Flipping America 140, CompetitionFlipping America

Expected Air Date: 04/09/18

Opening

It’s a world filled with competition. Some of it is tough. Some is easy. It’s always changing. Here are some thoughts to help you charge ahead.

Hello everyone. Today I’m going to answer a question that has come to us hundreds of times from dozens of sources and seems like a recurring topic at every event where I speak. And the question is, “How can I start flipping some houses and buying rentals in my spare time while I keep my job.”

Now I know we’ve dealt with this topic before but it’s been awhile and we are adding new listeners all the time and besides, some information is so needed, it’s worth repeating. So in just a few minutes I’m going to deal with this topic and help you understand the big picture of what you need to make this happen.

I started in this business while maintaining a demanding full-time job and continued that way for four years. I only switched to real estate investing full time because due to life circumstances that other job had come to an end.

The other question or comment I often get is a variation of this: If you are helping people enter this business aren’t you creating your own competitors and reducing the opportunity for everyone you train? I’m going to answer that question first right after the break.

The bottom line is there are more opportunities than there are investors and this isn’t changing anytime soon. To paraphrase a famous quote about planting trees, “the best time to get into this business was 20 years ago. The next best time is today.” There will always be competition, but in this game, more than one person can win. In fact there can be many more winners than losers.

How to Reach us

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Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Announcements:

My upcoming speaking engagements:
- April 21, FlipStarter Atlanta
Details on the website and at FlipStarterEvent.com

News:

Topic: Competition

I believe in free enterprise, capitalism, private property rights, the rule of law, and limited government interference. I realize for a system like this to actually work, the general populace must not only agree about the rule of law but must also find common ground in agreeing about right and wrong. I also believe in Cooperative Capitalism. I do not believe that opportunity is a zero-sum game but rather that wealth can be created.

There are those that believe that for anyone to prosper someone else must suffer. For anyone to win, someone else must lose. Games or competitions have one winner and all the rest are not winners. You might even quote a stupid Will Farrell movie by saying “Second Place is actually First Loser.”

Although much can be learned in these competitive events, and we should relish competition for a number of reasons, it is possible for life itself to present multiple “winners.” Perhaps if you are keeping score in terms of quantifiable numbers such as “most money” there will be someone who finishes on top. But when it comes to money, once you reach a certain level, there’s almost no point in making more – there aren’t too many more ways you can spend it.

My point is this: You don’t have to make the most money in order to be a winner at life. If you make enough to take care of your family, meet your goals, maybe even have some luxuries, some toys, or some extras, you’re a winner. I’m absolutely convinced that it’s possible for me to help you achieve your dreams without taking anything away from me.

I can show you how to become effective as a real estate investor and in fact, you may ultimately be better at it than me. Does that take anything away from me? Not at all. One of my stated goals each year is to help people. If I am able to help someone, that goal is met and is self-rewarding.

But let’s move away from the philosophical and talk specifics for a moment. Is it possible I could give you the skills that would put me out of business? Let’s go to the numbers. Last year 5 million homes were sold in the US and about 7% of them were flips from investors. That’s roughly 350,000. Is there room for that number to possibly increase? Well — let’s take a look at the vacant home inventory.

The number of vacant homes in the US has held fairly steady in the past five years at between 15 and 18 million. I have a study from lenkiefer.com that looks into the reasons for these vacancies. When I look through the report, it appears that about 46% of all vacant homes are in a situation that would be available to investors. These categories include, “needs repairs” “extended absence” “storage” “foreclosure” “abandoned” or “other”.

If you had a way to find these properties and contact the owners, surely some of them are ready to sell. There are 7 or 8 million of these homes nationwide, available to people like me. That’s more than the total number of homes sold last year. Investors accounted for about 350,000 sales across the country last year. Based on the inventory and the current level of investors there’s a 20 plus year supply of properties available RIGHT NOW. And more distressed properties and abandonments are surely on the way. It’s the nature of things.

If one investor can do a dozen houses per year and we wanted to sell the current inventory of vacant homes it would take close to 700,000 new investors.

—- I’d say there’s room for a few more, wouldn’t you?

Topic: Getting Started in my Part Time

We say nearly every show, “We don’t encourage everyone to drop what you are doing and start flipping houses like they do on TV, but we do encourage everyone to consider real estate as a part of a balanced investment portfolio.” But the TV shows continue to create waves of people interested in figuring out a way to quit their job and do this full-time. So people need a path into this. Since that’s what you need – I’ll be happy to provide.

The first thing I need you to understand is this business is not all fun, games, and big checks. Some days there are nothing be problems. To be truly good at this is to be good at solving problems. You also need to commit yourself to the tedious tasks. Deals don’t just fall into your lap. You have to get out there and continually prospect for them. While you’re out there, deals will occasionally fall your way, but as Ben Franklin said, “Opportunity tends to dance with those who are already on the dance floor.”

