Flipping America 144, Hitting Your StrideFlipping America

Mastering, Growing, and Scaling Your Business

Expected Air Date: 04/18/18

Opening

You have the basics. Now it’s time to master, grow, and scale your business.

Hello everyone. Last time we talked about getting started in Real Estate Investing. Today I’m going to continue the topic with a program titled “Hitting Your Stride.” The phrase “hitting your stride” is an expression that means you have reached an optimum pace that you can maintain easily and where you function optimally and competently.

This is a big part of your goal in your career — any career, but especially so in owning your own business. When you hit your stride in the real estate business you will have mastered a set of techniques and an asset class to the point that you can conduct your analysis mostly with your eyeballs and your brain.

Yes, you will still continue to use the analytical tools that got you there, but they will be your backup, not your primary analytical approach. For example, if you are fixing and flipping houses, you will be able to estimate repairs by simply looking at pictures of the house or in some cases by merely driving by. You’ll know the value of the property because of your familiarity with that area and the market. You’ll know the streets and features of your territory better than the back of your hand, because really, who spends a lot of time looking at the back of their hand?

When your fixing and flipping skills are well developed, you will be able to review and analyze deals so quickly, make offers so confidently and move so efficiently, you might get a little bored. And that’s a dangerous place. Why? I’ll cover that in just a few minutes. First some announcements, then some news, and then we will get to the topic.

How to Reach us

www.flippingamericanetwork.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

YouTube: bit.ly/FlippingAmericaOnYouTube

Linkedin: bit.ly/FlippingAmericaOnLinkedIn

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

Announcements:

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

News!

Topic – Hitting Your Stride

We started last show talking about the Getting Started Fixing and Flipping. I want to continue with that theme today but want you to understand that the principles I’m about to share would apply to just about any business or career. We are talking about hitting your stride.

Young Exec – Old Exec

Oscar Wilde, “Experience is just another name we give our mistakes.”

I want you to make mistakes. I just want you to have a mentor so you can avoid the soul-crushing, business destroying mistakes. Without some mistakes, you aren’t really pushing yourself to your limit. And your limits grow a bit each time you push yourself. So venture onward and outward.

How to Hit Your Stride.

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

Motivational Thoughts for the day

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

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Emails:

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

Transcript

[0:00] Music.

[0:28] Time for flipping America the show that teaches you how to make money in real estate 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 here’s that flipping America guy Rodger Blankenship

hello everyone thank you Cathy last time we talked about getting started in real estate investing today I’m going to continue the topic with the program titled hitting your stride the phrase hitting your stride is an expression that means you have reached an Optimum,

peace that you can maintain easily and where you function optimally and competently.

This is a big part of your goal in your career any career but especially so in owning your own business when you hit your stride in the real estate business you will have mastered a set of techniques and an asset class to the point that

you can conduct your analysis mostly with your eyeballs in your brain you can do the math in your head yes you will still use

the analytical tools that got you there whether they’re spreadsheets or apps or whatever but they’re going to be your backup not your primary analytical approach.

Once you have hit your stride for example if you were fixing and flipping houses.

He will be able to estimate Repairs by simply looking at pictures of the house or in some cases by merrily driving by.

[1:55] You’ll know the value of a property because of your familiarity with it with the area and the market.

You’ll know the streets in the features of your territory better than the back of your hand I mean because really who spends a lot of time looking at the back of their hand.

When you’re fixing him flipping skills are well-developed you’re going to be able to review and analyze deals so quickly.

Make offers so confidently and move so efficiently that you might get a little bored and that’s a dangerous place

why but I’ll cover that in just a few minutes when we dive into the topic first some announcements then we’re going to cover the news and then we’re going to get to this top

hitting your stride how to reach us here at flipping America we’re on the web at flipping America net worth,

come on Facebook at flipping America media on Twitter and Instagram at flipping America you can find us on YouTube we got to channel they’re just look up flipping America and.

The Bentley app or you can find us on LinkedIn

by just looking up flipping America on LinkedIn or typing in this in your browser bit. Ly flipping America on LinkedIn.

[3:10] Our national comment line is 404-369-1018 if you have a comment or question call 404.

369-1018 extension 1,

this show is pre-recorded so we’re not able to take calls live on the air but we will take your calls we will call you back if we need to but we will certainly answer your question whether you leave it on the comment line or if you send us an email and you can email your questions about real estate

too.

Questions at flipping America network.com we’re here to answer your questions and give you the best information advice and help that we can,

to talk about Trends and markets we want you to be the best informed you can possibly be in order to make decisions about your own position with real estate now we’re talkin this week about fixing and flipping and we’re doing that because

we have an event coming up Saturday here in Atlanta that’s just a couple days away and it’s called,

starter for those of you you’ve seen it on TV people are flipping houses and so forth and it’s all the rage right now that’s fine

some of this were actually doing it before they started making TV shows about it and flipping houses has been around probably since they’ve been recording real estate transactions.

