Flipping America 153 ChoicesFlipping America

Expected Air Date: 05/17/18

Opening

What has life handed you? Is it really that easy to make lemonade when life is a bowl of sour cherries? Today I’m going to share with you an essay I’ve written on the subject of Choices. Our lives and even our eternal fates are completely dictated by choices. I would say more but I’ll save it for when we get to the topic.

Thanks for joining us today. On this show we try to give you the most complete and up-to-date information about real estate, real estate marketing, and real estate investing. We bring you the news, the trends, the styles, the markets, and the demographics to help you have an edge. We don’t encourage to drop what you are 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.

On this show we have documented at least 85 ways to make money in real estate, but they all boil down to 3 broad categories. 1. Active purchase and re-sell, 2. Buy and hold for cash flow. And 3. Passive strategies including lending, partnerships and REITs.

We can help you tailor an investment strategy around your personal goals, needs, and life situation. And we do this for free. All you need to do is go to the website, flippingamericanetwork.com and click on the big blue button that says “Click here for a strategy session”.

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

Announcements:

Lunch with me every Wednesday. Yesterday was the last day at Baraonda for awhile. We have opened up offices in Sandy Springs and moved our studio. So we will be doing our lunch networking at a place closer to the new offices and studio. Stay tuned for the exact location.
Flipping America App is in the app store. You can listen to the show, read the show notes, and soon the entire catalog of shows will be available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

News!

Guest:

Topic: Choices

In life there are laws and then there are implicit rules. For example, gravity is a law – and it will happen whether you believe it or not. Retaliation is an implicit rule. We naturally think that it is the only option we have. On the basketball court one player pushes another. The other pushes back harder. The first player throws a punch. Other players jump in, punches thrown, benches clear and the brawl is on.

But retaliation is NOT a law. Not one of the participants HAD to jump in. Those that did, made a conscious decision to do so. Wait, what? We often respond so quickly it just seems automatic. You lash out at me, I lash back. You cut me off in traffic, I’m obliged to show you the results of your last IQ test. We respond without thinking, so how are we supposed to control that?

I submit that you react that way because you’ve already done your thinking. And somewhere along the way you’ve concluded that retaliation is your only choice. Not only are you wrong, you are living your life under the control of anyone who might press your pre-determined trigger.

Has anyone ever deeply wronged you? They made you angry right? You were angry and there was nothing you could do – the decision was completely out of your hands. So you had no choice but to be angry for like – a day or two – or a week – or five minutes.

How long were you angry? Well that depended on the severity of the injustice right? Or whether something else distracted you? Or something nice happened that changed your mood? So what will it be? Angry for 5 minutes, a week, or the rest of your life? The extent of your anger is the full extent of that person’s power over you.

Okay okay, what about something like sadness? Have you ever lost someone you love to death due to unexpected circumstances? There can be a sadness that grips your life and profoundly impacts the way you live the rest of your days. Unavoidable right?

No one plans on bad things happening in their lives, but we somehow instinctively accept that when these things happen, our lives are controlled by them. This may come as a surprise to you but this is not true. You are not a victim of your circumstances or even other people’s choices. You always have a choice about how to respond to whatever life hands you. Now I’m not saying it’s easy, especially if you are not used to living this way, but you DO have a choice and what you choose matters. What you choose to think, to act, or to react, is the sole determiner of the outcomes of your life.

Life is 100% choices. In today’s world, your mother even had a choice about whether to bring you into this world. Here’s a challenging thought for you. From about age 15 onward, your life is increasingly the direct result of the choices you have made and are making.

Someone right now is saying, “but Roger you don’t understand my circumstances.” That’s probably true but it doesn’t matter. Your current circumstances exist largely because of your choices and your way out, around, over of through those circumstances will come from the choices you make going forward. Yes you have circumstances, I have circumstances. We ALL have circumstances. But whether you remain “under the circumstances” is a personal decision. You can choose not to be under them. You can choose something else.

If your life is filled with drama, it’s because you choose and even embrace drama. If your life is a struggle, it’s because you choose and embrace struggle. If your life is peace, it’s because you have chosen peace. If life for you is filled with complexity, it is due to the fact that you have added complexity to the simple process of breathing.

Can it really be that simple? Nah – unless you think it can be. If you think it has to be tough, it will be. If you think you need to be sad, you will be. If you think you are content with wherever you are and whatever you have, you will be. This is true whether your choices are positive or negative.

This fundamental reality doesn’t rise to the level of self-fulfilling prophecy. Deciding you will respond to injustice with rational thought rather than out-of-control anger is a choice that is manifested immediately by rational thought. If you choose to focus on the things that anger you, you will be angry. If you choose to focus on the things for which you are grateful, you will be grateful.

Should you somehow try to condition your brain to ignore everything negative in your life? Quite the opposite. You can’t do that and you really shouldn’t. Some of the negative things coming your way are warnings. Don’t ignore the negatives, don’t ignore injustice, don’t ignore your feelings. Embrace these inputs into your life with a determination to respond to them with intentionality.

Occasionally anger is the proper response. But this is best delivered through the filter of reason and self-control. Sadness and loss are givens in this life. Embrace this as a part of life. Feel the feelings deeply within you. Recognize the inevitability of loss and focus on the sadness as a teacher, allowing catharsis, and showing the contrasting value of the moments of joy.

