Flipping America 181, Market UpdateFlipping America

Expected Air Date: 8/27/18

Opening

Good morning everyone! It’s a Market Update today.

A year ago I predicted that by mid-2018 the real estate sales would be slowing down and heading toward a balanced market. Was I right? I’ve got the answer for you today. A month ago it looked like I had missed on this prediction but there is more news today that points to a conclusive trend. In a few minutes I’m going to dig into the new data.

I’m also going to pick on a “not news” story disguised as news. Rather than just labeling it “fake news” and moving on, I’m going to show you how bias can affect a choice of words that could lead readers to a desired, yet not necessarily correct conclusion.

Today we are going to dig into more of your questions about the opportunities out there and some of the challenges you are facing. All this is coming up in a few moments.

How to contact us

www.flippingamericanetwork.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

YouTube: bit.ly/FlippingAmericaOnYouTube

Linkedin: bit.ly/FlippingAmericaOnLinkedIn

We now have a profile at houzz.com for what it’s worth.

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

Announcements:

The Flipping America Mentoring Program, August 28-31, Sandy Springs, GA
- Menternship Also.
  - Ten Deal Sources explored and explained.
  - Complete Deal Analysis.
  - Finding the re-sale value of any residential property in the U.S.
  - How to estimate repairs from your desktop.
  - How to finalize a repair estimate through a site visit.
  - Structuring your business for effectiveness and asset protection
  - How to set up a web site for your business.
  - Understanding the various ways to get your deal funded.
  - Learn creative deal structures.
  - The mini-course in negotiating
  - The full course in renovation.
    - How to find, vet, and hire contractors.
    - How to manage the process
    - How to solve the inevitable problems that arise.
  - Learn how you could get your deal 100% funded – not just your next one, but every deal you ever do from now on.
  - Get all the forms, the documents, the checklists, the procedures
  - Get the scripts for your conversations
    - Hiring questions for realtors and contractors
    - Answering the phone
    - Talking to sellers
      - Build rapport
      - Get key information
      - Learn motivation
  - The course comes with on-going weekly group coaching calls
  - You also get one-on-one guidance through your first four flips.
- This is the three day dive into a year’s worth of training and guidance. But our commitment to you doesn’t end in one year. We are with you at LEAST through your first four flips and definitely until you have more than doubled your training investment.
- What is the investment? What is reasonable? Let’s talk about $50,000.
- The cost is $12,967, but if you use the coupon code “radio” your cost is $9,967.
- Go to www.flippingamericanetwork.com/Mentoring and sign up today. We only take about 10 people per class and several have already signed up. There’s just a few seats left.
Lunch with me every Wednesday.
Monday the 27th of August, speaking at the West REIA, Cherokee Cattle Company, Marietta, GA
Flipping America App is in the app store. You can listen to the show, read the show notes, and 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.

News!

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!

Milton, Kansas City, MO, “I heard you talk about a Commencement of Work document and I wonder if you know whether it is required or recommended in Missouri?” https://constructionliens.uslegal.com/
Harold, Detroit, MI, “We have so many types of opportunities here in Detroit right now – older homes in the city and relatively newer homes in the close-in suburbs – but they are still 40 years old. I’m not sure where to start or should I just take the first opportunity that comes to me?”
Jennifer, Nashville TN, “I am working on a rehab project and when I go visit the site I really don’t know what they are doing or how well they are doing it. I’m faking it, and I think they might know I’m faking it. How do I get the knowledge I need?”
- Community College
- Big Box store courses
- Do something yourself – get advice from your local building supply store.
- Don’t be afraid to ask questions. Don’t be afraid to look dumb. You are not expected to be an expert in home construction right now. The contractor will respect your honesty and your ability to put the deal together.
Ashley, Boulder, CO, “I’m having a problem getting a contractor to even look at my rental house. Everyone claims they are too busy. I think it’s because I’m a woman. I know you are a man but do you find that other women have this problem? Have you seen them overcome it and if so, how?”
Al, Ann Arbor, MI “I’m doing a few flips each year here in my area but people are talking a lot about Detroit. It’s about a hour’s drive for me but I’m wondering what you would do in my shoes?”
Steven, Waukesha, WI “It’s late August and I’m looking at a couple of real deals here, but winter is coming and I’ll be trying to sell them in January. Should I hold off?”

Motivational Thoughts for the day

Act as if what you do makes a difference. It does. William James

Transcript

[0:00] Music.

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

Flipping America is brought to you today 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

thank you Kathy Curtis good morning everyone how’s it going out there hey I just returned from a few days on the road and got back and while I was gone I’m I really didn’t check in on social media or even check my email that much and.

When I got back in yesterday evening just hundreds of messages emails and.

Shoutouts on social media and it did just tells me that people are listening to the show and the appreciate it and thanks for all the kind words and I appreciate your recognition of the work we put in to bring you flipping America and

it’s gratifying to hear and motivating so thank you

I just wanted to say thank you thank you for listening thank you for being with us today I am Roger Blankenship and I teach people how to make money in real estate

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

I know if you’re a regular listener to the show you’ve heard me say that over and over again but I just need to keep on saying it look.

