Flipping America 163, Entrepreneurial Excellence

podcast 163 entrepreneurial excellence

Expected Air Date: 06/30/18


Today it’s entrepreneurial excellence. We’ve been talking about life and business over the past few weeks and today we have Ron Carucci online to visit with us about start-ups. We discuss several of the misconceptions in the minds of new entrepreneurs, and the mistakes that flow out of those misconceptions. 

More importantly we discuss how to address them. Ron and his partners work with medium size and larger businesses typically but he was willing to give us 30 minutes of his valuable insight. That’s coming up shortly. 

In case you missed it, I want you to pay attention to Zillow. They are a giant among us. You can pick on the Zestimate all you want and I’ll agree with you that it is not to be trusted. But Zillow is huge and has a ton of cash to work with. That’s why when they announced recently they are getting into the direct buying space, I sat up and took notice. They have the clout and the national presence to clobber everyone else, 

I’m looking at you OfferPad, Knock, OpenDoor, and even Mark Spain with your Guaranteed Offer program. Should these people fold up and quit? Absolutely not. Let’s all get better at what we do. We are all out there looking for deals and here is the MAIN reason all of these are not going to put us out of business: You ready for this? No, wait. I’ll tell you after my talk with Ron. 

Standard bit. 

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Guest:  Ron Carucci, Co-Founder Navalent

Notes from the Interview (You’re welcome!)

3 things holding back most Entrepreneurs

  1. Identity – “What is your strategy?” often yields stock answers like mission, vision, values statements. Usually borrowed, plagiarized or counterfeit. Why you? What are the differentiators?
  2. Organizational Continuity – Processes. Intentional design and deplloyment of assets
    1. 70% of what we do is just necessary to stay competitive and keep the lights on. 
    2. Enabling work is what moves us forward. Often these get diluted. 
  3. Leadership

Tips for listeners:

Don’t let HGTV seduce you. It’s not for everyone.

If you’re going to “just do it”, “just do it” wisely. Be thoughtful. Give it a year to work. 

Ask yourself, “Am I willing to do what it takes to succeed?”

Scaling is not Growth.

Growth is topline increase at the same rate of cost.

Scaling is repeatable efficiency. 




Reinventing You, Dory Clark

Rising to Power, Ron Carucci

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!

  • Ebony, Detroit, MI “Hi Roger can transactional funding be used to purchase properties at tax or bank foreclosure auctions? I know transactional funding is used for back to back closings that must take place the same day. I think it would be best to at least ask the homeowner to agree to a thirty day time frame to allow time to find an end buyer. I know the law states that the homeowner who’s being foreclosed on has a six month redemption period to stay in their home without paying a mortgage, they can reclaim their property and they cant be evicted unless they refuse to allow an inspection or if they damage the property.  So with that being said can transactional funding still be used as long as the end buyer is ok with purchasing a foreclosure that has a six month redemption period? Or should I check with the companies or local court houses that hold the auctions to find out if transactional funding is allowed for tax and bank foreclosures? 
  • Milton, Villages of Ocala, FL “I need a reputable lender for a rental property. Can you help?”
  • Jim, West Palm Beach, FL, didn’t email but from a strategy call. “I have about 20k to put into a deal and just can’t find a deal that small that isn’t in a terrible area.” 

Motivational Thoughts for the day

  • Keep your eyes on the stars and your feet on the ground. -Theodore Roosevelt

We’ve been talking about life and business over the past few weeks and today we have Ron Carucci online to visit with us about start-ups. We discuss several of the misconceptions in the minds of new entrepreneurs, and the mistakes that flow out of those misconceptions. More importantly we discuss how to address them. Ron and his partners work with medium size and larger businesses typically but he was willing to give us 30 minutes of his valuable insight.


[0:00] Music.

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

Flipping America is brought to you today by Braswell Capital Solutions commercial lending made easy

on the web at Braswell Capital solutions.com.

[0:48] And now here’s that flipping America guy Rodger Blankenship.

How’s it going everybody and we’ve been talking about life and business over the past few weeks today is no exception

we have run Carucci going to visit with us online and just a few minutes and talk to us about startups and entrepreneurs and learning that whole thing,

where did we’re going to discuss several of the misconceptions and the mines of new entrepreneurs and the mistakes that flow out of those misconceptions more importantly we’re going to discuss how to address them Ron and his Partners work with medium sized and larger business typically

but he was willing to give us 30 minutes or so of his valuable insight and some resources for you that’s all coming up shortly in case you missed it

I want you to pay attention to Zillow for just a minute and Zillow you know there a giant Among Us.

[1:42] You can pick on the zestimate all you want and I’ll agree with you that it is not to be trusted but Zillow is huge and has a ton of cash.