Choices have consequences. Small or large, every decision has consequences. They aren’t always easy to predict, but most are much easier than we think. Choose to live beyond your means and you’ll always be broke and financially stressed.

Choose to spend your time with others who wreck their own lives with bad decisions and you will find yourself entangled in the wreckage. Spend time with people you admire and you’ll be more like them. Seek out people who are smarter, or who have the type of life you seek and you’ll find yourself on that path. It’s up to you.

Don’t tell me “but I love him/her.” This too is a choice. Love is not some cosmic force that overpowers you. You tend to love based on previous choices you’ve made about your ideal companion. I do believe in love at first sight, but even that love is determined by standards, conditions, and desires that both parties had established beforehand. I tell my wife frequently that I’ve been in love with her since my teen years although I didn’t meet here until after I was 50 years old. I can say this because I had an image of my ideal life partner. It took awhile to find her.

Your current circumstances are the direct result of the choices you have made up to today. Your future will be the direct result of the choices you are about to make. So choose wisely.

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!

Candace from Kennesaw, GA, from lunch yesterday, “We are looking to get started, should we focus on wholesaling or fixing and flipping?”
Hector, Topeka, KS “Please tell us when you’ll be holding your next FlipStarter. Are you coming to middle America anytime soon?”
Emma from Austin, TX “I’m about to buy my first rental. I’m following the exact process suggested by a local guru here in Austin. I’m buying the property for $149,000. I’m prepared to make a $30,000 down payment. The loan amount would be $120,000. My principle and interest payment is $638. The rent on the house is $1000/month. This seems like it works to me but (mega-bank) won’t approve the loan. I have a 750 credit score, and good income. But they cited two reasons:
- Debt to income ratio: insufficient income.
- Debt service coverage ratio is insufficient. What the heck is debt service coverage ratio? I looked it up but don’t understand what I’m reading and why didn’t the guru talk about this? When I asked the banker she told me she just processed the loan and didn’t make the decision, but it has something to do with a 30% expense factor. None of this makes sense to me.
- DSCR = NOI / debt costs. 8400 / 7656 = 1.09
Francine, Long Beach CA, “If you were buying rental properties anywhere in the US, it probably wouldn’t be CA. Where would it be?”

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

Transcript

[0:00] Music.

[0:27] 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 here’s that flipping America guy Rodger Blankenship Kathy thanks for joining us today.

On the show flipping America we try to give you the most complete and up-to-date information about real estate real estate marketing and real estate investing.

We bring you the news the trends,

the Styles the markets the demographics and the people who are getting it done all of this to help you have an edge.

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.

[1:28] On the show we have documented at least 85 ways to make money in real estate they all boil down to three broad categories.

One act of purchase and resell to,

Buy and Hold for cash flow and three passive strategies including private lending Partnerships and REITs and other types of crowdfunding,

we can help you Taylor investment strategy around your personal goals needs and life situation and we do this for free all you need to do is go to our website.

Flipping American network.com and click on the big blue button that says click here for a strategy session hey what has life handed you.

[2:09] Is it really easy to make lemonade when life is a bowl of sour cherries today I’m going to share with you an essay of written on the subject of choices

our lives and even our Eternal Fates are completely dictated by choices I would say more but I’ll save it for when we get to the topic

let’s do a few announcements we got a ton of news and lot of questions stacking up and I just want to say hello to everybody in Savannah but had a great time in Savannah,

the other night Full House standing room only they brought in more chairs a couple of times and we had a blast I know I got kind of long-winded I was just having so much fun and we were talking about this that and everything,

I really appreciated the opportunity and it was a great honor to be there with Aisley in the gang at the Savannah Rhea,

tell him to tell you guys how to reach us okay I’ve already mentioned www. Flipping American network.com when you go there you can access the show postings,

you can also tap into a variety of resources one of the things that I’m proud of is right on the homepage we’ve got a couple of RSS feeds

that Supply you with up-to-the-minute real estate news as it breaks some of it is not really hurt shattering news but

whatever is out there on the subject to real estate it it’s popping up in those RSS feed so make it a resource that you go to frequently.

[3:32] Where on the web are on around Facebook at flipping America media and everywhere else on social media where,

at flipping America Twitter and Instagram YouTube LinkedIn we have a YouTube channel and you could always if you don’t do the whole computer thing if you just listening just now I’m on the radio you can always call in for 04

369 10:18 if you want to leave a comment or if you have a question about real estate you can press one to leave your message your question if you don’t mind emailing that’s fine email is

are emails at questions at flipping American network.com that’s questions at flipping American network.com and please always tell us where you’re from

because we like to know when we like to I say so on the air.

[4:23] Alright here’s some announcements you can have lunch with me anytime you’re in Atlanta on a Wednesday I do a lunch meeting.

Yesterday was our last day to meet at the veranda Italian restaurant on Peachtree Street for a while that’s because next announcement drum roll

we have open up new offices in Sandy Springs just north of downtown Atlanta and moved our studio there,

we have a little bit of a quieter environment Peachtree Street has been great we’ve enjoyed it but we often have to stop the recordings because of the free.

Fire trucks and ambulances that go by so we’re in something more like a real studio now and,

moved in with our offices and our partners and so this we hope it’s going to be a good situation and if we’re going to be here for a while so we’re going to be doing our lunch networking on Wednesdays at a place closer to the new offices and Studio

stay tuned for the exact location I don’t know yet where it’s going to be.

