Expected Air Date: 9/20/18
Today we are answering Listener Questions. If you have questions about real estate or real estate investing, send them to email@example.com.
I am Roger Blankenship and I teach people how to make money in real estate. There are dozens of ways to make money in real estate and they all can be summarized by one of three approaches:
- Buy with the intent to improve and quickly re-sell
- Buy with the intent to cash flow, grow equity through appreciation, and take advantage of tax structures.
- Invest in the activities of someone doing either or both of the first two categories.
To that end, we are dedicated to providing you the best, most accurate and up-to-date information we can to help you make the best decision for you, your family, and your money. We don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of a balanced portfolio.
As you can imagine we get lots of questions here at Flipping America and today we are going to address many of them.
I’m also going to take time today to review the latest news in the real estate world and while doing that I’m going to pick on yet another useless news article. Here’s a hint: If the article headline says “How To..” I’m going to read the article expecting some step by step how-to information. That’s a fair expectation right? If that article instead provides vague generalizations it should not have been published and deserves to be mocked. C’mon people, let’s hold ourselves and each other to a higher standard for reporting, writing, and communicating!
How to contact us
Twitter and Instagram @FlippingAmerica
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.
- Think Realty Saturday and Sunday, Sept 22-23
- FlipStarter Nov 2-3, Atlanta, GA
- Lunch with me every Wednesday.
- 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.
- “Useless article of the day award” https://money.usnews.com/investing/real-estate-investments/articles/2018-09-04/how-to-invest-in-luxury-real-estate
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
Questions@flippingamericaradio.com Tell us where you’re from!
- Drew, Pascagoula, MI, “I’m looking at buying a group of properties and they are giving me a “Quit Claim” deed. Is that the same as a Quick Claim Deed? And I don’t really know what that is anyway. Could you explain? And is this ok, in your opinion?”
- Benton, Baltimore, MD, “I am looking at an opportunity to buy several townhomes in a rough section of town for under $5,000 each. I’ll have to spend 30-40k on each one to make them rent ready, but they will rent for $1000 each. This seems too good to be true, so tell me what I’m missing.”
- Lori, Milwaukee, WI, “What is the secret to raising private money?”
- Arden, Villages of Ocala, FL, “What return should I look for in my rental portfolio? I’m getting about 7.8% after all expenses are considered. I hear people talking about getting 12-15% and wonder how they do that.”
- Carter, Las Vegas, NV “I know the numbers and have had some training. But how do I actually pull the trigger on my first deal? I just can’t seem to?”
- Shamsideen, Boulder, CO “My partners and I are looking at various opportunities, apartments, hotels, and mini-warehouses, to be specific. Can you offer guidance for us as we decide where to put our money?”
Motivational Thoughts for the day
- Your true success in life begins only when you make the commitment to become excellent at what you do. — Brian Tracy
[0:15] 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 sponsored in part by American IRA
founded by investors for investors on the web at American Ira. Com.
And by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital solutions.com.
And now you’re sad flipping America guy Rodger Blankenship thank you Kathy Curtis hello everyone.
I am Roger Blankenship and I teach people how to make money in real estate there dozens of ways to make money in real estate and they can all be summarized by one of three approaches number one you can buy with the intent to improve and quickly resell
we also call that flipping do you get number to you can buy with the intent to cash flow
that is to grow equity and grow Equity through appreciation and take advantage of tax structures or number 3 you can invest in the activities of someone doing either or both of the first two categories we don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV but we do encourage everyone to have real estate.
As a part of the balanced Investment Portfolio.
To that end we are dedicated to providing you the best most accurate and up-to-date information we can find
to help you make the best decision for you your family and your money.
[1:45] So thank you for tuning in and thank you for trusting us and just a quick reminder we don’t give professional advice here we were not tax advisors were not lawyers We Are Real Estate Investors we talked about real estate investing and we have ideas
we have methods and techniques and thoughts that help us in our own business we are actively involved in real estate investing and.
[2:08] We share them with you but if you want to go a little further little deeper we encourage you to always consult with your tax
and legal professional in the area where you are as you can imagine
we have lots of questions here at flipping America and we encourage you to send your questions to ask we love getting questions from our listeners and we get questions from the people in the audience’s where we speak around the country and
we enjoyed just sharing answers and sometimes we get Stump do you know we don’t know everything I don’t know everything about real estate but I do know a lot of people involved in real estate and I know how to get the answers to your questions so
if you have a question about real estate any any aspect of real estate or.