They are a major player in this business that’s why when they recently announced they’re getting into the direct buying space I set up and took notice I mentioned it on the show but I wanted to come back to this again

because Zillow has the cloud.

And the national presents to clobber everyone else in this space I’m looking at you offer pad knock open door and even Mark Spain a local guy in the Southeast with your guaranteed offer program.

[2:23] Yesterday’s people fold up and quit I don’t think so

I wouldn’t you know I came up against bigger better stronger people to me all the time and I still continue

do you know carving out my Niche my market share whatever however you want to say it

but the definitely don’t fold up and quit but Zillow is going to change the landscape they’re testing it in a few markets now but pretty soon you’re going to be able to just contact Zillow and get an offer on your house,

and then they can have another house waiting for you in the new city where you’re moving and they’ll make a little bit of money,

on both sides because they’re big National and known

they have a real shot at being a little bit of a destructive force here in the industry mainly what they’re offering.

Is convenience.

So we’ll see if it works out because that convenience is a two-way street to has to be convenient for the buyer and the seller that means on the other side of the coin that has to be convenient for that buyer and seller as well and that’s not always

really possible because there are it gets out if it gets under this there more than.

[3:35] Two players involved because if you’re selling then you have a buyer.

All right but if you’re buying then you have a seller but if there’s a seller on the other side then they have a buyer and your buyers also have

Byers and it just goes on and on but in spite of all of that even if Zillow does come in and take over this space.

[4:04] It doesn’t it isn’t really going to affect us because I’ve got a way that we can deal with this and I’ve got a big differentiator and I’m going to share it with you

at the end of today show after my little talk with Ron Carucci coming up in just a minute I know I just wanted you to stay tuned that your t’s if you will and first of all let me just say this stuff hey everybody we don’t

I encourage anyone to drop what you’re doing and start flipping houses like you see on TV and I like the fact that our guest today is not even in the real estate space but he knows a little something about how seductive

the flipping House shows are on TV we don’t encourage you to drop what you’re doing and start flipping houses it’s not for everyone it is for some

and even if that’s what you have even if you’re not going to do that we want to encourage everyone to consider real estate as a part of a balanced Investment Portfolio and we talked about

flipping houses here on this show but we also talked about so much more

different classes of real estate different strategies different ideas different ways that you can be involved so there’s something for everyone here if you’re interested in real estate let me tell you how to reach us you can find us on the web at flipping America network.com on face.

[5:15] Follow us at flipping America media be sure you like some piece of content that we put there and then after you like the content like the page I don’t know why that matters but it matters to Facebook so let’s do it that way like the content first and then like the page

all right and we appreciate all the likes by the way on Twitter and Instagram find us at flipping America

and we have a YouTube channel just look up flipping America on YouTube or you can go straight to the channel by typing in bit.

ILY / flipping America on YouTube and you can find us on LinkedIn the same way bit. Ly / flipping America on LinkedIn.

You can call our national comment line 404-369-1018,

press extension 1 and you can leave your comment or question we appreciate the calls to come it’s the questions and of course you can always send your questions to questions at flipping America network.com.

[6:09] We have and we continue to answer every question that comes into the show throughout the year and have history of the show we have answered every question that’s ever come to us in the sandbox is gets a little time consuming some days and some days I honestly we think that people are taking a little bit of Vantage of us

but we have promised to do this and we’re going to continue to do it for the foreseeable future we have no plans to ever stop answering every question that comes in.

[6:34] One of these days we’re going to have a frequently asked questions page and will be directing people there but for now we like giving that

Personal Touch as we’re growing and getting to know people in your getting to know us we want you to know that we’re real life people over here really reading your emails and interested in what you had to say and what you think

so send them two questions at flipping America network.com or you can call 404-369-1018 couple of local announcements,

lunch with me every Wednesday but next Wednesday is July 4th

and on July 4th we’re going to be celebrating our nation’s Independence on Independence Day and we’ll be doing that with family and friends and so we won’t be doing our networking lunch on July 4th however we will

we will be back on July 11th for our networking lunch is always we’ve been using the the the

Upper Room at Huey luey’s restaurant in Sandy Springs if you’re ever in the Atlanta Georgia area on a Wednesday please just look us up

look up the group flipping Atlanta on meetup.com it’s the subgroup of flipping America and join the group

but you will find out where we’re going to be meeting and we’re going to Huey Lewis every Wednesday right now it’s a great little Mexican place.

[7:48] We have a lot of fun there and it’s just talk and real estate it’s very casual there’s no formula no format

the weather is a little bit of a format but there’s no speaker and nobody selling anything okay the flipping America apps in the App Store you can listen every show we’ve ever done including Today Show

so download it it’s free there are no up cells are in app purchases free to download free to listen go ahead and and give it a try and let me know what you think.