[1:58] Flipping houses is not for everyone but the greatest investment on Earth is Earth.

It is one of those things that has tangible value and the value of it never goes to zero.

So on the show we’re dedicated to helping you get the information you need to make the right kind of real estate investment for you one that fits your lifestyle,

and your goals your objectives into that into you can always go to flipping America network.com push the blue button to schedule a free strategy call there’s no obligation is not a sales pitch

we’re just going to ask you several questions about what it is you want to accomplish with real estate and you know what

most of the people that called and said that schedule that strategy called are interested in learning how to flip houses that’s okay we are prepared to teach you

but if that’s not what you’re saying is.

We are also prepared to show you some other things that you can do to be involved in real estate and take advantage of this great opportunity.

A year ago I predicted that by mid 2018 the real estate sales would be slowing down and heading toward of balanced Market was I right.

I think I’ve got the answer for you today now what month ago it look like I had missed on this prediction and I owned up to that but there is more news today that points to a conclusive trend.

[3:22] A few minutes I’m going to dig into the new data.

I’m also going to pick on a not news story disguised as news I’m going to cover several news stories today but this not new story.

Kind of amuses me but it’s also dangerous because

it’s it it’s misleading in a very subtle way rather than just labeling this story fake news I’m going to take it apart for a little bit and show you how bias

can affect the choice of words that can lead readers to the author’s desired but not necessarily correct conclusion now I’m not even saying that the author is incorrect I’m just saying that the methods here are reprehensible,

when you’re attempting to be a reporter and not an editor providing an editorial,

there is a difference and this is this is really the problem that we have in so much of the news media today

new stories that are pretending to be unbiased reporting of the news but do the word choice and other presumptions made by the reporter,

the conclusion their conclusion is the only that inevitable conclusion that’s not reporting that editorializing and I’m not pretending to be reporter here,

I am I do bring you some of the news but course I also offer you my opinion which is an editorial.

[4:44] Kind of a function all right told you that the minute they will be kind of fun.

And hopefully help you maybe read the news or listen to the news a little bit more critically all right

how to contact us here at flipping America where you can always find us at flipping America network.com the website that never sleeps like all of them and you can.

The blue button to schedule the strategy call but more than that you can stay up-to-the-minute with our RSS news feeds that are updated 24/7 all automatic right there on the front page you can listen to the show

you can connect with the different ways to invest in real estate and much more is planned.

The website is it is now is just a small fraction of what we intend and hope to make it.

[5:31] Come check us out flipping America network.com and

drop us a line and let us know what you think there’s a button also in the footer of every page that where you can ask your questions and you can click on the button and ask your question or you can just send an email to ask questions at flipping America Network

dot-com.

Questions at flipping America network.com find us on social media and more and more people are and we’re grateful for that we we.

Put a lot of stories out on social media that we don’t have time to get to hear on the show on Twitter and Instagram at flipping America if you want to find us on Facebook

look up flipping America media and of course we have a YouTube channel some of the interviews that we do here on the show get posted on the channel plus some other instructional videos as well and.

[6:21] Of course we’re on LinkedIn if you’re their connect with this their LinkedIn we’re on Pinterest and house and Google Plus

really sure what the value of all that is but hey that’s what the the folks in the social media training department said to do so that’s what we do and.

If you don’t want to do any of this Social Media stuff that’s okay with us you can also just call and.

Leave a message either a comment or question the number is 404-369-1018.

Press extension one leave your message your question and please by the way tell us where you’re from if you got a question because we always like to say that and people that email us if you email us let us know where you’re from because

we want to just kind of share that news when we answer your question on the show couple of announcements for you.

[7:16] This week in Atlanta Georgia in Sandy Springs if you have ever wanted to take part in the flipping America mentoring program you have an opportunity to do that this week but you must sign up,

today after today Monday August 27th no more sinus will be allowed before we got room for a couple more people in the course.

We only take a few people every month anyway and this is August the 28th through the 31st here in Sandy Springs Georgia at our flipping America headquarters mention

that the mentoring program includes everything from deal sources to deal analysis how to find the resale value of any residential property in the US,

how to estimate repairs from your desktop how to finalize a repair estimate to the site visit how to structure your own business for Effectiveness and asset protection how to set up a website for your business understand the various ways to get your deal funded learn creative deal structuring.

Will have a course in negotiating another course in home renovation and learn how to get your deal 100% funded.

It’s all there for you everything that you need in this 3-day course and is coming up this Thursday Wednesday Thursday and Friday.

[8:26] Music.

[9:00] You never know what’s around the corner but you can’t be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living life

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families and businesses for a low monthly rates you get comprehensive legal coverage entire law firm of professionals they can help you with a variety of issues and provide advice whenever you need it.