[2:53] Specifically real estate investing either or send your question two questions at flipping America network.com
questions at flipping America network.com and I promise you you’re going to get an answer you will get an answer
via email then we might answer your question on the show itself so stay tuned you may hear your name called that’s in your question in head when you send the questions in
be sure to tell us where you’re from because we
just like to know where you’re from and we like to Showcase that on the show this is a nationally syndicated radio show people are listening from all over the country and we are so grateful for each and everyone of you the audience is growing every week and every month and new opportunities are coming to us because of that and we are so thankful to be a part of your life and to share with you some of the things that we’ve learned
I also want to encourage you to follow us on social media on Facebook look up flipping America media and on Twitter and Instagram you can just follow us by looking for.
At flipping America we are also on LinkedIn YouTube houzz.com Pinterest Google Plus and a number of the things if you want to follow us but particularly on Twitter
you see we are research team provides you know 15 or 20 articles for every show and some of the interesting stories don’t even make.
[4:18] Got to get into the show notes and some of the stories that are in the show notes don’t make it
into the show because we just don’t have enough time if you look out there for real estate blogs and real estate information if you wanted to do this research yourself you would see
hundreds of potential sources now if you look at it long enough you’ll realize that a lot of these sources are quoting each other and that’s okay but someone needs to sort through all of that you can do that course and if you get really good at a contact.
Because maybe you can become a part of our research team here at flipping America.
We spend time sorting through all of the original sources and then we go to the secondary
reporting markets and see what they’re having to say about the original data and as you know if you listen to the show we report on all of that and sometimes we make fun of the people who are missing it and or we offer some you know constructive criticism for the people and sometimes a healthy disagreement
with some of the conclusions that people are making as always though
we intend to treat everyone with kindness we rarely a call people out by name but if they’re offenses
particularly egregious we do and invite them to respond and let’s have a healthy debate we don’t call anybody names other than their name.
What time we will provide the best we can the information you need to proceed all right.
[5:42] That’s how you can get in touch with us all and I forgot the national comment line if you don’t really do the computer thing and you’re listening to it on the radio right now you can always call the national comment line at 40436 9
1018 press extension 1 and you can leave your comment or question and we appreciate it so much we we love hearing from you and we love hearing the things that you’re saying and and tickly
if what we’re saying helps you and in one way or another.
We got some announcements coming up here in Atlanta Georgia we are participating in the think Realty conference coming up Saturday and Sunday September 22nd and 23rd and I
your humble host will be on the
Atlanta panel the Atlanta Market panel that will be happening on Saturday the think Realty conference is.
Oh oh really a very strong two-day conference and take it occurs in different places across the country the admission is $55 but.
[6:42] If you’re a friend of our show and you text think ATL to 96270 that’s think.
ATL to 96270 you will receive $20 off today so you can come to think Atlanta for $35 rather than $55 also I want to let you know coming up.
November 2nd and 3rd that’s a Friday night and all day Saturday November 2nd and 3rd flip starter is coming back
back to Atlanta and due to popular demand we have expanded the format a little bit we’re starting on Friday evening right at quitting time we’re starting at 5 and we’re going to go hard and heavy for 2 hours worth of content and then.
We’re going to do a dinner event there’s a little extra expense and I’m going to meet with a select group of Yoo-hoo
are willing to pay for the VIP experience to have dinner with me and my wife and some of the members of our team here from the flipping America office and that you’ll get exclusive access to me for a couple of hours at the dinner and day if you look on the website.
[7:50] The cost of the VIP experience also includes the cost of your meal so don’t be put off by that.
Then we come back Saturday morning and we are just going to hit it hard and heavy and over the next 6 hours on Saturday between that and the two hours were going to spend on Friday
I’m going to give you what you need to start your own real estate
business your real estate investing business now this is not for people who want to be a realtor this is for people who want to be a real estate investor specifically with a focus on fixing and flip.
We’re not really going to teach you so much about doing wholesaling and we know that the lot of people think that you need to get into it by doing wholesaling don’t have anything against that we buy houses from wholesalers but I want to teach you how to make.
The big money
and if you’re worried about the money don’t worry when you’re here in the flip starter event I’m going to show you how to get the money you need for your deals we’re going to cover everything from Soup To Nuts finding the deals analyzing the deals
acquiring the deals buying them fixing the deals and then turning around and selling a deals for a profit all of that.
Is covered in the flip starter event and hear the things that I promise about flip starter promise number one I promise I can’t tell you I won’t tell you everything that you ever going to need to know about real estate investing.
Can happen in eight short hours promised number two I am going to tell you everything you need to know in order to get started.
[9:19] Everything I’m not leaving anything out this is not a an 8-hour glorified sales pitch into something else promised number 3
I’m going to show you how you can make $5,000 in the next 30 days if you will take some specific
techniques that I’m going to show you at this event and put them in the.
This and you have to work at it it’s not just going to come to you but if you work out it in the next 30 days you can make $5,000 and I’m going to show you how to do it
there are other things that are going to happen as well I’m going to show you how I scaled my own business up to the point where we were flipping a hundred houses a year I’m going to give you the step-by-step on that.
