Flipping America 158, News and Listener QuestionsFlipping America

Expected Air Date: 06/11/18

Opening

President Trump dominates the news cycle in a way like no other public figure I’ve seen in my lifetime. It almost seems to me that he says some of the outrageous things just to stay in the limelight. I generally avoid politics on this show as you know and prefer to talk about real estate and the opportunity it presents. Although today I have to give a little credit to the President. He’s making a bunch of Chinese real estate investors rich and some may be about to hit the jackpot.

I’m going to tell you about that right after the first break. We have more news from Kalispell, Montana today and the Flathead Beacon in one of the quirkiest “studies” I’ve ever seen published. It’s weird, it’s not all that useful, and I LOVE it. Later on I’ll tell you what digital real estate means and what you need to do to invest in it.

We are going to talk about one unfortunate consequence of Seattle’s unprecendented real estate boom. We will talk about how to look beyond mere price and look at other indications of the health of the real estate market, particularly with commercial assets.

And we’ve grouped together several questions today on the topic of wholesaling real estate. I’ll be telling you what it is, telling you like it is, and tell you how it is. How to get started, how to make it grow, and why you really should at least consider something else.

There’s nothing wrong with real estate wholesaling, but many people have a false impression about what it will do for you. If you’re like Brad Campbell, you can make a career with it, but I can tell you there are few people like Brad Campbell. He’s one of those guys that could sell wood to a forest, a rope to a free climber or religion to the Pope. He’s just that good at what he does.

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

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Flipping America App is in the app store. You can listen to the show, read the show notes, and n the entire catalog of shows is now 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.

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Comment Line calls and Questions

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Emails:

Dorothy, Villages of Ocala, FL “I have heard about something called real estate wholesaling, but don’t really understand it. I retired from the wholesale grocery industry and know a thing or two about distribution. When it comes to wholesaling real estate, how is it done and what’s the point? I don’t see being a home distributor or having an inventory of homes to sell at a discount to be any great advantage. This is especially true when I hear people say this is a great way to start out, especially if you have no money. There must be a completely different understanding of what wholesaling is when it comes to real estate. Any light you can shed is much appreciated.”
Steve from Miami, FL “Thank you so much for your podcast. I listen to it every day driving to and from work, appreciate your help. I have a question regarding wholesaling. I am young and extremely motivated and hungry to be successful in real estate. Being that I am out of money completely, and I love networking, wholesaling sounds like a good way to get started. My question is, what happens if I get the property under contract and then don’t find a buyer to flip to?
Anythony, Las Vegas, NV, “I’m LOVING the app! I have it connected to my bluetooth in my car and now it’s all I listen to in the car. I want to dive into this business, but I have a friend who is doing this and he told me I should start with wholesaling since I have no money and don’t know how to get a home repair done. Please tell me how to get started wholesaling.”
Candice from Detroit, MI. “I want to get into wholesaling but don’t know where to start. Another wholesaler friend of mine offered to let me co-wholesale her houses. She has 3 of them and offered to split her fee with me if I got them sold. But another friend told me that isn’t legal. Can you help?”
Allen, Pittsburgh, PA. “I just joined the PIttsburgh REIA and at my very first networking event a guy told me that wholesaling isn’t real investing.” Now I’m confused – is it investing or not?
Wendy, Sacramento, CA “I’m a new wholesaler. What recommendations do you have for building a buyers’ list?”

Motivational Thoughts for the day

“If you cannot do great things, do small things in a great way.” Napoleon Hill

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.

Thank you Cathy hello everyone how you doing President Trump dominates the new cycle in a way like no other figure I’ve seen in my lifetime.

It almost seems to me that the he says some of the outrageous things just to stay in the Limelight but.

[1:08] Anyway I generally avoid Politics on this show as you know and prefer to talk about real estate

and the opportunity it presents and so I haven’t said much about Trump but today I’ve got to give a little credit to him.

[1:21] He’s making a bunch of Chinese Real Estate Investors rich,

and some may be about to hit the jackpot I’m going to tell you about that right after the first break and we have more news from our good friends in Kalispell Montana today in the Flathead Beacon in one of the quirkiest studies I’ve ever seen

it’s weird it’s not all that useful and I love it

later on I’m going to tell you about the digital real estate what that means and what you need to do to invest in it we’re going to talk about the unfortunate consequence of Seattle’s

unprecedented real estate boom and we’re going to talk how to look beyond their price and look at other indications of the health of a real estate market,

particularly with regard to investing in commercial assets hey everybody I’m Rodger Blankenship and I teach people how to make money in real estate part of that is to get the best information Trends markets

style whatever we can to help you make a great decision about your relationship was real estate we’re here to help

someone is monitoring our phone someone is checking your email and we’re not here 24 hours a day but the internet is always listening so you can reach out to us through a variety of means and you can also

[2:36] Looking to facebook.com or Facebook and then entering flipping America media just search for flipping America media on face

you could follow us on Twitter and Instagram at flipping America

we have a YouTube channel we are on LinkedIn we are on Pinterest we’re on Google Plus we’re in all those places that you might want to want to look just look for flipping America wherever you go and of course you can always come to flipping America network.com.

