot of homes to look at so she is excited to see what this option will bring her. She will actually own the land instead of renting billboard space.

When Whitney started doing lease options and owner financing she said that everyone else was working in one suburb so she decided to go the other direction and work in another county. She decided to do this so that she could get the experience and learn to play with the big boys in her neighborhood and have the portfolio to back it up.

Holly mentions that Whitney has provided an awesome cheat sheet for listeners that will go over what she has talked

SREI 0045 World class poker player turned wholesaler Connor Steinbrook Mar 28, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Connor Steinbrook. Connor is a world class poker player and in 2011 when the government shut down the big poker websites his income was shut down overnight. Connor stumbled into real estate and went $60,000 in debt when he was doing his first deal but has since then become very successful in real estate.

Connor says that he did not intend to be a poker player, he went to school in 2003 where he met Chris Moneymaker playing who introduced him to the online world of poker playing where anyone with money in their pocket could get online and win big. In a short time Connor ranked highly in the world of online poker and was making some serious cash. On Black Friday, as Connor calls it, April 15, 2011 the government stepped in and shut down the websites where the poker playing was going on at. Overnight Connor’s world was shut down. Connor says that he made a lot of money, but he also made a lot of mistakes and was spending his money as quickly as he was making it. When Connor had to face the job market he found that he was having a hard time finding a job because he was labeled as an ex-gambler, when he realized that he wasn’t going to get a conventional job he decided to make one for himself. Connor went into network marketing and didn’t like what he was doing; and insurance where he also didn’t like what he was doing.

Connor says that he was watching the flipping shows and said to himself that was something that he knew he could do. His favorite show and the hosts were in town and Connor decided to take a trip down to where they were to talk to them. While the hosts weren’t there, there was an opportunity to sign up for a bootcamp and a national training company where he racked up a bunch of credit card debt and found himself in a situation where he needed to get out of it. Connor likes to share his story with the world because he went from the top of the world to rock bottom and he likes to let people know that it is possible to get on top of whatever situation you are in to make your life better. Connor credits real estate to saving his life and turning it around.

Connor used Virtual Joint Venture Wholesaling to save his career. Connor advises that if you want to be a wholesaler you need to have a big buyer’s list and you need to let everyone know that you have it because it is easier to find people who need deals than to find that specific one deal that you are hunting for. For his first deal Connor was at an REI club and there was an individual with an ad for a property that was a better deal than Connor had ever been able to find and he knew someone that he thought was looking for a deal; Connor connected the person who was interested in that deal with the person wholesaling it. Connor says that he made only a little bit of money off that deal because he wasn’t as familiar with contracts as he should have been on that time. Connor stresses to listeners that while contracts might be stressful it is vitally important for your income and protection for you to understand the contracts that you are connecting people with.

Connor says that with Virtual Joint Venture Wholesaling he never visits the property, never meets the buyer, does not go to any showings of properties, the buyer does all of these things. Connor says that he puts in 3-5 hours per deal and the deals take 7-14 days to close, he says that he uses virtual assistants to do the work on these deals and from the closing of these deals he is making $2,500 to $25,000 per deal. Connor used Virtual Joint Venture Wholesaling to transition to house flipping he feels that this was the most effective and low risk way to make money so that he could start flipping homes. Connor calls what he is doing as an exit strategy because he is helping take homes that people don’t want or can’t sell and gets them sold.

Connor reminds listeners that as a wholesaler you are not a real esta

SREI 0044 Paul Moore-From $1.5M in the bank to $2.5M in debt and back to debt-free 13 months later Mar 23, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Paul Moore. Holly was intrigues by Paul’s story of having $1.5 million dollars in the bank to $2.5 million dollars in debt and 13 months from that moment he freed himself of all his debt.

Paul has an MBA and an engineering degree. He worked at Ford Motor Company for 5 years before he realized he was dying there and wanted to become an entrepreneur. At the age of 35 Paul had become semi-retired but decided that he needed to keep busy and he decided to start flipping homes with his friends. Not heeding the warning signs of the real estate market prior to the crash Paul found himself $2.5M in debt in late 2007.