So let’s begin by taking inventory. This inventory consists of the following general categories:

Thoughts about the future, Vision, Goals, Plans
Current employment situation, Happy? Future? Career?
Family situation and obligations, Married? SO? Kids? In the future?
Available time. Number of hours you can consistently give this each week.
Cash on hand. Dollars you could put into a deal that you could afford to lose.
Skills. Construction, negotiation, analytical, research, legal, real estate
Personality type, introvert, extrovert
Connections, people with needed skills (see 6)
Information. How much do you know?
Learning style: How do you learn? Reading? Audio? Hands-on? Seven different styles. Know yours. Be intentional about getting training in a style that works for you.
Training source
Mentor
Path

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, Madison, WI, “How do you handle multiple offer situations when you are buying? It seems like every time I make an offer, they have multiple offers and want a ‘Highest and Best’ offer, usually within 24 hours.”
Michael, Spartanburg, SC, “Do you ever go above your numbers due to the fact that deals are so hard to come by these days? I’d rather make something than have my money sitting on the sideline.”
Melissa, Marion, OH, “We want to improve our deal marketing. What advice would you give us?”
Peter, Battle Creek, MI “How many offers do I need to make in order to buy one house per month and how much time will that take me?”

Questions@flippingamericaradio.com Tell us where you’re from!

Transcript

[0:00] Music.

[0:28] It’s time for flipping America the show that teaches you how to make money in real estate or wherever you are whatever your situation there is an opportunity for you,

flipping America is brought to you today,

Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital solutions.com.

And now you’re sad flipping America guy Rodger Blankenship I’m going to answer a question that has come to his hundreds of times.

From dozens of sources and seems like a recurring Topic at every event where I see,

hey it’s great to be with you I am Rodger Blankenship I am the flipping America guy and I teach people how to make money in real estate and I hope that I can teach you and help you today.

One of my primary purposes in doing this show is to bring you

the information that you need to make good decisions about real estate now we say it all the time I’ll say it again I’m going to stay right here we don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV,

there are many ways to invent involve yourself in real estate investing and in fact I also say this all the time too that’s not even real investing that’s basically a business opportunity what you’re doing there is buying yourself a high-paying job.

[1:45] I’m all in favor of it I do it myself and it’s a great way to make a living but it’s not for everyone.

Many of you out there have jobs that are suitable for you and they’re in an area that you like it’s where you want to be but you got some money and so to that end we encourage people to we we we encourage everyone.

To have real estate as a part of a balanced Investment Portfolio now the question that comes to me all the time,

and it seems like everywhere I go and emails come in,

it it did people are just asking this how can I start flipping some houses in buying rentals in my spare time while I keep my job related to that is another question should I quit my job and start doing this

and to that I always rushing and say no don’t quit your job don’t stop

doing what you’re doing that brings the provision that you need for your family and for yourself and also stability

if you jumped into this business right now and you were able somehow to find a house to flip tomorrow it would be 4 to 6 months before you would realize income from that please do not quit your job.

[2:55] All right I hope I stress that enough now I know we’ve dealt with this topic before

but it has been a while and we are adding new listeners all the time and besides some information is so needed so vital so important it’s worth repeating so in just a few minutes I’m going to deal with this topic and I’m going to help you understand,

the big picture of what you’re going to need to make this happen I started in this business while maintaining a demanding full-time job and continued that way for 4 years I only switch to real estate investing full-time,

because due to life circumstances my other job and come to an end.

[3:31] The other question or comment I often get as a variation of this right here if you are helping people enter this business aren’t you creating your own competitors and reducing the opportunity for the everyone you train.

I got that question again last week I was standing at the courthouse steps you know and

during the course of normal conversations with the various people around there one of the ladies asked me that question will you if you show people to do that how to do this aren’t you going to be betting against them in a month or two.

Alright I’m going to deal with that question right after the break I’ve I’ve heard this question all the time and,

I get kind of a little bit passionate about my answer to it but.

The bottom line is there are more opportunities and then there are investors and this isn’t going to change anytime soon

to paraphrase a famous quote about planting trees the best time to get into this business was 20 years ago the next best time is today.

[4:33] All right,

so I want to tell you how to reach us because we want to answer your questions were absolutely committed to helping you I hope that you understand that but you can find a wealth of resources at www. Flipping American net worth,

come now little worried about the website the website is relatively new it’s only been up since the first of the year and that when we first put the side up.

We didn’t have a lot of content on it and we’re still working on that part but by the time we did the website then and actually got it up we had a back catalog of close to a hundred shows

and it’s taking a little bit of time because you know vox’s the radio is not a full-time gig for us and.

You know it really doesn’t pay the bills so it.

[5:18] The radio gets done we do the show on schedule but the radio of the posting and that sort of thing has to get done when we can in the meantime we’ve got to pay the bills by flipping houses and doing what we do so.

Over the weekends I am working on catching up with the back catalog now last weekend we added another 11 shows or so.

And all over this past weekend I created the artwork for 43 shows and so,

probably sometime during this week we’re going to post another 43 shows and it is true that if you listen to the entire,

catalog of flipping America shows you’re going to have a wealth of information and training and knowledge how to,

get involved in real estate investing and you’re going to know the market very well because that’s what we do we talked about all of those things we talked about the markets the trends.

What’s happening.

[6:17] Real estate investing in a lot of different local areas and even around the world and different asset classes and that sort of thing.