[3:03] If you have questions about real estate we’re going to deal with some of those today send your questions to questions at flipping American network.com please tell us where you’re from.

And make sure you give us a first name.

Because we like to announce that when we’re answering the question on the show we don’t answer all the questions on the show but we do answer every question that comes into us either

in a personal response from one of our staffers or on the show here.

Hey there’s ways that you can connect with us also in person every Wednesday I try to remember to have lunch and.

I announce where we’re going to go and then we go and whoever wants to come and talk about real estate that’s what we do and we just sit and talk about real estate for an hour we may have we’ve had as few as two people we’ve had one week back

in January when we first started doing this no one showed

that’s okay I had lunch and sit there and talk to the server and it was fine but last week we had 28 people and when no matter where you are if you’re in Atlanta on a Wednesday look us up.

And come have lunch with us will be glad to talk with you and help you in any way that we can.

[4:11] I have a couple of gifts for you flipping America the app is in the App Store it’s free you can listen to the show read the show notes and soon go out now and officially now the entire catalog of shows and the back catalogue is all available to you,

it’s a free download there are no upsells or in-app purchases free to download free to listen go ahead and give it a try.

And thank you to everyone who has done that and has written in to tell us what you think and all the positive things it’s really gratifying and it it it motivates me and the team here to you want to continue to do

an excellent job.

Hey you want a quick analytical tool to tell you how strong a potential Fix and Flip deal is download in your app store they property great at your Aunt get you just answer 10 simple questions about

the property and the app instantly tells you

how much money you can expect to make you return on investment you return on cash and then the program gives the project a letter grade using the proprietary flipping America investment

property grade algorithm I know that’s a mouthful but you’ll understand it when you see all this property is a B+ all his property to see mine is all this property is an A+.

All you have to do is answer the 10 questions and you’ll instantly have your answer.

[5:29] Hey if you’re going to be in town this coming Wednesday I want you to play the stick around for Thursday Thursday night June 14th right here in Atlanta Georgia we’ve got one of our show advertisers and they’re good friends Pat doing is going to be here.

[5:44] That is the inventor of a web-based app called the ultimate rehab estimator using his software.

Go through the house board by board window by window noting everything that needs to be done and his app is connected to the Home Depot catalog and that.

Will provide you with a cost of all of the material for your rehab the app has the labor rates for every single zip code in the nation and when you’re finished with your analysis,

you know exactly what your rehab will cost it prints out of scope of work and a bid sheet for your contractor it is the most thorough approach to this issue I’ve ever seen.

And of course if you listen to the show at all you know that.

[6:24] Pat is one of our advertisers here on Flipping America Network he advertises with us because I believe in him I believe in this product and I think that you owe it to yourself to two

give it a try have you ever stood in front of a house or look at a house deal on the internet and wondered I wonder what that’s going to cost me to fix you need the numbers this is one of the most important numbers that you can get and your rehab can make or break a Fix and Flip deal.

So you need to give this software try and less you’ve been around the block a few times I’ve learned the hard way falling down falling up falling sideways.

But basically lot X falling on your face because you estimated wrong.

[7:02] Unless you already know what you’re doing with your cost you need to get this software so you can make sure that your estimates,

our right now Pat is going to eat he’s flying to Atlanta

on Wednesday to be with us I hope he’s going to be here in time for lunch on Wednesday but definitely he will be here he’s the guest of honor Thursday night at our local chapter call flipping Atlanta and he’ll be speaking

I think we’re going to sit down and interview him for an episode of The Rated this radio show the flipping America show

and this guy I’m going to ask him to demonstrate his software for the group that’s there that all you have to do to find out about this if you’re in the Atlanta area or you can be for Thursday night I want you to come out and meet Pat.

Personally and end in first and ask him your questions and.

This is going to be at the Hudson Grille on Roswell Road in Sandy Springs if you’re familiar with the Atlanta area but you can go to meetup.com flipping Atlanta

and get more information be sure to join the group there

meetup.com flipping Atlanta and so that’s Wednesday for lunch and Thursday will be out with Pat Dornan at the Hudson Grille will have some real estate talk we’ll have a few adult beverages will have a good time will answer questions.

And it’s always a lot of fun too.

[8:20] Music.

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[10:02] Music.

[10:25] Real estate is hopping in Den dong,

I’m not sure I’m saying it right but dandong is a city that is a crossed across the river that is the border between China,

and North Korea What’s Happening Here what years ago

the Chinese wanted to trade with the North Koreans and so they built a bridge across the river there is a bridge there now that they build the new bridge that would open up a lot and a lot of new trade and opportunity but the North Koreans just

we’re not able that means didn’t have the money to.

Could build a road to connect to this bridge so the bridge goes from a city at the Den the city of dandong in China to a farmer’s field,

in North Korea and once it going to the bridge gets across the river that’s the end of it well.

[11:20] Real Estate Investors marketers and speculators are moving to den dong in droves the price of real estate those that are old that own apartments and and Residences in the city of dandong.

There is a boom for Real Estate that that city has not seen in in recent memory why this is an advance of the summit that is beginning this week between.