And how we broke down and Andrew our Pipeline and developed our business all of this is included.
At the remarkably low price of $199 100 $99 for this incredible experience but here’s the
the kicker folks we have an early.
Early bird special going on until October 6th through October 6th if you will go ahead and get get on the website and register you can come to flip starter Atlanta for $97.
[10:32] That’s amazing you’re going to get all of this for $97 you’re basically going to get the information you need to start a business on your own that could.
[10:42] Maybe one day turn you into a millionaire for $97 now we are going to talk about other
training opportunities while you’re there so you know don’t be alarmed if that happens I’m telling you right now but it do you know a lot of you are not going to need any further training you not going to need any additional mentoring or coaching or information some of you will think that you might
I need access to our information a little bit more and that’s okay either way it’s okay
we just want to see you at flip starting November 2nd and 3rd Atlanta Georgia go to flipping America network.com / flip starter
to register or if you just hit the main page there’s a flip starter on the Bigfoot starter ad right there and then we’re probably going to move some things around and make that even more prominent
couple of announcements I want to invite you to come out and have lunch with us every Wednesday in Atlanta Georgia if you’re ever in the Atlanta area just come on out to lunch at Huey luey’s in Sandy Springs you can you know Yelp it or Google it or whatever you need to do to get there but you show up and tell me you’re from out of state and you heard about it on the show
your lunch is on me what do we do.
Well this is not a meeting where we have a speaker and take notes and learn stuff this is a meeting where we grow each other’s businesses by just sitting and talking real estate we have lunch
[12:03] And we talk real estate we answer the questions that the people there come with we look at the deals that they have and this is called creative deal maker so we look at ways to help each other make money and deals are happening in this event houses are getting bought nearly every week now bye
people that are coming with deals in hand and maybe looking for money or looking for a partner and it’s all happening at creative dealmakers here in Atlanta every Wednesday
and then I want to encourage you to join our meet-up group experience to buy going to meet up.com flipping Atlanta and just join in there and you can.
Information about all of our local meetings all right we’ve got some apps in the App Store check them out let’s do the news.
[12:52] All right I’ve got a an article and I like doing these little articles because I always love to study the methodology
this is the 10 best places to live in America I had one a couple weeks ago in the notes I don’t think we ever got to it on the show I was actually trying to remember this morning but I don’t think we did and
your methodology for determining the best place to live is going to be based largely on
your criteria and how you weigh them okay the story that I didn’t get to like it had like 20 great places 20 the best places in America to live their primary factor was something called inclusiveness not even sure what they meant.
That ended up meaning that all of the top 20 places in America to live where in cold weather States you know New Hampshire Vermont Minnesota.
[13:58] Hey 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.
[14:24] Cleveland Tennessee and I’ve been.
Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Roger Blankenship.
Learning about his program and boy do I wish I’d met Rodger.
[14:46] He has a clear concise program and many tools that are going to be very hot.
[14:52] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are in value.
[15:02] Thank you so much.
[15:54] All right when we went to break we were talking about the criteria used in all of these 10 best places to live lists and I’ve got one today from realtor.com you know if I were making a list of the 10 best places to live
a couple of my favorite things to do are to ride my motorcycle and play golf so those are kind of outdoorsy things that would mean.
Pain in the anal also my wife and I like the water we like to be at the beach would like to be at the pool and that would mean that the list that included all northern states we would be able to do the things we like to do
very much so.
Everyone has their own criteria right and the Furious include a lot of outdoor living or warm weather activities you’re probably not going to find.
You know Minneapolis Minnesota.
[16:46] To be on your top list of places to live I’m not saying anything bad about Minneapolis nothing wrong with it at all.
I just depends on what your criteria are and so I I say all that to
add to this list the 10 best places to live in America 2018 and it’s subtitled revenge of the burbs
and I’m going to read a little bit to your home is where the heart is home is where you make it but given the option wouldn’t you want to make your home and store your heart in the place with a great sense of community
excellent schools to set your kids up for success and affordable home so you can set yourself up for financial stability of course you would.
And we’re here to help.
[17:26] All I can say to that is my wife and I are empty-nesters we don’t care about the school’s what we do care about is the quality of life for empty nester adults we also honestly
I don’t know how to say this humbly we don’t really care about whether the neighborhood is Affordable in fact
we kind of prefer living in a not so affordable area and that I just tends to
you don’t make the community little safer and blah blah blah you know this is a criteria for a lot of people so that’s alright for the second year in a row realtor.com teamed up with money magazine
to come up with the annual best places to live list having focused on small towns last year we set our sights this time around on places with populations of 50,000 or more so you see if you decide you’re going to
just focus on small towns that’s going to rule out some other places and if you.