Know what we’re doing when we posed to shows his were also posting the show notes

and you’ll see as you would go back further in the time now when we get down in the first 20 or 30 shows you’ll see a continual refinement in our

show notes they’re just getting a better we’re figuring out a little bit more how to do this,

hey we’re about to celebrate our one-year anniversary in fact I think we just came past our one year anniversary for doing the show so having been end of the year,

and being told by her syndicators that we have 250,000 listeners to every show it’s just an honor to be here to serve you so check us out at flipping American network.com,

also all the social media you can find us,

flipping America if you’re looking on Facebook you need to just put in flipping of facebook.com flipping America media,

and that will take you to her page but we’re on LinkedIn we’ve got a YouTube channel and we have a national telephone number a call in line 404-369-1018 extension 1.

What we’re discovering is that most of today’s listeners would prefer to send us an email.

And you know that’s okay it doesn’t really matter to us how you contact us just contact us.

[7:40] Music.

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[9:20] Music.

[9:41] For that first break but.

Let me just give you a heads up if you’re in the Atlanta area or willing to travel to the Atlanta area if you can be here on April 21st you can get an entire education in flipping houses in one day.

Is it everything you’re going to need to know of course not you couldn’t you couldn’t start at daylight and go till Sundown and talk continuously until you

pretty and everything you ever going to need to know but we’re going to take about 6 hours of instructional time and we’re going to lay on you

the information that you need to get started in this business it’s an event that we call Flip starter because it’s designed to help you get started.

[10:25] We make these promises number one it’s not everything you’re going to need to ever know we can’t tell you that in 6 hours and 6 hours I couldn’t even tell you all the stuff that I have learned in forgotten so he’s promised number two.

We’re going to tell you everything that you actually need in order to get out there and get going and my friends this is the most important part of this you’ve got to get out there and get going.

Just got to know the basics of finding the right house and making offers if you can get started doing that you’re going to be all right.

If you’re if you have brains in your head if you don’t have brains in your head forget this don’t come to this event but if you have some brains in your head

once you get going in this you’re going to figure out a lot of what you need to know and besides that you’ll hear about some other training that we can do you you may even be eligible for mentoring program,

that doesn’t even really matter in one day one day 97 bucks

you can find out what you need to know to start a business that could turn into a career but certainly could be a blessing to you and your family and

I can’t imagine a better opportunity for you to do this that we know that.

[11:47] A lot of you can’t make it to Atlanta on April 21st because this is a nationally syndicated show and many of you my dear listeners are

sitting there in Colorado Springs or Las Vegas or Long Beach California and you just not going to be able to make it over here for the one-day event well

I’m saddened by that but we’ve got good news for you

because you also have the opportunity on our website to get the flip Starter video series now the video series is a little bit more because.

It comes with 12 weeks of support calls we do a weekly call on Tuesdays and,

this is an opportunity for everyone who has purchased the flip started video series to just participate in the call and get your questions answered.

If you’re serious about flipping houses folks there is no better way to start then flip starter you can find it on the web at flip starter event.com just go to flip starter eave vent. Com.

[12:50] Okay now a little bit we’re not going to focus too much on the news today

have the new stories that I have that I’m going to post on social media I’m going to reference in the answers to the questions and so I want to just go ahead and dive right into this I won’t be able to finish this before we go to the next break,

I’m going to start it in this segment and I’ve got to deal with this issue of the competition all right.

I want to begin by saying I believe in free enterprise capitalism private property rights the rule of law.

And limited government interference.

Now I realize for a system like this to actually work the general population must not only agree about the rule of law.

Also must find common ground and agreeing about right and wrong

that’s a topic that we could unpack a little bit more later on but I was in the weight room with my son just this morning and we were talking about the fact and I asked you this out here for him to think about I said Son,

here’s something for you to chew on and think about.

In the absence of an agreed-upon moral code the only government that will work is a totalitarian police state that he’s 21.

And he had some questions about it but it was an engaging conversation while we were Pumping Iron that’s off the subject a little bit.

[14:16] In light of the fact that our country was established on these principles we’ve drifted away from a little bit but I do believe that we still have free enterprise,

the rule of law and capitalism and private property rights to for the most part

in this country but I also believe in something else that I called Cooperative capitalism I do not believe that opportunity is a zero-sum game but rather that wealth can be created.

There are people that believe that for anyone to prosper someone else must suffer for anyone to win someone else must lose.

There people that believe this and they’re people that that live like this and your people that do business like this and they could not be more wrong.

[15:08] I know that when were young we play games and we participate in sports and.

We keep score it’s I guess Human Nature

I’m fighting if you want to and I remember all of my kids played in when they were little bitty ones they played in certain little leagues at idealistically you know they didn’t want the kids to feel like losers and so they didn’t even keep score we’re talkin preschool stuff,

I guarantee you that

the parents were keeping score and the kids may not have known who won but the parents knew who won and we’re going to go for ice cream after the game little t-ball game no matter what but.

[15:50] Games or competitions will have one winner and all the rest are not winners so are they losers,

not necessarily I believe in keeping score and I believe in that games and competitions provide a lot of good life lessons for us,

I think though that you kind of go overboard when you take the idea that there is one winner and everyone else is a loser

and apply it to life in general you could quote a stupid Will Ferrell movie by saying second place is actually first loser although you can learn a lot of these competitive events we should relish competition for a number of reasons.

Possible for life itself to present multiple winners.

[16:38] Music.

