Getting Started in Real Estate Investing
Expected Air Date: 04/16/18
Were do you begin? How do you find your fit? What’s the best method of getting started in real estate investing?
Good morning everyone and welcome to another week of real estate investing news, trends, markets, movers and shakers. Today we are going to focus on one of the top questions we get here at Flipping America. In a few moments I’m going to break down the things you need to consider to figure out your best “fit” in real estate investing.
How to Reach us
Twitter and Instagram @FlippingAmerica
Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.
- My upcoming speaking engagements:
- April 21, FlipStarter Atlanta
- Details on the website and at FlipStarterEvent.com
Topic – A Place To Begin
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 but 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
Motivational Thoughts for the day
- Life is 10% what happens to you and 90% how you respond to it. -Chuck Swindoll.
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
Questions@flippingamericaradio.com Tell us where you’re from!
- James, Lexington, KY “Quick question: Stage? Or not?”
- Robert, Morgantown, WV “I’ve flipped a few houses here and it went ok. I heard you talk about remote flipping. Should I be looking into that?”
- Eduardo, Las Vegas, NV “I’ve just been told that my contract, which ends June 30th will not be renewed. I’m an independent IT contractor. I’ve been interested in real estate for some time now. If I jumped in now, could I conceivably be making money by the end of the summer? I’m single and have enough put aside to maintain my lifestyle for a few months but will need income by the end of the summer to maintain a comfort level.”
Questions@flippingamericaradio.com Tell us where you’re from!
[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,
thank you Kathy Curtis good morning everyone it is Rodger Blankenship and welcome to another week of real estate investing,
news Trends markets movers and shakers to they were going to focus on one of the top questions we get here at flipping America.
And just a few moments I’m going to break down the things you need to consider in order to figure out your best fit and real estate investing now I know I’ve covered this topic before,
and I also know that we get dozens maybe hundreds of new listeners to the show every week so we’re going to cover it again and maybe with a little bit different
twist this time around and it has been a while so I sit back and we’re going to cover that in just a few minutes after we hit the news and some announcements and for some announcements how to reach us here at flipping America.
[1:37] Go to www. Flipping America network.com that’s www. Flipping America network.com when you get to the front page you’ll notice There’s an opportunity there for you to
listen to the shows you can also click on a link to get started with your own real estate investing career,
there is an opportunity to actually speak with me the flipping America guy you hit the button and you schedule a call and then,
you know in a day or two or four or five will be talkin all right I know the schedule there is limited and you may have to go out a week or two to find an open slot.
[2:12] You can schedule a talkin and I will sit down and do a one-on-one session a strategy session kind of centered around some of the stuff that I’m going to talk about on the show and just a few moments.
On Facebook look up flipping America media and you will find us on Twitter and Instagram at flipping America.
And we have a channel on YouTube you can go to bit. Ly / flipping America on YouTube or just search for flipping America when you get to YouTube and you can see videos of,
most of the interviews that we’ve done using the zoom platform where we had a video of the interview
10 course were posting on LinkedIn as well and Pinterest and so forth if you want to reach us send your questions about real estate two questions at flipping America network.com
questions at flipping America network.com and you can call our national comment line if if the.
Email thing doesn’t work for you call 404-2369
1018 leave your comment or your question and we will answer your question that’s one of the things that is our pledge here at flipping America right from the beginning we have answered every email we have ever received with a question,
a lot of the times the questions are very similar and so you get kind of a boiler plating answer but hey we are answering you.
And some of the questions will take an answer on the air.
[3:38] So go ahead and do that some announcements this Saturday April 21st 2018 April 23rd 2018.
We’re doing flip starter here in Atlanta Georgia and if you want to register go to flip starter event.com
now the foot starter event you’ve heard me say this before if you listen to the show before but I know that we have a few new people so here we go this is a one day speed course in learning how to fix and flip properties it is not a one day
sales pitch into some other course it is a one day course to teach you how to fix and flip properties,
spend the day with me and you’re going to know an awful lot about how to start if you’ve got some motivation
and willingness and teachable spirit of your own and you’re willing to get out there and just make it happen and start getting after it in this business this one day is really all you need,
now there are ways that you can get further training in and support if you need it and want it but we want to leave no stone unturned we want to give you everything that you need to truly get started in one day.
All right it’s not 30,000 it’s not 50,000 it’s not even a thousand it’s not even a hundred it’s $97,
for the one day course $97 at flip starter event.
Come and you can bring a second person for half price such a deal right okay we got to go.
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[7:07] Okay it’s been a few shows since we’ve done much of a new segment because we just had so much going on so we’re going to take a minute and look at a few news stories and so let’s do that right now.