[18:16] I make it population 50,000 more you probably even got a bunch of great places to live that just don’t have 50,000 people now here’s an interesting thing.
did this what it says in the article they considered a hundred and thirty-five thousand data points covering economic health public school performance local amenities housing and cost of living
and then they disqualified places with the high crime rates depressed income and a lack of racial diversity and you know.
That’s all they say about racial diversity in here but anytime someone mentions that I wonder if even then how they judge diversity and what is their criteria for that
but I guess we’ll never know so the resulting list doesn’t including the nation’s best known cities.
[19:08] Almost all of these are suburbs to large cities so let’s just do the list okay and start coming in at number one then according to this list the number one best place to live in America is
Texas where is Frisco Texas well it’s just North about 30 miles of Dallas Texas and it’s already them the headquarters of the Dallas Cowboys Dallas Cowboys aren’t even in Dallas State their headquarters are in Dallas and their Stadium isn’t in Dallas but they’re still the Dallas Cowboys so you.
[19:38] Tell me how that works alright so Ashburn Virginia is number 2 it’s about maybe 40 miles from Washington DC and
it comes in second because of all of the qualities that they had in this article or looking for number 3 is Carmel Indiana which is just North of Indianapolis Indiana and number for is
Ellicott City Maryland which is kind of halfway between Baltimore and Washington DC and imagine that if you go to your local pub on a Sunday afternoon you can have some good arguments between Ravens fans and Redskins fans
and the number five Cary North Carolina Cary is real close to the Research Triangle Raleigh Durham Chapel Hill in North Carolina and coarse weave.
Identifying for a couple years now that the Durham area is the hottest real estate market in North Carolina and so you know this just kind of goes along with it.
[20:36] Greatschools lot of really super smart people there from the three universities that are located right there and
so it’s it’s actually a very good place to live Franklin Tennessee comes in at number six that’s just just outside of Nashville Tennessee and then
and number 7 we have Dublin California and it’s funny because they think we finally get an affordable place in California well
the median home price in Dublin California is 898000 by California standards that’s pretty inexpensive but for the rest of us in flower country that’s like wow man.
[21:16] In fact that price range in metro Atlanta is considered luxury home price range number 8 Highlands Ranch Colorado.
[21:26] Just outside of Denver Colorado and a number 9 is Sammamish.
Washington I’m not a hundred percent sure I’m saying that right.
This is outside of Seattle and number 10 is Woodbury Minnesota which is outside of St Paul all right.
[21:47] So there you have it the top 10 best places in America to live.
If you buy into the criteria used for this story by realtor.com and you know I don’t mean to rip on
did Minneapolis st. Paul then if your listing from that area all of all apologies I just remember I did a conference I speaking at a thing and
Minneapolis in May one year and as I was on the plane leaving
hours I was heading to the airport to leave it started to snow and by the time the plane took off it was snowing heavily and it was May and.
I was on the sitting next to a guy who is native to Minnesota and I I asked him does it often snow here in May sit while not usually this late but you know how it is.
It it happens from time to time and said I’m a little worried about getting my garden in because I have been able to plan it yet because it’s been too cold and you know winter is coming.
[22:43] And I thought man if I have to live in a place where I start worrying about winter time in May that may not be just the place for me.
[22:53] But you know what there are over a million people that don’t agree with me.
And maybe they don’t really play golf maybe they are content to ride their motorcycles 2 months a year that’s okay to each their own right.
[23:06] All Right Moving On Federal Trade Commission shut
down several websites in the past few days that allegedly preyed on Section 8 renters these websites were providing access to Section 8 listings to people who are having a hard time finding
you know properties for rent and the kicker here is they were charging people like $49 for access to list the list weren’t necessarily current they certainly weren’t exclusive the the information could be found even more updated in
information can be found on free websites and so the.
The website server shutdown these are the brothers Stephen and Kevin Shea and then case you run into them
they own for companies and operated a series of Real Estate websites that offer prospective renters hundreds of thousands of accurate up-to-date and available listings if they paid a fee.
To access the listings when allegedly
the opposite was the case the FTC claims at the Shea and brothers companies Apartment Hunters real estate Data Solutions
rental home listings and UAB Apartment Hunters and their websites
we take Section 8. Com Apartment Hunters as with a z at the end
dot-com and featuredrentals.com actually offered out of date listings including many that did not accept Section 8 vouchers as promised okay well.
[24:30] Couple of takeaways here first of all.
Section 8 rental information is free and available on municipality websites but the other thing is the FTC can come in and shut down your website.
So if you’re going to bother to have a website you know it’s a good idea to tell the truth right.
[24:46] Feathers next story is not going to be brought up anywhere by the major media we had to dig a little bit into housingwire to get it but.
HUD secretary Ben Carson lays out his plans for affordable housing and Regulatory reform
I know that sounds like kind of a dry topic and it’s definitely
not as interesting as some of the things that actually do make the evening news but if you want to talk about something that has the potential to make a real difference you dig into this order.