There’s nothing really knew about it but if.

A lot of people want to get into this and there is a way in this business where you can lose everything we don’t want you to do that.

[4:35] I started in the business with very little information and was fortunate to have survived those first few years I learned a lot of things over the years flipping hundreds of properties and so

that’s the kind of information that we’re going to share with you at this event called flip starter and it’s this Saturday in Atlanta Georgia,

that’s Saturday April 21st Atlanta Georgia at the Embassy Suites on Akers Mill Road and that’s up by the new Braves ballpark if you’re in the Atlanta area please come out and see us if you’re not in the Atlanta area

hey it’s worth a trip because in one day I am going to give you the information that you need in order to start your own Fix and Flip business if this is something you really want to do even in your part-time we’re going to work with your situation your goals and help develop.

[5:20] A plan that fits you,

seating is limited so you need to go ahead and reserve your spot we’re about to be full but we’ll do it again if they at the room is full will do it again sometime pretty soon.

[5:31] But that’s coming up April 21st the cost for the one-day event is $97,

at what can you get for $97 and one day I’m going to make a couple of promises to you here

first of all I promise you that I am not going to tell you everything you ever going to need to know about fixing and flipping houses I can’t do it in one day

the promise number 2 is I am going to give you what you need to get started this will not be a six-hour sales pitch I’ve done this event a number of times this is 6 hours of solid information,

and what you need to get started,

you can walk out from that room take your motivation if you have the motivation determination drive and a little bit of a teachable spirit to continue on and it’s going to take a little courage to if you’re just going to go from this room and do it but you can

you can do it people have done it

and if you could be one of those as well now I am going to during the day to share with you opportunities where you can get more training in more information but the important thing is to get started and we’re going to work on getting you started that day.

Right then during the brakes start reviewing properties and making offers and and

let me know if this is really exciting me if somebody gets a property offer made even before the day is over but he will talk about that on Saturday just go to flip starter event.com flip starter event.com click on Atlanta,

and register for the event and I will see you Saturday on that okay we’re going to be back in just a moment and we’ll do the news okay you right back.

[7:00] Music.

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[8:49] Music.

[9:06] I had mentioned the other day that we were going to talk to you as someone in the staging industry we going to talk specifically about virtual staging and reschedule the interview but we we put off that show for a week or two do I devote

an entire show to the topic of staging properties because it’s question that we have quite often and there are a lot of different angles to it and so in our production

meeting we just decided to postpone that we’ll get to that in a week or so but now let’s do the news.

[9:36] Music.

[9:42] Story from Forbes Magazine talking about the real estate market being hot well that’s kind of a rerun that’s the story that we’ve been running pretty much the entire little bit over a year that we’ve been on the air with the show but.

This story is it and you know I’m sorry

yeah it is from Forbes but is quoting a Zillow study what Zillow is saying is that the high-end section of the market is slowing down and is heading for a little bit of a disruption it’s it’s

not the same as it has been,

you know we’ve been predicting this and so this is consistent with what we’ve been seeing it in the even in the Atlanta area where we are it confirms what is in the Cielo study

there is excess inventory at the high-end there their number reasons why the high and moves a little slower and they article site some of those people there

the wealthy are risk-adverse the tax changes of made people pause they have a little bit more time in the luxury of sitting around and waiting for just the right property they also tend to be a little bit pickier and something that

they didn’t mention the article that I think is also true is people who are wealthy tend to.

Kind of lose their sense of accountability and I don’t mean that necessarily in a bad way although sometimes it can be a bad thing what I mean is the wealthy can do what they want.

[11:05] And if you’re rich enough and you want a house that has one wall purple and another wall solid mirror and another wall.

Is covered with just some wildly provocative piece of art that they commissioned and,

tired and attached to the wall and it would be extremely expensive to remove it so you’re kind of stuck with it or you just going to go through major renovation and so the house is can be.

[11:31] Sometimes eccentric sometimes you just garish alright and.

One person’s taste may not be another person’s taste and in the super high-end houses you tend to see

at least in my experience you tend to see more of the weirder stuff the the either love it or hate it and most of the time it’s hate it

[11:57] What are the people who are looking to buy these houses are looking at these things and a lot of people that are buying really don’t want to buy a project they’re not in the mood to buy fixing flippers they’re not in the mood to buy something they’ve got to renovate.

Most of the time so I think that’s another reason why the houses are still sitting there now picked up a story from NPR.

On Phoenix’s real estate market and how it’s doing Ten Years After the crisis and a typical to NPR this story is,

basically focuses on the story of one person their experience and so it’s anecdotal it’s it’s alright it’s kind of interesting to read and this is a person who was selling,

real estate before the crash during the crash after the crash,

they talked about that person’s experience I’m going to link you to it on social media but I just want to point out something here you know how I listen to NPR

and I don’t mind it the part that I objected to is taking one person story and extrapolating from that.