In January of 2008 Paul asked himself what would George Mueller do? George Mueller lived in the 1800’s and he was a man who cared for over 10,000 orphans. George also kept track of every penny spent and every penny that was earned. It is estimated that Mueller raised about $180M at that time just with his faith, Mueller never asked for money but had faith that his needs would be taken care of. Paul decided to try Mueller’s philosophy of giving and having faith that everything would work out as it was intended to.

Four weeks into his giving, Paul met a man in a restaurant who suggested that Paul use a certain law against itself to subdivide the land that he owned. When he took his plan to the planning and zoning commission it was approved even though Paul had found a loophole in the law. 13 months after he presented his plan he found himself debt free - Paul is convinced that had he not started this plan with faith and giving the path that he found himself on would have not presented itself. Holly reminds us that we need to ask the right questions to get the right answers.

Next on his path Paul and his partner would often travel to North Dakota and found that there was no places for the oil workers to stay - oil workers were sleeping in their pick-up trucks. Paul and his partner decided to build a facility where these workers could stay for a reasonable amount all while Paul could still turn profit from it. Paul mentions that later the facility was sold at the top price for the market.

While Paul has had great success, he also shares some of his less successful business ventures which have led him to creating his podcast called ‘How to Lose Money.’ On this podcast other entrepreneurs share their stories of money loss in the hopes that newer entrepreneurs and investors can learn from the mistakes that have been made.

One thing that Paul talks about learning from his personal story of loss is market selection. Market selection is half of the success of any type of commercial real estate venture. Holly agrees that market selection is a huge and very important factor.

Holly asks Paul to share his story about funding for human trafficking. When Paul saw what Tom’s Shoes was doing for children in third world countries he wanted to figure out a way that he could also make a difference in the world and in the lives of those less fortunate. Paul came up with the idea that when an investor invests with him part of the profits made off the investor will go to a foundation that the investor is passionate about. The investor gets to keep their entire return on their investment; it is a portion of the funds that Paul keeps that are donated accordingly.

Holly asks Paul to explain to listeners his involvement with human trafficking and what he is doing with his real estate investments to combat it. Paul explains that human trafficking generates over $150 billion dollars in revenue. Human trafficking prays on women and young girls and it is happening right here in the United States. Paul wants to help the victims of this modern-day slavery. Paul uses his profits from his real estate investments to give to foundations that help women and girls who have been victimized by human trafficking; foundations that give vi

SREI 0043 Buddy Broome bought a property worth $550K for $900K and is loving it! Mar 16, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Buddy Broome. Buddy is one of many real estate investors who does real estate investing on the side. Buddy works full-time as an attorney and an investor he was introduced to investing as a young man in high school through his father. Buddy’s dad told him about the first property he purchased; his dad couldn’t afford to purchase a property so he approached the owner and asked if he could make payments on the property and the owner agreed because he knew that Buddy’s father was an upstanding, honest man who would pay for the propertu At the time Buddy felt that what his dad did was not the smartest way to invest but as he got older he says that his dad’s story taught him 3 important things. The first thing Buddy tells us is that his father’s story reminds him that you have to ask for what you want, second is that you can be a real estate investor with very little to no money, and lastly your reputation matters.

After high school Buddy went to law school and got a job with a big law firm in Los Angeles, he felt that the only way to earn money was to climb the corporate ladder and put away money into a 401K and eventually he would be able to retire comfortably. One day his wife introduced him to the book “Rich Dad, Poor Dad,” Buddy was not interested in what the book had to offer and felt that it was stupid. His wife left the book laying around and Buddy decided to check it out, 48 hours later he flew through the book and decided that he needed to talk to people and get the ball rolling because this book really spoke to him.