President Trump and the North Korean leader Kim Jong Hoon and.

They’re betting on peace they’re betting that there’s going to be a resolution and there were heading down the path to peace and soon the

the Border will open up to trade and opportunity and they are putting themselves in position to be first now these people are not the people that are

getting wealthy now these people are in

beetle in position may be in position to hit a homerun a little later on but you know who’s making it big right now the people that own the buildings that they are selling Apartments out of to the people who are moving to dandong

that’s who’s making the money and so some real estate investing is is happening and then dong and some people are doing great because of it and.

You know.

[12:41] As much as you might want to say something negative about the president the way he carries himself the things he says on Twitter and all of those things and look you’re not going to catch me defending

a lot of those things I had to say we wouldn’t be in this position if Hillary had been elected president we’d be with status quo.

Would be facing a increasingly nuclearized North Korea and a greater threat from this little country that doesn’t even have enough money to feed its citizens so I’m.

I’m glad you know this is at the time of this recording it’s prior to the the talks coming up.

They’re just a few days away.

But I’m glad for this progress and I’m kind of excited about the opportunity and you know what I am happy for those Chinese investors to make money and I hope that all of them do well I hope that

peace is on the way I hope that the North Koreans experience a taste of freedom,

and I hope that ultimately the country will will relax and join the world in the world economy and the people can see what life is like in,

the rest of the world.

[13:52] Okay I don’t want to get too far field let’s talk about real estate a little bit in Seattle we’ve got this story from the Seattle Times.

The headline is the blind force of Seattle’s real estate Rush May bulldoze,

historic house so the garden Society owns a house that’s been there for a hundred and thirty-five years and it was actually built before Washington was even a state

and the garden Society can no longer afford to maintain this house and to pay taxes on its

the oldest house on Seattle’s Beacon Hill it’s a spot on the national register of historic places and.

[14:31] The garden Society just voted to sell they can’t keep it anymore,

if they did they wouldn’t be able to keep it up and so you would watch the slow death of many years of neglect begin to take over this once beautiful property.

It looks like it’s going to be sold off to a company that’s going to bulldoze it and put in

I’m Townhomes you know this this is one of those things where Nostalgia kind of clouds are judgment and I don’t want to say one word

one way or another I am a Sentimental person and I am somewhat nostalgic and I appreciate the the beauty of old structures but hey.

And Europe a 135 year old structure is nothing.

[15:18] Okay it would not be on their historic register but you know sometimes this stuff is relative because there weren’t people building houses like this in

rrr structures or castles or Mansions or anything a thousand years ago like there were in Europe so hey

give us a break it’s a historic house to us hate to see it go but also they have a real housing crunch in Seattle.

And so perhaps there’s a need for something a little bit more useful to come in there’s always a balancing point.

So if you’re sad about this then this is a sad day I don’t know that anybody is jumping up and down with Joy except for maybe the developer that’s about to buy it but,

a lot of us are going to experience a sense of loss I’m not saying that we should try to stop it from happening

because the day that’s just the way it is progress goes on folks and if you try to fight progress what are you really fighting for.

[16:11] You’re not you’re fighting against and I don’t really want to be in a position of fighting against.

[16:18] A little bit of international real estate news Russia’s real estate market has experienced a miniature boom ahead of the World Cup.

Coming and I bring this up because the EUC there outside forces that affect real estate and so the world

is coming to Russia and they built a new stadium and they’re doing some other improvements in

one resident in the article then you’ll see this I link you to it on social media but one resident said they’ve clean Moscow up and they’ve never seen it so clean and so nice and so there’s a benefit they’re all of these things because the World Cup is coming.

[16:53] And unfortunately Russia’s team kind of sucks they’re unlikely to get out of the qualifying play but still.

They don’t they will have a miniature boom in real estate because of a sporting event and you know sporting events wherever you are in the United States or around the world if it’s a significant event it brings a boom to the local economy in

sometimes that boom last for a while hey don’t you wish you had bought a bunch of land out in,

Colorado right before they legalize marijuana particularly in the Denver Market or or Boulder hey folks in Boulder Run are there or any of the other cities that are you know kind of distribution points for the stores in,

and the legalized marijuana industry now I’ve been to a lot of real estate conferences and they are increasingly.

Talking about investing in legalized marijuana and that’s not for everyone at but that’s okay if it’s not for you.

Just think about the real estate and I say this in light of all the stories that we’ve talked about from China to Russia to Denver.

[17:57] The people who are consistently making the money are not necessarily the speculators and the marketeers the people who consistently make the money are the ones that sell the tools and the land to the speculators.

[18:11] UC

In the Gold Rush days of the 18 late 1840s in San Francisco area in California it wasn’t the gold miners that made all the money

a few of them did very well,

most of them did nothing it was the people who were selling the pics in the shovels and the pans that did very well and so if you want to do well with regard to the Cannabis industry what you need to do is own the land that they they’re going to want to buy two

grow weed on all right so.

With that in mind I’m giving you a hint about where you need to look at buying up a bunch of Farmland Canada.

That’s right because Canada is about to legalize marijuana for recreational use.