We also have the property grade app in the app store where you can answer 10 questions about a property and get a letter grade telling you how good of a deal it is I’d like to know what you think about.

[8:23] Music.

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[10:02] Music.

[10:18] I’m on my way with Ron Carucci he is the founder or one of the founders of navelent it’s a company that helps with small business formation and consults with small business Ron thank you welcome to the show.

By the way to be with you thanks for having me all right so go ahead and I’m sure you can do a better elevator pitch on what it is exactly you do for small business or large business.


[10:42] We get to spend our days where were there large corporations mid-caps trying to grow up for startups trying to grow up we spend our days with with leaders of businesses who are trying to take their aspirations for what they want.

Are they pet growth wall or they gotten lazy and complacent something use in their way from what they said they want where they are

figure out what that is and do the hard work best in the business

about you can grow in scale and I think many of them have often confused what the difference is between growth and scale I’m over it really takes to grow a business.

Somebody hurt one too many podcasts on just follow your passion the money will follow or they they read some article and went out in an ounce.

SL Hardware.

Set a course for motivation pick a swim Lane stick to it put the disciplines in place to actually go the distance to many liters.

I wish with get-rich-quick aspiration specially in your field right wearing your business.

[12:07] And find that it’s way more difficult than HDD HD TV shows in 30 minutes right of the TDM that’s involved actual police work.

That’s right so you said so many things in your first mouth full that have given me a hundred questions I can’t even write them all down but.

[12:30] Are you working with companies that are looking ultimately for funding they’re doing like a regulated offering or private,

sometimes sometimes we will get into an entrepreneur is life who hasn’t gone who has the insanity you’re funny but hasn’t gone to MVP at our hasn’t gotten his series a money sometimes they have surgery on my knee but not get into the earlier finding Cycles.

[12:51] And I know that that’s a thing right that’s a big what chapter of.

That point they can’t afford to pay Consultants they want to boost up everything but a lot of times will pay for us.

We going to see insurance policy to say

Global, Donna and their egos go too wrapped up in their mature,

the sherpa

on the journey and no it is protecting message money but help the people who have decided to sign on for this adventure actually not for themselves

you probably see some some commonalities in the in your clients that may be but I’m just guessing up.

That you would what are two or three of the things that are holding people back that the young entrepreneurs they have a great idea maybe but they just can’t get their organization off the ground,

okay I’m screaming out most of the time we end of the story the first one is about the issue of identity.

So whenever I asked and I just got to do I’ll get the business plan the 20in clan.

[14:15] I’ll get some kitchen mission statement they got off of Google are they went to went to some team outside all they can brainstorm or mission statement I’ll get a set of values.

[14:24] I’ll get a Prada Kota I’ll get the order from Costco right I’ll get some counterfeit.

[14:32] And I’ll say that’s very interesting but tell me why a customer that you believe you sir would choose you over somebody else.

[14:41] What makes what makes you the reason since there are a thousand people to do what you do why you and I got a deadpan look.

Until I turn you could tell me who you’re saying no to.

[14:52] So you can tell me what what are the what are the best the capabilities of a differentiators are which you going to bet the farm and be better than anybody else in it and and and I you can show me the budgets in the money and the time you spend,

no off and I can say that strategy stuff is better big companies we’re not there yet and you have no idea how wrong that is if anybody needs it.

But I can bring those are so afraid of saying no is so afraid of now wearing their focus cuz it feels like constraint,

they’re so afraid to say no to opportunity to come in the door for Revenue that they become Jacksonville trademaster what little resources they have,

organizational or scalability.

So you can often hear you went from 5 employees to 20 or 20 employees to 100 or whatever the Mayhem was and you walk in you can hear the seams ripping.

[15:50] People doing 10 jobs.

Repeatable processes standard I hear those words in a bristle.

But the reality is until you organize around the strategy you said you have till your identity is reflected in how you put your assets together.

It’s just me and him

right and some lyrics thriving at man they think everybody else does too I think you have corporate about cuz you like this man true that people don’t like me they don’t like working 20 hours a day

I don’t like this rasikan you not know what’s going to come out today.

Is a delusion and so it is important that you step out of working in the business and take the time to work on the business.

And that means intentional design intentional configuration of your assets and the biggest one is is how they like a baby does mitosis inside of his mother worked divides

why cells divide.

[16:56] And busy just hiring more bodies to do the work is the answer but the reality is not all work is pretty cool there is some work that’s competitive work the work that print that really sexual part that makes your special with that worked at.

Deliberate on your strategy if you invested Dollar in 5 hours comes in the door.

[17:12] Is enabling work that supports I could have the necessary support structure is 70%.

I keep the lights on. To keep out of jail got a chance to get the bills paid.

[17:26] Well the problem is when you mix necessary work with competitive.

Guess what happens the dilution factor is huge because it never gets done because the immediacy of the nest.