Buddy read the book and took some investing classes before he and his wife decided to purchase their first property in August of 2008. It was in September of 2008 that Lehman Brothers crashed and their dreams of becoming overnight millionaires were smashed. From that point Buddy and his wife had to change their lifestyle and become really frugal. When the crash happened all of the surrounding properties in his area had become very cheap and he decided that he wanted to make another purchase but was having a hard time with the income that he was generating.

Buddy was introduced to a group called FIBI (For Investors By Investors), the gentleman who lead the group, Ellis San Jose, offered to mentor Buddy and his wife on how to make investing work for them. Ellis then introduced them to two men, Gary Johnston and Clyde Wilson, who he insisted that Buddy and his wife take their class. Buddy says that this 3-day class changed his life. Slowly but surely Buddy and his wife have been building what he refers to as his ‘snowball’ - buying one property at a time.

Holly asks Buddy if he has ever purchased a property with no money down, and he says that he has. He learned about no money down in his first deal. In his first deal a third party investor asked him if he had the money, which they did, but he was told that if they didn’t have the money that they would find them someone who did for him. Buddy reminds listeners that when you are hoping to not use your own money down, that the deal needs to be a good one and worthwhile to the lender. If you have a mediocre deal it will be hard to get someone else to put their money down on that deal.

Buddy reminds listeners that when you are wanting to buy a property you need to not ask how much a house is, or how much money you can make on it but the most important question about buying a property is why is that property being sold?

As Buddy recounts for Holly one of the first deals that he made and all of the hoops he had to jump through to make it happen, Holly asks if Buddy was using a financial calculator during the time that deal was taking place. Buddy says that during the time at the table with the sellers Buddy did not pull out a financial calculator because he prefers to have the other party do the math to keep it as simple as possible and to make sure that t

SREI 0042 Tim King turned chaos into opportunity in mobile homes Mar 10, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Tim King. Tim is the “King of Mobile Home Investing” and he got his start in mortgages before he got his start in mobile homes.

In the early 2000’s Tim started in the business of mortgage originations and was introduced to a family friend who had a mobile home dealership. Because of this relationship Tim found a niche because not many people were doing mortgage origination for manufactured homes. While admittedly these deals didn’t pay as much Tim found that he didn’t have a ton of competition so he kept at it.

In 2007 when the mortgage crisis hit single family lending slowed down slowly but manufactured housing Tim says literally disappeared in 30 days. Being a serial entrepreneur Tim saw that this was a problem and if he could find a solution to this problem he knew that there was potential for some serious profit. Tim started researching and learned about creative finance and also found a book called “Deals on Wheels” by Lonnie Scruggs. Tim had the education when it came to financing but it took this book to really show him how to use his education and his solution to this problem to make a profit. Since there wasn’t competition in this area Tim got lucky and this area of real estate investing really took off for him. All of the real estate education that he learned from real estate investing gurus about single family financing he was able to apply to mobile home financing.

After years of doing this for a few years Tim got frustrated with dealing with park owners because a park owner has to approve a buyer before Tim could sell the home - so Tim decided to start buying the parks as well so that he could control the full operation.

Holly asks Tim to share what location he is doing business. Tim is currently doing business in Southern California, in the South Bay Area. Tim is always being told that he can’t make this business work in California because it is too expensive but he finds that he is doing just fine and doesn’t want anyone else crowding his market if they are too scared of how expensive the market is.

Tim shares with us his first two deals, which he says were very crucial deals in helping him learn all about the mobile home business and also about the park owners which he refers to as the gatekeepers of the park. He admits that during his first deals he now realizes that he really didn’t know what he was doing because he had no idea the fees and expenses that went into buying a mobile home when you are preparing to sell it. Tim says that a park with a high space rent is something to keep in mind because that can definitely take away from the overall profit from the deal.

Holly asks Tim if he still dabbles in buying and selling of the mobile homes or if he is only interested in buying the land that the homes are on. Tim says that he isn’t as motivated anymore to buy and sell homes as he once was 12 years ago but he still buys and sells on occasion and does Lonnie Deals from time to time as well.