Protect it for a number of legal issues and assistance with common legal needs for example,

the preparation of your will is included with your LegalShield membership at no additional charge,

you can protect your business or start one select a variety of business legal plans to help you keep your focus on your business

Shield is a comprehensive Identity Theft Protection Service that monitors the information that matters offers unlimited consultation on how to protect your information and provides complete restoration I license

private investigators in case your identity is compromised.

For you or your family for your business Legal Shield is the solution for your legal needs just go to Rodger b help.

Dot-com right now just signed up that’s Rodger V Phelps. Com Legal Shield protection for every part of life.

[10:27] Music.

[10:47] What other announcement I need to bring to you is tonight if you happen to be in the Atlanta area tonight August 27th I am speaking at the West Rhea that’s the West Real Estate Investors Association it’s the part of the Atlanta area and

I’m speaking at the.

Their meeting is held at the Cherokee Cattle Company on Canton Highway in Marietta and all you do is just Google that the Cherokee Cattle Company instalocals Steakhouse and

they meeting starts at 6:30 and I’ll be on sometime after it starts and I’m doing my talk tonight contractor impossible how to find.

[11:23] Vet interview hire and manage contractors.

Tell him information coming up tonight and that I believe is free you just come in there and buy your dinner and I don’t believe there’s an admission charge.

Don’t that shoot me if I’m wrong about that okay but come on out then hear me tonight.

Couples weather announcements if you haven’t downloaded the flipping app that flipping America app

then please go to the App Store and do it right now and you can listen to this show anytime it’s free to download free to listen give it a try and let me know what you think

you get all of this show notes and that links to all of the articles that we mentioned on the show and links to a bunch of articles that we don’t

you too as well and of course I want to remind you that we’ve got the property great app in the app store also you can answer 10 simple questions about the property and the app instantly tells you

what you can expect to make your return on investment you return on cash and then the program gives the project the letter grade using the proprietary flipping America.

Investment-grade algorithm and that’s free in the App Store as well okay let’s do the news.

[12:34] Music.

[12:39] Let’s start with the bad news the bad news is foreclosure starts are on the increase in 44% of the Metropolitan statistical areas.

In the United States that’s right foreclosure starts in it are on the increase there especially now that.

You can go to Adam data.com and I was up at the link to this on social media they’ve got a heat map showing where the Foreclosure activity is taking place and it’s not the heat map of

the temperature is it seat map of foreclosures and most of the increased foreclosures are happening in Florida.

And along the Southeastern coastal areas that includes Georgia South Carolina some in North Carolina and extending all the way up through the Mid-Atlantic region and then.

Around.

Chicago to Indianapolis to Detroit there still a pretty fair amount of foreclosure activity happening there the story breaks down the the actual statistics now.

Don’t start panicking okay.

[13:49] A total of 30287 us property started the foreclosure process for the first time in July this is up.

1% from the previous month and up less than 1% from a year ago.

But an interview so this is a tiny increase okay it’s not we’re not being swamped with a crisis it’s a it’s a tiny increase but.

[14:11] It is the first year over year increase in foreclosure starts Nationwide after 3 full years of decreases.

Well alright everyone says that the market is due for a correction this statistic is is bound to be.

Corrected at some point we have been rolling along for the last year at record low foreclosure rates.

That can’t last forever different things happen of the article goes on to talk about the different things that may be causing it and.

The fact is we don’t really know except I believe it’s a sign that we’re moving back toward a normalized market and a normalize Market there is a certain percentage of foreclosures that happened I don’t think that you can point to the economy,

I think that in some cases for Chick-fil-A in Florida you can take a look at you know the effect of the hurricanes and that sort of thing and

you know there’s a significant amount of increase in foreclosures in Houston area as well and that may be related to last Summer’s

I’m Perkins I understand that but for the most part it’s just a sign that the market is getting back to normal you’re ready for the next sign.

[15:28] Well before I give you the next sign I want to go back and remind you of what I predicted a year ago I predicted a year ago that Nationwide.

In the 2018 I saw that a national average appreciation rate of about 5% for.

Single family homes and as high as 7% in a couple of areas that had not caught up on it and most notably the Atlanta Georgia market and so here is the date from July 26th 2018.

[16:04] You are single family homes and condos sold for a medium price nationally of 255000 in the second quarter up 6.3% from a year ago

to a new all-time high but the slowest annual appreciation since quarter to 2016

annual home price appreciation Nationwide is now slowed for five consecutive quarters

following a post-election spike double-digit appreciation in the first quarter of 2017 home sellers are still in the driver’s seat but

the moderating home price appreciation is good news for prospective home buyers

yes it is and it’s good news for investors also it won’t be as easy and 6 months to sell it at your house it is as it is now but there will be more houses for you to choose from and it’ll be easier to buy another words

this is sign this and this is a trend it’s not just one report we have a now on quarter after quarter trend of slowing in the rate of increase and.

[17:04] If you go back into the archives and I might just do it and replace a portion of that at some point

but if you go back in the archives what I said was I don’t see us,

losing value is a possibly in some coastal areas that were overpriced and overheated at that time

and that we have seen a little bit of that in San Francisco and in Washington DC and and particularly in Manhattan

but what I did say was we would see a slowing in the rate of increase.