What we call anecdotal evidence and assuming that there is a trend around that now they don’t do that in this story but that is something that’s very typical of NPR.

They they do really well with the human interest angle but not so well at.

[13:16] Turning that into statistics and numbers in any kind of data that you can really rely on and one person’s experience does not

create a trend and one person’s experience does not should not be the formulation for Public Policy but I digress.

[13:34] You have to say the Phoenix housing market has rebounded and is very different but you know Phoenix was hard hit in the crash and a lot of other cities were Phoenix Las Vegas and Atlanta were probably the hardest hit during the crash 10 years ago.

And all three of those cities have rebounded just fine now I have recounted the article to you and,

I meant may not have to read it but if you want to read the story and and feel the gut-wrenching pain of the person that went through it be my guest.

[14:04] Alright from another story from Forbes.

[14:09] 9 ways to invest in real estate without actually buying property.

[14:15] And I’m going to just kind of run through these because one of them has you actually buying property it’s always great to read stories like this number one invest in real estate,

ETF an ETF is an exchange traded fund it’s a collection of stocks or Bonds in a single fun,

80s are similar to index funds and mutual funds and are they covered the same broad diversification in low-cost overall but if you’re angling to invest in real estate and you also want to diversify investing in a real estate real estate

themed ETF can be a smart move the author of the story missions 1 by Vanguard vnq.

And it is certainly a way that you can get involved in real estate and the next one is,

similar it’s invest in real estate mutual funds just like you can invest in ETFs you can also invest in real estate mutual funds.

A real estate mutual fund is typically going to have broad diversification among different types of real estate holdings.

[15:21] Typically fairly low fees and they often feature strong research behind them,

similar to both of these is Real Estate Investment Trust and this is another way that you can invest in real estate without actually buying any real estate real estate investment trust or a Reit is a usually have.

Privately but sometimes publicly held company that.

[15:48] Basically invest in different asset classes sometimes hotels sometimes makes classes sometimes industrial every read is different you just have to do your homework.

[15:59] Compare the actual results in the history and know that your returns are generally going to be few knows something less than 10%.

You can also invest in a real estate focused company there are many companies that own and manage real estate without operating as a Reit the differences you have to dig to find them,

and they might pay a lower dividend than a Reit course some of them my pay a higher I don’t know about this as a

plan because you have to know where to find these kinds of companies now another possibility is to invest in home construction and I’ve been saying for a while then if anyone can figure out how to get homes built in this market,

they’re going to make a fortune and there are some home construction companies that are publicly traded in doing very well companies like Pulte and DR Horton.

To name a few we come back from this break we’re going to continue to list of how to invest in real estate without buying property in the next one involves you buying property.

[16:56] Music.

[17:09] 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.

[17:35] 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.

[17:57] He has a clear concise program and many tools that are going to be very hot.

[18:03] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are invaluable.

Thank you so much Rodger for your time and sharing.

M3 license and certified Bank trainers teach you how to increase your sales up to 300% in less than 90 Second Bank the Revolutionary sale system Les Brown called a game changer,

is now in Atlanta.

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[18:51] Music.

[19:08] All right we’re talking about nine ways to invest in real estate without buying property in and Method number 6 here and this is according to a story that I picked up from Forbes Magazine.

[19:20] The number Texas,

higher property manager all right he says why you don’t have to buy physical property to invest in real estate there’s at least one strategy that can help you have your cake and eat it too,

many investors who want exposure to rental real estate,

they can see and touch go ahead and buy rentals and then hire property manager to do all the heavy lifting so I guess if you create that little bit of a buffer between yourself and the end-user where you don’t have to actually do any of the work,

maybe maybe but I’d probably have our right in the article I wouldn’t include this is one way to invest in property without buying property because.

We bought the property all right number 7 invest in real estate notes,

this is an interesting thing and some people make an entire career about this or web sites devoted to it I’m on mailing list I have reviewed the my man last in bed

and in the interest of full disclosure I have never invested in notes I thought about selling some notes and I haven’t done that either and that’s

largely due to lessons I’ve learned I’m going to share with you after the next break when we start talking about the topic for today and staying in your lane and doing what you know I never.

[20:32] Hard money loans now this is something I have done if you don’t like any of the other ideas on this list but have cash to lend.

You can also consider giving a hard money loan or a private loan when you’re an individual owning your own money I don’t think I would call it a hard money loan I would call it a private loan if you’re doing private loans,

at to someone who is fixing and flipping houses you can make 10 to 12% on your money fairly easily.