Tim shares that he gets a lot of his deals from direct marketing and he works with a handful of parks where he is friends with the management. He finds that sometimes management is the reason why he stays out of a lot of parks that are local to him. Tim unfortunately hasn’t been able to get buyers approved in parks that he previously did business in because the management does not understand seller financing. He also shares with Holly that one park he was doing business in previously had 3 real estate agents that live there that would go around and bad mouth him and his business and tell buyers that Tim was doing something illegal and because of this Tim has not been able to do business in that park because of those realtors that don’t like or understand what he is doing with his business.

Holly asks Tim to share how he transitioned from doing deals on individual homes to doing deals with the whole

SREI 0041 The "homeless millionaire" Mike Wolf and his freedom lifestyle Mar 08, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Mike Wolf. Mike has been investing for 27 years, Holly says that Mike is super laid back unlike most of the real estate investors who hop from one deal to the next. Mike is going to share with listeners his 27 year story.

Mike started in real estate entirely by mistake. Once upon a time Mike followed his mother’s dream of Mike becoming a lawyer - so Mike went to school and he racked up a lot of debt. Before going back to school he got a job at the phone company and that is when Mike bought his first property with no money down. Two years later Mike was still working at the phone company and paying off his student loans and the market started to take off and he found himself sitting on a good amount of equity. Mike admits that at that time he didn’t really love his job and figured that if he did this deal by mistake what would happen if he did it on purpose? Mike decided that he wasn’t going back to law school and also decided that he was going to qui his job at the phone company and continue to buy properties - so that is what he did. Mike didn’t want to take two years to get another property so he decided to fast track his property buying which ended up hurting him. Mike admits that at one point he thought he was a know-it-all and from mishaps with his fast track ideas he turned into a person who wanted to learn it all.

When Mike quit his job at the phone company working 8 hour days to working 16 hour days and was really starting to love his job until one day he started to not like the real estate business so much and was concerned that he didn’t think he could do it anymore and the passion started to disappear. It was at that point that Mike decided that he needed to figure out how to work smarter not harder so that he didn’t lose the passion that he had in real estate and so that he could get his life back. At that point he decided that he needed to hire people to help him manage his properties. At that time Mike was working in Canada doing everything but wanted to branch out in the United States which forced him to hire a property manager which he admits was hard to do because as an entrepreneur he wanted to do everything and entrepreneurs often have a hard time delegating work to other people. Mike found that by having a property manager they were able to do the job better than he would have been able to and in doing this he was able to get his life back. Now that Mike has all this time on his hands he enjoys traveling, spending time with his family, and volunteering. Mike says that he wants to help other entrepreneurs to get their lives back so that they can work smarter and not harder.

When Mike first started his real estate investing with a longterm approach and really purchased another property aside from the one he lived in as his retirement plan. Mike had quit his job and realized that he needed to get busy and find more deals so that he could make more money so that he could continue living his lifestyle and not have to go back to law school or go back to work at the phone company. Mike realized that he didn’t know what he didn’t know so he went out and networked so that he could educate himself and get those properties that he wanted and put his systems in place so that he could continue to make money.

Mike’s friends call him “The Homeless Millionaire” because he is always on the go staying in hotels and chasing the sunshine. Mike prides himself in not taking on any deals or projects that are stressful - he only does the deals that he wants to do. He enjoys teaching others about how to do what he is doing.

Holly asks Mike how his buy and hold deals work. Mike says that you need to have cash to do this but it doesn’t have to be your money. There are people who have liquid cash, or money in their retirement funds that are willing to loan you that money as long as you make the loan worth their while. Mike suggests

SREI 0040 Dirk Watters shares stories of success big and small Feb 24, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Dirk Watters. Dirk is a San Diego investor with 3 and a half years experience. Dirk has a varied profile; he has dealt with lease options, wholesales, rehabs, and high-end deals.