[5:19] This is another big announcement finally after some difficulty the flipping America app is in both app stores you can get it you could get it in Google for a while now but it’s now in the Apple Store and,

all you need to do is just go into the App Store and search for flipping America and you can download the flipping America app

with this app you can listen to the show you can read the show notes and it’s kind of funny I was looking to yesterday I was the first one to download the.

[5:48] App from the Apple Store and I was looking through it and the earlier shows.

I didn’t realize that those knows we’re going to be what’s published everywhere and if you go back and look at the earlier shows you’ll see the evolution of the notes for the show but

it’s a little embarrassing I thought about going back and changing it but I’m not going to it just is what it is all right and we’re learning and growing as we go.

You can you can download the app for free,

there are no upsells there are no in-app purchases it’s free to download free to listen you can listen to the entire catalog this is show number 153

when it gets posted you’ll be able to listen to All 153 shows and you’ll be able to access the notes

and it’s all right there for you and my friends listen after a year-and-a-half of this and 153 shows if you listen to every show you’re going to get quite an education,

in a lot of things about real estate I’ve talked to some fantastic people with great ideas over the last year-and-a-half and it’s all right there for you.

[6:54] After you’ve tried the app out please drop me a line tell me what you think that you want a quick analytical tool,

to tell you how strong a potential Fix and Flip deal is we have another app in the app store and it’s called property grade if you download the property grade after you answer 10 simple questions about the property and the app

instantly tells you what you can expect to make your return on investment you return on cash and then this program this app gives you,

give your project a letter grade using the proprietary flipping America investment

property grade algorithm now that’s a mouthful I had to write that down and practice it a couple times it is the proprietary flipping America investment property grade algorithm this algorithm yields the

flipping America investment property grade.

It’s not just a meaningless score it’s a grade you can understand a deal is better than a CDL right and said of a deal we just call it a don’t do it.

[7:56] Alright so we hold these deals up to the standards that we use for the deals that we buy and we actually use this property grade app the reason the app is in the app store because we develop it is a tool that we would use and have used it down for some years,

and we decided to share it with you our dear friends and our listening audience in the people that we come into contact property great app is free as well,

and we would really appreciate if you tried out and leave some feedback in the App Store will be back in just a minute we’re going to.

[8:25] Music.

[8:36] Know what’s around the corner

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[10:02] Music.

[10:16] If I could I would just give a little shout out to Legal Shield.

Personally I have used LegalShield three times in the last 2 weeks just various things that we’ve needed.

So thank you LegalShield and glad to have you on the team and glad to have you as a sponsor of the show okay let’s do the news

are opening headline today and I’m bringing this to you it’s from forbes.com

the headline is Bitcoin gold stocks bonds or real estate which is the best investment to build wealth.

And the thing that cracks me up about this and you know I don’t usually enjoy the articles that I get out of work and I enjoy this article to them I’m going to,

get into a little bit more but it’s funny that the first word in the headline is Bitcoin and then the guy riding the story,

talks about that Building Wealth through investment vehicles and they talk about a Gallup survey and Bitcoin he’s isn’t even one of the choices in the Gallup survey so.

[11:21] Why put it in the head line I’ll tell you exactly why,

because Bitcoin and cryptocurrency gets clicks because people are interested in it but I’m telling you my friends.

It’s it’s a fad it’s popular right now and it’s too soon,

it’s just too soon to get involved we have a whole series on bitcoin and cryptocurrency I talked to three of the industry’s leading advocates for various cryptocurrencies and I listen to what they had to say and I am I.

Ask them questions and became away

frankly unconvinced I still believe that there’s enough volatility here that the only thing you should put into cryptocurrency as money you can afford to lose but I do want to talk a little bit more about this

article okay a lot of people think the all right let me just go over the numbers.

[12:14] Real estate is everyone’s popular pick for the best way to build wealth in the future.

More Americans think that real estate is a better vehicle for Building Wealth compared to the other vehicles for the fifth year in a row,

specifically over a third of those surveyed think real estate beats other Investments as a wealth-building vehicle while roughly a quarter thing stocks or mutual funds best serves the said purpose

gold sided by 17% roughly ties savings accounts or CDs at 15%

it will only a few Americans at 6% cited bonds all right.

[12:54] The author then goes on to say market performance numbers provided different answer,

real estate is lagging far behind stocks gold and Bitcoin in the last 12 months.

It also legs behind lags behind stocks in Bitcoins Over The Last 5 Years see table 2,

and when you look at table to you will see that sure enough if you just look at their standard rates of appreciation of real estate compared to the performance of the index funds or do you know the Dow Jones Industrial Average

stock market has killed real estate over the last 12 months. What does this mean and I’m going to drop what I’m doing and put my money in the stock market and no.

[13:36] Not anymore than I’m already putting in it Okay the reason I say that is the stock market will beat real estate

every time at throughout history if all you’re looking at is the standard rates of appreciation if you look at the kinds of returns that you can get from the Real Estate Investment Trust,

where you might be getting four or five percent return on your money you’re going to do better than stocks better than that with the stock market,

historically no let me just say this

I’m not giving you Financial advice you need to conduct couldn’t have a conversation with your own financial advisor but I am here to tell you that I,

routinely consistently and for the past 15 years have destroyed the stock market returns with what I do in real estate the reason is I don’t buy real estate at Kern.