[17:35] All right and guess what just looking America guy was right.

[17:40] Okay on that note we’re going to take a little break and when we get back a little bit more.

[17:45] Music.

[18:00] Do you want to learn how to flip houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I 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.

[18:26] 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 Roger Blankenship.

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

[18:48] He has a clear concise program and many tools that are going to be very hot.

[18:54] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are in value.

[19:04] Music.

[19:59] But shifter attention for a few minutes to the commercial segment.

[20:02] And I’ve got a story here what every real estate investor should know about cost segregation house I was thinking about whether or not to put this on the air I thought to myself of all of the things that you can be talking about

on the radio one thing sure to make people want to just change the channel and find out

scores you know who won the Little League World Series and all that who would be to talk about cost segregation so I am not going to talk about it that much except to let you know hey,

cost segregation is a a attack strategy tool that has been used in commercial real estate for years and with

the changes in the tax code there is much more you need to know about cost segregation if you owned single-family rental houses it’s now becoming a thing

you need to look into cost segregation and you need to look up de minimis as a possible tax strategy now this is not a tax advice show

we really don’t give any kind of financial or tax advice on the show but we do want to you know educate you and give you.

A place to look and so what I would suggest that you do is sit down with your accountant today or before you get

do your next round of tax preparation and tax planning this is more tax planning and find out about cost segregation and de minimis and whether or not these will help you and read the article that I’m posting online it’s.

[21:29] It’s decent,

it doesn’t tell you everything that you need to know it talks about how some large commercial investors are using cost segregation to accelerate their depreciation on certain port

parts and it does assistant tax planning but just know and this article doesn’t say this but know that this is available to single family investors

also another story this is from National reia National real estate investor there are new opportunities opening up in the capital markets due to the Dodd-Frank rollbacks

now we have a sudden influx in capital in the markets.

For loaning on real estate and we also have smaller Banks getting very aggressive and I’ve even had on the show Karen Hall from Ameris Bank.

[22:22] This is a regular bank offering loans on Fix and Flip properties through a bank how is that possible all of it is possible due to the economic growth regulatory relief and consumer protection act.

Also known as the economic growth act that was signed into law,

this spring by President Trump this scaled-back many of the provisions of the Dodd-Frank Wall Street Reform Act which was originally implemented in response to the 2008 financial crisis all right then the next paragraphs just says it,

as well as I could so I’m just going to read it this regulatory reduction is not unprecedented as it follows a pattern seen throughout the nation’s history

tightening lending standards during a recession and relaxing them when the economy is thriving

the economy is clearly thriving right now not going to worry about who gets the credit for it and and I noticed the blame for whatever all I want to do is take advantage of the situation where we are and.

The situation where we are is this law of the economic growth act has relaxed the capitalization requirements for lenders and has encouraged.

[23:35] Not with words but the active self has had the effect of encouraging some lenders too kind of

back in the game and also it makes more lending Capital available by reducing and some cases the amount of reserves the bank must have in order to make certain types of commercial loans

all of this means that there’s more Capital available in this means that there are more loans being done and there’s a more competitive environment,

I don’t want to share the concluding paragraph with you to ultimately the rollback of regulations in addition to other factors such as rising interest rates reflects confidence in the strength of the current growth of the economy strong labor markets and Target inflation.

[24:18] In other large-scale,

news regarding the housing market I’ve got another story and the headline is a massive by to rent scheme is hitting the house is the housing market.

This is nothing new it’s just a new wave of big money and the story reports that Amherst Holdings is playing the Rays up

billion dollars to buy single family homes. This is in addition to what they already have they’ve got six hundred million out there Cerberus Capital to said to be raising 500 million front yard residential.

Has acquired Havenbrook Partners out of Atlanta here and.

They have a 509 million dollar loan and so hundreds of millions of dollars are being.

[24:59] Sunk into in this just goes through on several more that are putting money together to continue to buy rental homes and

I’ve been watching you know since the hedge funds came to Atlanta I’ve been paying attention to this and watching the hedge funds pay too much for the properties course you know I have the advantage of local knowledge and

understanding the rent rates and.

I would scratch my head and and watch as these funds would buy properties at welt they might be able to get a.

1 or 2% rate of return.

And that’s if everything went well they just weren’t buying them right and then I did a little bit more research and understood how they were using leverage to increase the return to their investors and so forth and so alright I also knew that they were making an appreciation play.

Which is it was a smart move when they got here in 2011 and.

And even though the market is hot right now I think that planning for a few more years of appreciation is probably a good thing

now watching all of this makes me wonder where are the hedge funds that are investing in Fix and Flip.

[26:14] There isn’t one that I can find except coming later.

[26:23] Anime guy may even have a big announcement for you this coming week but just hang on folks can you imagine a hedge fund

that invest in short-term Fix and Flip properties and is able to turn the money over a couple of times a year at the high rates of return or income that Fix and Flip operators

traditionally see ya more coming on that that’s just a little tease for you.