[16:55] Flipping houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them,

and I also have some training and degree and experience and education so I could show you how to do exactly what I’ve done hundreds of times don’t believe me.

Head on over to flip starter event.com but in the meantime Give a listen to Pat caywood my name is Pat caywood.

[17:20] Cleveland Tennessee and I’ve been.

Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Rodger Blankenship.

Learning about his program and boy do I wish I’d met Rodger.

[17:43] He has a clear concise program and many tools that are going to be very hot.

[17:48] And starting and managing the program and the mentorship and Leadership and coaching that he’s offering our invaluable.

Thank you so much Rodger for your time and sharing.

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[18:37] Music.

[18:55] Then we talked about multiple winners I’m not really talking about a win-win scenario and I like women scenarios fat that’s fine

or even a win-win since when win-win scenario and I did a whole show on the multiple wins in Aereo how everyone wins when we really have a house in the community you can you can,

think that way if you want to but what I want you to think is hate let’s just stop keeping score.

[19:22] All right for the purpose of the way we do business let’s just not keep score.

You’ve heard me mention on this show that we do lunch once a week here in Atlanta whenever I’m in town.

I go down to my favorite little Italian place and I let everybody know where it is it’s right here on Peachtree Street in Midtown Atlanta.

[19:46] I just walk down there from the office and whoever wants to come and network and talk about real estate as welcome There’s No Agenda there’s no.

Ghetto schedule except you know I want to start at 11:30 and be done by 1 the agenda is basically set by whoever shows up in the questions that they have we’re just talking real estate.

[20:09] I don’t charge anything for this people are are welcome to ask me anything and I answer all the questions to the best of my ability,

sometimes I have some of my fellow and experienced investors there with me and they know they just jump in and come in whenever they want to but if they’re there,

I will involve them in the answering the questions and some of them are people that,

actually you are in the training space like I am where we don’t get paid to teach people how to flip houses and invest in real estate in that sort of thing but this lunchtime it’s all free.

[20:42] And flipping Atlanta the once-a-month meeting on Thursday night coming up this Thursday and back it’s free why do we do this.

Because we want to add value to a lot of lives every year I make one of my goals help people.

And it’s just one of my goals and I’ve heard a specific number to that sometimes but you know and that’s just that’s private for me but,

if I said their lunch and I’m able to truly help someone and I see the light bulb come on in their brain and their eyes light up and they get it and they go out from there and they put something into action and they have success

I want to lunchtime guys is about to close on his first rental house this is exciting for me and.

In order for him to win on that deal it doesn’t mean that I lost anything I didn’t lose a thing.

I believe that we can help each other and it will come back to us that’s what I mean by Cooperative capitalism.

[21:46] If you were keeping score in terms of quantifiable number such as the most money then there’s always going to be someone who finishes on top.

But when it comes to money when you reach a certain level there’s almost no point in making more there aren’t too many more ways you can spend it and you know I know that the other people will have a higher.

Capacity for spending than I do and some people will have a lower capacity we’re all a little bit different in the things that we want and if we dreamed up or ideal life what it would cost that’s okay but the point is

all of us can do well and none of us have to take from anyone else

even our fellow Real Estate Investors but also the general public we can add value to people’s lives and we can create wealth basically out of thin air or in our case we’re creating wealth out of

derelict and disregarded properties my point is this.

You don’t have to make the most money in order to be a winner at life if you make enough to take care of your family meet your goals maybe even have some luxuries some toys or some extras you’re winner.

[22:59] I’m absolutely convinced,

that is possible for me to help you achieve your dreams without taking away anything from me I can show you how to become effective as a real estate in vactor investor and in fact you may ultimately be better at it than me.

Honestly that’s not going to be too hard does that take anything away from me not at all one of my stated goals each year is to help people and if I’m able to help you and then my goal is met and that is reward enough for me.

[23:29] So Cooperative capitalism you know the saying what goes around comes around

you can call it karma you can call it the law of sowing and reaping I just believe that if I help people it’s going to come back and benefit but hey we’re not going to stop here next break I’m going to give you some numbers to please but there is plenty of opportunity for it to go around

hang in there we’ll be right back.

[24:01] Are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand that I used to be in that 78.

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[25:31] Music.

[26:01] This is the show flipping America I’m Rodger Blankenship your host I’ve known as the flipping America guy and I teach people how to make money in real estate,

they were talking about that a little bit today and we’ve been talking about Cooperative capitalism and the reason why I am so willing to give of myself of my time,

and the experience in a knowledge that I’ve gained over 15 years in this business and hundreds and hundreds of properties that I flipped but I want to move away from the philosophical and talk specifics for MoMA.

[26:32] Is it possible that I could give you the skills that would put me out of business.

I say no but instead of just basing that on my feelings let’s go to the numbers last year.

5 million homes were sold in the United States in about 7% of them were flips from investors that works out to about 350,000 houses know that sounds like a lot it is a lot.

Is the room for that number to possibly increase well let’s take a look at this vacant home Inventory

so I done some research on this the number of vacant homes in the United States has held fairly steady in the past five to ten years between 15 and 18 million

that’s 15 to 18 million vacant homes now for years ago you were seeing a lot of,

the articles about the 18 million number being thrown around and it’s come down a little bit but still 15 million vacant homes in the United States how many sold last year in the us all together

5 million how many of those were accounted for by Real Estate Investors 350,000 but hey.