[7:23] I’ve got a story from New London Connecticut and it says a real estate developer from Florida he’s actually not from Florida he just changed his address of Florida to because Florida has some laws to protect people from creditors the guy’s name is John dimenna.
I know you’re probably not following the story and that’s okay we have flipping America are
John dimenna basically set up a little thing while he’s pissed not a little thing I actually he’s got quite a large a real estate investment company operating out of the Stamford Connecticut area.
And they’ve done a lot of things have a lot of multimillion-dollar projects going on but he got in trouble.
[8:00] And so you know I’ve been looking at this and studying the stories and watching what’s going on in.
And it looks like he started out as a decent guy who just got in trouble and started moving money from one thing to another to try to keep everything afloat till something paid off and we kind of seen that but it we’ve seen that before but in the,
the end result is he was taking money from people and not applying it to the things that they thought and he was providing some some falsified spreadsheets and projections and models and things like that
and basically he got into a private investors for about 28 million and the lenders for 41 million and.
You know when it all turned up on him he just admitted what he had done and now he has been sentence which is why it’s in the news he’s going to jail for 7 years he 75 years old so you know this,
could be a life sentence for him.
[9:01] The US Attorney General John Durham no relation to my good buddy John Durham in Stockbridge Georgia says dimenna prepared spreadsheets that inflated projected cash flows for Real Estate projects and then shared them with colleagues
knowing the figures would be shown to potential investors.
[9:18] Victims victim investors lost 28 million and lenders lost proximately 41 million dimenna has pleaded guilty to two counts of wire fraud and was released on $250,000 Bond he’s going to prison in July why am I talking about this because,
I think that really if you go back and you study the life of John the minute he is really not and historically bad guy he’s not.
Used car salesman kind of guy he has a long history in real estate he’s done well he’s been successful but things started going sour on him and instead of just.
Owning up to it and bellying up right from the beginning he tried to raise money to make everything work.
And that’s always going to end up being a mistake.
[10:07] All right I got another story that’s kind of interesting to me how will self-driving cars disrupt
real estate Trends I think that’s an interesting question and I actually tried to think of some ways that it would and couldn’t come up with anything really
outside of what the article are dimensions for one thing possible contribution to an increased decentralisation the article says that this will give people more incentive to live further and further away from City Center because
now during their commute instead of focusing on the drive they can actually open up their laptops and get to work and use the car that’s driving itself has kind of a mobile office
you know I see some logic to that but I’m not sure I really buy that because the ride in the car is just long and a kind of stressful and.
[10:57] It could just be me because I’m 6 foot 5 and I don’t fit in car is very well they’re not a great work environment for me it’s just not something I really want to do
the other thing is the reason my wife and I love living in the city that doesn’t have so much to do with the commute because we can
we both pretty much can work from anywhere,
but we really like the idea of being able to just walk out the door and walk right over to what we can walk to a nice Mexican restaurant right across the street and we can walk a block in any direction and come across half a dozen decent places to eat or close to everything,
I can walk to the library we can walk to the museum we can walk to the symphony we can catch a short Uber ride over to the.
[11:40] You know Mercedes-Benz stadium for Falcons games or whatever nothing we actually do that but,
it’s all available to his right here in the city and that’s the reason we want to live here and I don’t think that’s really going to change with self-driving cars.
W thing the article points out that’s kind of interesting is it may allow.
[11:58] Aging people senior citizens to stay in their homes longer before they have to move out to Assisted Living because now they have a car that can come and pick,
up and take them to places they don’t have to try to drive themselves and they don’t have to rely on grown children to come and pick them up in,
move them around that would decrease the availability of inventory,
to some extent I don’t know that is really going to make that much of an impact but I thought the article was interesting so I’m going to share it with you on social media I’ve got another story called join me and buying this 8% yielding,
commercial real estate company and the entire article is about buying.
Blackstone mortgage trust and there’s nothing wrong Blackstone mortgage trust blackstone’s very well-known and very successful.
Company based on the hedge fund and 8% that’s good but let me let you all in on a little secret I am.
[12:58] Involved in a fund that is projecting
15 + percent return so you know 10:10 to 12% year one maybe 15 maybe as high as a teen
and I’m not going to say a whole lot about that because none of these returns are guaranteed however if you have some interest in this house you wanted by the 8%
that’s fine I’ll link you to it okay it’s an article from Seeking Alpha but if you’re interested in something that’s going to be 10:12 or even more
then I want you to send me an e-mail send it to Rodger a flipping Miracle network.com and I will send you a business plan and prospectus okay,
all right next.
[13:40] Real estate Juggernaut Zillow is going to start buying and flipping houses you heard it here folks Zillow is no longer playing the middleman in the real estate game on Thursday.