And we’re going to link you to it but Ben Carson I have tremendous respect for him and if you haven’t read his book you need to read it but
he is reducing regulation and providing incentive to the people who live in public housing to get better paying jobs you see the whole structure right now was to.
Provide increasing benefits for single parent family households and the structure actually.
[25:46] Demotivated people from getting better paying jobs and so he’s changing all of that he is building a structure that encourages two parent households and
encourages the people living in assisted living or subsidized housing to get
jobs in to get better-paying jobs and they’re not penalized when they do and the point is to keep helping them until they’re able to actually get out and move out on their own so if you dig into the story
and I know it’s it isn’t really one of the sexiest Topix out there but sometimes the things that have the chance to make the most
profound long-lasting difference are the things that seem a little mundane and boring to begin with.
[26:32] So I would encourage you to at least scan this article and maybe drop cherry-carson a note and tell him how much you appreciate what he’s doing.
[26:44] On the other side of the break we are going to get to several user questions we got some interesting ones today but I’ve also got a couple of new stories that I want to share with you including our candidate for the
most useless news article of the week and we’re going to talk a little bit about real estate interest investment trusts REITs and
we’re also going to talk about the Reit exchange-traded funds that’s coming up right after.
This quick break.
[27:33] 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 78.
[27:40] 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 it people just like.
[27:53] 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.
[28:03] A 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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[30:14] Rebecca and Rodger Blankenship and I teach people how to make money in real estate and one of the questions we get and actually we get this question asked in a variety of ways all of the time what about reeds.
Real Estate Investment Trust what about investing in them and so forth.
[30:30] I am not going to discourage you from investing in a Reit and know that may come as a little bit of surprise to you but.
I want you to definitely do your diligence when you’re investing in a read the reason I’m not going to discourage you is because you can put your money into a Reit.
And you don’t have to have a lot of money and at once you put the money there you don’t have anything else to do you can just get the return and.
I like reach because they’re safe I don’t think you should put your whole portfolio there because the returns basically or not very strong but.
If your investment advisor is talking to you about a Reit.
[31:09] You know don’t just automatically turn them away because of the returns so I’m going to share with you and article 9 reach.
That are ideal for beginning Real Estate Investors is by Rebecca Lake and it’s comes from
u.s. news their money reporter and so you definitely can take a look and and the thing I like about this is it covers a wide range of the different
types of assets that reach invest in you know when people think about read Satan to think about skyscrapers
and shopping centers but reads also invest in apartments they also invest in Timber and Timberlands and one of the largest REITs and existence
is public spaces that’s the mini warehouses so there are ways to get some decent returns from these.
Different asset classes without actually having to do it yourself that’s why it’s good now.
On the flip side just to be fair and balanced in our reporting here I’m also going to link you to.
[32:12] Investopedia article the five best real estate read exchange-traded funds of 2018 now what is a reed exchange traded fund.
I really don’t want to bore you with a lot of technicalities here so basically an exchange traded fund is going to be investing in a variety of REITs and so your returns going to be more likely average and you have less exposure that way.
All right and so let’s take a look from an Indian vest apedia at the best exchange traded funds that are out there and
you know rather than talk about the players too much you know you got all the normal things Vanguard Schwab ishares and spdr and those kinds of things.
The best returns that you’re looking at here are yielding around two and a half to three and a half percent.
Gets the 3.7 and 3.6 but two to 3% or three and a half but all of them are less than 4%.
[33:14] And this is why I don’t get too excited about reach myself.
Because I’m an active real estate investor already and why would I want to do something where I make 4% where I can do just a little bit more and make a lot more on my money.
That’s just for me.
[33:34] But your situation may be different and so if someone writes in and says hey I want to invest in Reit we don’t discourage then.
[33:44] Just know what you’re getting when you get into it.
[33:47] One more article I just want to mention in boy I really don’t have time to go through it board collins.com that’s Good2Go Rd Collins Collins. Cam has a.
As really basically a data dump on the housing market then we’re going to share it with you and
just a few conclusions there are more renters now than in the last 30 years us homes are at their highest value ever foreign buyers are buying a record number of properties housing starts are more than expected but not enough to fill a demand new house sales dropped 3.4% in August
some houses also dropped in August and since we are the market is speaking encrusting that as we are living America predicted there is a little bit of a.
[34:38] I think we’ve we going over the top in certain markets this article is suggesting that
if you were thinking about selling in Miami or anywhere in the State of Florida Los Angeles or the San Francisco Bay area Charlotte North Carolina San Diego San Jose Denver or Seattle if you considered selling.
For one reason or another this is your best time to sell.
Because the markets coming down from here it’s not going to crash no one is saying here it’s going to crash cord Collins doesn’t say it’s going to crash I don’t believe it’s going to crash there are a lot of people that agree with us but.