There’s 15 million sitting out there vacant.

[27:46] Okay I have a study from a website and I’m I’m pronouncing it Lynn kiefer.com and I’ll link you to it on social media so you can look at it yourself.

The people at Lynn kiefer.com looked into the reason for these vacancies and when I looked through the report

there are number of different reasons a home would be vacant think the highest reason would be personal or family reasons that would be such as.

The it’s a vacation home or it’s a second home.

Or the primary occupant of the home has now moved to assisted living or nursing home and the family still owns the house okay and now in that case that house may be available to be sold but.

[28:32] Let’s just leave it in that category and not even counted when we count the other categories that include needs repairs.

Extended absence.

Storage I’m not sure what storage actually means but it accounted for about 10% of the homes that are vacant this is mean that they’re using the home as

you know like a mini warehouse I don’t know if you don’t put a house in storage so I’m not sure what they were doing with it then summer in foreclosure,

our had to have been foreclosed some are abandoned and then there’s a category called other which is a broad category or not specified.

I enjoy I’ve included the all of these categories other abandoned foreclosure storage extended absence needs repairs have included them as possible prospects for us they account for 46%,

of all vacant homes.

Okay so if you had to it if you had a way to find these properties and contact the owners Shirley some of them are ready to sell.

Based on what we know there are seven or eight million of these homes Nationwide available to people like me and if you’re a real estate investor when investing in single-family homes like you.

[29:54] Write 7 to 8 million.

How many got sold last year in the United States former that number is 5350000 by investors Okay so,

investors accounted for 350,000 sales across the country last year,

based on the current inventory and the current level of investors there is a 20 year supply of properties available right now,

and more distressed and Abandoned and vacant properties are surely on the way this is the nature of things the chances of dying are still 100%.

Everyone his Quinn to experience it so people died people move out people move on.

And homes get abandoned is so that number is not static,

if we applied all of our resources to the vacant homes in America right now we would barely make a dent in the current level and it would replenish.

Probably had a level kind of equivalent to what we’re doing right now.

[30:59] There’s room for us it if we wanted to just think of it this way.

[31:05] If one investor can do a dozen houses per year and we wanted to sell the current inventory of vacant homes.

It would take close to 675,000 New investors.

[31:20] All right now I would say based on these numbers there’s room for a few more investors would you agree.

So how is it taking away anyting if I show someone how to do this and I know alright the next thing is well

there are only a limited number of opportunities in your area and if you’re training people in your own area they’re going to be going after the same opportunities you are you know that that seems to make a little bit of sense,

on it on the surface but let’s look at it let’s just bring this home to Atlanta.

So if I do a little bit of research on vacant homes in Atlanta Georgia where I live and where the flipping America show originates.

I find that in the metropolitan Atlanta area right now today there are 80 thousand vacant Lots.

[32:19] And that are developed vacant and develop lot Cesar lots that have sewer and water available to them and in most almost all cases a paved road going by 8000 lot.

[32:36] Do you think that I could pick up a few of those at a price that would make it worth building on absolutely okay now,

we have a group that is the local chapter of flipping America right here in Atlanta and we call it flipping Atlanta and by the way if any of you are interested in checking it out you can look on meetup.com flipping Atlanta and they report our membership numbers right there and you will see that our membership

right now is hovering around 3 1350 members that’s 1350 Real Estate Investors that are part of our group that’s kind of cool,

that’s interesting but that’s a lot of investors.

Well what if every one of those investors where to buy you know one of these lots and a build a house on it.

[33:29] Okay so.

That would leave us about the 68,000 bacon Lots what if we did Lots now.

One of our strategies for finding inventory is to buy a houses at the Foreclosure auction and I know that it seems

just to the uninformed it seems incompatible with a caring lifestyle that you would go to the auction and buy the houses where these poor people are losing their houses

I understand that thinking and I have wrestled with this myself and I’m not trying to defend myself here but I am going to say this,

we don’t cause the people’s problems we simply by the houses.

And in fact when we buy the houses because of our cash for keys program sometimes we make life a little easier for the people who just lost their house

they didn’t lose their house to us they lost the house to their lender they lost the house because of Life circumstances that are beyond our control

and I or maybe bad decisions honestly sometimes it happens that doesn’t change our graciousness toward the people in our generosity toward them and our desire to help them with cash for keys and now I say all of that to say this.

[34:49] Every month.

In the run-up to the Foreclosure auction and after I get finish with his show today my next task is to download the data for the next auction we will have about 5000 properties to Wade through

look at and sort through and contact to give us a,

kind of an opportunity for something to buy in the next 30 days.

Out of the 5,000 will we get one or two probably is there room for a few others to buy a few absolutely okay it will be right back.

[35:25] Music.

[35:38] Hi it’s Kathy Curtis here for the Whitestone Real Estate Investors Institute will you can start a new career for as little as $500 now I want to be upfront with you the programs cost more than that but the Institute offers financing for most of its programs

the cool thing is that you’ll be able to pay off that financing quickly usually with the profits from your first deal and you will do a deal because your coach isn’t going to let you go until you’ve done at least one

I have Hayward on the phone right now Hayward introduce yourself and tell us what you think about the coaching so far.