Dirk grew up around real estate - his father was a commercial developer – he saw all that his dad was involved with but decided that commercial development wasn’t for him due to the length it takes for a deal to close. Dirk went to college at the University of Wisconsin and worked as a sales manager at an insurance company for a couple of years. Dirk liked his job but didn’t love it and shortly after he started to get the real estate itch. Dirk says he went to the Bigger Pockets forums and started educating himself on the real estate world. Dirk started off with wholesale events, which set him apart from most people because the people he talked to had not heard of what he was doing just yet. Dirk met some contacts at a seminar and went into business with them doing some high-end, multimillion-dollar, flips – which were his first flips ever. Presently Dirk works with partners in San Diego that work with flips that are homes $500,000 and up. Sometimes they venture into flips that are $1 million dollars.

Holly asks Dirk to share what his influences are being newer into the real estate world. Watters says that he did a few courses, he took some from Robert Kiyosaki and that is when he says he had that moment of commitment where he decided that he was ready to dive in and not turn back. Holly and Dirk both agree that you have to have commitment to be successful in this business. Dirk advises listeners that there are great free resources available to those people that are just starting out. Holly feels that paying for classes and programs sometimes helps to make you more accountable for your business. Dirk also advises listeners to not go out in this business as a lone wolf, partner up with people who are experienced and are willing to help guide you along the way.

Holly asks Dirk to share what his first rookie mistake was – Dirk says that he was working on a flip and got caught up in all of the finishes; the flooring, cabinets, and countertops – and he went over budget by $20,000. Because of this mistake a great deal turned out to only be an okay deal. Holly agrees that she also made this same mistake on her first flip.

Holly asks Dirk to share what some of his strategies are when he is dealing with sellers. Dirk shares that for a while one of his strategies was to go after individuals in foreclosure. He had a team that would go out and door knock to find deals for him. He had one agent who was out door knocking and she found someone who was living in a camper on the front yard of the property. The owner of the home was living in a camper and renting out his home so that he could make the mortgage payments. Dirk was able to go in and help this seller turn his life around. Dirk took this house over as a “Subject to.”

Holly is impressed with Dirk’s knowledge on “Subject to” and asks him to share what that means for listeners who may not know about this strategy method. “Subject to” Means that you’re taking over the property “subject to” the existing mortgage, you are taking over the payments for the length of time that it takes to rehab the property until you are able to sell it. Holly reminds listeners to not discount the value that realtors bring to deals, without a relator Dirk may not have found this deal. Dirk and Holly both agree that it is vitally important to have a team of great agents on your team because as an investor you may not have the time to go out and look for these deals and it helps to have someone who is looking for you.

Holly asks Dirk to share what the most frustrating part of being an investor is. Dirk prides himself in being punctual and finds that he dislikes the waiting game. He advises listeners to stay on top of their proje

SREI 0039 Damion Lupo's rollercoaster ride from zero to $20M Feb 18, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Damion Lupo. Damion is an entrepreneur at heart starting his first business at age 11 – since than he has started 30 more businesses. Damion is also the founder of his own form of martial art, Yokido. Damion paid for his first rental house on a Visa card and bought 150 more houses in a 7-year time span and then went through a $20 million dollar meltdown in 2008. Today Damion runs an Austin-based FinTech dedicated to disrupting Wall Street. He has written 5 books and 2 more are being released in 2017.

Damion got the entrepreneur bug when he was a young boy in Alaska buying and selling Nintendo games. When he got older Damion went to college and was asked to leave because he started a bookstore on the campus that was putting the college bookstore out of business.