[18:55] What will that mean that’s going to mean a huge boom it happens.

[19:02] Music.

[19:18] 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’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.

[19:44] 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.

[20:06] He has a clear concise program and many tools that are going to be very hot.

[20:12] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are in value.

Thank you so much.

[20:25] Music.

[21:12] Hey in the previous segment we were talking about how external forces affect the value of Real Estate.

[21:19] Now I want to turn our attention to some other things that get a lot of news and probably more news than really they’re worth but we’ve got it we know we owe it to you and we owe it to ourselves to at least be aware of what’s going on the first thing I want to pick on his technology.

All right.

I love technology a technology is why we’re able to bring this show to you so I’m not opposed to technology and I’m not even trying to be disrespectful of anything I’m about to report on here I’m just telling you that.

There is some sort of an unnatural love of technology that causes people to kind of lose their mind.

Here’s what I mean in 2012 Venture Capital invested in real estate technology totaled.

31 million dollars 31 million dollars in 2012 in 2017.

1.2 billion dollars.

[22:16] All right now. All that money was money thrown down the drain some of it has been put into some pretty good technology that I use nearly every day.

Probably at least 6 days a week so I’m not opposed to the investment of money in technology I’m not opposed to technology I’m just saying,

that every time I see one of these articles that our technology our product are app whatever whatever is going to take over

the marketplace and here’s what it all sounds like to me

blah blah blah blah blah blah blah blah disruptive technology blah blah blah blah I’ll change the way the real estate is bought and sold blah blah blah blah it’s all going to be different well I just don’t really believe it.

I’m sorry I don’t think that anything’s ever really going to replace going and looking at a house for yourself that you’re thinking about

you know parking your fanny in for the next 5 to 10 years

however long you may choose to live there I know that people are buying houses sight unseen right now but the reason they’re doing that is if they need a house in a particular area

maybe they’re up early mobile or whatever it is they know that if they don’t move quickly and they don’t get an offer in there not going to get the house but.

[23:29] There’s a little bit of a bold prediction my friends,

I’m going to go out on a limb here and say when the market normalizes not if but when

when the market normalizes and I’m projecting by you know like I keep my finger on the pulse of the numbers here and I think that is probably going to be within the next six to eight months we’re going to return to something like a normal Market maybe it may take a year to get there from here.

Then Market will be normal,

there will be a balance between supply and demand it’s taking a little longer to get there than I projected a year ago I think because we just don’t have enough inventory because we don’t have enough out,

a builder’s out there putting new homes.

[24:13] But that’s going to change there’s a lot of activity happening and we’re watching it and when the market normalizes and you’re not at risk of losing a house because you didn’t make the offer today.

We’re going to get back to people wanting to see the house if they want to live in and in order to see the house they’re going to probably need a realtor.

[24:36] You know Realtors are always going to be better at finding properties than we are.

They’re always going to be better at least the good ones at selling properties.

Then we are and so I don’t see an end to the real estate agent as a profession anytime soon.

Not in my lifetime and probably not in my children’s life time either it may get different one of these days but for now.

And for the foreseeable future we need real estate agents so anytime I see some technology that promises to replace either the real estate agent or the lending institution as a means of.

Conducting real estate transactions I start off skeptical.

[25:28] Okay and that leads to the other technology that I want to disrespect for a minute and that’s cryptocurrency everybody’s talking about cryptocurrency and I know that cryptocurrency is being used to.

Purchase

real estate in that sort of thing and and and I know that people are investing in it and I think that and I’ve even we did a series on cryptocurrency here we had three passionate Advocates of the industry on the show and,

did you go back and listen to show you will see that I was polite I was interested and I wanted to see how it work and then after we got finished.

Nothing really changed nothing changed in my mind nothing changed in the world that I see it’s just another thing it’s another technology that people get infatuated with just for the sake of Technology because we like.

In a little toys and all things that do something different and eventually it’ll become something useful but in the meantime I don’t want to waste my time playing with it.

[26:25] And I don’t want to waste my money believing in it.

When I’ve got other sure things to put my money into so we’ve got I’ve got a story I’m going to post the story from Slate why aren’t we all buying houses on the internet and it talks about some of these supposed disruptive

technology no talks about one thing that Zillow is about to do that you need to know I’ve already mentioned it on the show but let me remind you maybe you missed that episode Zillow is about to start

being the middleman to buy and sell houses they’re going to be making offers they’re going to be buying houses

and they’re going to use that to help people do moves from one place to another with not a lot of dead time in between that’s worth watching because they’re huge alright we’ll get you a little bit more this when I get back

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.

[27:26] 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.

How to find Freedom to 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 camel.com.

Pay flipping America listeners have you ever walked into a property and said I have no idea what it will cost to repair this home those days are over

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[28:48] Music.

[29:22] Hey we’re back I’m Rodger Blankenship and I teach people how to make money in real estate this is the show flipping America where we encourage you to have real estate as a part of a balanced Investment Portfolio.

We don’t think that everyone should drop what you’re doing and flip houses like you see on TV that’s not for everyone that’s how we have made our money and continue to make money today.