And so unless you protect those bodies at work and keep them apart and make your best talent for your best money for the competitive work the middle ear or you’re not sure what to takes over,

I’m broke so busy and so intense and such a big swirl of stuff.

Okay so that’s two.

Last one is leadership so now becomes the okay what is my role to lead over all this and as the cells divide and the work to buy stun doesn’t ship to buy rights of the biggest.

Most hundred Thunder comes in at series being says yes or no.

Some people might have some people might have 1/2 of a distance and grow and scale throw me to ship and leave other people well if you’re not starting at the very beginning.

Teaching yourself how to extract yourself in the Mayhem and Lead at a higher altitude.

Compare people underneath you to do the same I don’t care people under them to do the day they work.

[18:45] Then you’re not scaling leadership right so your you you will only take your invitations for after taking yourself.

And so if you can’t lead a broader thing besides the day they stopped doing many hours for was like keeping their hands and stuff right.

And so letting go and letting other people do it even if they don’t do it the way you would or not a good as soon as you are you got to let go otherwise I can scale so strategy.

Organization in separating acapella Brooke and Leadership making sure others can preside over the activities besides you okay I’ve got some questions coming out of that that is terrific stuff thanks.

[19:24] Music.

[19:42] Flipping houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them.

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

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

[20:07] 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 Roger Blankenship.

Learning about his program and boy do I wish I’d met Rodger.

[20:29] He has a clear concise program and many tools that are going to be very hot.

[20:35] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are in value of.

[20:45] Music.

[21:37] Okay what’s wrong Karrueche and he’s been laying the the mine gold on is here for the last eight or nine minutes Mike Ebron.

Jesse Mike thank you so much for taking time and sharing with us today.

That I really appreciate it I dinna T organization and Leadership.

I know you were I jumped in there and interrupted you were at yet another thought is we’re going to the brakes when finish that thought they missed the memo about those things,

an entrepreneur school or are they they they have an actual distinct but at work right they see it as.

Big company mid-cap company stuff but when I took the Khaleesi.

What I typically fine is an ATM company trapped in the body of a $49 organization.

[22:31] And so it grew but it didn’t scale.

And the problem is using Demarcus rewarding you you think the orders come flying in that you had this whole Mitch and you created this demand.

And the wind at your back and you think it’s a good thing right and you actually don’t realize that you’re about to kill the very thing you made because it’s not the same.

Okay that’s all I wanted you to elaborate on that little bit that from the very first thing you said I made a note I wanted to ask you about the tell us the difference between scale and gross.

I usually just means that means you’re adding top-line money at the same the same eye training cost.

Scale means you’re creating efficiencies in repeatability and sanitization it allows you to grow your Top Line without adding cost to every activity you do.

I’m the only place you should be adding cost I was in your most competitive work buddies are going to set you apart and really keep your competitors far far away from you.

That presumes you know what that is that presumes you know who the competitors are that persons you know who it is the marketplace you want to serve is comparing you do and when I’m not using you you know why.

[23:36] They are choosing you it’s for the reasons you want to be chosen

I’m so often I go in and we do some analysis work on me say what is it you believe you’re selling very commonly for entrepreneur is the thing that think they’re selling is not what the solution people are buying they think I’m selling you can be in technology or buying

you know I’m a solution to a particular problem on Great Courses,

buy him cuz of it they want the handouts.

So until you understand what value your credit what problem solving in the minds of those your survey not the brilliant idea you think you had,

you don’t know who you’re serving right so understanding

show the inside out look at what you do is so vital and so many actors are so busy working in the business they don’t have the time to work on it that way and learn what they have to learn.

So how much time do you spend with the companies that are just trying really trying to bootstrap.

[24:36] Not much cuz I got to pay me

I’m going to let you know we have one conversation and they don’t hire us because they already know the answer your phone don’t take on clients.

Go on us because we would have been on Match and I thought if you can I’m going to poke around and ask you some more questions are all the mirror and say I’m seeing here.

And you are completely resistant to having me tell you anything that you don’t think you already know or is it what you want to hear match.

Because I’m going to drive you crazy you drive me crazy.

So what’s not Life’s too short or too small good luck God bless you know okay so describe your ideal customer.

[25:22] A leader who in my dream my life away. Who wants a good to great journey right there great if I towed but they haven’t had it yet and they want to before they before they play each other when I get to the next level that’s my dream Clan.

I’m better off and call him clients at least somebody who recognizes that there’s something outside in the marketplace to change for somebody something

send me something happened about what they’re gross or somebody Elation changed or a competitive made a move it and see coming.

No, they didn’t they have the talent.

Driving distance to factions there’s some.

Before they tried 20 things don’t work and they’re enter humble the care their passion about their business they recognize that all I know is another it snow.