Call my name is Hayward Bryant Junior

actually stepped into this not really knowing anything about it to be honest with you but I knew it was you no money in it I knew it was something that I want to do

cuz I want to try and so I kind of got geared up to read a lot of books read lot of information and just do all of these things that was going to kind of set me off for,

78 months in preparation but I got with my coach and you know he definitely

is that me out there I mean just from the get-go it was just holler at you know it wasn’t you know real pain this or read up on that you know he gave me a lot of information as we want you put me out there and gave me a lot of action thing,

do physical and I think that you know I couldn’t have learned two things that I learned in the way that I’ve learned them no other way.

[37:02] Hayward what would you say to your friends were thinking about signing up for this training.

I think without a doubt that anybody who has any kind of interest in dealing in real estate,

they need to join this course because like I say I mean I walked in that no anyting but immediately.

I would make an offer in and just dealing with lenders than just that you know,

checking out houses physically and just saw it was so much I was involving you know about myself with from the get-go and my coach you push me to do that,

I was kind of nervous at first cuz I didn’t know anything but you know once I start I realize that it wasn’t so bad and I and I learn quickly,

quicker than I would have liked I say taking any other route so I would definitely advise anybody.

Not just my friends but anybody to the gym to give the program,

friends here’s a chance to add another source of income for you and your family get out of debt pay for college or maybe even find a new career just go to www.wreg.com and get started today.

[38:12] Music.

[38:21] That was all of the proceeding that I’ve said I don’t mean to imply that this is simple.

[38:28] But let me let me back up I don’t mean to imply that this is easy it actually is simple it’s not difficult to find these opportunities.

It’s not difficult to find vacant homes or vacant Lots it’s it’s really not difficult at all.

Where it gets a little more challenging is translating the finding into actual dealflow this is where it becomes work.

Now look if you want to be in this business you’re going to have to talk to people.

There’s no way around it if you hate people or if you’re afraid of people you just going to have to get over it or.

Going to a different business okay.

That’s it. You have to talk to people you have to be unafraid to pick up your phone and call a number or sometimes to go and knock on a door and say to someone.

Do you know I know whatever you say to him but are you interested in selling your house is what you want to get to and try to buy their house.

You have to also be willing to take no for an answer you have to be just steal yourself your nerves your courage or whatever and prepare for rejection.

[39:42] You’re going to get told no you’re going to get told no more often then you get told yes that’s a part of it but.

The other part of it is if you do this often enough eventually you’re going to get told yes.

And those yeses are going to be well worth all of the knows that you here besides that.

You’re going to get better at this as you do it,

let’s listen you’re not going to get better at this by listening to me three times a week I appreciate you listening to me 3 times a week but this isn’t going to do it for you

if you join BiggerPockets which I suggest that you do if you get information if you get out there and you dig around on the internet

and you join your local Ria which I suggest that you do and you’re doing all of these things you’re not going to improve your skills as a real estate investor.

The only way to improve is to get out there and get going that’s the part that people seem to miss.

[40:45] This is why most of the people spend money for a training and I never do anything with it and this is why the flipping America mentoring program is in the Tatian only.

[40:57] Our path is and look on I’m kind of revealing this the secret sauce here but our path is we want you to come through something like flip starter and we want you to demonstrate for us in some way.

That you are actually going to apply the things that we teach you if we accept you into the flipping America mentoring program or if we invite you into it

it will be because we are convinced that you’re going to succeed in this business and

then we’re going to pour our lives in to you to give you the skills that you need to make a half a million dollars a year or more.

[41:34] Okay but it’s not for everyone.

[41:37] So we’re going to find out whether you have what it takes by giving you a few little we know other things to do to see if you’ll jump out there and do them.

All right.

[41:50] So we have the 1300 members and the flipping Atlanta Group are all of those people active investors I don’t think so.

[41:59] I’ve tried to figure out what is the number of active investors across the city of Atlanta and I really can’t,

figure it out I don’t even have any way of knowing I certainly don’t know them all but

I’m going to guess there are probably four or five thousand people in this city who are making their living full-time as Real Estate Investors.

Probably another 10,000 who are trying to get something going there maybe they’re trying to wholesale houses or something like that.

And maybe they will make it and maybe they won’t usually the people that make it get their first deal under contract in the first 3 months.

And the ones who don’t do that probably aren’t going to spend the time that they need to make it happen all right so let’s just say.

And I don’t even know that this is true but let’s just say there are 5,000 investors in metro Atlanta is there room for another one yes there is.

[42:59] There’s so many opportunities so many vacant property so many abandoned properties so many.

That are going into foreclosure still even though foreclosures are at kind of a historic low.

Still have and they’re always will be a certain percentage of homes that go into foreclosure all of these foreclosures represent opportunity,

all of these people that moved away and didn’t sell their house because they were upside down and it turned it into a rental house and they’re sick to death of it now because it’s hadn’t been a good experience,

and they just want to get rid of it,

if they could get what they owed on it when they moved away they would be all right with that and now because the way the market is come back the houses are actually have some equity in them these are deals waiting to be.

Waiting for you to find.

If you will put the hard work into it if you will do the things that are required the things that we teach our other people teach if you’ll just dive in and actually do it.

