Flipping America 152, Investor Spotlight: Malhar BhagatFlipping America

Expected Air Date: 05/14/18

Opening

[Guest EMCEE] “Live from Atlanta, Georgia, it’s Flipping America!”

Hey everybody, how’s it going? We are happy to be back with a live group for Flipping Atlanta, the local meetup chapter for Flipping America. We have a great show lined up for you today. As you know we try to bring you the most up-to-date news and information, demographics and trends, methods and investment ideas to help you make the best possible decision in your real estate investments.

We don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of a balanced investment portfolio.

Part of what we do here at Flipping America is feature top investors from around the country, talk about what they are doing, learn from their approaches, their lessons, be entertained by their stories, and benefit from their experience. Tonight we have one of my good friends Malhar Bhagat.

Malhar has been running a successful real estate company for over 10 years and has completed over 200 deals in that time. Living in NY, investing locally and out of state, Malhar has integrated various systems learned over the years to develop properties in multiple US markets. Success in real estate has allowed him to accomplish many life goals, both professionally and personally.

He has learned that as in life, real estate presents daily challenges; how one moves through them is what the game’s all about: mindset. Following his business and passion, Malhar and his wife/partner moved to Atlanta to continue to rapidly expand their operation, M2REST. Currently, Malhar and his team simultaneously run multiple renovations and new construction projects. He’s going to join us right after the first break.

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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:
- Savannah REIA, May 14, 7-9, savannahreia.com.
- Lunch with me every Wednesday at Baraonda.
Monday – the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

Guest: Malhar Bhagat

Motivational Thoughts for the day

If your ship doesn’t come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions

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

Emails:

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

Francine, Waukesha, WI, “How can you tell the condition of a roof while standing on the ground? Can you give me any other guidance about pricing out a roof?”
Patty, Buffalo, NY, “Thanks for the show. We don’t get you on the radio here, but love the podcast on iHeart. Question: Would you start with fixing and flipping or rentals? Oh, and how do you know where the people are from when they send in emails?”
Marcus, Colorado Springs, CO “I have questions about the AirBnB strategy. I didn’t really know there was a strategy. Can you talk about this?”
Allen, Lancaster, PA, “I’m brand new, just found your youtube channel and website and then saw you are on the air here in Lancaster. So cool! I’m really new, but fired up. What should I do to get started?”
Corey, San Bernadino, CA “I’m having a hard time getting started. The properties I want to buy are all 400-500k and although the numbers look fine, the costs of the hard money loans are enormous. One lender told me I would need to bring 78 thousand to closing. How do I overcome this? I have about $50k available for this.
Alex, Jacksonville, FL. “I hear all the talk about no money down deals. Is that a real thing or just a come on for some program or course. Can I really buy a house with no money down and none of my own money?”

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

Transcript

[0:00] Music.

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

flipping America is brought to you today by 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.

All right thank you Mike Smith.

Mike came in this evening and said he wanted to get his start on National radio so way to go Mike good job awesome,

and I thank you Cathy we appreciate that and thank you Mike Braswell for bringing this portion of the show to his hey it’s great to be with you guys might be walked off with my show notes buddy.

[1:23] Let me have these how’s it going everybody.

Doing good we are happy to be back in front of a live audience for flipping Atlanta the local Meetup chapter for flipping America we got a great show lined up for you today as you know.

We try to bring you the most up-to-date news and information demographics and Trends methods and Investments ideas to help you make the best possible decision in your real estate Investments,

we don’t encourage everybody to drop what you’re doing and start flipping houses like you see on TV but we do encourage everyone to have real estate as a part of a balanced Investment Portfolio.

[2:01] Part of what we do here at flipping America is feature top investors or around the country talk about what they’re doing learn from their approaches their lessons be entertained by their stories and benefit from their experience,

tonight we have one of my really good friends My Heart by got how did I do get pretty well all right.

Alright a lot of people in the room no more hard but but for those of you that are listening around the country mall has been running a successful real estate company for over 10 years,

it is completed over 200 deals in that time,

living in New York investing locally and out-of-state mijares integrated various systems learned over the years to develop properties in multiple us markets.

Success in real estate is allowed in to accomplish many life goals both professionally and personally he’s learned that in life real estate presents daily challenges that one moves through them is what the games all about.

Mindset.

Following his business and passion Mall her and his wife partner wipe / partner move to Atlanta to continue to rapidly expand their operation m2rest.

That’s the name of the company currently mohar and his team simultaneously run multiple Renovations and new construction projects and he’s going to join us right after the first break.

[3:17] I need to give you some information on how to reach us you can find us on the web at flipping American network.com we’re on Facebook at flipping America media,

Twitter and Instagram at flipping America if you just put in at flipping America anywhere on the social media you’re probably going to find this we’ve got a YouTube channel a lot of the interviews that we do on the show,

are posted there plus we’ve got some other instructional and helpful videos there we’re on LinkedIn,

and you can always if you don’t want to do the email thing or if you don’t do the computer thing but you do the phone thing you can call our national comment line at 4:04,

369-1018 and press extension one,

now people tell me sometimes hey that doesn’t sound like a national Amber why don’t you have an 800 number anymore,

it’s alright just call 404-369-1018 and press 1 couple of announcements Monday night.