[14:27] Value and wait for appreciation,

to make my profit I always buy the real estate at a discounted price something well below and usually 50 to 60% of the actual value that it would be after we put some improvements into it

you can’t buy stocks this way stocks have a set price I don’t see them getting discounted in the stock market your wedding on

games are your bedding on Falls in some cases there are different things that you can do in the stock market and the people who play the game and play consistently and I can tell you this the people who do this consistently and do it well beat,

the averages that are published like the Dow Jones Industrial Average or any of the number of index funds.

[15:15] Their Pros out there beating this routinely that’s not the way life is taking me,

life is taking me into real estate and so I use real estate to beat the market and know that we beat at the pieces and we’ve got the,

evidence to prove it but it’s not going to happen if you go out there and pay full retail price for a house,

this is the mistake that most of these so-called experts make when they start comparing real estate investing with the stock market they’re just looking at the way the

the Reeds perform and they’re looking at the rates of appreciation if you were just to buy property and hold on to it.

[15:58] I don’t know any I don’t have any friends that would do it that way.

Because we would all agree that there are other things to do better things to do with your money then approach real estate that way.

[16:10] Hope you understand I’m not trying to be critical of Forbes or even Forbes Real Estate Council the person that wrote that article is a member of the council and so am I but I just wanted to point out that that’s going to put Bitcoin in your headline maybe talk about a little bit more.

Have another story from Forbes titled seven steps to protect yourself from private real estate investing mistakes pretty good article,

mistake number one or things steps said number one that you need to make his manager portfolio before it manages you never to is chewed up

choose a broad mix of real estate Investments and this is kind of thinking a little bit more about commercial type of Investments

through three handle projections with care read this paragraph because this is very important no matter what you’re investing in read that paragraph,

this paragraph number 3 handle projections with Care number for take risks together number 5 decide when to cut your losses number 6.

Don’t be blinded by your winners or losers,

the number 7 stay humble all of these are it is just good general knowledge now this is written with the,

a little bit of a focus on investing in commercial real estate and different things like that but I think that the principles are sound and could be used for anyone who’s investing in single-family homes or whatever you are so I’m going to

link you I’ll link you actually did both of these articles and will put them out there on the social media and they’ll be out there this afternoon.

[17:38] Are we got to go to a break and when we get back we’re going to cover a little bit more news and then pretty soon we’re going to get into the topic for the day your choices.

[17:47] Music.

[18:06] Flipping houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them,

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

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

Cleveland Tennessee and I’ve been.

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

I’ve spent today with Rodger Blankenship learning about his program and boy do I wish I’d met Rodger.

[18:54] He has a clear concise program and many tools that are going to be very hot.

And starting and managing the 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,

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forward slash M3 let us help you take it to the bank.

[19:47] Music.

[20:01] And some other top headlines Vancouver luxury real estate is softening.

Well that’s not really surprised luxury real estate to softening in markets across the country if you’re looking to be involved in single family homes.

My suggestion is that you think about a level or two below the luxury if you think of it in Broad categories you have your starter homes and you have your upgrade homes and you have your high-level home didn’t have your luxury homes I would stay,

honestly with starter and upgrade homes.

Whatever your price ranges in your Market the reason for that is you just simply have a lot more buyers at that level and the property is going to sell faster.

I looked the other day at the possibility of buying an Oceanfront lot.

[20:50] And the selling price is $725,000 comes it’s a deeded lighted has a Dokken and the water access ride into the Atlantic Ocean and.

Build buy this lot for 700,000 I could build a 4000 square foot house on it that I could expect to sell for 1.5 to 1.6 million I ran the numbers on the DeLand,

I look like I might be able to make $300,000 in boy that sure does seem kind of tempting and appealing right well I actually thought about it for

probably less than 5 seconds before deciding not to do it because first of all I don’t live near there secondly,

I don’t do typically ground-up Construction thirdly.

[21:35] There are other ways and easier ways to make $300,000 there’s an awful lot of risk when you put in put all your marbles into that one basket.

We’re here you’re going to build a million half-dollar house and then wait for a buyer to come along.

The market is soft in the luxury homes and it’s soft everywhere in including that location.

[22:00] I got an interesting story from CNBC it’s just a video that you need to watch and I’ll link you to it on social media and in this video we find out that.

The real estate investment world is improving dramatically due to.

The tax cuts that’s right because of tax cuts Real Estate Investors are able to do have a 20% right off,

and I’m not going to go into any more detail about that because you need to talk to your,

tax professional about that but there is definitely a brand new tax benefit for Real Estate Investors built into the new tax code then the the gentleman goes on to discuss lower corporate tax rates mean,

means that other large corporations are investing more into,

real estate and the low unemployment rate means that there is a huge demand for Office Space,

office space has been kind of the weakest link in the commercial real estate recovery over the past several years but now it’s an opportunity play and office space is in demand and.

So the tax cuts are leading to an improved climate for Real Estate Investors and I thought you’d like to know that.

[23:17] I got another story about you how you’re at your 401k may be jeopardizing your retirement because you could make three or four times as much if you put it into a self-directed IRA or solo.

The solo 401k and direct that,

money into real estate Investments I’ll link you to the article I’ll let you read it yourself but just know that.

You have some choices about what to do with your IRA but the company that is,

administrating your IRA at work maybe probably won’t let you take the money and put it into real estate and you know we’ve had my country with Advanta Ira on the show,

and I know that you can’t take the money out of your 401k and roll it into a self-directed while you’re still employed there but this article gives you some ideas and some thoughts about the possibilities and so will share that with you.