The seattle-based company announced it would expand testing of a pilot program in Phoenix in which it will buy and sell homes directly,
it’s a feature called instant offer and as the name suggests will allow customers to forgo the negotiation process and effectively buy a home with just one click Zillow within flip the home,
doing slight Renovations making General improvements in pursuit of a prophet.
[14:17] The instant offer feature is already live in Las Vegas and Orlando making Phoenix the third test Market
will they do well I think they will I think they’re basically in the same space as knock and offerpad I don’t believe this is much of a threat to.
Traditional Real Estate Investors
because they’re not sorting their properties the same way that we tend to Source our properties and so we’re really not talking about the same
however you know never met a bit and never bet against Zillow impact hey folks here’s a little word to the wise never bet against any of the market Giants now we know that no company last forever
and the company’s go through Transformations but Zillow has some smart people there laugh all you want to about the inaccuracy of the zestimate they know that
then they’re paying rewards for somebody can help them come up with a better algorithm but they’ve got smart people working on that and I don’t know what their future going to be with the zestimate but I do know that Zillow has a bright future.
[15:22] And probably something you should look at investing in and if they decide to take this full-bore there are going about it in the right way,
and you know offerpad is actually from Phoenix and they’re here in Atlanta market now so they’re going head-to-head with offerpad there and.
I think they’re going to be just fine but what they’re buying or houses that don’t need extensive rehabs and they’re also buying houses that people are already contemplating,
putting into the traditional real estate market most of our leads and most of the properties that we buy are not in the traditional real estate market and so.
We’re not talking to the same people or not approaching them in the same way and I’m you know.
Happy Farm welcome to the party Jello glad to have you right when we come back I’ve got one more of those new story called A Tale of Two.
[16:28] 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 put starter event.com but in the meantime Give a listen to Pat caywood my name is Pat caywood.
[16:53] 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’ve spent today with Rodger Blankenship.
Learning about his program and boy do I wish I’d met.
[17:15] He has a clear concise program and many tools that are going to be very.
[17:21] 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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[18:29] Hey during that break we had Pat caywood talking about her experience at the flip starter in Chattanooga.
Pat and her husband Tom actually just recently reached out to me Chattanooga’s only about a hundred miles away from Atlanta,
and they heard that we are doing flip starter again in Atlanta on this Saturday April 21st and she said can we get a discount for coming a second time we just want to come here it again and I said not only can you get a discount on you can come for free.
And did this not really a company policy folks but I guess if you come to flip starter once and you pay the money once if you want to come again.
That’s okay with me just come on alright we’re glad to have you and I guess maybe we’ll make it a formal policy at some point like an alumni program or something like that.
Pay attention to what Pat says and some other people that we’ve gotten flip starter is a great value for $97 okay.
Now I’ve got this story that I picked up from Forbes that end it’s a little bit unusual story and I like unusual.
[19:30] Further than the the usual hey do you know why we reject a lot of stories for the show that basically go like
you know some Rita’s announcing a distribution of $0.02 per share or some Rita’s announcing that they’re paying a
be no I’m not not ain’t never ate a 4% return on their money and so forth this article is called A Tale of Two.
Real estate markets A Tale of Two Cities and of course that appealed to me you know from kind of the.
Dickinsonian point of view Tale of Two Cities.
[20:08] The story Begins by talking about a a market in a city that is just,
terrible the city is awful and he describes the city and very unflattering terms and,
I’ve been built on a swamp and high crime rates and mosquitoes are terrible and blah blah blah blah blah for a minute I thought he was talking about Washington DC but
they got to the end of it and he said that city is where I live even though I’m successful in my business and I could live anywhere I wanted to that city is Anchorage Alaska,
and I thought okay I’m intrigued because the guy says he can live anywhere he wanted to and he chose Anchorage Alaska I don’t hear many people saying that
so I read on and then he did the tale of the other city that’s beautiful city very attractive low tax rates
wonderful values for property close to the ocean close to mountains Great Outdoor opportunities blah blah blah blah blah but then he said don’t that city is.
[21:11] Anchorage Alaska he said.
In Anchorage Alaska you have the good and the Bad and the Ugly all of it right there in one city,
tell this is not really a promo for Anchorage Alaska or anti Anchorage Alaska
and he was not trying to make it that way either what he was saying was in his City you find a little bit of everything you find some good and you find some bad,
you can choose to focus on either one and if you want to brought draw broad generalizations,
you can choose to do that bass out of either dataset and I you know as I was reading this I was thinking that same thing is true of Atlanta Georgia to where I have lived for the last 20 years or so and.
I think that’s probably generally true of any City so what’s the point the point is.
Bloom where you’re planted folks if you want to get into this business get into the business where you are.