[4:11] If anyone is going to be in the savannah area I’m speaking at the Savannah Rhea and I’m going to be talking about knowing your numbers,

there are three big numbers that you got to know anytime you’re doing a real estate deal you got to know the arv that’s the after repair value you’ve got to know your repairs and you really have to know what the money is going to cost because sometimes,

that can throw a wrench in the works if you don’t really think about what the money is going to cost you and I get the emails from a lot of wholesalers who have no idea what the money cost,

and what they say we’re going to make on the deal is nothing like what you’re really going to make on the deal so that’s Monday night I’ll be doing that talk in Savannah at the Savannah Rhea and you can get information about that,

at Savannah read.com I also want to invite you out to lunch if you’re ever in the Atlanta area come out and join us on Wednesdays every Wednesday we do lunch,

here recently we’ve been going to the boronda Italian Ristorante,

on Peachtree Street it’s right in the heart of Midtown it’s great food homemade pasta homemade bread and good conversation about real estate here’s the agenda for that meeting it said by you,

whoever shows up and wants to talk real estate that’s what we talked about why do we do it at boronda.

[5:22] I work a couple blocks away and I like the food and I ate lunch pretty much every every day so.

We go I go over to boronda and anybody that wants to show up shows up some days it’s two people we’ve had as many as 40 we had 25 this week I think they heard I wasn’t coming.

And this whoever is there we talk about whatever subject you want to bring out and we talked about all kinds of things and sometimes we do repeat topics but it’s whatever questions people have.

Alright that’s the news announcements we got to go to a little break right now and when we get back it’s going to be my heart but God.

[5:57] Music.

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[7:45] Music.

[8:03] How small are welcome to the show welcome back thank you thank you very much and glad to have you here thank you so much for taking time out of your busy schedule to be with us and tell us a little bit about what’s going on what’s Happening sounds like I’m going to thunderstorm happening right outside,

so it could get really interesting in here but the what what’s happening with your business brings up to date lately we’ve been doing a lot of.

I’m a driven person so I tend to probably bite off a little bit more than I probably should but nonetheless we get through it right now we’re doing several renovation project MC think something like.

Eight or nine going on with probably three or four more in permitting and then we have about five or six that were in process of wholesaling.

Plenty of rentals always busy looking at multi units as well right now so got a lot going on.

[8:56] Yeah you know I’m I’m looking over here as you’re talking and I think I see a gray hair that’s not from Real Estate I enjoyed it too much.

Alright so I in the introduction you know in the run-up to the show course you were sitting right here for the abduction you’ve been at this for 10 years.

Let’s reintroduce you because a lot of people listening in a weave weave more than doubled our listenership since you were last on the show so I’ll give us a little bit of your background talks about how you got in the business,

yeah so I got involved in real estate as a matter of happenstance so to speak back in 2008 now.

[9:35] Well even before 2008 I was involved in.

A family business and my family’s business what I was working on growing it I was a young.

20 something and I was I wanted to always.

Run my own business I never grew up with money so I was enamored by the idea that and and making it as quickly as I could sell,

I ended up joining my father in his business and grew the business went from a one-man operation to a two man operation double bit and start killing the business bringing on new clients and,

ended up,

really starting to generate some income but no as a young 20-something not really knowing how the world generally tends to work sometimes,

I ended up getting involved in certain business transactions that ended up costing me and my family everything,

when I say everything we lost pretty much everything it and we were at we were lucky to skate by on a month-to-month basis luckily for me I was able to find a.

Another opportunity but personally I was I didn’t have an opportunity but my mom was able to get a job and then.

I Spy on a month-to-month basis so.

[10:54] For about 3 or 4 months it was August of 2007 when the reality yet hit me that we had lost.

And so that was a very difficult time in my life I can speak with a lot more ease about it nowadays than I ever could before and so for the next 3 or 4 months I would mope around kind of depressed about.

[11:15] Obliteration so to speak that I had done for my family’s livelihood,

and so you know these a seminar programs that come into towns that showing you how to flip a house etcetera,

I decided to go out on a limb go out to one of their three-day free seminars and I decide to become a member of their community

and I put it all on a credit card basically I looked at it as I got nothing to lose right now because I had already lost everything by the way

and so what I did have though is plenty of available credit on credit card,

and so I decided to swipe and spent well into the five figures to become a member of that Community send and start learning how to flip a house and sell

it took me about 3 months to get my very first deal it was a rehab deal and I ended up making almost $19,000 on it and I,

realize wow there’s something to this and so I started growing that business and start flipping some houses.

[12:21] I wasn’t doing it in a very systematic format so me being the person that I am I’m pretty stubborn I don’t quit on something ever and so I I kept on moving forward on a regular and consistent basis.