[24:11] So got a headline called and it’s from Florida.

The Florida real estate market is healthy but challenged and I just kind of have to laugh because some people can’t help,

themselves but have to throw in a little bad news with the good news there’s always something coming up you know it reminds me of watching National Geographic TV shows when I was a kid and even as an adult I enjoyed watching the show and,

loved all of the things and at the very end they always talked about all this and will strengthen her this environment Stratton week due to human activity and it could be going away and all it’s so Dyer,

and it would be all right if they said it every once in awhile but they have it at the end of every show he might as well say

real estate is great everywhere in the United States the single family Market is booming and this is an opportunity that we haven’t seen in 15 or so years.

And then at the end of that we have to say but you know global warming is still a possible thing that’s happening and you know pretty soon we’re going to be underwater and.

And then you know people are still hunting the rhinos and you know you can put that in the end of just about anything you want to say.

[25:27] And turn the good news story into a bad news story and that probably has something to do with our topic for the day and that is about choices we will get to that in a few minutes,

I’ve got another story talking about the economy in the employment numbers and how they benefit certain sectors in commercial.

Real estate and one of them horses office space and it agrees with what we had said before also industrial properties and Manufacturing properties are on the upswing and so if you are the kind of person that just wants to invest in a Reit

maybe take a look at office space and Industrial and Manufacturing or maybe think about buying stock in one of the publicly traded companies that works in office space,

I’m looking at you we work.

I’m not endorsing we work I don’t endorse any particular investment here do your own homework do your diligence but there are some opportunities out there if that’s the way you want to go.

[26:25] That’s all the news we have time for today when we come back I’m going to share with you the topic of the day and that is choices and what they had to do with our lives

then if we have some time out I’ll take some listener emails if you want to send an email and if you have a question about real estate it can be about anything even something I may not know because we’ll get an answer for you send it to questions at flipping American network.com

tell us where you’re from will get you an answer whether we answer it on the air or not we answer 100% of the questions that come into the show we answer every question,

so go ahead fire away will be back in the moment.

[27:08] Music.

[27:19] Are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand that used to be in that 70.

I start investing 2003 with my net worth with -80 thousand,

since then I’ve built a business that generates over $500,000 a month in income and allows me the freedom to do what I want I’m Brad Chandler and I tease people just like.

[27:39] How to find Freedom through real estate investing using a tactic that doesn’t require credit or tons of cash for a free training on how you too can do this please visit Brad channel.com.

[27:49] You never know what’s around the corner

but you can be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living life

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[29:11] Dot-com Legal Shield protection for every part of life.

[29:16] Music.

[29:53] I am Rodger Blankenship and we are back and I teach people how to make money in real estate.

For the next few minutes I’m going to talk to you about something that’s in your brain in your mind because the way we think about things.

As a dramatic effect on the way we live our lives in life there are laws and then there are implicit rules for example.

Gravity is a law and it will happen whether you believe in it or not.

On the other hand retaliation is an implicit rule we naturally think that it’s the only option we have.

I was watching the basketball game the other day on the basketball court one player pushes another the other pushes back harder than the first player has to throw a punch then other players jump in punches thrown benches clear and the brawl is on

but I’m telling you my friends retaliation is not a law.

[30:50] Not one of those participants had to jump in those that did made a conscious decision to do so wait why.

[30:59] We often respond so quickly in a situation like that it just seems automatic you lash out at me eyelash back you cut me off in traffic I’m obliged to show you the results of your last IQ test.

And y’all know what I mean we respond without thinking,

so how are we supposed to control that well I submit to you that you react that way because you’ve already done your thinking

and somewhere somewhere along the way you concluded that retaliation is your only choice not only are you wrong.

You are living your life under the control of anyone who might press your predetermined trigger.

You don’t have to go very far into the media

and the culture of the day to see people who are wearing their emotions on their sleeve just waiting for someone to trigger some emotions some response some offense they’ve already made up their mind.

[32:02] I’m not going to give you a specific examples here but all you have to do is watch the news for one or two days and you will see stories.

When I was a kid I could control my sister I’m sorry sis.

I apologize now for being so mean and I have apologized before not on the show.

[32:24] I knew that I could just yanking your chain I was like a puppet master I could make her angry I could make her sad I could make her cry just by teasing or picking on or whatever that Brothers do.

At some point later on in her life she figured out that I was just doing this to annoy her and she decided not to let it bother her at that point it stopped being fun and so guess what I quit.

Has anyone ever deeply wrong you they made you angry right.

You’re angry and there was nothing you could do the decision was completely out of your hand so you had no choice to be angry for like a day or two or a week.

Are 5 minutes how long were you angry.

Well that depended on the severity of the Injustice right or whether something else distracted you or something nice happened that changed your mood so what’s it going to be.

Are you going to be angry for 5 minutes for a week.

For the rest of your life you see the extent of your anger is the full extent of that person’s power over you.

[33:39] Okay well what about something like sadness.

[33:43] Have you ever lost someone you love death due to unexpected circumstances.

[33:51] If you’ve lived a few years in this world you probably have there can be a sadness that grips your life and profoundly impacts the way you live.

The rest of your days unavoidable right well the death of a loved one is unavoidable.

But I’m saying to you that the grip that it has on you is a decision that you make Stay With Me.