[22:07] You don’t need to drop what you’re doing and I say this all the time and I’m going to say it again at least one more time on this show you don’t need to drop what you’re doing and go start flipping houses and you don’t need to,
move to one of these exotic locations these markets that were talking about that are so hot,
it you know the market is hot everywhere but even that doesn’t matter he just need to get going and you need to learn how to buy the properties right.
Once you learn how to buy the property to write it doesn’t really matter what city you’re in it doesn’t matter what town you live in it doesn’t matter what the market is doing it doesn’t matter what’s happening with interest rates it doesn’t matter with what’s going on in the economy,
you can find a way to be in this business at least at the single-family home level,
if you want to do this you can find a way to do it and in just a few moments I’m going to dive in and show you how.
Now I’ll be linking this article up on our social media and you’ll have an opportunity for yourself and I highly encourage you to read this because it’s it’s an interesting read es you know how it turns out I’m giving you some spoilers.
But I think you’ll enjoy it anyway,
let’s see if we can squeeze in a couple of quick questions from our listeners we didn’t get to them on the last show with Peter pasternack but I think I can get to him a couple of these before the next break James from Lexington Kentucky says quick question stage or not.
That’s a good question I was hoping that we would get a chance to talk to Peter about it because I really do like to get the opinion of other investors on this topic for me.
[23:36] I think that you should probably look what other investors are doing in your Market you definitely don’t want to compare unfavorably but.
[23:47] Ghetto with the market being hot.
I choose to spend my money hiring a professional realtor and not worry so much about the staging if the realtor thing said property needs to be staged yes now I make some exceptions of this as well,
if I’ve got a house that has some weird space that it’s kind of hard to imagine what you would put it or how you would arrange the furniture then yeah I’m in favor of it,
later this week and I think we’re going to do this on the Thursday show I have done some research on this and I want to let you know folks that virtual staging and now is a thing.
You can send in high quality photos of your space
and these people will take those photos and they will insert some furniture into that photo and so you will have the photos for your website or for your Realtors website that looks like the house is fully stage now there’s email basically you’re so three room package,
and of course I don’t know I’ve never understood the point of staging all the bedrooms I mean people can’t imagine a bed in a bedroom right.
But with this you can also put those you could print out those photos and you can kind of.
[24:54] Display them on the countertop in the kitchen or maybe even tape it to the trim is a walking into the,
room so they can see what the room could look like if it was fully furnished in case they hadn’t seen the pictures on the website so that’s coming up in a couple of days now
the price of that is very reasonable like you can get
this virtual staging for under $500 typically and I would suggest that you take a hard look at that but listen in on Thursday will be talkin to,
the people behind it between now and then.
[25:26] Robert from Morgantown West Virginia I flipped a few houses here and it went okay I heard you talk about remote flipping should I be looking into that.
[25:36] Probably not.
I’m not saying don’t do it Robert and to all of you I’m not saying don’t do this I’m saying make sure that you’ve really tapped into the potential of your own Market before you start branching out if you have a
particular reason for branching out sure if you know someone you have resources either,
a very strong realtor or a good contractor in another town and,
you trust them to kind of run your projects for you then that’s a reason why you could go ahead
the reason we branched out is first of all the headphones here in Atlanta were making it difficult for us and secondly I had someone come to one of my weekend seminars,
who is a realtor in the Greenville area and very successful and had some experience flipping houses or sell.
And she knew contractors and cruise but she wasn’t in a position to do our own so we agree to work together.
And that’s how we began our remote flipping career and that’s how I would pursue it again in the future,
with someone that you know and you know well enough to know that you can trust them because you’re not going to get over to the property.
I went over to Greenville to bid on properties at the Foreclosure auction and they had to go for three months before actually won the bid on one.
That’s because in a in a new market I’m always very conservative and I’m willing to miss opportunities in exchange for safety.
[27:02] So we finally got a property and it turns out that you know not everything went perfectly but we did very well and certainly would do it again.
I did it in part because of what the hedge funds were doing cuz here but in part because I wanted to prove that it could be done and be able to talk about it like answering questions like this.
We’re going to go to a break and when we come back we will talk about a place to start.
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[29:58] And we’re back I’m Rodger Blankenship your hosta 19th people how to make money in real estate.
Now we say nearly every show and I told you earlier that I was going to say it again and here I’m going to say it again we don’t encourage everyone to drop what you’re doing and start flipping houses like they do it on TV.
[30:14] But we do encourage everyone to consider real estate as a part of a balanced Investment Portfolio flipping houses isn’t for everyone.