Ended up joining another program to learn to do this the right way and then created a system and then replicated system in.

Where I would say that I really made the turning point was in 2011 and that’s when we started generating real money like in 2011.

We made more money in a real estate investing business then we had as a family over the last 7 years combined wow that’s amazing I think that’s worth reading bug way to come back.

Is it good time first three years when it’s so good and let’s just say.

[13:09] So there’s a word in there for everybody and you know what I did really well in my own real estate investing business for a while and I managed to blow that up and for my.

For my case it came from overconfidence I know that if you’re looking at me or thinking you overconfident how could that be,

and you tend to start thinking you’re bulletproof and I’m not the only one that’s happened to I’ve had other people sitting right here next to me in this room talking about how they blew up their own business and so if that’s happened to you if you’ve had setbacks let’s all take a lesson from my heart on that one.

Keypad.

Now anybody that knows my heart now knows what kind of person he is and and there was never any doubt in my mind that you would come back because of who you are and what’s inside of you and also you have some pretty serious ability man

thanks man I appreciate it if I can comment on that I think.

I think I talked to accusations manager about this fairly regularly because she’s still training up she’s learning how it all works and end.

I tell her all the time that it you have to do I look at my situation as more of a gift.

[14:19] The fact that I lost everything was a gift for me because I was backed into a corner there was basically for me the way I looked at it was.

Drive or die right and I made that decision that I was going to be successful and so.

I decided I was going to be successful in the world just had to catch up to me right the universe had to catch up to me that’s kind of what I say and that’s really what it is you have to believe before you can achieve that’s one of my sayings and I sincerely and honestly believe that still to this day.

[14:52] That’s great so let’s go back to the chronology a little bit because you were in New York.

How do you wind up in Atlanta yeah so I was living in New York.

[15:04] From excuse me from 2008 to about 2013 and.

We’re doing houses obviously in the New York-New Jersey area but more so we were doing houses in Atlanta Indianapolis Kansas City Charlotte we were working several different markets that’s how I learn real estate how to do real estate remote.

But.

[15:28] I wasn’t really generating the type of product I knew we could but in terms of the houses we could put out there and and really taking it to that next level and.

I met my wife in 2009 we were together and we still are together but we’re together for about 3 or 4 years and then we got married and I told her I said no Atlanta’s growing into become one of our biggest markets sell,

I said what what the heck are we doing here in in New York and literally I said that to her.

A week after we got married and I said why don’t you quit a job.

A week after we got married. I knew I had to like lock it in before I made that move right now locked it in and then I ended up,

it’s asking her hey why don’t you quit your job let’s go big time let’s go to Atlanta I know we can make this happen because I’ve proved up the model it’s just we need to be there on the ground,

and I’ve kind of said that to her in the past before and she had always been hesitant and then I was like okay she’s probably going to rush this one off too but she said she called my bluff she said yeah let’s do it.

And sell literally September I remember September 25th we made.

[16:42] Music.

[16:58] Flip 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’ve looked hundreds and hundreds of them,

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

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

[17:24] 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.

[17:46] He has a clear concise program and many tools that are going to be very hot.

[17:52] 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.

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[18:40] Music.

[18:58] You got my heart here and so you pop the question then you popped another one right let’s get married hey let’s move to halfway across the country and.

You showed up yeah and we showed up in Atlanta and,

that was in November of 2013 basically threw my wife into my wife’s name Danielle by the way and it’s rude Danielle into granules right over here,

River Valley High and threw her into renovating actually I said okay.

We just bought this house and we need to rehab it run and so basically.

[19:34] I gave her a little bit of direction let’s say but not a lot and she’s flourished actually she she’s the brains behind the operation I’m just a good look.

But but,

she she definitely takes these properties from dilapidated to gorgeous she’s actually a license contractor now and does a fantastic job shell she doesn’t just designed the houses she actually gets them finished out.

That’s great yeah.

That’s awesome man it doesn’t sound right away to go to have Construction in house that’s something we’ve learned over time one of the biggest difficulties most investors have is controlling the construction process

you hear about that all the time problems with contractors and,

so we realized the best way to solve this is to bring our Construction in in-house we’ve had our Construction in house now for about 3 years as well okay.

So you your first flips went well here in Atlanta and you decide I guess you decided that you’re going to stick around here for a while yeah we definitely decided to stick around here for a while,

from 2014 being our first full year on the ground here in Atlanta our business has doubled every single year if not I think one of those years that quadrupled so,

we kind of crack the code a little bit and I’d love to share with you guys some of what that code entails so to speak.

[20:57] Okay so one of the biggest things that I had found is the most.

Way to think about this business is most people are currently working on trying to find one house or something like.

I always tell people to stop thinking about houses and start thinking about Leeds.

You have to be bringing in a significant amount of leads into your business on a regular and consistent basis so that you can evaluate only those that can actually go visit

only those that make sense on a computer first it is very very very rare.

I will hop in my own vehicle to get go to a house unless I know that this deal is probably 80% going to come together 80 to 90%.