We are going to see prices being to come down because the markets are overheated the
they price themselves right out where a lot of people can’t afford it and so they’re not buying and when properties are not buying the property still got to get sold the only way to address the lack of buyers is to you know find a price that will.
Meet with a buyer and so prices are going to come back to us a little bit so if you’re one of those markets this is a good time to be selling taking your cash in.
[35:48] Moving on and Leslie is.
And the new segment is our candidate for useless so-called new story of the week it’s a story from US News called how to invest in luxury real estate.
This is one of those things where I’m not really sure why any editor let this go.
[36:10] Didn’t know there’s information in here for sure a lot of information and links to other articles and that sort of thing but
and I’m going to link you to it so you can you know like this for yourself and I’m not going to let you know call the name of the lady that wrote the article because we’re not here just to embarrass people but.
Really what you have here and you read this and see if you don’t agree with me what you have here are some things that are
probably you would consider them just general common sense for exact for example luxury markets on created equally another example is you going to get into luxury investing you have to have a fair amount of money you have to have a lot of money
to play in this game and the luxury Market investing is different and you need to consider your end goal for investing all those things are common sense
what I was hoping to see you when I clicked on the article is here is a step-by-step technique for investing in luxury real estate.
If you saw an article that said how to invest in luxury real estate you would expect there to be some how to type of information in there right none of that.
[37:23] You know when you’re investing in luxury real estate you may be looking at.
Trying to take down a property that is more than the cash that you have so how do you put together the funding that you need for a deal I could write that article and that’s what I was expecting to see here but I didn’t see it and so
that only am I disappointed I am taking.
[37:44] 3 precious minutes to ridicule the article and Link you to it so you can have a little fun reading at yourself alright.
[37:51] Let’s move on to something more practical and that would be your questions because we have a big pile of them and I want to get to as many of them as we can Drew from
Pascagoula Mississippi says I’m looking at buying a group of properties and they are giving me a quick claim deed is that the same as a quick
claim deed and I don’t really know what that is anyway could you explain and is this okay in your opinion well Drew.
[38:20] My first opinion is maybe you should consider another line of work now I’m just kidding you man but seriously if you’re going to be a real estate investor know the terminology okay there’s no such thing as a quick
claim deed I have heard this before on more than one occasion quick quick there’s no quick claim deed all right there’s only a quit
claim deed and here it is what it is a deed in real estate is the way
the title is of the property is conveyed from one person or entity to another and so
there are different types of Deeds there are Deeds where the seller is guaranteeing
that they have title to the property and that might be a general warranty deed or a special warranty deed
there are other types of Deeds there is a foreclosure deed that basically says you bought the property at a foreclosure auction that does there’s nothing inherently wrong with any of these or a quick claim deed but.
[39:24] The quitclaim deed is the weakest form of conveyance that I am aware of.
What a quick claim deed actually does is it says anything.
[39:35] Any interest that I may have NSAID property I now quit I quit my interest and turn it over to you.
So Drew for example if you’re a homeowner in Pascagoula Mississippi I could send you a quick claim deed for your house or I would quit my interest in your house over to you.
And I could recorded at the courthouse and it would be legit.
[40:01] But it wouldn’t mean anything because I have no legal interest in your house.
[40:07] And that’s the problem with quick claim deed especially when you’re buying both properties from A lender or some sort of broker and.
If we were talking in person and Drew if you want to go ahead and hit the blue button on the website and schedule is tragic all let me ask a few more questions about this
but if you’re talking about a broker I would be wear if you’re talking about a lender along times Banks of foreclosed on these properties and they do have the valid title to the property but they just don’t want to be bothered
to do the title work that’s involved in getting you a
a general warranty or even a limited warranty deed I would always prefer a general or limited warranty deed some sort of a warranty in there
if you’re getting a quick claim deed then you you owe it to yourself to hire a title examiner and see who actually.
[41:01] That holds title to the property and see what other encumbrances are on the title before you enter into this transaction
there’s a pretty good chance that everything’s okay
there is also a chance that there’s something out there as a claim against that title maybe some other sort of Fife a or or or lean or something that you would actually be taking title to the property subject.
To a prior condition you got to be really careful about that alright.
So quit claim deed serves a purpose but it’s not the best form of conveyance.
And you are right though it does happen quite often when you’re buying bulk properties in bulk
Benton from Baltimore Maryland says I’m looking at an opportunity to buy several townhomes in a rough section of town for under $5,000 each I have to spend 30 to 40 thousand on each one
to make the rent ready but they will rent for if they will rent for $1,000 each this seems to be too good to be true.
[42:05] This seems too good to be true so tell me what I’m missing well Benton your you may not be missing anything except for the fact.
You’re looking at a very rough section of Baltimore now I don’t know exactly where you’re looking but I am aware of.