[34:19] No one plans on bad things happening in their lives but we somehow instinctively except that when these things happen our lives are controlled by them.

This may come as a surprise to you but it’s not true you are not the victim of your circumstances or even other people’s choices you always have a choice.

About how to respond to whatever life hands you know I’m not saying it’s easy especially if you’re not used to living this way.

But you do have a choice and what you choose matters what you choose to think to act or to react is the sole determiner of the outcomes of your life.

My friends that’s not what other people do to you it’s how you react.

That determines outcomes it’s not what life gives you it’s what you put into it.

It’s not your natural gifting or ability that will determine your outcome it is your effort and your work ethic.

And your willingness to do what needs to be done that will be a much greater determination of your outcome.

[35:37] If Talent a loan where the sole indicator of a person’s future then you wouldn’t see talented people.

Living in homeless shelters but you see talented smart people all the time who haven’t made anything of their life because they made some unfortunate choices.

[35:58] Life is 100% choices in today’s world even your mother had a choice about whether to bring you into this world.

[36:07] It’s 100% choices here’s a challenging thought for you.

From about age 15 on word your life is increasingly the direct results of the choices you are making.

[36:23] Someone saying right now but Rodger you don’t understand my circumstances that’s probably true but it doesn’t matter.

Your current circumstances exist largely because of your choices.

And your way out around over or through those circumstances will come from the choices you make going forward yes you have circumstances.

I have circumstances we all have circumstances but whether you remain under the circumstances is a personal decision.

[36:59] You can choose not to be under them you can choose something else.

[37:05] If your life is filled with drama and believe me I know some people for whom this is true it’s because you choose and even Embrace drama.

If your life is a struggle it’s because you choose and embrace struggle if your life is peace it’s because you have chosen peace.

If life for you is filled with complexity is due to the fact that you have added complexity to the simple process of breathing can it be really that simple na unless you think you can be.

If you think it has to be tough it will be if you think you need to be sad you will be if you think you are content with wherever you are and whatever you have you will be.

[37:52] What you choose is what’s going to be whether your choices are negative or positive.

[38:01] This fundamental reality doesn’t rise to the level of a self-fulfilling prophecy it’s not that and it’s not magical thinking,

deciding you will respond to Injustice with rational thought rather than out of control anger is a choice that is manifested immediately by rational thought if you choose to focus on things that anger you,

you will be angry if you choose to focus on things for which you are grateful you will be grateful.

[38:29] Should you somehow try to condition your brain to ignore everything negative in your life quite the opposite.

You can’t do that and you really shouldn’t some of the negative things coming your way are warnings some of the negative things actually end up being beneficial.

Don’t ignore the negative.

Don’t ignore Injustice don’t ignore your feelings Embrace these inputs in your life with a determination to respond to them with intentionality.

Occasionally anger is the proper response but this is best delivered through a filter of reason and self-control.

[39:11] Sadness and loss are Givens in this life.

Embrace this as a part of life learn from it feel the Deep the feelings deeply,

within you recognize the inevitability of loss and focus on the sadness is it kind of a teacher allowing catharsis and showing a the contrasting value of the moments of joy,

because it is in our deepest sadness that we learn to appreciate our greatest joys.

[39:41] Choices have consequences small or large every decision has consequences.

[39:48] These aren’t always easier for to predict but most are easier than we think.

Choose to live beyond your means and you will always be broke and financially stressed.

Choose to spend your time with others who wrecked their own lives with bad decisions and you will find yourself in Tangled in the wreckage.

Spend time with people you admire and you’ll be more like them.

Seek out people who are smarter or who have the type of life you seek and you’ll find yourself on that path it’s up to you there’s nothing magic about it it’s just a choice that you make.

Don’t tell me but I love him or I love her this too is a choice love is not some Cosmic force that overpowers you.

[40:33] You tend to love based on previous choices you’ve made about your ideal companion.

I do believe in love at first sight but even that love is determined by standards conditions and desires that both parties had established beforehand.

I tell my wife frequently that I’ve been in love with her since I was a teenager but I didn’t even meet her until I was in my 50s.

I can say this because even at a young age I had an image of my ideal life partner and it just took me a little while to find her.

My friends hear me your current circumstances are the direct results of the choices you have made up to today.

Your future will be the direct result of the choices you are about to make so Choose Wisely.

[41:38] 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.

[41:51] 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 Lie from the last.

Plus years flipping over 800 houses and then this one day training he told how he did it and what the pitfalls the blessings the benefits and how to do it.

Press with how well organized and how smooth the training Wednesday you’re tempted or in courage to go.

[42:26] Music.

[42:48] During the break I got handed a little note that basically asked this question what about someone who believes it’s too late they’ve already gone

pretty far down the path in their life is a mess or maybe they think they’re beyond hope or Beyond recovery I just want to say to you stop thinking that way thinking that way also is a choice come on.

As long as you have breath.

There’s an opportunity for you to turn things around now can you be everything that you thought you could be when you were in your twenties and thirties maybe not but

take a realistic assessment you can turn things around even if a little bit you can have some impact in somebody’s life you can do some good as long as you have a moment and a breath and,

the idea that you want to do it you can choose,

to do something different and choose to do something better and choose to begin now no matter how late in the game it is for you you can choose to begin to build a different kind of life.

But it’s up to you to choose I urge you I implore you I get on my knees and beg you.

[43:58] Don’t give up.