Step up and lead with the process of change and transformation.

I am going to their people into that journey in a way that makes sense to me,

okay well believe it or not we need to go to another break but when we get back I would like to take

just go back and let our listeners get to know run a little bit better that alright with you all right.

[26:50] Music.

[26:59] 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.

[27:09] 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.

[27:22] 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 camel.com.

Hey flipping America listeners have you ever walked into her property and said I have no idea what it will cost to repair this home those days.

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[28:31] Music.

[29:06] Okay where in line was Ron Carucci and he is one of the three founders of Snapple in.

Maryland.com and he’s also the author of the book rising to power you want to pick it up in the Amazon store Rising the power this is most recent book The Brunt.

I like that says question on the show because I’ve been getting a kick out of this for the year-and-a-half I’ve been doing the show asking people this question.

[29:29] It’s a pretty safe bet that what you’re doing now is not what you thought you would do when you were in elementary school when you grow up a little kid what you want to be when you grow up.

[29:40] Who knows.

I love you I’ll try to be a baseball star I wanted to be Alvin Toffler futurist I began my career in a very different field.

I wouldn’t want to train for and quickly learned that I bored easily and I was getting all this great jobs out of school and my friends would say that’s an awesome.

How to get that and you know that.

[30:16] And eating other people’s store was just telling stories over and over again so that’s been really fun I think it’s never the same thing over and over again every day that my wife likes the stories that I enter change everyday.

Is what keeps me engagement keeps it fun I would have never in a million years guest.

I need to know this was a field.

Imagine being in some boring mundane job.

Social behavior I would have never guessed that we left the three of us were part of a much larger

and then it began about feeding the dinosaur love this work

I don’t think we ever understand what we’re saying was going to start a firm.

And so we said I stumbled into entrepreneurship and now we’re your 14 years in and it’s it’s done is been a great run.

But I don’t think if you said what you wanted to start your own company but I said no way.

[31:35] So you living out there in Seattle Washington and then we were talking a little bit before we came on the air about the real estate market out there have you been in Seattle most of your adult life.

No I’m glad we moved here 14 years ago where I’m working from New York.

Oh wow

Salinas Wheel of Fortune your transplant okay you seen a lot of change though in Seattle in the last 14 years.


Boyfriend said he now is buildings everywhere and Amazon’s no crushed every corner

yeah this is it this is not the city we first discovered in 2004 and.

The real estate market and it’s crazy

having to watch people who have long hair and grew up here unable to afford to keep their homes that’s sad to see that

okay circling back around to the business into things for little bit.

[32:59] You know we appreciate the wisdom that you shared with us I think that we don’t have a lot of mid-cap or or Fortune 500 companies that are listening to the show our listener baser,

the people who like me want to just be investing in properties in that sort of thing,

you’re talking to people that are far away from being able to forward you okay Ron but we appreciate you being with us and end I want to know.

If you could say something to a mass of people and you know it may be a couple hundred thousand people listening to us right now who want to start their business they’re dreaming of this they want to be in they want to,

work for themselves and get out of the corporate world and they want to be entrepreneurs can you give us

two or three tidbits that we need to hang on to this we get into this and I really try to go for it.

[33:46] Especially when it comes to real estate now slipping you know don’t don’t let HDTV seduce you.

If you have a dream to be in that business be sure you know why.

If you never pick up a hammer I want to go to the kitchen before or you’ve never know spend time trying to find some

tile suppliers on short notice will you tell doesn’t show up if you’ve never had to solve the problems that come with stuff in the house in the margins that you don’t normally get.

When you do it don’t don’t do it don’t be seduced by the get-rich-quick I hate my job so everything is being a grass.

I do it wisely thoughtful

no giving give yourselves a year to really apply course for what you’re really good at what you’re passionate about what could what could you want stresses could you leverage that you’ve had and be smart about that condition. Everybody.

Hating your boss and hating your job in your company doesn’t mean you should be back from her or work for yourself I’m actually running small group space and by the way in a liminal space. Org be great we supposed to visit,

career positions and career rockets at.

[35:03] All the people in transition tonight each I’m doing a small group of grow your score small business Workshop.

And we’re basically doing all the time outside talk to you about first part of a show

we’re doing all that work in a small group and you put on you to understand.

Where’s it going to make sense am I willing to do what it takes to succeed if you have 4 kids and a mortgage.

But don’t listen to the stories I wrote down we had $8 an hour.

All those people pick yourselves up by the bootstraps,

get to the brink of whatever and get set up and suddenly now life is Granny living in Bermuda you know making money on podcasting.

It could happen to tell you what can happen for you.

[36:04] It’s not that I can’t have them for you but it’s going to happen for you that’s dangerous,

you can you can create little experiments you can create little scraper call Reinventing You by Dorie Clark little experiments for yourself your course to that dream.