[26:49] Let’s move on to go overseas housing wrench Skyrocket as Chinese authorities aim to cool the real estate market and this is an interesting story because it’s basically just

the Chinese government is trying to figure out how to calm down their Market because they spend some time trying to work up there Market.

The pit looks like the things that they’re doing are the basically they were just kind of tussling with capitalists

I know it’s a communist country but they are capless in there that are speculating on real estate and they’re making money in the raising rents in so they’re about to injection control into it and.

You know,

I I just want to say we just have a second here before the music starts I just want to say I’m in favor of the free markets and they always seem to work better for everyone involved you just have to let some things kind of workout wish I had more time to talk about that.

[27:45] Music.

[27:54] 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.

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 through real estate investing using a tactic that doesn’t require credit or tons of cash for a free training on how you too can do this please visit Brad channel.com for freedom.

Hey 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.

[28:33] Music.

[28:40] Was it your pocket designs by Real Estate Investors for Real Estate Investors ultimate rehab estimator just needs to know their properties measurements and what you want to do it produces a statement of work a bill of materials and increase a deal NYC.

[28:53] Music.

[28:58] Sales taxes by your state using the properties of code alternate rehab estimator is for all Real Estate Investors new and experienced

just visit ultimate rehab estimator. Calm and click on plans and pricing we have for plans all designed to meet the needs of your real estate business ultimate rehab estimator works on every device you have and wherever your property is skip

contractor in your pocket today at ultimate rehab.

[29:23] Music.

[30:02] And we’re back I’m Rodger blanket if I teach people how to make money in real estate and on this show we are committed to bringing you the best information news.

Demographics statistics Trends style whatever we can to help you make the best possible decision about your relationship with real estate.

[30:25] We like home ownership we don’t think home ownership is for everyone we like house flipping we don’t think that’s where everyone.

[30:33] But everyone should have some sort of a connection with real estate and we’re here to help you figure that out now as we were going into that break

just found myself really wishing we had more time to talk about capitalism and free market and this is becoming a surprisingly important subject and it did to me then I say I’m surprising because I’m surprised that I have to defend

capitalism and free market and and the free market Enterprise it it’s amazing.

And I’m not going to do it on Today Show because we have several questions I really need to get to to to try to help some of you directly and we’re going to get to them just a moment but I am thinking right now and I’m making a note for our program to say staff.

Oh yeah we’re going to do a show sometime soon on the importance of capitalism free markets and boy what a broad topic I don’t know if I can really do it justice but I’ll do the best I can all right.

Let’s go to your questions Milton from Kansas City Missouri I heard you talk about a commencement of work document and I wonder if you know whether it is required or recommended in Missouri.

Neffex we normally.

Would answer this type of question off the air because it’s Missouri specific and so forth but I wanted to answer it now because I want to give you guys a resource.

[31:57] And we will post this on the social media a little later it’ll be on Twitter and Instagram.

And on her Facebook page to there’s a website that you should check out Milton in its construction liens. US legal. Com.

And remember to spell liens liens okay,

it’s construction liens. Us legal.com the full URL is HTTP colon forward slash forward slash

construction liens. Us legal.com go there and you can get a lot of information about liens and then they have some states specific pages and out of curiosity Yahoo inject out Missouri in Missouri doesn’t require.

The commencement of work.

It’s not required here in Georgia either but it is it does serve a useful benefit when you post the commencement of work on the door it notifies everyone who has

privity of contract that is who is the indirect.

Under a contract with the homeowner and therefore is the only person who has the right to lean the property and the subcontractors then cannot lean the property and course she needed.

[33:10] I record this at the courthouse to it doesn’t just do to put the notice on the door recorded to County courthouse and that way when they go to when a sub goes to file a lien it’s going to be invalid because the contractor is the person.

All right.

And of course Milton I would suggest that you talk with your local attorney about this as well find someone who specializes in real estate and can understand this.

[33:36] Harold from Detroit Michigan says we have so many op types of opportunities here in Detroit right now

older homes in the city and relatively newer homes in the clothes in suburbs but they’re still 40 years old I’m not sure where to start or should I just take the first opportunity

opportunity that comes to me well.

I wish that you and I can have a conversation about this because then I would say it depends what it really depends on is do you have any skills already in the construction trades.

[34:08] If you do if you’ve been a builder or a contractor then I wouldn’t be afraid to tackle those even older houses that are going to have significantly.

Greater needs rehabbing an older house is always a challenge and.

I see all too often people who are brand new in this business who don’t really know.

The rehabbing game jump into a 80 or $100,000 rehab and just quickly get overwhelmed and.

In some cases they end up spending more than it would have taken just to tear the house down and rebuild another one and that’s a sad day when you realize you’ve done that so I I want to encourage you to.

[34:53] Basically understand what is a good fit for you what kind of project can you take on if you’re new in this.

Listen folks if you’re new in this game and if you haven’t.

Done a major rehab before don’t make your first one a major rehab what is a major rehab to me anything where you’re spending more than $50,000 is a major rehab I cut my teeth in this business.