[21:00] The some of the people will only loan to people that they know and that’s understandable

if you have a pretty strong sense of how to underwrite a project then and to review it you can possibly loan to people that you don’t know,

and you can get to know people before you loan them that’s okay when your private individual doing this you have a lot of latitude and how you structure the arrangement.

[21:26] Now.

Once you’re involved in reviewing the property and that sort of thing it’s not entirely passive but you know nothing is ever entirely one thing or another.

[21:38] The number option number 9,

is invest in real estate online and this is something we have talked about here on the show websites like fundrise and realtyshares and there are a number of these now where you can do a a crowdsourced funding for Real Estate Investments.

Some are better than others.

And I’ve named a couple of the more reputable ones funrise for example return an average of 11.4% on invested dollars in 2017.

[22:08] And you don’t have to be an accredited investor to open an account there so that’s definitely a possibility for you and those actually tend to pay out better than most of the research that I’ve looked at.

[22:20] Okay I’ve got another story here from the Tennessee and out of the Nashville area or just right north of Nashville and the story was interesting to me because it talks about,

the rise of single-level homes what we used to call Ranch houses they don’t want to call him that anymore but the single-level homes are popular again,

now most popular is to have a single level home with a finished room over the garage,

but everyone wants to live on one level and it’s not just older people it’s the younger people as well this is the first story I’ve seen on this topic.

I’m going to keep my eye on it and see if I see others I’ll share with you I pointed out here because if you’re thinking about what you’re doing with your rehabs and thinking about

building new or whatever it is you’re thinking about just know that you heard it here on the flipping America show that,

at least in one part of the country single-level homes are on the rise.

[23:16] Got a quick story out of Baton Rouge the they’re doing an annual Trends in real estate seminar down there and if you’re in the Baton Rouge area and you’re interested in real estate you may already know about this but

they’re saying that the office market is soft it’s harder to get deals done retail is active,

the game is changing their different tenant lineups industrial seem steady but the tenants are changing.

Logistics and delivery is big and that’s kind of true everywhere

the multifamily housing sector is curious they had a large demand for apartments during late 2016 or early 2017 17 where people were forced to seek temporary housing after their homes flooded.

And now the apartment Market is cooling back down. That’s just in the Baton Rouge area every Market every

area is going to have its own particular things but it’s good to just kind of know and pay attention to the trends in your own area and on that 72

at work we’re moving from the relatively unknown to the okay this is obscure anybody know where Kern County California is,

to be honest I didn’t know where Kern County California was till I read the story but I looked it up and long hold I’ve been there this is Bakersfield California and,

broker and co-owner of Coldwell Banker best Realty her name is Kathy and I apologize if I’m butchering the last name is Vega.

T a s a v.

[24:43] Spoke to the Rotary Club and talk about the real estate Trends there now that we’re talkin Central California and basically the heart of Farmland in California and she’s talking about then the need for

for Residential Properties in this area.

There’s simply a shortage the base Edwards Air Force Base is expanding and hundreds of new people are coming to town and there aren’t hundreds of properties available.

I highlight this story simply to bring to your attention the fact that there is a housing shortage Nationwide I don’t know exactly what we’re going to do about it

but I do know that

we have to build more homes we have to find a way to get Builders out there again or let the current Builders expand what they’re doing.

And that I’m going to say it one more time now I’m probably going to say it a bunch more times if you know how to build a house and you can build an entry-level house at a profit.

Then by all means jump in because the demand is high and you could make a fortune and meet a lot of needs at the same time.

Okay when we get back I’m going to talk about hitting your stride as a real estate investor and I’m going to lay down some principles for any small business owner.

Can apply just about to any industry so Satan will be right back.

[26:12] Music.

[26:22] 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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[27:52] Music.

[28:34] And we’re back. I am Rodger Blankenship and I teach people how to make money in real estate.

Our purpose on this show is to give you the best information resources trends.

And an examples of people who are making it happen that we can find and to help you make good decisions about your own position in real estate we don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV.

We do encourage everyone to consider real estate as a part of a balanced Investment Portfolio now having said that.

[29:08] We do talk a lot about fixing and flipping houses here and I guess it’s because it’s an area particular expertise for me I your humble host have flipped hundreds of,

properties across the southeast mostly in the metropolitan Atlanta area

and we continue to work on this as well as do the show and teach others how to flip houses and so we have a lot going on now the last show we started talking about getting started with fixing and flip

and of course the theme Here is due to the fact that on Saturday we’re going to.

I do conduct are flip starter events here in Atlanta and it’s worth flying from across country to come to this because I don’t know where you can get this much information for $97

and that’s it but starter event.com if you want to check it out or I want to continue with the theme today but I want you to understand that the principal’s I’m about to share with you applied just about any business or career

we’re talking about hitting your stride the younger executive.

[30:11] That the older executive on the elevator and he said you know sir I’ve been meaning to ask you about how you manage to conduct your business so flawlessly you move through your day without making mistakes and you run your division.