But it is for some however even if you think that’s something you want to do please don’t quit your day job keep that day job you need that
because if you started today and you got a house under contract today you would not get your face first paycheck for at least 4 months and probably more likely 6 months,
okay the TV shows continue to create waves of people interested in figuring out a way to quit their job and do this full-time,
that’s okay nothing wrong with that plenty of room in this world for as many people as want to do this as want to do it so people need a path into this,
and since that’s what you need I am happy to provide.
The first thing I want you to understand is this business is not all fun games and big checks some days.
Are going to be nothing but problems to be truly good at this like any business.
You need to be good at solving problems disciplining yourself and doing the tough things that need to be done.
You have to commit yourself to the tedious tasks and you have to do those tedious tasks over and over again they never show this on the TV shows why not because they’re really trying to mislead you it’s just because it would be boring TV.
[31:40] Alright have a deals don’t just fall into your lap you have to go out there and you have to continually Prospect for them
now I know you hear from me 3 days a week and there’s quite a bit that goes on behind the scenes to prepare for these shows but I want you to know something else
we’re looking at hundreds of properties every week still in our own business here in the Atlanta area I get 50 emails a day for just from wholesalers,
in addition to that,
we spend our time in during the day during the evening sometimes on the weekends reviewing more than a thousand properties a month,
that are going into foreclosure why do we do this because this is how we find our deals and this is how we pay our bills.
All right why you’re out there and you’re prospecting for deals and you’re driving for dollars or whatever it is you’re going to do deals will occasionally fall in your lap.
But this is going to be the exception not the rule you can’t build your business on the stuff that just Falls your way.
[32:41] However it’s Ben Franklin said opportunity tends to dance with those who are already on the dance floor so get out there and start seeing what you can buy.
If you will agree with me to take this mindset and commit yourself you know I’ve got a Blog article that I wrote for my own website Rodger Blankenship. Com about the subject of discipline
and I just want to throw this out there
here’s a quick definition of discipline this is from Rodger okay discipline is the habit of doing what needs to be done when you don’t want to.
[33:18] It doesn’t take any discipline to do what you want to do.
That that part’s not too hard discipline is the habit of doing what needs to be done when you don’t want to.
Now if you do what needs to be done when you don’t want to long enough and you see good results from it pretty soon you’re going to want to this is true whether it’s the gym or eating right or whatever it is you do.
If you do it long enough it’s going to be what you want to do is going to be a part of your life and you know I I I.
Quite often brag about my wife being the most disciplined person I’ve ever met or known she gets up and she gets to the gym
and it may be 4:30 or 5 it doesn’t matter how late she was up tonight before it doesn’t matter how well she slept she gets up and she gets after it.
[34:08] I will I will admit this and she would 2 most days it’s cuz that’s what she really wants to do.
Okay so it looks like this one to you and me but for her it’s a way of life and she loves it and so she’s down there getting after it.
Of the discipline comes in when you’re not feeling well when you’re not feeling like it or you’re just not feeling it and you get out there and you do what needs to be done anyway that’s the discipline part.
If you committed yourself to discipline yourself to this business and you’re going to devote a few hours a week to it maybe give up a few hours of reruns each week to spend time looking at deals and possibilities
then welcome to the team and here we go I want you to think some things about your future I want you to Envision your life 3 4 years from now,
Envision at not just in terms of the financial situation that you’re in but also the reputation is you have for yourself in your business what is it you’re trying to build.
[35:08] When you get that vision.
Ghetto kind of firmly planted in your mind do your best to write it down describe what it looks like what is your life like when you’ve really gotten there and one of the goals that you need to reach in order to get there.
I have my goals I keep my goals in front of me all the time I break my goals down into
quarterly milestones and I look at those Milestones every single week not just in my business and financial life but also in my personal life in my spiritual life in my intellectual growth.
Several different categories I am I have plans I have goals and I have Milestones that I’m trying to reach and,
then every week when you’re looking at these milestones and keeping them in front of you there are some small steps that you can take to help get to those Milestones but you’re going to help you get to those goals.
Write those steps down and drop them into your planning schedule okay make an appointment with yourself for your own success.
[36:09] After you’ve got this kind of figured out and you know where you want to go then I want you to take stock of your current employment situation.
[36:18] What’s your job like are you happy doing it.
[36:22] It it it breaks my heart really how many times I hear people who say they have a decent job and it pays the bills and they have money left over and they’re doing fine they just don’t like it.
This is not the time and the place to get into this but if you don’t like your job.
Then the thing to do is to change but I am not saying change your job it could be if you need to change from within,
you need to change your attitude change your approach change your understanding change your thinking about the job change it from something to be endured to something that you’re grateful for,
because of the benefits that it brings into your life once you do that it kind of changes the way you react to it.