When Damion went through his business meltdown in 2008 he was working on buying properties because he wanted to do one deal where he would get paid multiple times over because the ides of flipping homes and getting paid once did not appeal to him – Damion wanted to become the bank, he wanted to go home and still have his money make money for him. Damion became very successful with this strategy and kept plugging away. Holly asks Damion to share with listeners what happened with his business when the crash happened and what he did after that. Damion shares that in late 2006 he was involved with 7 different projects - homes near Graceland, a condo development - but a year later he was dealing with foreclosures and lenders backing out. Damion learned from this that plans can be good but when you are faced with things that you can’t see or plan for you find out who you really are. When the crash happened Damion starting giving money back and properties back and started to unravel the mess that he was in. Damion admits that after the crash he ignored what happened for a few years and acted like it didn’t happen until he realized that he needed to face the music. When a person goes through a tragedy they need to fix it from the inside out, he needed to realize what was going on with himself so that he could heal from the crash and learn from it and make sure that it didn’t happen to again. Damion says that in his business he feels that it is important to work with people who have experienced a bad deal or something gone wrong because when things don’t go as planned he wants to make sure that he is working with someone who is able to stay on top of their game when the plan falls through.

Holly asks Damion to explain what he means by the green and red arrows of wealth. Damion says that in real estate you mostly see just green arrows going up. Damion met a woman who was always watching the news and looking at the stock market, seeing the green arrows and red arrows – she felt that when the market was good she wanted to celebrate and when the market was bad she wanted to get out. Damion helped her to get off the Wall Street rollercoaster to a point where the green and red arrows no longer mattered to her and she did not watch the news anymore to see where she stood financially.

Holly asks Damion to explain what he means by the Wall Street rollercoaster, he says that when you are investing you want to be actively involved in your investments and that you should not just check out. Damion likes precious metals because you can control them, the Wall Street rollercoaster is things you cannot control, and you are subject to fees and manipulation that you have zero influence over.

Holly wants to know Damion’s take on retirement and why he hates the word ‘retirement.’ Back in older times retirement was related to machinery or animals no longer being of use and they would get rid of them. People are so happy to retire and basically happy to be done and stop contributing to the universe. Damion says that what people need to be doing is setup for financial security and financial freedom so

SREI 0038 What Sharon Houseworth did when her flip didn't sell Feb 03, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Sharon Houseworth. Sharon has been a real estate investor for just a couple of years which is exciting because she is newer and also successful at what she does.

Before Sharon jumped into real estate she was in a couple industries. She worked with her mother who worked as a life and health agent - Sharon admits that this really wasn’t her thing. After that she went into the administrative field most recently a construction company which always had her interest. All of these jobs led her to property management and fixing and flipping.

When Sharon when was doing property management she says that she was kind of just thrown into it. Her family had always had rentals and when her mom got older she helped her to manage those properties. In 2009, her uncle passed away and Sharon inherited the 34 units that he owned and became the property manager for those properties. While she isn’t a licensed property manager she was still able to manage her own properties legally. Holly asks Sharon how much time these properties took for her to manage each week - 30 hours is what Sharon was working when she was managing these properties. She found that she had a lot of work because the properties had a lot of deferred renovations that she had to take care of and get up to date and up to code to make sure that she was protected as well as her tenants. Sharon until recently was managing these properties on her own, calling maintenance when things needed to be fixed and collecting rent from the tenants. Sharon recently turned over her property management to a licensed property manager so that she could free up her time. Sharon says that all of her time as a property management has taught her a lot but decided that she needed to move forward and do something different.

After the passing of her mother Sharon recalls hearing a commercial on the radio about learning going to a seminar to learn to fix and flip so she decided to do it. Sharon says that learning to fix and flip has been completely life changing for her.