But you are an expert how do you do it.

The older man looked at the younger man who said experience my boy experience and the younger man looked at the older man is so we’ll how do I get experience.

And the older man looked at the younger man said mistakes my boy mistakes.

Oscar Wilde said experience is just another name that we give our mistakes I want you my friends my listeners to make some mistakes.

I do know I want you to have a mentor in your life so you can avoid the soul-crushing business destroying kind of mistakes,

but I want you to make some mistakes.

Because if you’re making mistakes then you’re out there you’re pushing yourself and without some you’re not really pushing yourself to your limits and your limits grow a little bit each time you push yourself.

[31:17] It doesn’t matter whether you’re in the weight room or if you’re in school or you’re straining your brain whatever it is you’re doing if you push yourself to the Limit and then push a little bit harder the next time you get to pushing your limits going to be just a little bit more

and

do you want feel yourself growing you won’t feel your strength or your knowledge increasing necessarily but bit by bit and as you get you know a year or of even sometimes a few months down the road you turn around you.

And you have grown and you are smarter you are stronger you are wiser.

But you don’t get this by sitting on the sofa and watching reruns you get this by getting out there and getting started make it happen.

Okay Venture on word Venture outward take some risks and.

You hit your stride I’m going to give you a step-by-step way to hit your stride right now number one begin.

I don’t mean begin thinking I don’t mean begin talkin I mean begin get out there and get going.

[32:23] As I work with new investors and we work with a lot of new investors and we’re here to help them

the biggest thing is to get that first deal that’s the toughest thing get the first deal

yesterday was Wednesday and every Wednesday we do a networking lunch here in Atlanta and

we have people that come kind of regularly some semi-regularly and we always have new people at every meeting and we’re just happy for anybody that wants to come by and talk real estate for a while and if you’re ever in the Atlanta area on a Wednesday I wish that you would drop by The Veranda restaurant

you can find them at boronda Atlanta online boronda ATL and.

[33:03] You get all the information about how to get there but where it’s at Peachtree and 3rd Street right in the heart of Midtown and during this lunch meeting and do you know any maybe yesterday we had about 10 people we’ve had as many as 40 and then usually it’s around 15 to 20

whoever is there we sit and talk about real estate and

just answer questions and help people the best we can so we had a young lady yesterday who has been to the meeting a time or two before and she’s a realtor who wants to become an investor.

And she wanted us to look at a deal she was considering,

this deal was in one of the hottest parts of Atlanta and is right over near the zoo and it’s an area that’s been in huge Revival for several years and really strong a lot of older homes,

that are being completely renovated and she had found one that was one of the smaller ones in the area but it didn’t need a lot of work and Yoshi.

[33:57] Looked at the price of it and thought it might be a deal and she shared it with the group and I concluded yes this is a deal

so we looked through the pictures and I showed her how I do the analysis and we talked about this in front of the whole group and got your few minutes we come up with what we thought would be a safe repair estimate is safe enough to make an offer

now in the market that we are in right now particularly in metro Atlanta.

[34:21] That house is probably going under contract the day it gets listed.

[34:27] This is happened to me over and over again and I didn’t want to see this happened to Lynette the young lady there with us at lunch and so I said now we’ve got

i-safe number for art

after repair value and we got a safe number for repairs I want you to go ahead and make the offer and put in a due diligence. So we can get over there and look at it this is what we do is what you have to do.

If you’re by especially if you’re buying off the MLS.

I’ll give yourself a little due diligence make the offer and get over there now it’s a little bit different if you’re dealing with wholesaler some of them don’t want to give you a due diligence. I’m always leery of that because.

That that means usually to me that they have something to hide and almost always that’s the case occasionally.

See they have been burned because people will make a lot of blind opera sight unseen and go out there and look at it say not I want it and I cancel it and mean time they stop their marketing their kind of any kind of hurts them I understand that so

we try not to ever cancel these deals

but we give ourselves to due diligence. So that we can if we get out there and it’s a disaster or if the pictures were misleading imagine that misleading pictures of a house,

pictures that make a house look a little bit better than it actually is good with anybody ever do that my question is would anybody ever not do that.

Because everyone wants to sell the property and so they’re going to photograph it in the best possible light.

[35:53] We took all that in consideration and recognize that we’re going to have to completely redo the kitchen and some other things to the house and we put some numbers to it and we were able to even zoom in on the photo of the exterior enough to know that the house needs a new roof probably doesn’t leak but.

I gave her the sure signs of the age of the roof.

And indicated to her that she need to plan to replace it with all those numbers in mind we came up with an offer.