It isn’t the life for everyone however we do believe that everyone ought to be involved in Real Estate One Way or Another.

I’ve documented 85 ways that you can make money in the real estate world and they all,

really get some Depp into three broad categories by with the intent to improve value and quickly resale.

[30:04] Or buy with the intent to put tenants in the property and cash flow or.

[30:10] Invest your money passively into those who are doing one of the other two that’s really it.

[30:17] There’s a lot of different things different ways different asset classes different strategies different techniques and methods and so forth but they all fall into those categories and we hear it looking Americans are dedicated to being able to help you

in any of those if you want to fix and flip well we’ve done it hundreds and hundreds of times and we have a course built around that

if you want to own for cash flow well we’ve done that hundreds of times and we have a course built around that we’re happy to share the information and some of the information is based on lessons we learn the hard way

we don’t mind admitting that we’ve been a little stubborn and and probably prideful and thinking that we could go out there and knock this thing out on our own and even then

we took in other mentors and guides along the way and what we’ve done is just kind of taking all of that the hard lessons and the good advice in,

and roll them up into a couple of Great Courses one on fixing a flipping one on owning rental property and how to do the numbers and how do the work in the projects on either one and the last thing that we’ve done is we’re creating we have created opportunities for you to invest passively in real estate

that’s something that I’ve rarely said anything about on the show but we have.

A terrific fund available that you can invest in you can invest in the success of the flipping America guy my.

[31:40] Team and I are

continuing to invest in real estate and the people that we trained in this business or investing in real estate and you can be a part of it as well even if you don’t want to do the actual work you just want to put your money to work.

[31:55] I’m not going to say anything about the returns except to say double-digit returns are the norm okay.

Turn up if you’re investing in the fixing of flipping activity of the flipping America team Doug double-digit returns are the norm I believe I can say that without getting any trouble and if you want more information call

404-369-1018 okay I’ve been promising you that we would get into this really great story,

from the Flathead Beacon. For some reason I just have a particular fondness for the Flathead Beacon I love their sense of humor and this is Richard do,

he’s the CEO of Glacier Flathead real estate a flathead best real estate software and services company this is in Kalispell Montana

and we know we’ve report on what’s going on in Kalispell Montana sometimes just for the heck of it all right.

[32:52] I’m going to redo the whole article is just three paragraphs for Flathead County single-family residence is sold past 1 and 2 years at prices between 100 and

100000 and 750000 the vast majority had 9 in their original

list price third digit that would be the 9 in 349,000.

Okay well zero in five were also popular whereas one was use the least that is 341000.

Does it make a difference what digit The Cellar selection that position it actually does matter both in terms of how long it takes to sell and for how much of the original list price original list prices with A3

2 or 8 in the third digit that’s the thousands digit had.

The least median days from listing to contract 9 days,

13 days and 21 days respectively original list prices with a 6 in the third that is the thousands digit had the most medium days from listing to contract.

62 days.

[34:00] So if you’re around 460,000 for your house now this is me adding I’m not reading this by but if you’re around 460,000 for your house make it $463,000 make it 466000

unless you’re willing to wait an extra 30 or 40 Days for that extra $3,000 that’s what I get out of that original

list prices with a 3-2 or 8 in the third digit also sold for more of their original list price than other numbers original list prices with a 6 or 0 in the 3rd digit sold for the lowest percentage of the original list price

regardless of which numbers were used in the original list prices what digits were used overwhelmingly in the third digit of the actual sold prices the answer is

0 and 5 and sold prices with these third digits also sold for the lowest percentage of their original list prices.

Homes that sold for the greatest percentage of their original list price had a 9 in the third digit of the final sold price.

[35:05] So it’s the old thing you know we list we sold we don’t sell for $30 we sell for 2995 or 2999

there’s something that’s built into our psyche about this and maybe it’s just years of conditioning in American Marketing.

But now we’re even doing it with houses 349,000 is way better than 350,000.

And it’s also way better than 356000 the cording to this so,

this is a weird and interesting and quirky and I don’t even know if it’s all that helpful I’m not really sure that,

the methodology is 100% sound although I don’t want to pick on Richard you know I think is great actually I think it’s kind of kind of

hilarious and I I I think he was doing this with a little bit of a sense of humor I don’t think that you really going to build a strategy around this but you don’t maybe he was anyway if we’re going to link you to the article and you can see that even eyes

the flipping America guy have posted in the comments real estate market trends from the Flathead Beacon out of Kalispell Montana.

[36:14] Now picked up an interesting article here and I’m only mentioning mentioning it to call out Business Insider Redfin CEO competitors and online real estate market or white

competitors in the online real estate market should fear him I wanted to read this article I don’t subscribe to the Business Insider and.

I got to the article brought it up and it said how you got your ad whitelist on behalf I do because I get bombarded so I want to read this article so I turned it off then it told me I had to subscribe.

Okay if you’re going to do that don’t bother posting your stories online.

Don’t don’t make him available for the news aggregators in the services so boot Business Insider today.

And I’m not going to link to this on social media he won’t be able to read it anyway so it’s not just fight but I do feel a little bit of that right now.