I stopped at a time Joan so don’t don’t try.

[36:34] Those are good words Ron thank you so much for joining us today we really appreciate it and tell people how they can get your book.

Yeah single Amazon you can come to visit us at or even if you don’t think anhydrous come visit us,

Valentine book for Yukon leading transformation,

call accountant apple.com transformation you might enjoy the book might give you some you can apply to home flipping I know what you’re up to.

Ron thank you again appreciate all the words will talk to you soon.

[37:17] Music.

[37:22] 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.

[37:37] Peter Falkner here I tended a one-day flip starter training session led by Rod.

[37:44] And I was amazed to see what has happened in Rogers Live from the last 15 or plus years.

Flipping over 800 houses in Mendes one day training he told how he did it and what the pitfalls of blessings the benefits.

And how to do it and I was so impressed with how well organized and how smooth the training Wednesday you’re tempted or in courage to go when you get a chance.

[38:14] Music.

[38:33] I just love talking to smart people who know so much about business and life and the

learning from their experience it’s truly an honor to have people like Ron on the show and so Ron if you listen to this thank you for giving again for giving your time we appreciate you.

No I said before we went to the break that I would talk to you a little bit about

Zillow and the threat that they pose to Real Estate Investors but here’s the thing Zillow is a threat to open door and knock and those guys they’re not a threat

to those of us who are buying distressed properties with a view to rehabbing them and selling them for a profit why because they don’t buy those properties they’re not going to offer on those this particular business model.

Is focused on pretty houses.

Pretty houses that are in pretty good shape they don’t really need any work in fact if you spend any time looking around at the say the

offerpad website and so forth to your you’ll see if you dig around that they’re going to ask you to make repairs yourself they want the house in good condition and updated and pretty much ready to go.

[39:44] So

that’s a little bit more and then they’re still going to offer you a discount I just kind of price for it they’re going to make a little less money but they’re not going to do any rehab and so their business model is different than ours and that’s the point.

Don’t worry about Zillow jumping into this game because they are operating off of a different business model now.

[40:04] If you are one of these other companies operating in the same space that maybe you have a little bit to be concerned about.

But even then Zillow isn’t going to be everywhere overnight and you have a chance to jump in right now and.

Social bit of market share in and develop this business that’s what you want to do.

Speaking of business opportunities we were talking around in the flipping America office earlier today about the real opportunity in the real estate game as it exists right now no remember I’ve said this before many times for many years

real estate is a constantly moving Target

it really doesn’t stay the same and yes you can make money in one particular Arena or asset class for your entire real estate career is also possible that you can get into one thing and five years you can make enough money to retire and a lot of us in the business have done that

well if you want to dive in right now and you can handle complexity you’re good at project management

and you’re willing to just do the same thing over and over and over again for a smaller profits per project but.

Almost unlimited opportunity here is the business you should be in ready.

[41:21] New home construction in the starter home price range.

[41:26] Starter home price range is a little bit different different markets across the country and those that listen to the show regularly know that I’ve said this before but there is still a great need this morning we were talking with the staff about,

are projections and you may recall that I have been saying and repeating for quite some time that

the market is going to start approaching the real estate market what it’s going to start approaching something like a balanced Market by the end of 2018 I’ve been saying this now for a year and

I am beginning to actually modify my projection here a little bit I know we’re 6 months away.

But I’m not sure the market is going to be completely balanced by the end of 2018 and the reason for that

primarily is due to the fact that new housing has not caught on but I thought I would it would end like I projected so many months ago

it’s a little bit inconceivable to me that more Builders would not have jumped back in the game and some Builders are indeed jumping back in.

[42:28] But because interest rates are low and cost of construction are relatively High

compared to history thanks to Canadian Terrace I should say the Canadian terrorist that just came down this year and they’re saying we’re starting trade War as well that’s a new thing the cost of lumber and.

Soft white pine out of Canada as skyrocketed because of their Terrace well okay so that’s all I want to say about that anyway.

[42:59] Construction costs are high interest rates are low Builders are naturally gravitating toward the higher profit opportunities which is building

second home or upgrade homes or even luxury products because there are plenty of buyers for those as well and really that second home class and the price ranges are different in every Market but for example in Atlanta

from the 400,000 to the 750,000 rate hundred thousand range that market is still white hot

and so if you’re building you might as well build for that because you’re going to make more money and you’re going to be going to make more for Less effort

because you’re going to build fewer houses and you’ll be you’ll be fine that’s why the builders are getting into that space not starter homes the starter homes are going to be selling considerably less and there’s less margin on each one unless

net profit on each one so it’s not as appealing right now to the builders that are jumping back into the game what we need are a bunch more Builders to get into this game and stay in the game and build.

[44:02] Starter home price range communities tract homes you know you just go in there with the.