Don’t just shrug your shoulders and go on into the abyss of depression and despair and thinking that you’ve ruined your life please don’t do that it’s never too late.

Turn it around maybe take baby steps but turn it around.

Just a little and then a little bit more and then push yourself to the Limit and then you’ll find it pushing yourself gets a little bit easier but make these decisions.

You’ll be amazed when you turn around a year from now and look back at what your life has become.

[44:34] Yesterday at the lunch meeting we had a newcomer named Candice and she’s from Kennesaw Georgia and she asked this question.

We are looking to get started should we focus on wholesaling or fixing and flipping.

I really like being able to take these questions in a setting like our lunch networking meeting because then I can ask the follow-up questions that really help me give a better answer and in her case she and her partner.

I have both left their corporate jobs they have a little money to live on but they need to get going they need to get something going now and.

[45:10] My first answer is like so many other things in real estate the answer is it depends it depends on your situation it depends on your goals it depends on your experience and it depends on your training.

[45:24] If all of those things point to wholesaling then wholesale if all of those things going to fixing and flipping then do that if they point to lending or buying rental properties then do that,

but let’s first of all figure out what is the combination here and in their particular case in Kansas case and I answered this question yesterday at the lunch but

I am going to answer it again because I think a lot of people are asking this question.

In their case they both quit the corporate job Candice already has a job as a realtor.

But they need to get in come a little sooner than later so I suggested that they put together their plan and get out there and start marketing for deals and find the deal and then she has the question but what about building a buyer’s list.

Am I answer to that is don’t worry about the buyers list find the deal

that’s the harder part and if you have a deal the buyers were come and they were two other wholesaler sitting there at the table a gentleman named Ivan and another one named David and they both signed in and agreed with me and said focus on finding the deal,

don’t worry about the buyers list if you have the deal the buyers will be there.

And in this case I said Candice if you find a deal all you have to do is come back to this lunch next week and I’ll be here and some other people who buy things will be here and if it’s a deal it’ll get sold.

[46:47] Now if you have some time.

And you have the interest or skills and you don’t mind the complexity of fixing and flipping that’s where the bigger checks are going to be so.

In a case like that I would recommend fixing and put Bigfoot in this case with Candice I recommended that she just start wholesaling some properties fixing and flipping and wholesaling are too pretty different animals there are different procedures.

And wholesaling is a little simpler and little faster but it’s not without its complexities as well just perhaps not as many and not as many things that can go wrong as you have in a Fix and Flip.

Project.

[47:28] And I got this note from Hector from Topeka Kansas please tell us when you’ll be holding your next flip starter are you coming to Middle America anytime soon.

Well Hector we haven’t really done the fall schedule yet.

And I’m not sure when or if we’ll be in Middle America but I’m happy to let you know that flip starter is now a video series,

and it’s available to anyone you can just go to the website flipping American network.com and you can click on the video series and you can get the entire video series,

for the same price as the one-day seminar this was a recording of our presentation of flip start in Tampa Florida

and you can watch the video and then there is also a way that you can get some support calls after that all of that detailed on the website flipping American network.com.

[48:18] Okay I think we have time for one more question here Emma from Austin Texas says I’m about to buy my first rental on following the exact process suggested by a local Guru here in Austin

could be the first mistake I’m buying the property for 149000 I’m prepared to make a 30000 down payment

the loan amount would be $120,000 she’s buying for 149 did I say that right.

[48:41] Okay so the loan amount is 120 my principal and interest payment is $638 the rent on the house is $1,000 a month.

Just seems like it works to me but the bank and she mentions the name of it which were not going to mention on the air so they won’t approve the loan I have a 750 credit score and good income but they cited two reasons.

Debt to income ratio insufficient income and debt service coverage ratio is insufficient what the heck is debt service coverage ratio I looked it up but I don’t understand what I’m reading and why didn’t the guru talk about this,

when I ask the banker she just told me she processed alone didn’t make the decision but it has something to do with a 30% expense Factor none of this makes any sense to me.

[49:23] Okay Emmett let me see if I can sort it out for you and this is kind of typical and problem number one maybe the local Guru.

Because I hear all the time Guru saying hey you can buy these rental properties put 20% down by him at the regular fair market Price but 20% down and they will cash flow and you’ll be fine and a lot of times the

marginally okay but that’s not sound advice I never give that advice myself and it kind of bothers me that people make a living telling people to do this because those properties really truly cash flow

alright so let’s let’s break this down the next issue maybe also going to a mega bank to get the loan.

You can get loans you can get up to 10 mortgages through a regular Bank.

Getting a loan on a rental house is a little tricky or a little more difficult but let’s talk about the first thing your debt to income ratio it doesn’t matter.

What the income is from this house you said this is your first house.

[50:25] In order for the bank to count the income from the rental house on an in their evaluation for the loan.

They’re going to want to see that you have had rental properties for at least 2 years so you are then and that’s as report on your tax returns so you have to have,

quite a bit of extra income in order to qualify for this payment your current income has to qualify you under the guidelines for both payments now I know that you have income coming in from the property but they’re not going to count that not until you got 2 years of experience.

All right that’s why you have insufficient income for the loan even though you have great credit now the other issue.

Is the debt service coverage ratio this one’s a little bit more complicated and let me see if I can explain this boy I hate getting into math explanations on the show here because people are listening but.

The debt service coverage ratio,

is a function of anytime there’s a ratio it’s because something one numbers dividing another okay got something divided by something and then there’s a ratio and it’s going to be expressed as a percentage here’s what you need to know.