And the offer that we would have come up with was a little bit higher than list price so I told her to go ahead and write up a list price offer,

she said well I don’t I don’t have the money and I looked at the gentleman sitting next to her

who happens to be a hard money broker and I said can you get her the money he said absolutely so she wrote up the offer and he made arrangements to go to the proof of funds letter

and I said I want you to make this offer before we leave here today and since she is a realtor she was able to sit there and write up the offer and submit it,

while we were at the lunch table.

That’s what I’m talking about when I say begin now after was all over she stayed behind to talk to me for just a couple of minutes she is so nervous and.

I know I smiled and gave her a little encouragement and this is typical there’s nothing wrong with being nervous there’s nothing wrong with.

[37:13] Having a mixture of fear and excitement but if you’re working with an experienced person who is it has some confidence about what you’re doing.

Then you can take a little bit of comfort from that I’m not saying don’t feel nervous go ahead and feel nervous feel what you feel don’t ever deny what you feel but get beyond your feelings and take action begin.

Okay number one is begin number to follow instructions.

Don’t ask too many questions at first just do what you’re told it doesn’t matter if you’re in the gym it doesn’t matter if you’re training for the martial arts it doesn’t matter really what discipline or career whatever you’re doing when you jump in

just do what you’re told don’t ask any questions the fact is you don’t know enough about what you’re doing to ask questions and.

Is it people say there are no dumb questions that’s not true there are dumb questions,

that doesn’t mean that we’re going to necessarily laugh and make fun of you well sometimes we’ll or maybe just behind your back but.

There are dumb questions and you don’t want to be guilty of asking dumb questions just do what you’re told trust your mentor and Trust the process if you can’t trust the mint or to know what he or she is doing then get a different mentor,

okay but if you decided that this person is going to be your Mentor you’ve seen from their experience first-hand that they know what they’re talking about trust them do what they say.

[38:40] And don’t ask too many questions all right so number one is begin number 2 is follow instructions number 3 start small start slow.

Start small and start slow start small start slow Master the pieces there are many moving parts to flipping a house.

[38:59] Maybe not as many as building a house but flipping a house in some ways can be more complicated because of the surprise Factor.

[39:07] So you have to just Master the individual pieces this is why if you are a participant in the flipping America mentoring program we parcel this out to you.

We don’t make you master the money piece while you’re mastering the deal getting peace and the rehabbing peace.

Our training focuses first of all on finding the deals.

Because if you find the deal you can you basically are more than halfway down the path to success and after you have found the deal

our coaches are going to work with you to get you through the deal and the whole time you don’t have to worry about funding the deal because we provide the money for the DeLand and partner with our own students okay

that’s why we approach the training the way that we do and that’s why it helps and so you can Master the small pieces,

the first piece that you have to learn if it did for example in our mentoring program is how to find a deal we spend a lot of time on our weekly phone calls with our team or Partners that’s what we call the people that were training would call him

operators they’re out there looking for deals and just trying to understand what is it dealing what is in the deal

so you start small you start slow you master the pieces and it takes a little bit of time to get some traction with this particularly if you’re doing it in your part-time

but don’t lose heart keep your job keep on going to that thing even if you hate it.

[40:33] Don’t don’t focus on hating the job focus on appreciating the paycheck,

all right because much of what you do with your life is what you focus on so it

if they’re parked about your job or the entire thing that you just don’t like you don’t want you don’t want to do

and you’re just doing it because you have to well do it because you have to and focus on the parts about that are good when that check hits your bank and you’ve got money to live to eat

you know eating is a good thing and to pay your bills and maybe have a little bit extra to set aside for the true investment in your business then that’s good but then.

[41:11] You continue to work this process in little pieces don’t give up if it takes a while the less time you have to put into it the longer it’s going to take but don’t give up just keep on pushing repeat.

Repeat that’s number for repeat and stay with similar projects after you have done a project.

Try to find your next one be very similar to this one.

[41:36] We don’t let our new operators jump out there into $100,000 complicated Edition rehab.

[41:44] We want you to find something a little bit easier because it’s easier to gain Mastery when you have fewer moving pieces Okay so.

You stay with similar projects and keep on doing it now at this stage this is number 5 okay let’s review 1 begin to follow instructions 3 start small for repeat 5 think about.

Think about why and how this process works think about it.

At this point you don’t need to be engaging in Mindless repetition because you beginning to gain Mastery and you’re almost to the point where you’re hitting your stride.

So think about how and why this works.

Ask questions at this stage because at this stage you’ll be asking smarter questions you’ll be asking questions geared toward understanding and not just the very basics.

You will have seen first-hand that the process works and.

You will see similarities and differences between the different deals and you’re going to kind of want to know why the process works and so as you begin to think about it you’re going to reach a deeper understanding.

Number 6 increase speed accuracy and efficiency through repetition.

It’s not just repeating its increasing speed accuracy and efficiency number 7.