[37:13] Okay so like I said this is not the time to get too far into that but we do want to spend some time thinking about the current employment situation
for some the job is okay but there’s no real future I talked to many who are on short-term contracts and what are they going to do in those contracts run out
well they don’t want to stay in the same field there in now usually it’s it.
They want to get into something a little bit more Hands-On they want to get into real estate now this is not most.
This is the people who are coming to me coming out to one of our meetings or events and people who are riding in and talking to me that way I know that is not most people.
I think that the same most people are unhappy with their jobs based on the sample set of the people talking to me would be unwise because.
I can’t say based on the anecdotal evidence that comes in to me that most people are unhappy with their job and I’m not going to say that I just don’t know.
I do know that the people that are coming to me want something different.
[38:14] That’s okay so is there a future in the job that you have.
[38:21] Is this something that you want to make a career out of.
[38:26] A lot of people are in jobs that they are thinking is a stepping stone and it’s funny how many people get to their retirement realizing they work their entire working career and a job that they jumped into as a stepping stone.
And they just never left well you need to take stock of this
what’s going on with your career and your job then I want you to take stock of your family situation in your obligations I always want to talk to people about whether or not they’re married or do they have a significant other do they have children.
Are they planning to have children in the future.
I’m not saying that being a Real Estate Investors in cat incompatible with having children no not at all and maybe the best way that you can come up with take care of your children but.
When you have when you’re just responsible for yourself.
[39:20] You know you can decide that you can endure whatever hardship you want to eat beans out of a can and so forth until this thing search paying off.
But you want to make sure if you have children in the picture that their needs are met that you are taking care of you have a responsibility before God to look after those kids and do all that you can take care of their needs.
If you’re married or if you have a significant other how does that person your life partner feel about your interest in real estate.
[39:55] As we’re interviewing people to come into our mentoring program,
basically required that the significant other be at least supportive they don’t have to participate they don’t have to join in but they have to be okay with it because you don’t want to be,
knocking heads at home and dealing with problems in this business those those things just don’t go together trust me.
[40:19] I think we’re going to ask you to take him Tori of this your time how much time do you have.
What is the number of hours you can consistently give this each week and not only the number of hours you can give it the number of hours you will give it think about your schedule.
[40:37] Most people probably don’t have time to do this before they go to work let’s just assume for the moment that most people work a day job and have to be there at 9.
Or their day begins at 9 that means that they’re spending in 07 from 7 on in the morning they’re either in the process of getting ready or commuting to their place of work then they do work let’s just say it’s a 9 to 5,
okay now after 5 they get off and they’re going to commute home and of course they’re in the middle of rush-hour whatever that means in the place where you lived and they get home maybe by 6 and they’re hungry and so you’re going to sit down you going to eat dinner.
What do you do after that.
[41:18] Well that’s when you have to make a decision about what you going to do with your time you going to sit down and watch TV.
[41:27] AKA most of America or you going to start running the numbers on projects and and preparing some offers to make.
A lot of people that I’m working with have jobs at.
Or like 7 to 3 or different hours and they have some time during the day to give to this and honestly that’s a little bit of an advantage because you’re out there working with Realtors when Realtors tend to be working and available and you can.
I’ll get them to write up the offers and that sort of thing for you but you have to take stock of all of this,
and consider what your available time is and most people are going to have more time on the weekend that’s okay whenever you have time.
And you are willing to give it to this,
that’s the time that you should set aside and I want to know when I’m working with you I want to know how many hours you can and will give this every week because I’m going to fill those hours with something for you to do.
[42:24] The next thing you need to inventory is your cash on hand.
The dollars that you could put into a deal that you could afford to lose if it all went South are you going to well probably not.
Most of the time real estate deals don’t lose money but sometimes they do is specially when you’re new and I would suggest that you do not put anything into your first deal that you can’t afford to lose because you just might.
[42:54] Did you hear what I said you might lose money it’s possible it happens.
If you go to one of these seminars and they tell you that they their method is Fail-Safe and foolproof and especially if it involves rental properties.
Run don’t give them their your money and don’t pay them for what they are offering you because they’ve already been dishonest with you,
there’s always a possibility that you could lose money in this and any other kind of investment activity or business that you might buy into so think about the cash that you have that you can afford to lose how much is it,
write that number down okay because you might be asked to commit that to your project.
[43:37] Text and I think this is number 6 on the list what skills do you bring to the table.
Do you have skills in construction are you handy have you repair things in your own home do you know how to paint can you do carpentry work or electrical or Plumbing or whatever if you have none of those skills.
Not a problem it’s just there are some other things you’re going to need to learn to get going until the people who have some construction skills have a little bit of an edge.
But that’s going to be true of all of these skills and I’m talking about what about negotiation are you in experienced negotiator if not.