[37:09] Okay lastly for the news today for Mansion Global we’ve got some things to look for besides price.

When it comes to gauging the health of a real estate market one of them is a balanced inventory price trends or what happens when the dust settles.

Really when you’re looking at the health of Market she want to see a balanced inventory.

[37:29] Next thing is locations that draw in both renters and long-term investors

given a trend toward urbanization around real estate markets that offer walkability and plentiful transportation and entertainment options,

are strong bits for investors particularly those.

Who will rent out their properties you may remember we had a question about a month ago from someone who was thinking about buying rental properties in a very small town in Arkansas

got to go back to the archives and not honestly I don’t remember what town it was now but the

the one Factory in that town had been closed that used to make TVs and it was about to open up because they were going to make something else and this person said should I run over there and buy a bunch of rental properties and my answer basically is no.

Because when you got to town this got one Factory than that town is a one-trick pony and when that factory shuts down then you got a bunch of property that you can’t do anything with

has no upside no tenants no income and potentially problems.

[38:30] So you do need to look for a balanced inventory and that gets to the next Point here in the article us strong local economy buyers should take a broad view of a market economy to gauge investment properties potential for appreciation.

[38:45] And next residency and tax issues changes to the US tax code may impact the calculus of would-be buyers as they gauge the health of markets

property taxes on overseas homes or no longer deductible for example and the mortgage interest deduction has been lowered presenting new consequences for

consequences for investors the way so I’m going to link you to this story it’s good it’s informative I’ve just scratch the surface of it but it’s from Mansion Global and we appreciate them and.

They’re consistently good information remember if you haven’t already done so to follow us on Twitter and Instagram or even on Facebook.

At flipping America because that’s where you get to see all these stories and they start posting shortly after the show and you know we break him up with 15 or 20 minute intervals but just follow us and you’ll get to Notifications okay.

All right onto the emails Dorothy from The Villages of Ocala Florida I have heard about something.

[39:44] Cold real estate wholesaling

but don’t really understand it I retired from the Wholesale grocery industry and nowhere thing or two about distribution when it comes to wholesaling real estate how is it done and what’s the point I don’t see being a home.

A home distributor or having an inventory of homes to sell at a discount to be of any great advantage.

This is especially true when I hear people say this is a great way to start out especially when you have no money.

There must be a completely different understanding of what wholesaling is when it comes to real estate any Like You Can Shed is much appreciated alright Dorothy thank you for writing in and yes let me

shed a little light on this you were coming at this from a traditional understanding of wholesaling from the business world first let me just say

wholesaling real estate has nothing to do with the kind of wholesaling that you’re used to in fact

most business people when they think of the wholesale distribution Channel it is not connected.

To wholesaling real estate in any way except for the use of the word wholesaling

if you really want to word to borrow from another industry that indicates what we’re talking about the word should come from the stock market are the stock industry and the word is arbitrage what

wholesalers in real estate are really doing is they’re selling something that they haven’t yet Taken full possession of

okay let me back up a little bit in real estate.

[41:11] There are two forms of title one of them is full title.

You own the property and the other is Equitable Title this is when you have control of the property

you have Equitable Title the day that you enter escrow or the day that you put a property under contract it that that phrase differs from state to state but once you have written a sales agreement in his been fully executed in the property is said to be under contract then

you have Equitable Title to the property.

That means you don’t fully own it yet but that means the property cannot be sold by the owner to anyone but you.

[41:53] If you have an option on the property that is also a form of equitable.

Title because it’s it’s recorded and it shows their that you have control the control is the real issue here so.

[42:08] What you’re doing when you’re wholesaling real estate.

And yeah I don’t know what they should call it and I don’t really care you know I just go along with what people are doing because hey I’m an agreeable guy I go along and get along right okay so when you’re wholesaling real estate what you’re doing.

Is you’re putting the property under contract at a certain price let’s just say for example that the property might be worth $170,000 as it is right now to an investor because they think they’re going to fix it.

And sell it for $300,000 property under contract for $150,000.

[42:48] You might choose to sell that contract to another investor for $20,000.

[42:56] That’s okay there’s nothing wrong with that you can assign that contract by executing an assignment agreement now some sellers do not allow a sign that’s.

Thanks for one the housing the Department of Housing and Urban Development or if you’re buy a HUD house you cannot assign those contracts but.

A lot of people go directly to the sellers they they engage in a marketing campaign direct mail or whatever in there talking to people

who own their homes and they convince them to sell the house at a price in this case they’ve convinced them to sell the house for a hundred fifty thousand

because they know an investor would pay $170,000 for it so they might execute an assignment agreement and collect a check for $20,000 and move on down the road

however they might not want the other investor to know that they’re making $20,000 because sometimes it’s 40 or 50 and so what they’ll do then is a double closing where they’ll close on the purchase of the property in the morning for a hundred and fifty

and close on the sale of the property in the afternoon for a hundred and seventy I will talk a little bit about how a little bit more about how that works when we get back from this break.

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.

[44:18] Falkner here I tended a one-day flip starter training session led by Rod.

[44:24] And I was amazed to see what has happened in Rogers Live from the last.