[43:13] Considered slightly dissimilar projects expanding one skill at a time don’t go to a wildly dissimilar project but

you’re going to be missing opportunities if you don’t consider something slightly dissimilar so as much as you can stay in the same kind of,

the situation the same kind of thing that you’re doing but now you’re ready to take on a new skill and if you do a similar project where a lot of

the pieces of it are very familiar to you and you just have one or two curve balls thrown in there then you can handle that and you keep on expanding to slightly,

dissimilar projects now at this point you have hit your stride

because you can run the numbers in your sleep you can do the math in your head you can analyze a property you can come up with the repair value by looking at pictures like we did yesterday at lunch and,

you’ve arrived this is the dangerous point in this process.

[44:13] It seems like it should be too comfortable point but this is actually a danger point because at this point a couple of things tend to happen they happen to me

and I’ve seen it with many people over and over again and I also see it with institutions that are populated by super smart well-trained people it happens to everyone at this point,

you either get bored you get complacent or you get you over reach.

[44:43] And it sometimes it’s combination of all of those and.

I love the fact that Netflix has just reintroduced to America the car to the world the Lost in Space series I remember watching that as a kid and you remember the robot flailing his arms around saying danger Will Robinson

there is a robot in the new thing and this robot doesn’t say a whole lot but he does say danger Will Robinson and.

A really a great reboot of the Lost in Space series and I don’t want to get too far field on that but I’m thinking that there is danger right here because of complacency boredom and overconfidence.

So items eight and nine are designed to help you avoid this Danger.

Item 8 reject the belief that every idea you get is a good one.

[45:40] If you’re creative individual if you’re an optimistic individual you’re going to have ideas because of your creativity and because of your optimism you’re going to believe that they’re all good.

Reject that notion.

It’s fine if you want to keep a little journal and I do I keep a little Journal around me all the time and in it I right

what I called brain bursts they’re not brainstorms brainstorming as a the idea of intentionality about it where you sit down and you intentionally try to come up with something brainburst or those things that just happened to me when I’m not thinking about it.

Something just clicks in my brain and I get this idea oh man wow look at the possibilities there and I think about it for a few minutes and it just seems like a wonderful and it’s awesome and we’re going to help so many people in,

and in the process we’re going to make some money and it’s a new Revenue stream and blah blah blah blah blah and my imagination is off and running.

What I learned to do over the years is just write all that down and then put it away and stop thinking about it for a while because.

[46:46] I may get 10 or 15 ideas a day.

And it could be that one or none of them are worth considering tomorrow that’s okay that’s the reality.

That’s fine you know if you plan A Hundred Flowers summer going to come up but you just need to reject the belief that every idea you get is going to be a good one and.

Like that number 9 is reject the notion that Mastery and one process and asset will automatically translate to another danger Will Robinson danger Will Robinson.

We’ll talk about that little bit more when we get back.

[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 Falkner 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.

Plus years 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 investing but I just want to thank Rodger for a great day today and appreciate what he’s doing.

[48:27] Music.

[48:48] I am Rodger Blankenship and I teach people how to make money in real estate and I’m teaching you today how to hit your stride to main to gain mastery.

To operate at Peak efficiency and to not destroy yourself once you’ve gotten there and that’s where we are now we’re at number nine let’s review

the first eight okay the first date is begin number one is begin to stop talkin just begin number to follow instructions.

Number 3 start small start slow,

don’t be afraid to make a few thousand dollars and don’t be afraid to give most of the profit to the person who’s teaching you don’t worry about that just start small never for.

Repeat stay with similar projects if you can number 5 think about how and why it works ask some questions number 6.

Increase speed accuracy and efficiency number 7 considered slightly dissimilar projects expanding one skill at a time number 8 reject the belief that every idea you have is a good one and number 9 this is where we are now.

Reject the notion that Mastery and one process and asset will automatically translate to another.

[50:02] I could tell my own tale of Woe I’m not going to do it here in the interest of time I could tell other Tales of Woe but I have known many investors who were just,

lighten,

the world on fire with their success and they decided to dive into another venture because well we all tend to think that we’re smart and Bulletproof.

And many of us learn the hard way that we are not rehabbers do not necessarily make good Developers.

[50:36] Developers are not necessarily good retail owners.

[50:42] Airlines do not make good resort property managers,

I know that last one seems kind of out of left field but that’s actually all of these are based on true examples I could give you there is an airline that bought a resort development property in Florida thinking that you run an airline that could run resort property,

how could I be so dumb but you know I’ve looked in the mirror and said to myself how can you be so dumb why did you try that okay.

The math may be similar once you get to the math but it’s kind of like sitting in front of a math problem in Algebra 2 in high school you got this story problem there and you don’t you got all these formulas that you been learning,

but you don’t know which formula to use in solving the problem.

Hey while you’re noodling over that you’ve got this completely foreign thing that you thought was you could use your related skills and you’re trying to figure out what to do the people who have develop Mastery in this area or walking circles around you

and eating your lunch while you’re trying to figure it out.