So I would say nine out of the 10 houses or eight out of the 10 houses that I personally go out to look at we are usually going to tie it up.

[21:59] So you you’re doing a lot of research from the computer so how do you estimate your rehab from your computer,

so that’s a great question so now knowing that I’ve been in the business for about 10 years now we’ve actually systemize the business in such a way that we Now understand what it costs us to do a certain type of house in a certain type of neighborhood.

For the most part if you’re working the same houses over and over and over again you begin to realize you’re renovating a very similar style of house

so for example if I’m on the Eastside of Atlanta let’s say Decatur 30032 it’s actually one of the top if not the top flipping neighborhood in the entire country or how are the stats about that

what’s that in 30032 and that in 2017 25% of all homes sold where where flips and that’s number one in America.

Exactly and that’s why I was saying that so I read the same.

But that’s absolutely true so you have a lot of brick ranches over there and that are usually built in the fifties and sixties.

[23:04] Once you know the formula that it cost and intakes to renovate a 50 60s brick ranch you can keep evaluating it over and over and over again with a rough ballpark estimate as to what what it means to come in at

whenever we go out to these properties we recognize I came in most cases especially if I can see the pictures of the house before so sometimes if a wholesaler send us the pictures

we can evaluate then quickly now if it’s a seller lead that came in through one of our marketing strategies we have an Acquisitions manager takes the lead in.

She will go out to take a look at it first and foremost.

Develop a rapport with the seller and then decided if actually I even need to go out to take a look at the property so we have those systems in place and I’ve kind of taught her a lot of what needs to happen.

Alright so you’re doing all your analysis via computer and it sounds like your wagon a little bit but you got some formulas.

[23:59] Instruct you tell yeah yeah we we use a lot of different formulas.

Pretty much for our Renovations we use three different types of numbers we use a low medium and high number for a renovation cost based off of

historical data that we have now our numbers would not necessarily apply for every single Market with your audience so what I would encourage you to do is,

speak go out to different events speak to other investors ask what it’s costing them to do different types of houses and do you like to get into a one particular area and stay there for a while

quite a quite a bit yeah I love staying in certain areas because it’s actually what I’m doing is I’m creating my own comps I’m raising the value in certain areas.

Because we are doing all the renovations they’re all right so you your look at this what’s the role of your Acquisitions director.

I’m in pain. I’m thinking that people out here who want to get in this business or going to need one and when do they need to bring one in.

[24:57] So when should you bring one in when you have more leads coming in then you can handle by yourself absolutely I would even if in fact say earlier than you think you need them because right now our business is.

Growing so quickly that we have a Personnel issue ends in the sense that we don’t have enough people,

we have 5 right now we’re meeting with two more tomorrow to see if we might be able to hire them so we’re going to grow 7 we could probably use another for people so we have enough work,

for 4 more people in our business up we are growing extremely rapidly when would you need an Acquisitions manager probably a little bit sooner than you need and that’s probably one of the.

Places you want to Outsource simply because as far as.

[25:44] Talking on the phone taking leads in talking to seller is working them on a follow-up schedule at cetera that’s probably one of the first things you want to Outsource because that can be taught.

Then as far as the decision-making goes it still goes through you but now you don’t have that,

constant follow-up and that’s what leads from that’s what it where it goes from,

taking a lead in to actually getting a deal done if you’re not following up with your leads and you’re just speaking to them one time you’re losing out on a lot of opportunities a lot of opportunities in fact we have three Deals closing next week that,

all of them came because we probably followed up easily five or six times with that sell,

awesome all right now there people out here listening to in the ripples in the room and you know in our listening audience who was thinking,

yeah that many leads how do you get that many leads real quick we got about a minute before the break,

how do you get that many leads coming in the door what are your top sources so how do we get a lot of leads coming in we are always going out to events where networking networking and marketing.

Networking is a form of marketing if you don’t believe in that working then you’re probably not going to last in this business. LOL.

Or be able to grow it to the height that you cancel networking is one way we do Direct Mail forget what you hear out there that it doesn’t work it does work.

It absolutely works that you have to follow up we also do cold.

[27:09] So we’re we’re doing cold calling that that’s the new rage right now and we are getting a lot,

of opportunities through cold calling in fact just in the last week alone,

beginning of this week to today that’s 4 days we’ve gotten 27 leads just off of phone calls but take a couple of minutes and pay some bills will be right back.

[27:35] Music.

[27:45] Are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand as I used to be in that 70.

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[29:15] Music.

[29:45] Rodger these small hard I’m not going to try to say his last name again I’ve known him for years I said differently every time I butcher and most of the time I got.

That’s great okay now we’re going to do we’re going to do questions in this segment and the next segment but before we get to the questions.

I’ve got a whole list of new stories here from research team and we’re not we clearly do not have time to cover all of these news story tonight but I wanted to get.

Your feedback on one and they the headline is five ways to earn four to 9% from a Real Estate Investment Trust.