Where I would go into a house and we would just rip up the old nasty carpet we would paint what’s there and make any repairs that were needed put everything back in like new condition and then paint.

And then put a new appliances and maybe a new countertop that’s it.

Paint carpet and carpet in and out and I know that those deals are not easy to find right now.

But if that’s what you can do to start with Harold that’s what I suggest that you do if you have to go to the closest suburbs even if you have to go to the far out suburbs pick one

focus on that one get in there know that Community know the neighborhood

you want to know that neighborhood so well that you already know the arv when a deal gets presented to you you don’t even have to go look it up cuz you know homes in that neighborhood or selling in the 232 250s and you just know because,

you’re there once you’ve done that and become a specialist in one type of rehab then you can take the next step into something a little bit more.

[36:22] All right Jennifer Nashville Tennessee,

I’m working on a rehab project and when I go visit the site I really don’t know what they are doing or how well they are doing it I’m faking it and I think they might know I’m faking it how do I get the knowledge I need.

Jennifer this is a great question we get asked that all the time and I’m up against the brake right here so we’re going to go to break and when we come back I’ll deal with your question hold on just a minute.

[36:48] Music.

[37:00] 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.

[37:13] Peter Falkner here I tended a one-day flip starter training session led by Rodger blank.

And I was amazed to see what has happened in Rogers Live from the last $15 plus years flipping over 800 houses and then this one day training he told how he did it and what.

Balls the blessings the benefits and how to do it and I was so impressed with how well organized and how smooth the training winners today.

You’re tempted or in courage to go go I was not a bad price and if you get a chance to do it even just to consider in Basque.

But I just want to thank Rodger for a great day today and appreciate what he’s doing.

[37:58] Music.

[38:11] Okay Jennifer I’m working on a rehab project when I go to visit the site I really don’t know what they are doing or how well they are doing it I’m faking it and I think they might know I’m faking it how do I get to knowledge I need.

All right Jennifer II.

This is going to sound like I’m being hard on you and I’m really not trying to be hard on you I’m speaking to you as a loving father right now okay you need to Buck up and get educated.

[38:38] Everybody listen to please if you want to be in this business one of the things you’re going to have to commit yourself to is getting educated now.

I’ve been at this for many years and I know.

Probably 90% of the parts and pieces and possibilities in a house and its structure I don’t know everything,

I knew some things when I started because I’ve been doing my own work on my own homes for years I so I knew some things

I’ve learned a lot of things as we go by so the point I want to make is to fold you’ve got to know a little bit to begin and you just have to find it there are so many sources out there to get.

Knowledge about the parts and pieces of a house Jennifer your Nashville’s big city you got community colleges there I bet you can find a community college that has a course in home construction audit.

You don’t need the academic credit you just need to

get some knowledge they next thing I would say to do is go to YouTube and just start looking for House of house built house put together watch home repair videos it may not be as interesting as the beach fail

videos that you may want to watch and just

amuse yourself in and laugh your head off at on YouTube but this is a part of your education and there is no shortcut.

[40:02] You folks you just got to learn this stuff okay go to the big box stores they do weekend seminars there.

[40:12] Really just overviews and sometimes the instructions or not

clear and it’s and it’s a little vague and particularly when doing construction it’s not enough just to hear it at some point you got to get out there and do a little bit yourself this is one thing that I want you to do Jennifer I want you too while you’re at The Big Box store get yourself a 2 x 4

and if you’re in a small car and you can take an 8-foot to before home they’ll cut it in half for you and I want you to buy a few nails and I want you to buy a hammer and I want you to go home and I want you to

practice nailing Nails into a board just for the heck of it just so that you’ve done that and there is actually a.

The swinging a hammer and it the technique is to use your wrist and let the hammer wait do all the work it’s not how hard you swing your arm it’s how you.

Use your wrist to drop the weight of the head on nail and there are so many things like that that there are a million things like that so.

[41:13] There are things that you’re going to have to do this is this is boring everyone there are things that you’re going to have to do to get yourself educated about the parts and pieces of a house but Point number two is

don’t be afraid to ask questions your contractor is not expecting you to know everything.

[41:31] Even the contractors that I work with now I’ve been in this business longer than they have but they know more about

currently available products and techniques and things than I do because I don’t stay on top of that the contractor doesn’t and

do you to know all of the stuff so don’t be afraid to ask questions don’t be afraid to ask even dumb questions,

you’re not expected to be an expert in home construction at

any stage in the process but especially now the contractor is going to respect your honesty and your inquisitiveness.

But most of all the contractor is going to respect your ability to

put this deal together because Jennifer I promise you you’re out there doing this project

and you come in as Miss Moneybags

you are the person who bought this property you are the person who is arranged for the rehab you’re the person who’s paying the contractors bills

you may not know all of the things about the house that the contractor knows but you know some things more than the contract does because I guarantee it is a contractor new how to put together the deal

do you think they would be working for you alright think about that for a minute okay you’re still the boss.