A bunch of Condominiums Townhomes style condominiums in a rough section of Baltimore that were offered to me.
Over a year ago for $1,000 each and I kind of got excited about buying
you know 60 townhomes for $1,000 each and till I started looking into it I talked to some contractor friends of mine in Baltimore end of the first one I talk to he said all you mean all of those are banned the minions
and so I don’t know for sure Benton but you may be looking at the exact same town homes that I considered a year ago maybe maybe not but.
In terms of what you’re missing.
[43:02] You may be missing the hidden costs of owning rental properties in and you called it rough section of town
if it’s a rough section or towns of nuts we call it a war zone you know because gang wars happen there if you’re in that section of town you’re going to have.
[43:21] Living in your property who are willing to live in that section of town now who are those people well those are people who are so poor they can’t
get anywhere better or there people who just don’t care about their community and their environment their surroundings that they don’t care about that.
They probably aren’t going to care about your property either so that means that these properties
I’ll come with hidden costs and we posted over the weekend
article from BiggerPockets about the hidden costs of owning properties in less-than-ideal circumstances like this not too long ago we did a one-day flip starter in Chattanooga Tennessee and
lo and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[44:13] 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.
Falls the blessings the benefits and how to do it and I was so impressed with how well organized and how smooth the training went today.
You’re tempted are encouraged to go so it 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 thank you bro.
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[46:02] Alright we’re back and I’m not sure I fully had time to answer your question Benton but I guess what I want to say is just look deeply into these properties and look
make sure you can spend 30 or 40 if you’re looking at the same town homes that I looked at a year ago I was looking at 60 or 70
to get him rehabbed right and lot of them had mold and lot of nut other structural problems that weren’t a parent at first glance so.
Make sure you repair estimates are right and then give some thought about who is going to rent these properties from you and.
Are they going to be the kind of tenants that will you know take a little Pride and where they live and take care of your property so that’s something to consider Lori for Milwaukee Wisconsin what’s the secret to raising private money
oh Lori there’s more than one secret to raising private money.
I don’t know if I can boil it down to one but I think if I could just give one secret to raising private money it would be this credibility.
[47:08] It kind of all comes down to that and what do I mean well.
It could be that you have experience as an investor and you’ve got a good track record that you can go from some have that.
Some do not when your new raising private money is more difficult then the things.
Dad is going to feed your credibility is your reputation for your personal integrity and your credit worthiness or.
[47:38] Other related job experiences other things that you bring to the table for example a former.
Management executive or business owner that is now getting into the flipping of houses has a little bit more credibility than someone who
has never had any of that experience you see what I mean so credibility is everything and once
do you understand that it’s all about credibility you you realize that raising private money is kind of like planting a garden.
You plan a lot of seed not all of it comes up.
[48:15] But you don’t really know which ones are going to come up and which ones are going to produce fruit so you plant a lot of seed you fertilize your water you nurture those little seedlings and
then you work hard to make sure that the ones that Sprout out of the ground actually.
Get to the point where they’re bearing fruit and so if you understand that analogy you’re talking to a lot of people here you’re making a lot of contacts.
And from those summer going to make it to a second conversation you’re not trying to convince anyone in the first conversation to put money into one of your deals you’re in you’re basically introducing
yourselves here in the south.
I call it the how’s your mom and them conversation you’re making a conversation it doesn’t even appear to have a Direction
one of the problems that I’ve always faced with raising private money is if you’re in private money-raising mode you tend to look at everyone in terms of everyone you meet you automatically evaluate them in terms of I wonder how much they could invest in my.
Thanks and you’re like in sales mode all the time.
Please resist that temptation just be you be a friend talk about people talk about what you do and.
[49:33] I’ve got a little talk that I do on how to do your elevator pitch and is there a number of sources that you can get to out there.
If you guys hear my an abbreviated form of my elevator pitch on every show as we start out.
I say I am Roger Blankenship and I teach people how to make money in real estate when people ask me what I do for a living I used to say all I’m in real estate and I didn’t really want to give the full explanation but.
I have learned over the years that it’s more helpful to actually tell them what I do and when people ask you what you do don’t give him a job title tell him what you do.
[50:12] So if you ask me what I do I say I teach people how to make money in real estate why you do that.
Well I have this radio show and I also have a school and between those two we are in the process of creating a thousand millionaires across this great country of ours so.
It only gets a little bit more
detailed and then I talk about the benefits of what we do so that way people have more time to spend with their families they own their own business and the joy of that they are also able to make a difference in the world with by having more.
Time to devote to their charitable
Endeavors and also more money to give to them so we’re all bringing benefit into the world
because I teach people how to make money in real estate that sort of thing so what you want to do Lori if you want to work on your you’re very quick presentation when you meet someone and you introduce them you know
what are you do well I flip houses no that’s not what you do.