And just to review Real Estate Investment Trust is an investing is tremendous of passive instrument where you can buy shares like you buy stocks,

it doesn’t work like the stock market but it’s similar and you can get in for a lower amount it’s completely passive and hey you can earn for to 9% on your money and I wanted to hear what,

mijares say about that I think that’s interesting. I left say that.

[30:50] We actually we we are funded by private investors there’s investors out there and if,

if you’re listening I think that you should look into the opportunity of tapping into your network because there are people out there that are willing to lend you money secured by a hard asset to renovate your project,

it’s a win-win scenario because they get a better rate of return.

429 Shore but we usually offer our investors 8 to 12% back by a hard asset and so.

We put them in a lien position so if it were unable or unwilling would say to pay that’s never happened and never will for us but if if they are then you can take the house back and sell your most most investors as they develop their.

Book a business so to speak as they as they grow they’re going to need to be better funded and so can always go to hard money to start out but you always want to see if you can find private investors.

Yeah,

and so you’re offering 8 to 12. Generally we offered most of our investors 8 to 12 typically now because we’ve had so much interest in

but we do we have 100% payback rating so nowadays we offer 8 to 10 pretty much is where we cap.

[32:05] And that’s typical all right jawline to get your comment on that and honestly if when you’re thinking about investing in a Reit that’s fine they’re relatively safe.

But remember anything you hear on the show that sounds like advice is not advice please consult your financial advisor we don’t give tax or financial advice.

[32:25] There are professionals that do that we’re just an educational show and provide some things for it at for illustration and,

my hair is giving you away that you can make better than 4 to 9 % would you rather have your money at 10 or 12% secured by a property where even if he wanted to not pay you he couldn’t not pay you he has to pay you because you have a lien on the property,

or would you rather put your money into some conglomerate that’s investing in shopping malls.

[32:52] And what’s the future of shopping malls will actually have been tracking the date of their they’re not doing too badly.

I expect the the bottom to fall out any day now as Amazon and Alibaba take over the world.

It’s got to happen but anyway and I both had the same reaction about 4%.

Who’s getting excited about 4%.

If you’re around this business not many why would you pay 12%.

For their money because you’re probably making 50% annualized.

[33:32] Analyze analyze maybe definitely not per deal that it would be hey if you can do that that’s been kinda it would be unusual but typically we we shoot for 15 to 20% on everything.

[33:46] And and your deals typically asks what about 6 months.

Typically four to six months so if you can flip the money two or three times that’s awesome and what you should really be shooting for in fact you know people talk about.

They’re in the flipping business yes you’re flipping houses but if you can reset your mindset to think about the fact that you’re flipping money you’re flipping dollars.

Then I’ll speed you up you’ll make more money on the same money that you have all right we got some questions we got questions from our national listening audience and if you have questions out there send them to,

questions at flipping American network.com we have answered every question that’s ever come into the show for an entire history and went into always do it even if we have to hire more people to do it.

So we will answer your question we don’t answer them all on the air but we will answer your question so send them now to questions at flipping American network.com I’ve got a stack of them here,

but that we got questions from people in the room so you guys came out tonight so we’re going to answer your questions first,

alright what cap rate should you look for in a single family residential property mohawk.

[34:51] So when it comes to single family residential I typically won’t look at cap rate as much I look at more of cash on cash return.

So cash on cash return is better suited for a single-family rental and typically what I’m looking for when it comes to cash on cash return is anywhere from 10 to 12 14% maybe 15%,

if I can do better than that and typically in a market like Atlanta I usually can do a little bit better than that I’ll be looking for anywhere from 10 to 15 or more,

and cash flow is just one aspect to owning rental real estate in fact there’s quite a few other benefits to owning rental real estate which most people don’t talk about which.

I don’t know why it’s actually.

Tremendously powerful to own rental real estate you have cash flow you have leverage the fact that you can borrow money to buy Investments you have price appreciation,

you have depreciation of the I set that you can take on your taxes as well and then you have 10 and pay down which is basically you’re not really paying the mortgage,

your tenant is paying the mortgage so it’s actually a five-part awesome way to invest your money.

[36:02] All right and show you off and get 10 15% after expenses expenses yes I can usually get 10 to 15% and by the way I forward there at first what I would say.

I don’t usually use cap rate for single-family either but I guess maybe if you were borrowing money maybe you would.

It’s a little bit Overkill problem what are some good strategies for finding motivated sellers distressed properties Etc.

So I spoke a little bit about marketing being born or I’ll probably speak about it again which is it is the most important thing I talked about it and I also train for a large company,

around the country and I talk about it all the time that marketing is probably the most important thing that you could be doing for your business if you’re not marketing any business obviously real estate as well,

if you’re not marketing for your business to bring in lead.

[37:00] A slow death basically it is a long story short South we’re on social media as much as we can be,

to network with other investors definitely networking in person we do Direct Mail we do cold calling we’ve done bandit signs we’ve done.