[51:47] Belt does this mean that you can never Branch out no it doesn’t mean that you can’t Branch out but what I’m saying is when you do go to something.

Remarkably dissimilar go back to the process that got you where you are go back to the beginning.

[52:07] Get information get a mint or follow a proven path and repeat these steps.

Begin follow the instructions start small repeat.

Think about how and why it works increase speed accuracy and efficiency through reputation.

A repetition and consider slightly dissembler projects expanding one skill at a time but at this point if you have followed that process Faithfully with a new asset class or a new

type of project then you’re ready to start,

the process of synthesis synthesis this is high-level thinking according to Bloom’s taxonomy of learning okay are you press it I know that the high level of thinking is when you gone beyond

memorization Beyond understanding and even Beyond application your now be able to conduct evaluation and synthesis synthesis when you pull together ideas from different.

Areas and create something that’s new or relatively new and then you have hit a new stride.

[53:19] Okay.

[53:21] So you can Branch out but when you Branch out go back to the beginning and when you Branch out into the new area.

Do not risk anything that you can’t afford to lose.

[53:36] Because it could be that you could Master this new skill in this new asset but it also could be your a zero at it.

[53:43] Does that make you less smart or less valuable know my friends that does not you’re fine just get back to what got you there.

We had Mike Sherm Inca on the show earlier he’s one of Atlanta’s biggest

a wholesalers and the man has been involved in more than 2,000 single family home transactions but he told his story on the show about how he,

got overconfident then went up to a Lake community near Atlanta and started building condos and he basically destroyed his business he it just wasn’t his thing.

He had to get back to doing what he knows how to do and now he has back he’s back and he’s arrived and he is not only.

I’m doing great business and making money but he’s doing really.

Good things in the community where he lives and works and that’s because he is back to his stride is area of Mastery and he’s focusing on that alright so.

Here’s a thought.

If you’re thinking about achieving Mastery and what would you do next maybe rather than Branch into a different area which is been tried by many and failed by most a rhythm Branch into a different area,

why don’t you think about continuing your Mastery by attempting to help someone else take on a minty.

[55:11] I don’t know where I first heard this but this is a wise and faithful saying you learn best what you attempt to teach.

[55:20] You see once you have gone beyond your own Mastery and you begin to teach someone else to word Mastery you’re going to learn even better and deeper what you are teaching to others.

[55:34] Another option if you’re involved in fixing and flipping for example.

At some point once you have hit your stride do you want to consider your passive income opportunities you want to think about the either a getting involved in private lending making your money work for you that’s what you really doing here or be.

Owning rental property it could be both both of them can,

be a good source of income the advantage to lending is it has relatively higher rates of return than the rentals the disadvantage to lending is once those loans are,

are are paid off then you have to loan the money out again or you’re not learning anything now the way you make the higher rates of return is when you’re loaning on

Fix and Flip opportunities and so you’re still in business and you’re still actively evaluating deals and

you’re not completely passive when you’re loaning your money.

[56:31] When you buy cash flowing properties rental properties then you have parked your money into an asset that is basically paying you each month this is a good thing to do in my opinion,

and the thing about it is you put the money there that you don’t need to continue maintaining your business,

you do what you have to do to continue to maintain your business and the income from that and then when you have money to put aside or put into something you think about what you’re going to put it into now.

You will never hear me.

Showing any kind of disrespect if you decide to invest in mutual funds or ETFs are real estate-related ETS or reads you know I’m a make fun of the returns at the reach offer but you know what they’re pretty safe and they’re pretty stable.

And they’re very passive and also their highly liquid.

That’s advantages that you can’t get when you own your own Rental Properties rentals can be safe they can be stable but they are not liquid.

It’s very difficult if you had an emergency and needed your cash you’re not going to be able to get it out there quickly whatever you do.

Generate enough income so that you can put something into passive income because the last point for this talk is you want to develop your passive income to the point that it pays for your lifestyle

you see if you’re actively fixing and flipping houses the day that you fix and flip your last house as the day your income ends.

[57:57] You’ve got to have something so that you can slow down take some time off do.

Things that you want to do I’m at the best way to get about this is to develop your passive income to the point that it pays for your complete lifestyle.

When you done that my friends you have achieved true Financial Freedom you hit your stride you burst through.

And you’re ready to live.

[58:27] Share with the world make a difference the things that you thought you would do when you were 19 and.

[58:34] Music.

[58:49] For the week is life is 10% what happens to you and 90% how you respond to it.

From Chuck Swindoll and brought to you by the foundation for Renewal the foundation works together with communities to impact and improve the lives through your program of moral and religious education for children and teenagers.

Find them on the web at renewal fund. Net and your contribution in any amount is always welcome thank you my friends will see you soon.

[59:16] Music.