[44:08] Maybe for floor plans and six or eight elevations and you just make sure you don’t put identical houses next door to each other although they don’t even bother with that sometimes and just build out a subdivision and sell it because there’s plenty of demand and money is still available and there are lots of people who just really desperately need a house to live in

so get out there folks that’s a big opportunity.

[44:30] Let’s turn our attention now and read some mail we’ve got some questions and come in and I want to take some time to answer them if we have it ebony from Detroit Michigan and this is not a

it wouldn’t start as an email evany actually went to the website and

hit the button click here for a strategy called and we had a nice conversation and she followed up with this email and this is her email

Roger can transactional funding be used to purchase properties at tax or Bank

foreclosure auctions I know transactional funding is used for back-to-back closings that must take place the same day I think it would be it would be best to at least ask the homeowner to agree to a 30-day time frame to allow time to find an,

I know the law states that the homeowner who has been foreclosed on has a 6-month Redemption. Stay in their home without paying mortgage,

they can reclaim their property and they can’t be evicted unless they refused to allow inspection or if they damage the property so with that being said Can transactional funding still be used as long as the end,

buyer is okay with purchase purchasing a foreclosure that has a 6-month Redemption period or should I check with the.

[45:39] Companies are local courthouses that hold the auctions to find out if transactional funding is allowed for taxes bank foreclosures all right.

As you can see our conversation on the strategy call covered transactional funding a good bit but let’s talk about what transactional funding is and what is

it is not transactional funding or also it’s called one day money is designed when you have a double closing in this is something that wholesalers would tend to use when you have a property under contract.

That you are going to buy and you don’t actually really ever want to own it you just.

[46:14] You would like to assign the contract but maybe the contract isn’t assignable or perhaps you don’t really want the,

in buyer to know exactly how much money you’re making in the process and sometimes that’s the case I would say though if you’re making $15,000 or less you shouldn’t worry too much about what the end

buyer is going to pay because you’re not getting them all right if you get above 15000

do you may not be gouging them but they might think you are and so I can understand why you would want to handle this with a double closing.

Sometimes you can handle a double closing by funding the they closing on your purchase of the property with the money from the person is buying the property from you it’s a little bit tricky.

Where the.

[47:03] When you doing this because you’re doing a dry closing essentially but it can be done there are a number of law firms that won’t do this

and part of that is because their Title Insurance Company doesn’t like it and you know the title companies kind of call the shots here but.

[47:19] If there if you have a law firm in a title company that is okay with you closing that way it can be done.

It when it cannot be done for whatever reason then you’re going to use transactional funding to fund your purchase of the deal

you get the money usually there did so it’s between one and two points usually appoint a half actually that’s a.

Hey one and a half percent of whatever the amount is and so your purchase price needs to be very low because there’s a relatively low loan-to-value on this but they will loan you the money.

Conduct a purchase and then a few hours later the money from your buyer.

Replaces that Bunny and so the transactional lending partner gets their money back out

typically within 24 hours and so they make one point on the money or 1 and 1/2 points on the money in 24 hours you can annualize that.

And imagine that they get a pretty good return of course the fact is they don’t deploy that money every day so they’re not really making a 200% return on their money but that’s

sweet to think about right okay

so that’s transactional funding transactional funding is not used in in the way that ebony is asking is here first of all no lender out there transactional or otherwise is going to give you money.

To go buy a foreclosure at the courthouse and this is even more so if you have a 6 months.

[48:48] Redemption. Now Bethany is speaking of specific laws in Michigan and I had to look them up.

And I am going to go over them because I don’t buy foreclosures in Michigan at this point,

actually Michigan has different Redemption periods to pending on the status of the property in the amount of that was owed relative to the sale price

but if the property is abandoned there is no redemption. In Michigan when I thought that was interesting so.

[49:18] What you’re trying to do any I’m not really sure what you’re trying to do here but I think you’re trying to.

Maybe by at the steps and then figure out a way to get sold but you really can’t do anything you can’t get it sold until that Redemption. Is over whether it’s 3 months or 6 months and at that time

you could sell the house to a buyer but in the meantime you’re just going to have to come up with a way of buying it.

Now I’m not really sure about Michigan but in some states you put a percentage down the day you bid on it and you have a certain amount of time in Florida it’s 24 hours in South Carolina it’s 20 days

but you come with the rest of the balance in Georgia and Texas you have to have all of your money on your person when you bid,

and you have to pay it right then so

you need to know what the rules are about that but that’s where you have to have the money and then 6 months from now you already have the property paid for what you can do.

[50:13] Possibly and I I don’t want to commit to this because I’m not sure who is going to loan you money on a property that still has a right of redemption in effect

I don’t know if you would be able to borrow money on that and get your cash back possibly you would because you’re either going to get the money

back or you going to get the house so it’s possible that the private lender would loan you the money but they’re going to want to rate of return and they’re going to want you to be making the payment on that money.