[51:35] They’re looking for a debt service coverage ratio of at least 1.2.

So this the team and I hear took a minute and ran the numbers on this deal based on the information you’ve given us.

A debt service coverage ratio is basically your income divided by the cost of the debt.

That’s what it is that’s all it is your income divided by the cost of the debt the trick is how to count the income if you just take your fair market rent.

Which is $1,000 a month you’re in great shape you got $12,000 a year to deal with,

that’s not an accurate representation of your net income your net operating income and the abbreviation for that is in oh I is

going to be a function of your expenses in the property reducing your gross operating income you say your payment that you gave us there was a principal and interest payment that doesn’t include taxes and insurance and taxes and insurance are a reality in this business you’re going to have to pay them.

You also have to have a little bit of room in there for repairs and maintenance and the occasional vacancy believe it or not those things happen to.

Maybe not always but you can’t you can’t base your business based on what you hope will happen they base it on industry averages.

Now the industry averages are going to be between 25 and 30% and if what I guess by the 30% Factor she means.

[53:04] This bank is using a 30% expense ratio so I use that.

And I think that’s fair that actually kind of drives with my experience so you have $12,000 in gross income after you take 30% out of that for your expenses that leaves you with $8,400 in net operating income.

So in this case you take your net operating income 8400 /

your debt cost which is $7,656 and that gives you a number 1 .09 and remember they’re looking for 1.2

to be adequate.

Debt service coverage ratio this is just a number that the banks look for it’s typical of all lenders and it’s actually indicative of a good deal if you can find,

the deal where your dscr that’s your acronym is going to be 1.2 or better then that’s one indicator that you’re onto something.

[54:00] Okay I know that’s kind of complicated Mi I hope it helps you and the feel free to ride his back if you need more information and friends we’re here to answer your questions and help you in any way that we can send your questions to flip in America,

questions at flipping American network.com that’s questions at flipping America network.com.

Francine writes in from Long Beach California and says if you were buying rental properties anywhere in the US it probably wouldn’t be California where would it be,

that’s a very good question and you are right it wouldn’t be California it probably wouldn’t be anywhere on the coast it would most likely be somewhere in flyover country.

Probably the central part of the of America where you can expect to buy properties at a reasonable rate on this show from time to time we do some top 10 lists and we talked about some of those top cities,

almost any city where the population is growing and there’s a good stable job base,

and you could find the properties that fit the numbers by fitting the numbers I mean that you do have.

Do use the example we just did to you you do have a good debt service coverage ratio if you’re going to borrow money you also have a good return a cash on cash return for that property

you’re also going to need good management and probably I would put that closer to the top of the list,

when you’re looking at a city that you have several to choose from lot of cities fit the earlier criteria so go find go to that City and spend some time finding a good property manager and want to found a property manager that you like.

[55:30] Buy a property just one.

[55:33] See how it works out see how you like them going forward if it all works out by some more and if it continues to work keep on buying,

but always be looking always be expanding real estate is always changing the market is always changing the situation is always changing and I tell you something else I would do to Francine I’m thinking of a right here not too long ago we had the high return real estate guys on the show,

Jeff the Jeff Schecter and Jack Gibson out of Indianapolis Indiana

it’s the high return real estate so you can find them on my return realestate.com I think

check them out because they’re getting really good Returns on their little properties that they’re buying in and around the Indianapolis area I know these guys I believe in what they’re doing,

the good guys and I intend to buy some houses from the myself as time goes by

don’t tell him I said that I was going to surprise him with that I’m going up to see them in a few months and going to drop in and look at their operation and so will be reporting on that again.

So to be a little bit more specific I would think Tulsa Oklahoma I would think.

Dallas-Fort Worth Atlanta Georgia Indianapolis Indiana Nashville Tennessee Memphis Tennessee is up and coming.

Anywhere in the largest cities in the central part of the United States such as Topeka Kansas and.

Wichita Oklahoma City.

[57:01] The number of the way you can also go to Houston I I don’t know that I would really go to Houston but I have some friends doing some things there.

You can find lower price properties in places like Jackson Mississippi and Birmingham Greenville South Carolina is Hot Charlotte North Carolina is just,

smoking hot on fire plus the Raleigh-Durham North Carolina area is good Huntsville Alabama is strong Murfreesboro Tennessee is just,

blowing it out of the water now these little little towns may not always continue to be strong but the ones that I’ve named are consistently strong year-over-year,

house prices are a little bit cheaper your numbers going to be better if they have a good variety of employers,

universities other things that make up the quality of life such that people will want to continue to come there year after year.

All right I hope that helps Francine and folks were out of time for today I just want to share with you our motivational thought for the week.

Some of you are not old enough I’ve already heard this you’re not old enough to remember I gave this quote the other day and people wrote in and said who’s Jonathan Winters okay come on.

Google is your friend look up Jonathan Winters he’s not a great philosopher he but he was a pretty good comedian and he says if your ship doesn’t come in swim out to meet it.

[58:22] That you thought for the week okay we’ll see you in a couple of days.

[58:26] Music.

[58:51] Flipping America radio show is probably brought to you by the foundation for Renewal working together with communities to improve an impact lives find them on the web at renewal fund. Net.

And your contribution in any amount just texted ductable and always welcome thank you so much my friends will talk soon.

[59:10] Music.