Yeah you flip houses but what you do is you help busy professionals maximize the return on their investment through real estate.
[51:26] Oh really tell me more you see we just turned the whole thing around right there but you must have credibility.
One way or another to your own track record of success or your own external experiences if you don’t have any external experiences than you got to get a track record of success
I know that the follow-up question and Lori this is not question to ask but somebody out there is thinking of this question alright well I don’t have any experience and I don’t have a Tracker
record of success and and my prior life experience doesn’t really give me that credibility how can I get started in this business I don’t really have a lot of money how can I get started when I would encourage you
folks that you still can get started and there are some specific ways that we can help you
I don’t want to give everything away here on the show but I am going to tell you that we’re about to unleash a program where you can start learning about real estate investing and get started for as little as $100 a month but that’s not the point here if you are.
Just looking to get started find someone in your community who is already investing in real estate.
Make friends with them and then find a way to add value to their life and business in exchange for teaching you some things are giving you an opportunity.
[52:55] Any day that you walk into the flipping America Offices here in Atlanta Georgia you’ll find a number of people buzzing around doing different things and it’s kind of exciting to step outside of the studio door and you can’t hear it on the show but I hear him out there and
things are happening and business is humming but some of the people
working in our office are working here for free because they can’t afford to take the training they can’t afford to just jump out and start buying houses they want to learn and they’re willing to
you know basically trade with me some hours in exchange for time with me to train them and this business.
[53:35] And that’s exactly what I’m suggesting that you do if you were out there just about to get started now I know that’s an answer to a question that you didn’t ask Lori but a lot of people follow up the secret to raising private money when I tell them that you have to have credibility.
And I really don’t then they want to know what to do to get started with that okay and so I just told you.
[53:59] Okay let’s see.
Okay Arden Villages of Ocala Florida what return should I look for in my rental portfolio I’m getting about 7.8% after all expenses are considered I hear people talking about getting 12 to 15% and wonder how they do that
good? And thank you for listening and thank you for writing and we’re proud to be on the air in villages of Ocala Florida and
I’m going to just say I don’t remember what I say I’m not at that Financial professional in this is not
Financial advice we don’t do that on the show talk to your own Financial professional but I think if you do your financial professional will tell you that 7.8% and something as safe as real estate is.
Pretty doggone good you should be satisfied with that and if you hear nothing else that I’m about to say hear this you’re doing all right congrats to you kudos to you keep it up
whatever it is you been doing the people that are getting 12 15% are people that are probably buying property super cheap
and you know I have to admit I’m one of them I buy properties super cheap and I do get a higher rate of return on them however.
As time goes by when you’re getting a 12%
rate of r i a a cash on cash return on your rental properties these people myself included.
[55:25] We owe it to ourselves to evaluate the return that we’re receiving on our cash and see if we couldn’t.
Put that cash to better use somewhere else you see if we use leverage for.
A Fix and Flip investment our return on cash goes up exponentially not just a lot.
[55:48] It goes up exponentially but there are risks associated with that that you have to be prepared to take now Arden I don’t want to
assume anything or presume anything but I know that Villages of Ocala Florida is kind of a retirement community and so
it could be that you’re retired and you’re just living off of the income from these houses and you’re wondering how you can eat cat a little bit more cash flow.
If you want to buy additional properties that may get a little bit better net return than 7.8%.
I would suggest you talk to the high return guys just checked her and Jack Gibson up in Indianapolis and maybe consider buying a property or two of theirs they’ve been on the show they’re good guys.
perhaps you know just let us know and we can connect you but if you’re just wondering Wonder no more my friend you’re doing okay
all right I think I’ve done for one more Carter from Las Vegas Nevada I know the numbers and I’ve had some training and I have some money but how do I actually pull the trigger on my first deal I just can’t seem to.
[56:55] Alright Carter I don’t know if there is a cure for the paralysis of analysis and if there is a pill that you could take that would cure it would probably have.
You know 4000 side effects that are red real quickly at the end of the commercial so
you know this statement I’m about to make has not been evaluated by the Food and Drug Administration but I am going to tell you that if you have the numbers and you have the training and you have some money in your looking at a deal and you’re just wondering how you pull the trigger then I want you to put on your Carpenter hat and do what a good Carpenter does measure twice
cut once okay run the numbers on the deal then run him again and then running by someone.
[57:40] Band in the final analysis
if your numbers look like they’re good and you double-check them and somebody that you trust as looked at then somebody that you trust you also he know has some experience in this has looked at them and agrees that these numbers look good.
Alright then you have to do what anyone does the first time they stand at the top of a high dive going into a deep pool.
[58:10] And the first time it’s terrifying and after that it gets easier and then after that it gets fun.
[58:21] Joe Carter from Las Vegas.
[58:50] Brian Tracy says your true success in life begins only when you make the commitment to become excellent at what you do.
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