[44:29] Flipping over 800 houses in Mendes one day training he told how he did it and what.

Falls the blessings the benefits and how to do it.

[44:44] 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.

[44:54] Music.

[45:15] Now almost every person out there that claims to be a real estate wholesaler wants to.

Sell their property by a signing the contract that’s really what they want to do

because they don’t want to have to go to a closing they don’t want to have to actually come up with the money there are a few however that do,

take you to a closing and you do a double closing and some of the more institutional wholesalers some of the larger companies there are companies built around this strategy

they will insist that you go to a double closing and we we actually are working on buying a property this way from a large.

And not National exactly but a large Regional wholesaling company.

[46:01] So there’s nothing wrong with any of this but that’s what they mean okay hope it helps Dorothy Steve from Miami Florida.

Right in and says thank you so much for your podcast I listen to it everyday driving to and from work and appreciate your help I haven’t thank you for those kind words he I have a question regarding wholesaling,

I am young and extremely motivated and hungry to be successful in real estate

being that I am out of money completely and I love networking wholesaling sounds like a good way to get started my question is what happens if I get the property under contract and then don’t find a buyer to flipped,

in Dusty that’s a very good question

and I want to answer this question on the air because I’ve heard some contradictory advice regarding this and the advice that contradicts me involves a lack of character honor and integrity

and so I just I’m going to say that right from the very beginning most of the most of the time.

Thought I should take most of the time but there are some people running around here teaching seminars on how to get out of a contract listen to contract is a legally binding document.

If you put a property under contract you owe it to yourself your own honor and self-respect to follow through on that contract it’s not always possible.

[47:19] I understand that and I haven’t followed through on 100% of the properties I put under contract I don’t want to mislead you

it’s not always possible circumstances change sometimes the property turned out to be not what you thought sometimes you were misled but sometimes you’re trying to wholesale it and you can’t find a buyer

now what you really are risking here is your earnest money.

[47:43] I typically will not accept a a purchase agreement from someone wanting to buy one of my properties with the earnest money and less than $1,000 I know others that insist on 10% of the purchase price and that that’s not going to happen.

I mean I don’t think it’s ever happened with me because you can get an FHA loan for 3% down

and that’s where most of the money comes from to finance Home Loans now so no one’s giving 10% of the earnest money but $1,000 is kind of a minimum

but if you’re on the buying side.

Then there’s nothing wrong with in fact it’s okay for you to negotiate a lower or the lowest earnest money you can.

[48:29] If you can get them to accept $100 as earnest money then do that but here’s the thing Steve if you can’t get the contract closed out.

Just go ahead and forfeit $200 don’t try to weasel out of it he made you know you made a great effort and you lost your hundred dollars

you know why I’ve backed out of some contracts before and lost $1,000 because I am I was outside of my due diligence. And we discovered a problem that just made it not worth doing

and we felt like we were going to probably lose more than the Thousand by taking on that project.

Alright so there’s a way to head this off and the way to head this off Steve is to sit down with.

Cash buyers go to the real estate investing Club so you’re from Miami and I’m going back to your email said you just moved to Miami.

So get to a Miami Ria meeting and talk to some investors you know you’ve got up the sword out the people who were just stalkers in the people who actually do it but get five or six of the active

for real buyers there and find out what they want.

If you find something that is exactly what they want you don’t have to worry about not finding a buyer to flip it to pretty cool huh.

[49:49] Alright Anthony from Las Vegas Nevada says I am loving the app.

I’ve connected it to my Bluetooth in my car and now it’s all I listen to in the car I want to dive into this business but I have a friend who is doing this and he told me I should start with wholesaling since I have no money and I don’t know how to get a home repair done.

Please tell me how to get started wholesaling okay Anthony I understand that a lot of people say that wholesaling is the way it start and that’s okay.

I’m not against wholesaling I buy houses from wholesalers and so I wish you all the best.

I think the way to get started wholesaling is to do what I just suggested to Steve that is get out to a

Real Estate Investors Club if you don’t have one available or if you’re not able to go if you have a way of searching the deed records look for houses that were bought without a loan.

[50:41] Those are cash buyers reach out and contact those people how do you contact those people those people may not have bought that house to move into.

If the tax bill is being sent to a different address do you have the address of a cash buyer who has already demonstrated the ability to and willingness to buy investment property.

Reach out to them find out if they’re buying other houses ask them what they’re looking for and if they if they will tell you what they’re looking for then go find that if you find that

you can assign the contract listen don’t get greedy because you know we have a saying pigs get fat Hogs get slaughtered but

I don’t objective the wholesaler making 10:15 maybe even $20,000 I don’t mind if it 8:20 if I’m making a hundred I do mind then making 20 if I’m making 40 because I’m the one doing all the work taking all of the risk and so.

Come up with a reasonable fee and then.

[51:43] Put it out there to your new investor friends who have already demonstrated willingness they talk to you they told you what you’re looking for and that’s the way to ease into the money I mean he’s into the business we got your easing into the money as well.

Now that I started to say money because it does it may take a little bit of money to get some marketing going.