You will be because you’re going to get thrown right into the middle of it and you know what you’re going to get better.
[44:22] All right there’s only two professions where you’re expected to be perfect from day one and that’s being a pastor and being a little League umpire.
Other than that there’s room for improvement because you can start where you are and you can get better,
when you go out to negotiate your first couple of deals you may not do that well and you may realize later on all man I could have said it this way and done so much better.
If you fail to negotiate well with one particular seller don’t worry the eggs in Wester come along behind you will close the deal because they are better at it than you are but you’ll get better you’re not going to get better by reading more books on it.
You’re not going to get better by going to more seminars or Ria groups you’re only going to get better by putting yourself in the front of an actual real seller and start talking.
How are you with analytical skills can you use a spreadsheet can you run the numbers or do you even know what that means.
[45:22] If not there’s that there’s plenty of time and there’s room to learn that’s okay but like I said all of these are skills that can give you an edge if you have them and you are going to develop skills in these areas in the research into things or the legal.
Do you have legal skills there is a sizable portion of legal knowledge required not not.
The equivalent of being an attorney of course but you do need to know something about the rules in the laws and the terminology that’s involved you have a real estate background
are you an agent and agent is not necessarily always a good investor because agents don’t think like investors.
In fact of all of the skills that I’ve mentioned here the probably the most beneficial skills to have are either construction skills or.
Knowledge of the law yeah I know that sounds kind of weird I would take knowledge of the law over real estate specific skills that.
Big time two types of things that Realtors have I would think that a real estate attorney would be much better equipped.
Going in then a real estate agent.
The agent the attorneys going to have a little bit harder time getting up to speed with the CMAs and so forth but the agents going.
You don’t have a lot to wrap their brain around with the the issues of law.
[46:46] Let’s move on to another way to take inventory and that’s your personality type are you an introvert are you an extrovert.
[46:55] The thing about this business is you have to talk to people if you’re an introvert you can be a real estate investor but you’re going to be doing it more passively if you want to be an active real estate investor
you have to talk to people it’s unavoidable you can’t skip over this,
if you are not confident or feel good about your ability to talk to people you’re going to have to learn you know how you learn about talking to people.
Okay we got a few more areas take inventory and will do that when we get back from this break.
[47:29] 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.
[47:42] Peter Faulkner here I tended a one-day flip starter training session led by Rodger black.
And I was amazed to see what has happened in Rogers Live from the last $15 plus years.
Flipping over 800 houses in Mendes one day training he told how he did it and what the pitfalls 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 are encouraged to go so it was not a bad price and if you get a chance to do it even just to consider investing but I just want to thank Rodger for a great day.
[48:47] Okay so far we’ve been thinking about the future Visions goals and plans are current employment situation are you happy do you have a future is their career in it for you your family situation are you married do you have a significant other,
do you have kids are the kids coming in the future the available time how many hours can you consistently give this each week,
you cash on hand the dollars you can put into a deal if you can afford to lose skills construction negotiation analytical research legal real estate.
I need your personality type that’s where we left off talking about introvert versus extrovert how do you invest in real estate if you’re an introvert will basically you put money into the other people who are doing the deal because if you’re going to be out there doing the deals you’re going to be talking to Pete.
You got to talk to
sellers you got to talk to contractors you got to talk to Realtors you have to talk you just have to talk to people if you don’t want to do that then this may not be the thing for you,
this may be something to put your money into definitely would be but not thing for you to pursue actively then the connections,
take inventory of your current connections connections with people in the industry and connections with the people who have those skills that you need.
[49:57] All right now then I want you to take in some inventory about,
how much you already know about real estate investing do you have some experience have you done this before have you thought about it and have you read some books what information do you have and what information can you put your hands on.
Okay now all of you of course can come to flip starter anytime you can make it to Atlanta you can come to flip starter,
I’m in court were doing. Another city that well but Atlanta April 21st this Saturday how much do you know and how do you learn,
do you learn best by reading by Audio by Hands-On there are seven different styles of learning according to Harvard University.
Do you need to know yours you probably do know yours if you’re the kind of person who set their bored to tears in school.
Because most school is involved with rote memorization in and taking the stuff from the.
[50:56] Podium of the teacher and popping it into the notebooks of the students without passing through the brain of either.
You know that’s not for everyone not everyone learns by listening not everyone learns by reading,
some people weren’t learn-by-doing if you know that that’s your style find someone who’s going to train you with a style that that’s going to work for you.
Okay then what is
what are your possibilities for a source of training because one of the things that well okay we say there are three things that you have to have to get into this business you have to have information
you have to have a mentor and you have to have a proven path.
[51:41] If you have those things laid out in front of you then you’re ready to begin now I’m going to make a quick little offer to you I have a chart.