All during that time.

I’m not really sure that helps but I hope it does and so ebony keep to keep the conversation going and let us know what else we can do to help you out and that music means we have a quick break.

[50:52] Music.

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[52:34] Music.

[52:49] I got a special coming up in July and I’m going to go ahead and announce it today because I’m going to just make

and end of June and all of July special if you sign up for Legal Shield using Rodger b helps. Com drop me a line that you didn’t let me know that you signed up I am going to give you

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[53:30] Such a deal Milton from The Villages of Ocala Florida says I need a reputable lender for a rental property can you help and the answer is yes I can one of our partner

Braswell Capital Solutions you hear them every day when the show comes on Braswell

Braswell Capital solutions.com is available and they do rent a loans on rentals now I have coming up in a few days I’m talking to a banker here in the Atlanta area that’s doing some creative things working with investors

and they’ll make some loans on rentals but only,

to the limit of 10 conforming mortgage loans you know there is a federal guideline that says no one can have more than 10.

[54:13] Conforming mortgages so Milton first thing to do if you have good credit and you can swing you know you can prove that you can pay you have enough income to,

handle the payment on your primary residence if you have one and the rental you can possibly get funding from your local bank that’s probably where you should start first because you get the lowest rates but

they’re not going to count the rental income as part of the income,

for qualifying for the loan unless you have held rental properties for at least 2 years and have documentation for that on your tax returns for the previous two years so you’re going to need and in that case

do you may need to contact Braswell Capital Solutions in the great thing about dealing with Michael over there it might at Braswell capital is

they don’t have any limit on the number of loans that you can get you can have a hundred rental properties if you want to they’ll continue to loan you the money it’s a little bit higher than the bank rate but pain

No Limits faster closings and you don’t you can count the income from the rental property itself as a part of what you’re doing

I mean as a part of the income for qualifying for the loan all right.

[55:22] I got another strategy call and do you know usually from the strategy calls we don’t get this number of questions but look if people having this question and I think it will help others then

I want to let you know

Jim from West Palm Beach Florida called in and said I have a 20 I have about 20,000 to put into a deal and just can’t find a deal that small that isn’t in a terrible area.

[55:47] So Jim and I talked for awhile nice conversation Jim thank you for taking the time to hit the button and I hope that the call help he said he did and.

[55:58] But this is a fairly common problem and so I wanted to address it here you know didn’t come in as an email

the problem is don’t have enough cash to really pull off a Fix and Flip what do we do.

[56:11] You have several options here option number one and this was appropriate in Jim’s case if you have good credit then again call my friends at Braswell Capital Solutions call Mike Braswell and talk to him.

He has a program where if you have good credit and you can show W-2 income he can get you money.

Operating Capital that you can use in your business.

[56:39] I have one person that I referred over to Michael a few weeks ago Michael got him $170,000 to use in his business use it anyway you want and this is a three to five-year loan.

Now I’m going to go ahead and tell you something here that may make this a little easier when you talk to Mike.

There is a success fee involved in the success fee is 15 points that’s V

18% of the loan amount which means if he gets you $200,000

Michael’s going to get paid $30,000 you’re going to actually net 170000 and before you say what that’s nuts that’s so high that’s crazy that’s unbelievable and 15 points my friends is high if you’re only going to use the money one time but here’s the magic

just think about this.

Over 5 years time you should be able to deploy that money 10 times your average hard money loan is going to collect two or three points usually three points and so if you pay three

points 10 times over 5 years you will have paid 30 points.

[57:46] That makes 15-point sound a whole lot better because you see when you get a deal done you don’t necessarily have to send that money back just keep making your monthly payments and then reuse that money in your next deal

this is a loan that you can pay it off early if you want to but you can get some deals done and you can continue to use this money to fund other deals

don’t do one of these loans if you’re going to use it to buy a car or a new sofa please please please do not do that but if you’re going to use it in your business and you know that your business can take off if you have a little capital.

This is the way to go another way to go,

Jim is to do something called Gap funding to bring in a friend or family member to put up some additional cash give him a piece of the pie,

make it sweet offer maybe half of the Prophet just don’t forget that first deal done.

That’s another possibility too and I’ve got a few more ideas but I’m out of time so we’ll talk again very.

[58:38] Music.

[58:49] Theodore Roosevelt’s former president of the United States said keep your eyes on the stars and your feet on the ground.

Good solid words to live by.

And this thought is brought to you by the foundation for Renewal working together with communities Nationwide to bring lasting life change and impact into communities everywhere.

Find them on the web at renewal fun. Net and is always your contribution in any amount is appreciated and is also.

[59:16] Music.

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