You can create the life that you are looking for and the career and the successful business that you want.

You can and it doesn’t matter there are certain things in this business that just don’t matter it doesn’t matter.

What the market is it doesn’t matter what the economy is and it doesn’t matter how many other people are trying to do it there’s opportunity for you.

[44:23] One more case in point then we’re going to go to a little break here

I at the Foreclosure auction the other day where I encountered the lady who was asking me if I wasn’t training at my own competition and so forth this was a small County on the outskirts of Atlanta and there weren’t very many foreclosures it’s definitely,

not one of those counties were a lot of things are happening and that’s okay we went there to scout it out we didn’t even take any money this month

course we didn’t tell anyone there that but we were just there to scout it to see what the possibilities were if we wanted to come back with money next month we tend to do this when we’re going into a new County well guess what.

There was a property later on in the morning towards noon time they went back to the bank for the opening bid because there was no one else left there who had any money to buy it and if somebody had bought it they could have made 70 or $80,000

maybe more on a $200,000 investment.

So that’s just one little story that’s not definitely a research study but that lets me know there’s opportunity out there folks it’s opportunity everywhere everywhere you look just got to go for it.

Not too long ago we did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.

[45:44] Peter Faulkner here I tended a one-day flip starter training session led by Rod.

[45:51] Amazed to see what has happened in Rogers Live from the last.

[45:56] Flipping over 800 houses and then this one day training he told how he did it and what.

Falls the blessings the benefits.

And how to do it and I was so impressed with how well organized and how smooth the training went today you’re tempted or in courage to go.

Not a bad price and if you get a chance to do it even just to consider invest.

But I just want to thank Rodger for a great day to die and appreciate what he’s doing thank you.

[46:29] Music.

[46:45] I told you at the top of the show that we would do the topic getting started in part time but you know I’ve kind of waxed on about the idea of competition I feel very.

Passionately about it actually not taking up too much time so I don’t have enough time to give the getting started in my part-time.

[47:05] Adequate coverage so we’re going to say that topic for another day will come back to it I promise we will and what we’ve decided to do is go ahead and take a couple of email questions that are kind of related to the competition.

Issue and deal with them all right so Francine from Madison Wisconsin

has asked how do you handle multiple offer situations when you are buying it seems like everytime I make an offer they have multiple offers and want a highest and best offer usually within 24 hours,

okay Francine this is a good question we run into it too of course when I run into this situation this is kind of.

I got kind of make an exception to my general rule I make a lot of offers without ever going to visit,

property and if I get one under contract then we get out there immediately and do our due diligence inspection and make sure that everything is going to work and

that we didn’t miss it too badly on her picture based rehab estimate okay but this situation.

That tells me that you know we’re leasing the ballpark now honestly I’m going to tell you we don’t win very many highest and best because my highest and best and always seem to be as high as other people will go.

And I want more on that within the next question but.

[48:26] I will typically go on out to the property at this point and take a closer look at it,

because I want to I’m a basic they’re going to put in my Max bid in order to put in a Max bid I want a pretty good idea what those repairs are going to be I don’t want to do this site on scene so,

will visit the property will make a list of everything that needs to be done will come back and spend some time thinking about it.

And the added up and front you the numbers and will,

you know we’ll take another look at the arv and and see what’s going on and what we think will be in the future but you know we don’t make our offers in this is probably why we miss a lot of them we don’t revise our offers.

To be what we think the house will sell for in 6 months we stay with our 70% of you know all in based on what things are selling for now.

And this could be how we miss some opportunities,

but we’ve learned the hard way that we would rather Miss some opportunities then take a lot of risks on what might be because no one really knows the future and I’ve been predicting for

Bill 8 months now that we’re going to see a Slowdown in the market.

[49:42] I don’t think they were going to see a reversal in Atlanta and I don’t even think Atlanta is going to slow down as much as some of the other markets were talking about but.

I generally Nationwide we’re going to see a slow down so I don’t want to bet on that future value I want to make my offer based on

the current

value now it is a future value because it is the after repair value but it’s an after repair value based on the solds in the community right now that we can compare to.

[50:16] There may be some properties in the neighborhood that are listed at a higher price that may make the deal even better later on but we’re going to

I’m going to stick to our guns and make the offer we just like to do this with a little bit more of an accurate number on the the rehab costs.

Would you like to get out there thank you for answering Michael from Spartanburg South Carolina says.

Do you ever go above your numbers due to the fact that deals are so hard to come by these days I’d rather make something then have my money sitting on the sidelines.

Okay Michael this is also a good question is one that we get asked from time to time and the answer is really we don’t.

We don’t because so far we haven’t had to but occasionally.

Will will fudge a little bit and I can understand your reasoning if it.

If you got cash and it’s just sitting there you’d rather do something with it then nothing.

But you know the minute you tied up into a AC deal the a deal might come along and I know it’s it’s hard because you don’t know that the ideals going to come along.

It’s so you’re even have to make decisions I definitely would not leave myself with no cash while I’m out there doing little Pino see your C plus deals.

The other thing that I would like to do here is.

[51:42] Not borrow any money if I’m ever if I’m ever thinking about her going to consider going above that 70% all in then I would not do it with borrowed money at all ever.