A lot of different strategies and right now we’re pretty much sticking the three or four and then we we keep ramping up further and further but we track we track how much we’re spending and what that’s bringing in so if you don’t know how your business is running.

You can’t spend your money wisely I’m going to.

Maybe it does next question because you’ve answered part of that you offer 8 to 10% on your to your private money lenders do you ever split profits 50-50 generally I want split profits 50-50.

[37:47] I just I just don’t believe there is a need to but maybe while you’re getting started perhaps that’s a way to get started and you can always find other opportunities for finding money like hard money lenders as well.

Yeah when you’re with your private money lenders do you make a monthly payment or do you just pay the interest at the end.

So with our private money lenders we pay the interest at the end all right.

[38:10] Music.

[38:25] Hi it’s got the Curtis here for the Whitestone Real Estate Investors Institute

we can start a new career for as little as $500 now I want to be upfront with you the programs cost more than that but the Institute offers financing for most of its programs,

the cool thing is that you’ll be able to pay off that financing quickly usually with the profits from your first deal

and you will do a deal because your coach isn’t going to let you go until you’ve done at least one I have Hayward on the phone right now,

Hayward introduce yourself and tell us what you think about the coaching so far,

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

cuz I want to try and so I kind of got geared up to read a lot of books

red lighter information and just do all of these things that was going to kind of set me off for six seven eight months in preparation but I got with my coach and you know he definitely

it got me out there I mean just from the get-go it was just holler at you know it wasn’t you know read up on this or read up on that you know he gave me a lot of information as one

put me out there and gave me a lot of action things to do physical and I think

that you know I couldn’t have learned two things that I learned in the way that I learned them no other way.

[39:49] Hayward what would you say to your friends were thinking about signing up for this training.

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

they need to join this course because like I say I mean I walked in I know any.

But immediately I was making offer in and just dinner with lenders and just back Torino,

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

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

quicker than I would have like I said taking any other route so I would definitely advise anybody.

Not just my friends but anybody to continue to give this program,

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

[40:58] Music.

[41:06] Alright we’re back thanks everybody or we’ve got a couple more questions from the group that’s here one of them one question is,

are there any kinds of properties around Atlanta to stay away from and then they use the abbreviations for those that are from Atlanta inside the perimeter and outside the perimeter and during the break I asked my heart address this question,

in a more General sense because we have people listening from all over the country so the types of properties to stay away from ones that don’t make you money.

[41:36] That’s pretty simple now which ones do you stay away from,

there’s really nothing that I would necessary stay away from unless they have a much more substantial renovation than I’m capable,

or confident in being able to handle at this time numbers is what I look at I’m a very much a numbers guy so if the deal makes sense if there is Renovations going on over there

if there’s sold properties over there if the days on Market is low then I’m going to go ahead and feel confident about buying that property

now there might be certain properties where you might have to I don’t know lift the house or something like that I say that because we’re actually,

looking into lifting a house right now and tell the numbers make sense that something we are,

going to likely do something we’ve never done but you find the resources to be able to do something like that it’s something we feel fairly comfortable being able to handle not that we’ve left it a house before but we’ve done,

random things like that because it’s better for the property what about bad neighborhoods,

that damn bureaucrats yeah so I generally will stay away from warzones things that don’t have the comparable properties things where I probably would not feel safe at night or during the day also if I’m driving those neighborhoods and I see

a whole bunch of people hanging out at 10 or 11 in the morning my thought process is first and foremost why aren’t people at work okay and so.

[43:05] That’s the type of neighborhoods I’ll generally stay away from so.

[43:10] I’m looking at properties in up-and-coming areas in areas that are transitioning because there’s.

Neighborhoods around the country where people are moving into because they can’t afford to live in already stabilized neighborhood so they’re moving into transitioning area cell,

usually you want to look at the path of growth where is the growth coming in the growth usually,

comes in places where there’s job opportunities that’s why people moved to different markets around the country yeah I had a couple of things to that.

I I I will if I’m worried about a neighborhood I’ll drive through about the 6 in the evening and see if I see any young couples walking babies or dogs.

That’s one thing that it warms my heart and encourages me the other thing that I kind of think is I don’t know where I got this saying I didn’t make it up but I love it.

[43:59] I don’t want to be the first one to rehab in an area because I believe in this Theory the early bird may get the worm but it’s the second mouse that gets the cheese.

So I let somebody else go in there first and establish the comes I know that’s kind of morbid but I think it’s funny.

Alright I wanted to give you a lil bit more time on this question mine set why does it matter so that’s a great question.

[44:24] You guys heard my story at the beginning of this show and.

That’s really got me to where I am today and where I expect to be going continue on the journey.

I’m usually not ready to handle any certain type of renovation this house lifting thing that I just spoke about a couple of minutes ago,

I’m not I’ve never looked at a house before so we’re going to find out kind of what it’s going to be if there is multiple exits in a deal then I feel comfortable about it when it comes down to mindset.

[44:54] You just have to make a decision I’m a firm believer in decide then you will act right you have to decide that you’re going to get somewhere before you’re there.