[42:47] And when you start to ask questions I want you to ask questions not I don’t want you to ask questions about what is that thing called.

That’s not think you want to ask the questions that are more about

strategy and tactics what are we trying to accomplish here even if you don’t ask out loud the question you should be asking yourself is what is it they’re really trying to do what they’re really trying to do is

to make this part structurally sounds of the house will last for years and years and this repair is not just a cover-up that’s the kind of things that you want to know,

alright so learn to ask the questions learn a little bit on your own be willing to learn as you go you’re never going to know enough to start you’re always going to be learning on the job

so don’t be afraid and don’t forget to learn.

[43:42] Ashley from Boulder Colorado I’m having a problem getting a contractor eat to even look at my rental house everyone claims they are too busy.

I think it’s because I’m a woman I know you’re a man but do you find that other women have this problem have you seen them over, and if so how

well that’s an interesting question I almost didn’t take it that almost didn’t want to put it on the air because yeah I’m a man and I I can’t answer for what it’s like to be a woman not only am I a man I’m a big guy and most of you haven’t seen me in person but

do you know I’ve done told them kind of imposing when I want to be I’m six foot five and a large frame guy and so when I walk in the door I basically fill up the door

and.

[44:27] That gives me I guess an advantage I don’t realize it necessarily I definitely don’t intentionally use this because I’ve lived with myself all of my adult life and and I forget sometimes how other people see me

because of how big I am.

At least have enough awareness to know that it’s different for different people and I can imagine it would be different for a woman and I have heard women complain about this issue before but I’ve also seen a number of women.

Really successful in this and I want to take a stab at an answer Ashley okay and this is just a stab.

What I see in the women in in my networking groups here in Atlanta and what I see is.

Women who just are matter of fact about their business and.

Don’t seem to really be worried about male and female roles they just know that they’re in charge and they don’t make a big deal about it they just they come with some credibility and some knowledge and they know what they want

they seem to get it done okay actually I’m going to probably reject your thought that this is because you were a woman.

[45:51] Home contractors deal with women all the time when they’re remodeling a home that’s just you know homeowners who are wanting to fix up the kitchen or something they’re dealing with the woman in that house.

Nine times out of 10 you’re not dealing with the man because it is conversation goes something like this between a man and a wife the wife says honey I want to redo the kitchen.

And he says okay she says well I want to get some some of these kind of cabinets in this kind of countertop and the guys thinking.

[46:23] Okay I wonder if the Broncos are on or

I wonder what that little click was in the transmission when I was changing gears on my motorcycle that’s what he’s thinking about and I know that I know of risking here being sexist and so forth but I’m just telling you

the man in this conversation is fine with whatever.

The woman wants and when the contractor comes in the man maybe there but he his opinion about the whole project is whatever she wants what color does what color is this supposed to be

whatever she wants what style of cabinet doors whatever she wants.

That’s true and I you know I may not be able to get inside the mind of a woman but I am inside the mind of a man and even though for a man I’m pretty much in touch with my sense of colors and style it’s a word I said for a man.

Even then if my wife has a particular opinion about what she wants now it’s whatever she wants

cuz really I don’t care as far as what I’m living with I don’t care that much out alright so the contractors are used to dealing with women we’ve established that but.

[47:34] I don’t know actually how you’re coming across these people but nobody wants to work with somebody who has a chip on their shoulder.

People want to work with somebody who comes across as cool confident and professional.

[47:49] And if the they’re jerks out there and their contractors that are jerks and if that’s what you’re finding just keep on moving keep on talking to people but be cool confident and in charge because you are.

[48:01] Music.

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[49:41] Music.

[49:58] We got another

email from Michigan Al from Ann Arbor Michigan says I’m doing a few flips each year here in my area but people are talking a lot about Detroit it’s about an hour’s drive for me but I’m wondering what you would do in my shoes.

Well unless you’re size 13 I probably wouldn’t be able to do a whole lot in your shoes now I’m kidding alright.

I understand where you’re coming from and I know that it it would be alluring to maybe get over to the Troy does not that far but the first thing I would do is have you exhausted all the opportunity in your own backyard.

[50:35] Probably not . I don’t know necessarily I don’t have any statistics to back that up but.

I am surprised to hear people talking to me about the lack of opportunity everywhere.

And I hear this you know what I go to some networking groups here in Atlanta and he will talk about the lack of opportunity and how hard it is to find houses and buy houses and I know full well.

The right now in metropolitan Atlanta there are 90,000 developed but vacant Lots.

Just sitting there some of them are on buildable yes but a lot of them are buildable.

And they’re just sitting there there are thousands I think they’re 15,000 vacant properties in metro Atlanta right now.

[51:24] Thousands and yeah you know in my meetup groups I’ve got close to 5000 people.

I don’t think that probably more than a hundred or so are actually active investors in those groups but you know if if there are 1000 investors in Atlanta there’s five deals for each person right there.

There’s plenty of opportunity and so all there’s probably plenty of opportunity in your area and I would suggest this let me just put in the same as

Shameless plug for the property grade app and the main thing that drove the development of that app at first it was a spreadsheet that we used internally in our own business is we felt like we had.