Listen friends if you’re going to borrow money,

hard money or private money rates if you’re going to borrow money to do your deal so you should never be all in at more than 70 to 75% 75% it’s an absolute top number if you want to make money.

Just don’t be in the deal for more than that because too many things can go wrong and if if a few things go wrong.

If you have some real surprises and extra expenses or delays and selling then you’re going to be losing money.

[52:28] I know it doesn’t seem possible when you have that kind of a gross margin built in but it does happen.

And it could happen you don’t want this to happen to you so if you’re borrowing money do not break your rules if you have your own money,

or if you have an equity partner who is willing to go ahead and make a little bit less of a return Then maybe you can break the rule to win some more bids for Mike on this out there because you didn’t really ask this but.

Based on my conversation with Mitch Stephen we had him on the show a while ago and what he does by buying houses

pre having them and then selling them using owner financing he takes his financing source and does a wrap,

mortgage instrument it’s kind of an advanced strategy but he is making money on the down payment from the buyer plus the spread between the payments each month and.

This is a beautiful thing and I’ve been studying what he’s doing I admire it and I’m learning and we’re planning to put this into practice in a case like that you might be able to go.

[53:36] Do as high as 80% of a RV with your all in price this is only going to work if you have

unlimited Deep Pockets or you have a continuing renewed source of private money that’s out there that you know you’re going to

always have enough money to be able to afford these longer-term deals because if you have a fixed amount of money then you will run out of that money.

[54:06] Melissa from Marion Ohio says we want to improve our deal marketing what advice would you give us.

[54:14] Well my first advice would be whatever you decide to do do it consistently stay with it.

I would also suggest that you know there are 10 or 15 things that you can do to find eels don’t try them all at once.

Pick him up on the time take the one that you might be most comfortable with and begin with that and do that and knock it out until you’ve got it going and then take on another one.

And I want you take on another form of marketing keep working it improving how you approach it what you’re doing and don’t give up.

Because you’re not going to get results from any marketing effort the first time you do it.

[54:55] The results are going to happen after multiple repetitions you have to get out there get out there get out there do it.

Do it and do it mail it mail it mail it take the calls communicate with people.

Over and over again this is a numbers game the people on TV make it look easy.

Folks it’s a TV show I know it’s called reality shows but they’re not showing all of the reality the reality is.

It’s always been a challenge to find those deals

when you see them on TV just kind of falling into deals that does happen every once in awhile and it happens particularly to people who are already out there,

putting their nose to the grindstone and making things happen to find the opportunities

when you find one opportunity you may find another one right around the corner has Ben Franklin said opportunity tends to dance with those who are already out on the dance floor so get out there and get going.

Whatever you do do it all the time do it consistently and do it well and you’ll find the result that you want.

[56:11] Peter from

Battle Creek Michigan says how many offers do I need to make in order to buy one house per month and how much time will that take me this is an excellent question and I wish I could give you actual numbers based on some sort the market study but,

really the answer is it depends on local conditions and it depends in part on your effectiveness,

I’m going to speak generally from my own experience here okay how many offers do I need to make an in order to buy one house generally for me it’s been about 20

I make about 20 offers I get one accepted I am you know I make offers even to wholesalers and usually,

the offer that I make is less than they have it under contract for oh well so sorry so sad but you know that’s their tough luck alright so it’s it’s one out of 20 that you’re going to get in so if you want to.

Buy one house a month.

[57:08] Then you need to basically make one offer everyday and folks look this is this is reachable and attainable for everyone and we’ll get into this when we do the show on buying houses in your part-time but.

If you need to buy one if you want to buy one a month and that’s pretty aggressive right there Peter if you want to buy one a month then you just need to make one offer a day Monday through Friday.

Just make one offer every day that means you’re going to have to sort through,

about 30 or 50 houses everyday to make one offer but make one offer everyday and you’ll be buying at least one house every month how long does it take you to make that offer.

[57:49] If you do a good job with your research now do you remember I said you’re going to look at 3250 so.

You need to allow no more than you know 3 or 4 minutes when you’re researching a property to decide whether or not you’re going to make an offer a lot of them you can rule out pretty quickly okay

but when you get down to one that looks like it’s interesting and has possibilities you’re going to end up spending about 10 or 15 minutes running the numbers to make sure.

Well that you’re making a decent offer guideline you’re making this offer sight unseen so therefore Make It Low.

Make it low and in fact I heard one guy say if you’re not a little bit embarrassed to submit the offer it’s probably too high so make it low.

[58:35] Music.

[58:50] I believe the only hope for our country and its future is to leave a legacy that involves an agreed-upon moral code.

Sorry don’t want to be all preachy and judgy and and you don’t have to be,

we can be full of grace and graciousness and goodness to our fellow man but just agree that some things are clearly right and wrong and let’s teach a to her children shall we that’s what the foundation for renewal is about.

You can find them on the way.

[59:16] Music.

[59:32] This has been flipping America real estate investing for everyone.

If you have questions about real estate Investments send them to questions at flipping America radio.com listen every Monday at 11 Thursdays and Saturdays at 10 on stations across the country or on iheartradio.com,

be sure to like us on Facebook find and follow us on Twitter and Instagram keep your eyes open opportunities are everywhere.