So for me I’ve always wanted to develop a recently in our business right now what we’re really focusing on is that wanted to build a very strong

wholesaling arm and wholesaling for those of you that don’t know is when you buy a property and without what you’ll just clean it up or not do anything to it and you

go ahead and flip it to someone else either on the retail Market or usually to another investor,

and so I’ve always wanted that to supplement our renovation side and I wanted to do that for years and I never quit so I.

Once again I’m working on that and that’s why we’ve been bringing in and generating so many more leads I think mine set is is a foundational piece.

That the nuts and bolts of this business you can easily learn but until you’re prepared to actually go out there and here.

100 nose before you get your first deal like my very first deal took me a hundred and twenty offers before I got my very first deal.

So a lot of people think all my heart my heart is able to get so many deals.

Every single day we are generating and this is I just talked to earlier about cold calling about how many leads we got about 27 this week but every single day were generating about 30 or 40.

[46:20] So we are very clear that no matter what we are going to build a wholesaling business now the universe just have to catch up.

[46:29] Wow that’s pretty good alright we got we have questions from our listening audience around the country we got another one up here on the board,

talking about the best ZIP codes in Atlanta but we’ve agreed we’re going to answer that after the show’s over crate because that specific do you folks here in the room we are going to answer the question though.

Let’s deal with this when Francine from Waukesha Wisconsin rights and it says how can you tell the condition of a roof while standing on the ground can you give me any other guidance about pricing out a roof.

[46:57] Yeah so that’s a great question so how can you tell the condition of a roof or frankly anything right so from the ground,

basically it’s a visual inspection you we you have to understand about Ruth’s Google is one of my best friends these days so when I don’t know something I’m going to Google it to understand,

what.

What what do I look for when it comes to a roof things like that just to give you some pointers if you’re looking at a roof and you see shingles that are coupling shingles that are.

Turning up a little bit if you see more graininess in a roof that’s an older roof if you see way Venus dips in the roof that type of scenario.

Typically going to have to re redo the roof completely.

[47:43] And can you give her any advice on what on what it’s going to cost so I can only speak to a fairly specifically about our own Market,

typically it depends it depends on the size of that house that you’re working with and also the pitch of the roof if it’s a steeper pitch it’s going to cost a little bit more because it’s a little bit more dangerous honestly and more work.

And taxing on a roofer roofer right now we just we are doing roofs anywhere from 3,000 to $5,000 all right we’ll be right back I’ve never had before.

[48:19] 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.

[48:32] Falkner here I tended a one-day flip starter training session led by Rod.

[48:39] And I was amazed to see what has happened in Rogers Live from the last.

[48:44] 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.

[48:58] Impressed with how well organized and how smooth the training Wednesday you’re tempted or in courage to go.

Not a bad price and if you get a chance.

[49:09] Music.

[49:28] All right we’re back I’ve got a question from Patty from Buffalo New York one that I get all the time and one that I’ve never had before she says thanks for the show we don’t get you on the radio here but love the podcast on I heart thank you Patty for those words question.

Would you start with fixing and flipping or rentals in inches has Owen how do you know where the people are when they send an email.

That’s because we asked you to tell us where you’re from when you send an email in and if we’re going to answer the question on the are we write you back and we say hey where are you from cuz we want to say so,

what’s up that’s the answer case you’ve ever been wondering it alright my heart would you begin with fixing and flipping or rentals.

Actually so that’s not out of the clear Define question or happens a lot right now there’s no clear answer to it it depends on what your situation is if you’re working a full-time job you love your job you want to keep on working your job.

[50:20] Then I still think you should be involved with real estate but be involved with rentals and I talk to you guys a little bit earlier about all the different benefits I tell all my friends all the time you know whether you want to invest with us or not,

go ahead and look into buying rental properties because there was such a

tremendous opportunity there if you if you’re not happy or you want to get involved with real estate and get involved with fixing and flipping I would probably say,

first and foremost you should probably find a mentor that’s very important because you can lose your shirt literally in this business if you make the wrong moves so go out to different events find mentors

I would probably start with learning how to evaluate deals appropriately see what the market is willing to pay for different renovation projects,

and then so I would probably start with something like wholesaling which it which would allow you to build up some cash flow or some Capital so that you can go ahead and baby do a Fix and Flip first.

All right.

[51:22] Let’s just skip around a little bit here Allen from Lancaster PA says I’m brand new just found your YouTube channel and website and saw your on the air here and Lancaster yes my friends were on the air in Lancaster PA.

So cool I’m really new but fired upward what should I do to get started so I think I just answered that in the last I shouldn’t.

I would definitely go out there and find a mentor work for them for free if you have to it doesn’t matter,

if you can be around someone that actually is doing this on a consistent and regular basis and just drive a neighborhood to put up flyers or whatever they need to do

over time you will learn this business you will learn what happened in their office you will learn how this person Market

how they’re pulling in deals what they say over the phone when they talk to these sellers over the phone and cetera so you have to be willing to maybe even work for free.