That shows you have used this chart and talks before and
I had a guy who’s been in this business for 20 years come up to me after hearing me give this talk and said man I’ve heard all these kinds of talks and seminars Andrea’s blah I’ve never heard anybody cover it just quite like that what I do is I take all of the different things that you can do to get started in your real estate investing
active strategies and passive strategies and I cross reference them to.
[52:19] Your skill sets your inventory of your your time available it basically is inventory that we just did and then depending on your combination.
Of qualities from your inventory I put them into a chart that shows you what your options are.
And I will share that with you if you’ll just drop me a line just send it to questions at flipping America network.com,
okay send that in and I’ll send you back that chart so you can kind of look over your options and pick the thing that’s best for you this is really intended to be a fleshing out of what we always say,
not everyone needs to drop what you’re doing and start flipping houses it’s not for everyone but it is for some and how do you figure out whether it’s for you or not,
go back and listen to this again and do the inventory thoughts about the future your vision goals and plans current employment situation family situation available time available cash.
Skills that you already have your personality type connections particularly with people with the skills that you need information your learning style your training Source your Mentor in your path if you cover all of those things,
and I’m really think them through you will begin to find your place in real estate investing.
[53:43] All right in the time do we have left I’ve got another question that’s been lingering for a few days and I promised Eduardo
on the last show that we would try to get his question answered and so here it is Eduardo from Las Vegas Nevada says I just been told that my contract which ends June 30th will not be renewed
I’m an independent it contractor have been interested in real estate for sometime now if I jumped in now could I conceivably be making money by the end of the summer.
I’m single and have enough put aside to maintain my lifestyle for a few months but will need income by the end of the summer to maintain a comfort level.
By Eduardo this is a good question well-thought-out like the way you put it your contract ends June 30th and right now we’re mid-april.
And you want to know if you can start now if you were able to find a property now to invest in and you had the skills to pursue it.
You could very conceivably be making money with this by the end of the summer I like the fact that you want to maintain your lifestyle for,
to maintain the Comfort level you said in your e-mail I like that I appreciate that but then I would probably challenge you to think of think of it this way what if it doesn’t what if it gets uncomfortable are you willing to be uncomfortable
[55:04] You know we read all the books about these successful entrepreneurs who have gone from zero to blah blah blah we see the seminars and we see how well the people that are doing all of those have obviously enjoyed a measure of success
what you don’t see in the books in the seminars is the average entrepreneur who launches their business,
and didn’t put into their business plan you know for mistakes in the first 3 months led to delays
of actually making any money and most people don’t right into their business plan after two years in this business I made a huge critical error that set me back and cost me,
large amounts of money everyone makes a plan that only includes a successful outcome.
That’s just the way we are but Eduardo I want you to realize that you may not
jump into this and be extraordinarily successful I know some people here and I’ve had them on the show who have done well from the beginning and,
left successful jobs and now are successful Real Estate Investors and I applaud that but I also know a lot of people.
[56:18] Who paid tons of money for training and they’re sitting here with mountains of debt which I wish they wouldn’t have done but they didn’t talk to me first
but they’ve got mountains of debt and pressure and problems and they still don’t know what to do and they’re not finding any success and then they don’t really know how to make the offers they don’t have the courage to
pick up the phone and make the phone calls and they’re just not making it happen.
[56:48] Sadly Eduardo and America this is more of the common outcome.
[56:59] So I would say Eduardo you know we would go through a conversation we would do this inventory is part of a strategy conversation but I would say what you need to do is see if you can find a house,
Aurora property to buy
in the next 30 days so you need to be in the property really by the middle of May in order to have the prospect of having income by the end of the summer and then it needs to be a fairly light rehab.
Okay if you can do that then yes you have a shot at making money by the end of the summer.
[57:32] I’ll be on that I would probably just need to have a personal conversation with you and figure out what to do if that doesn’t work out I’m not making you any promises I’m saying it’s possible.
Certainly no guarantee I want to leave you with a motivational thought for today alright Chuck Swindoll is one of my favorite individuals and he has this quote for you today life is 10% what happens to you.
And 90% how you respond to it.
[58:01] I want to say it again life is 10% what happens to you and 90% how you respond to it.
The 10% of what happens to you is beyond your control of course.
[58:14] The way you respond to what happens to you is completely within your control and that’s what life is all about responding.
[58:26] Okay that’s it for today folks will be back again on Thursday and we talked a little bit about virtual staging see you then.
[58:51] Flipping America show in the flipping American Network are proud to be affiliated with the foundation for Renewal working together with communities to improve lies everywhere.
Find them on the web at renewal fund. Net and as always your contribution in any amount is well.