Holly asks Sharon to share with listeners how she found a deal in Fallbrook that coincidentally ended up being on the same street as a flip that Holly was working on. Holly asks Sharon to share her insight on this deal, as well as her need to adapt to certain elements of this specific deal. Sharon found this deal by getting involved in an investment club for women after completing a 60-day challenge that they offered. From that challenge came this deal, Sharon was called by a realtor about this deal - this property that she was tipped off on was that this property was going to go to auction in 3 weeks. Sharon says that one of the biggest thing that she’s learned is that people come before profit and she was so happy to do this deal because she was able to help the man this man by keeping a foreclosure off his record, his house out of auction, as well as giving him $40,000 in his pocket at the end of the day. Sharon called some investors who might be interested in investing as well as investing in this area which is a little off the beaten path. Sharon cashed out an annuity as well as had a hard money lender who was willing to take a chance on her with her first deal. Sharon decided that she wanted to do this deal with her own money so that if she made a mistake, she would rather do it with her own money. Holly reminds Sharon and listeners that there is no such things as win or lose when it comes to a deal it is win or learn because you don’t know what you don’t know and the only way you will learn is by making those mistakes and that each realtor has bumps in the road and for those bumps they are made smarter. With this property Sharon needed to extend on it twice and was only charged 1 point on the second extension. Holly reminds listeners that there is always a charge for an extension. Sharon owned this property for close to a year when she d

SREI 0037 How to price your flip house to sell for top dollar with Aaron Hendon Jan 27, 2017

Show notes

On this episode of House Flip Masters Holly is joined by guest Aaron Hendon. Aaron shares his secrets on finding selecting a realtor to be on your team or to work with you on your investments. Aaron is a Seattle realtor, real estate investor, author, educator, and speaker. Aaron is also the managing partner of Christine and Company, a Seattle magazine awarded 5-star real estate agency winning team the past five years, he is also this years individual rising star in Seattle real estate winner.

Being a New York native Aaron finds that hustle is engrained in him that he uses to his advantage. Aaron graduated from art school and found himself waiting tables, and shortly after opening a bakery that he owned and operated for 9 years until he sold it. Aaron quotes author Daniel Pink saying that ‘to sell is human,’ as a business owner Aaron got into the sales business which ultimately lead him to real estate.

Aaron is an advocate for education, teaching first time homebuyer classes, he wants people to be knowledgeable about the other side of real estate so that they are empowered to make better choices in their real estate decision. Aaron is in the process of writing a second book to help people learn about the real estate process and what happens on the other side of the equation.

Holly asks Aaron when selecting a real estate agent what numbers do people normally focus on and what numbers should they focus on instead? Aaron says that people pick their realtor based on the number of units a realtor has sold or signs on homes being sold; a higher volume of units sold equates to a better agent. From the realtor’s perspective it looks great that they have sold a lot of houses but the number of homes sold does not tell you about the person’s performance or how much better they are than the next realtor. Aaron asks Holly what she looks for when she’s looking to buy a property - to maximize the bottom line in the shortest time possible. Aaron recognizes that this is important to a lot of flippers or investors and says that no one asks him how much over listing price he averages compared to the local market average; a question that you should be asking when selecting an agent. Aaron averages about 5% more than the local market average. When Holly asks how he does it Aaron says it’s all in his marketing plan, the way they set the price of the house, and not taking every listing. Any agent will take your home and price it at what you want, but not Aaron, if your home is not valued at what you want to list it at he will not take the listing because it is not going to sell.

Holly reminds listeners that a lot of time when a home is being sold, that home often has more value to the people that lived in it than what it is worth on the market. These people raised their children in these homes, made memories, upgraded the flooring 10 years ago - these sellers are often offended or get their feelings hurt when they cannot get the price that they feel that they deserve. As a flipper Holly reminds her realtor that her feelings will not be hurt by the price the home is listed at or what needs to be fixed because she is in the business of making money and getting in and out of the flip quickly.

When you select a realtor you need to have someone who is going to price aggressively and not overprice the home. You can get over your price when you have 4 or 5 bidders, but if you price too high people will not continue to look higher than what the home is originally priced at. To sell your home you need to be proactive and have a strategic plan in place to get the most people in and seeing the home to have a better outcome.

Holly and Aaron talk pricing strategy saying that you want a realtor that has come to you with the data; the market value and the trends of the homes selling in your area; they need to have the evidence because any realtor can say that they know the neighborhood but its they don’t have the ev

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