At the beginning you can just I print up a little cheap,

go card and we still put it all over the place I don’t do this bandit signs on side of the road anymore

I’ve got a number of reasons for that and they work yes they work but it’s a problem with code enforcement and we just made a decision not to irritate the Code Enforcement Officers the local authorities or the residence in the neighborhood where we’re trying to be active investors we want to be good neighbors,

and good friends to all of these people so you got to find a way to find the houses and that’s subject for a little bit different day I’ve got three more questions on such subject to wholesaling and about.

6 minutes to do it so we’ll see if we can Candice from Detroit Michigan says I want to get into wholesaling but don’t know where to start.

Another wholesaler friend of mine offered to let me go wholesale her houses she has three of them and offered to split her feet with me if I got them sold but another friend told me that is illegal can you help well Candice your other friend is probably kind of smart.

Because there is something in the.

[53:05] In the law called practicing real estate without a license I know it sounds like a joke but it’s not it’s for real and it is a crime in all states.

And so what is practicing real estate without a license in all of the 50 states of the United States,

in order for you to represent someone else’s interest in a real estate transaction you must be licensed by that state.

You can’t be licensed in Georgia and sell property in Michigan you must be licensed in Michigan in order to sell property

to represent someone else’s interest now in all 50 states you can represent your own interest you can sell a property that you own or have a controlling interest in so if you have a

a contract or an option on a property and you control the property you may legally sell that contract or that option you’re not selling the property you’re selling the country.

[54:01] Okay and you’re collecting an assignment fee.

Okay if you’re not direct to the seller as they say if you don’t have the contract what are you doing.

Well what you are in danger of doing is representing the interests of the seller not necessarily the other wholesaler and there’s a danger that you may be guilty of practicing real estate without a license.

The laws vary from state to state in the penalties vary but for example in the state of Kentucky the first offense is a misdemeanor the second offense is that felony.

[54:35] I don’t think you want to take that risk and honestly koho sailing.

[54:42] Come on it’s just a little lazy go out there and find your own deals find your own sellers get the property under contract do the work.

[54:53] This is not a business for people who aren’t willing to do the work.

I know that this represented that way and I kind of resent that representation Alan from Pittsburgh Pennsylvania says I just joined the Pittsburgh area and that my very first networking event I got told me that wholesaling isn’t real investing.

Now I’m confused is it investing or is it not okay Allen there people out there that love to,

the show off what they know and don’t know in there people that love to pick on the use of words and the hey I like showing off what I know and I don’t show up what I don’t know.

I do understand words and words have meetings and and they represent ideas and there is a specific meaning to words

on the other hand I don’t want to get in the endless Petty arguments about grammar usage and

using the right word actually one of my favorite books in my library is a book by s i hayakawa called.

Use the right word and it’s it’s a beautiful thing he was an English teacher although he was Japanese born and okay this is a book

from my college Years in the 1970 so this is an old book you won’t find it in print but I believe in using the right word however I’m not going to give anybody a hard time for not so let me just tell you this.

Wholesaling is not real estate investing okay and guess what neither is fixing and flipping and guess what.

[56:22] In some degree neither is buying a property and holding it as a rental because investing in the truest sense of the word is where you let your money do the work for you.

Not you doing the work okay if you’re buying buy-and-hold properties or rental properties and,

you’re paying someone else to do everything all the managers so far is going baby you’re an investor at that point but when you’re buying houses to Fix and Flip or if you’re controlling houses to Quick Clip to sell the contract you’re not investing.

Okay because you really not putting your money to work passively what you’re doing.

Is engaging in a business opportunity and the houses are are not assets that you know go toward your net.

Worth of your personal financial statement the houses are in montuori in your business and they are Goods that are going to be sold and that’s how the accounting should be done and that’s how you need to think about it.

But if somebody calls real estate investing you know and I do all the time it’s alright I know what I mean I know what the real words mean and I choose not to get too bent out of shape about it and this shouldn’t change your life.

All right Wendy Sacramento California I’m a new wholesaler what recommendations do you have for building a buyer’s list.

My recommendation number one Wendy is that you get out there and find a deal.

[57:43] I say this people all the time I am blessed to drive a very nice luxury car and if I went out and put that luxury car on the side of the street with a

this is a car that cost close to six figures when it was new right I didn’t pay that I always buy him a little bit used,

the point is if I put a piece of cardboard in windshields that buy this car today for $10,000 I don’t need a buyers list do I take no it’s a deal.

That’s the thing Wendy if you get out there and you find a deal.

You won’t have any trouble finding a buyer you need to know what the what the buyers are looking for and what represents a deal to them but I tell people all the time in my group a you come to this meeting with the deal you don’t have to you don’t need to bother you just need my email address.

And you’ll get it sold okay hey thanks for all the questions folks keep them coming I appreciate it and I will see you again in a few days.

[58:38] Music.

[58:49] Napoleon Hill said if you cannot do great things do small things in a great way.

[58:56] This thought was brought to you by the foundation for Renewal working together with communities across this great land of ours to bring em pack.

And Lasting life change find them on the way I will fund. Net and is always your gift in any amount is both appreciated and tax deductible.

Will see you again in a few days.

[59:16] Music.