Opt out our local area and we were looking for other areas to invest in,

and we quickly realized that the distance was going to become a factor and so.

[52:14] You know if you’re looking at making 30 year versus 30 over there.

That’s an easy decision but if you’re looking at making 30 here versus 50 over there then you got to start thinking about the distance and what that does and how that plays into it to make a choice between if you have to choose between 30 here or 50 over there so out

download the property grade app.

And start running the numbers to the property great at because it takes mileage into consideration and you’re about 50 or 60 miles away I don’t know which side of an RV live on but that’s going to affect

your profitability on these deals and your ability to be at.

On the scene at the location unless you just going to you know designate one or two days a week just to spend in Detroit and there’s nothing wrong with that if that’s what you need to do I do believe though that you’re going to find.

More opportunity in Ann Arbor if you’ll just keep working right where you are so I would give it a thought.

But I would not let myself get distracted by the shiny objects and there are plenty of shiny objects even within real estate investing just stay focused on what you’re doing if it’s working for you

stay focused on it keep on doing if it gets a little boring well so what.

[53:33] It’s everything in life doesn’t have to be fun exciting or interesting it can be the same old drudgery.

Fixing a house and all the time you’re fixing it you’re wondering how North did people ever live here this is disgusting it’s nasty so you have those thoughts,

and you do that over and over and over again and you know in 15 years you have your own radio show talking to other people like you about this now I’m kidding.

Maybe not could be you.

[54:02] So we got Steven from Waukesha Wisconsin says it’s late August and I’m looking at a couple of Real Deals here but winter is coming and I’ll be trying to sell them in January should I hold off

good question Steven fair question glad you asked and we do get this question every year about this time.

[54:22] I have visited in winter time to Chicago and Milwaukee.

But there’s a reason why it’s just visiting I admire your ability to persevere through those kind of winners you know

when I was in Chicago a guy told me this old joke you know that in Chicago there’s only two seasons winter and Road repair and then I was in Milwaukee and the guy

kind of told me the same thing and accept he said in Milwaukee Wisconsin here we have two seasons and I thought okay I’ve heard this before they said we have winter and then two weeks of bad snowmobiling weather.

And that was actually kind of funny so I understand that you have some serious wintertime there.

[55:09] One of the reasons I choose to live in the south so I can ride my motorcycle and play golf year-round mostly.

Anyway so to get to your question what should you do when winter is coming you’ll try to sell them in January it is true that across the country.

[55:28] Real estate sales take a dip after Christmas now surprisingly December is not the low point and a good number of homes sell in December,

but it drops off in January and February and the starts to pick back up again in March and it follows this cycle every year and so here’s what do you need to be thinking about

if you’re selling the properties in January and February you met in order to get them moved.

You may need to sell them for Less may be significantly less.

How much room do you have and then the other thing we didn’t you didn’t go in any numbers in your question is what would it be like to hold on to them for another month or two

until the weather starts to warm up that maybe something that you have to do.

And I would recommend if if you think that you just are not going to sell this house in January I would recommend not listing it in January but listed in March.

The reason is you don’t want to stay a listing.

What you what you going to do here is you’re going to end up making decisions by the numbers now one thing to do and I know it’s late August and I know that you do have to think about winter if you buy these houses you definitely need to get all your exterior work done first.

[56:46] Particularly the exterior painting you got to get that done while the weather is good you know because you can’t paint outside if it’s below 45 degrees and that’s going to rule out

a good portion of time this is for all of you folks up there in the cold weather areas.

When you’re buying your your flips this is a great time I think to be stocking up on your inventory but only if you have the capacity to hang on to it for a little bit.

Alright so Steven should you hold off I don’t know I you know I’m reluctant to give any advice here I definitely wouldn’t want it to come back.

What I would do is I would make sure that I had the the cash reserves to hold on to the properties and then I go ahead and buy them because.

You know I just finished saying deals are everywhere if you get out there and work hard find them but once you found them you should take them if they’re if they’re Real Deals as you say I would take them and plan to hold them

and maybe get them finished up and and on the market by March.

[57:51] If I could sell him in January maybe I’ll be prepared to drop the price pretty quickly so the listings don’t get stale.

All right folks thanks for tuning in today this is been flipping America I am Roger Blankenship and I teach people how to make money in real estate if you have other questions please send them to questions at flipping America network.com.

We have answered every question that’s ever come into the show and we will continue to do so for as long as we are able it can be a question about any type of real estate whatever it is you want to know if we don’t know the answer.

Will get it for you that’s questions at flipping America network.com thanks again for listening my friends and we’ll talk again very soon.

[58:36] Music.

[59:02] William James once said act as if what you do makes a difference it does.

[59:10] This thought was brought to you by the foundation for Renewal working together with communities across this country to bring impact and Lasting life change find them on the web at renewal fun. Net see you soon.

[59:22] Music.

[59:32] This has been flipping America real estate investing for everyone.

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