Latch onto someone if people approach to us right now saying hey I would love to work for you for free for 3 or 6 months.

I think we might take him up on that because we are right now looking for people so it happens to me absolutely.

And then you can gain a wealth of information just being an environment,

around people that are constantly doing this on a day-in day-out weekend week out bases right now I’ve got three people on my team.

[52:46] I work at the free like interns and I’ve got another one coming in June that’s awesome.

Interesting what happens with free labor sometimes but that’s a different story from San Bernardino California,

the properties I want to buy a real 400 500,000 and although the numbers look fine the cost of the hard money loans are in normous one lender told me I would need to bring 78,000 to closing,

how do I overcome this I have about 50,000 available for this and I’ll say Corey you got about 50,000 more than a lot of people I know that’s very true a lot of people start with nothing right.

So how do you overcome that first and foremost I would say if you’re getting started and you want to invest your own $50,000.

Perhaps partner up with someone first and foremost.

One way to get involved would be to partner with someone and and get cash through that channel maybe split the profits.

Refuse many many many creative financing strategies over the years we’ve used our credit cards you can do a balance transfer it’s not call the cash advance a balance transfer.

Into a checking account that was actually how I funded my very first deal because I did I will I want after a hard money loan and I need a down payment so my down payment was a credit card.

Stop after losing all that money no one was about to let me money back then that’s true so.

[54:08] So hard money we use credit cards we’ve used.

There’s websites like Lending Club prosper.com that we’ve utilize to get small loans as well.

[54:21] Life insurance policies other peoples are retirement accounts Etc

there’s so many different opportunities people have invested with us by getting a home equity line of credit on their home

and they will get a home equity line of credit I’d say for 5% and then they’ll loan their money back out to us at 8:10 12%

until there’s more than enough money out there is just that you have to be willing to step outside your comfort zone and talk to people and learn more about it.

[54:52] Good answer Alex from Jacksonville Florida says I hear all the talk about no money down deals is that a real thing or just a come on for some programmer course can I really buy a house with no money down and none of my own money.

[55:04] Yeah so yes you can buy a house with no money down it’s called typically called a subject to deal,

right so you would buy a property from a seller that doesn’t necessarily need the money right now but they just don’t want to put up with the headache of the house.

So you might have some minimal closing cost for closing the deal.

Basically essentially the seller is financing the house to you so your make it the seller’s the bank and now you’re making monthly payments to them.

[55:36] That’s what a true no-money-down deal would look like however real estate does take money so no money down can also refer to none of your own money down and so that’s where

yeah hard money lenders Partners different strategies for raising Capital which I just answered I can can play in,

it sounds like there’s a whole seminar just about finding the money to put together a deal

oh I’m sure there’s many second are finding the money and actually you know it is true that there are deals that you can you can walk into and the people just basically want to hand you the house they’re so sick of it and I’ll let you take it over until 4,

but if that’s all you’re looking for I think you’re going to pass by a hundred good deals to find one of those so.

Mars right put your apply your brain power to this and,

I figure out a way to bring money in from a variety of sources I give you the last minute or so here to give us some parting words of wisdom what you would say to people who are investing in a crowded in Hot Market where deals are hard to find.

[56:40] Stop believing that and stop believing the fact that there’s deals are hard to find you yes you are going to have to put it in a little bit more work than the next guy but that’s the difference,

what if you’re willing to put in the work go out there and every single day go out there and generate more and more lead network with people do good work,

you will automatically begin to see those results you have to be willing to step outside consistently be evaluating deals so that you know.

What a good deal looks like once you know what a good deal looks like when one actually lands on your plate you’re ready to pull the trigger and that’s that’s the name of the game you have to be ready to pull the trigger and if if you’re going to try to learn real estate by finding your first deal.

I don’t think that that’s going to be the best Avenue I think you have to go out there and consistent be evaluating deals before you can actually pull the tree.

[57:32] All right by God.

Alright I’ll get it one of these days I mean how many malls are there the one and only mall are thank you for joining us today yep we really appreciate your time,

my friends I want to thank you for listening to flipping America thank you for tuning in we’re here every Monday Thursday and Saturday Monday from 11 to 12,

Thursdays and Saturdays from 10 to 11 you can always find us on iHeartRadio,

and coming up very soon they are very own flipping America app if you have an Android phone it’s already in the Google Store you can download flipping America it’s absolutely free there’s no cost no obligation no upsell,

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we appreciate you listening and thank you for all the kind words keep the questions coming and remember to let us know where you’re from when you send your questions to questions at flipping America network.com.

[58:33] Music.

[58:49] For this week is from Jonathan Winters and he says if your ship doesn’t come in swim out to meet it.

[58:57] This that was brought to you by the foundation for Renewal working together with communities to improve an impact lives all across America find them on the web at renewal fund. Net your contribution in any amount is always welcome,

that’s it for today folks will see you again soon I’m flipping amera.

[59:12] Music.