Expected Air Date: 10/1/18
Opening
Thank you Kathy.
It has come to my attention that I have missed a question that is waiting. When we wrapped up two shows ago I had a question from Ashton in Austin about note-buying and I didn’t get to it on the last show, so I’m going to start with it today.
- Ashton, Austin, TX, “Really enjoyed the show with Scott Carson, Can you explain the math on buying notes? I don’t see how it makes much money.”
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Announcements:
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- 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.
Topic: FlipStarter!
What would it feel like to make a confident offer on an investment property, knowing that you know how much money you can make on it, and you understand how the variables impact your bottom line as you negotiate?
Purchase Price
Holding Costs
Repairs
Holding
ARV
Selling Costs
What would it do for your confidence to know with certainty what you will sell this property for?
Learn to think like an appraiser. Understand the ins and outs of property valuation.
We will help you be able to compare one possibility with another, selecting only the best most profitable projects. “Property Grade” App.
Use our Deal Analysis to buy with confidence.
MAO formula
Repair Formula
Hold Time Formula
Costs Formula
Daily Cost Formula
ROI Formula (annualized)
ROC Formula (annualized)
Rental Purchase Formula
How to find the deals. Hear about 10 sources for deals we use here at Flipping America.
How to fund your deals. Hear about all your options and learn how to compare them.
How would it feel to be able to buy as many flip properties as you can handle without using any of your own money? All you have to do is work the project. The money is handled. Yes we are going to talk about raising private money to fund your deals, but we are also going to show you how you can walk away Saturday afternoon with financial commitments to cover as many deals as you can handle. The person making that commitment will be in the room and will make that commitment to anyone who qualifies.
Wouldn’t it be great if you never had to spend your own money and you never had to spend any time raising money? Just focus on the deals.
You will have the chance to become part of the Flipping America family of investors. We shun the “guru” model. We have options for those with differing situations, but once you are in the family, there is no upsell to move into a select inner circle or platinum level. These are contrivances developed solely to put more of your money into the gurus’ pockets. Am I missing an opportunity here? Perhaps, but one thing is clear — my priority is your success. When I help you achieve your financial goals, my success will take care of itself.
How would it feel to have a clear process in finding, hiring and managing Contractors?
Our students average 15-20k profit on each flip using none of their own money. What would it do for your life if you could do just two of these next year?
How would it feel to know that someone has your back – that you have an experienced coach who will guide you through the process, helping make sure you complete the project on time and on budget?
Wouldn’t it be great if someone could give you a little guidance on the best way to set up your business? Done. We cover everything from how to choose a name and a logo to getting organized and recognized by both the state and the federal governments so you are ready to go.
No one does this business alone. You’ll need to recruit a team – not employees, but others in the business who are essential for your success. These include professional deal finders, Realtors, Contractors, Lenders, Attorneys, and more. We will show you why you need each of these individuals and point you in the right direction to find them.
We will introduce creative deal making.
I will show you how I scaled my business from a part time 2-3 houses a year into a business that flipped more than 100 houses a year with minimal employees and all from a home office. Growing and scaling your business requires the right mindset and the right systems. We will conclude the day by talking some about both of these essential topics.
Every module in this course – all six of them – are designed to be worth the entire cost of admission. I had a marketing coach awhile back who attended FlipStarter and criticized it because I “gave away too much information.” While I listened respectfully I couldn’t help but think one word — “perfect!”
I’ve been told I’ll never build a $50 million dollar training business if I don’t follow the proven techniques. My response? I’m not trying to build a $50 million dollar training business. I’m trying to make a positive difference in lives. My goal is to train the next generation of real estate millionaires. My hope is that through the values we teach and pass on, the public’s perception of real estate investors as a whole will improve. My dream is that a generation of investors would refuse to take short cuts in property repairs, treat tenants with respect and provide safe clean affordable housing, work with cities and towns to improve neighborhoods one house at a time. My plan is to inform thousands through FlipStarter, work with hundreds in our mentoring program, and working together touch a million lives with something positive.
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
Emails:
questions@flippingamericnanetwork.com Tell us where you’re from!
- Margaret, Villages of Ocala, FL “I’d be interested in hearing how flipping properties in real life is different from what we see on the TV shows.”
- Etienne, Los Angeles, CA “What are some of the unique things about your training?”
- Anti-Guru model
- Deal Funding
- Coaching, no further upfront financial commitment
Motivational Thoughts for the day
- “Do not wait; the time will never be ‘just right.’ Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.” —George Herbert
Transcript
[0:00] Music.
[0:16] 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 come to my attention that I.
Neglected to answer a question the other day.
That I actually two shows ago was asked the question and I said you know we just were just out of time and I’ve got to do it on the next show and then on the next show.
I forgot to do that and so Ashton from Austin Texas I want to apologize to you and that was never my intent to ignore you and we are going to just so we make sure we do it we’re going to answer your question right now
and that question is.
[1:19] He said I really enjoyed the show with Scott Carson can you explain the math on buying notes I don’t see how it makes much money and if you just look at it on the surface I can understand your question because if someone has a note out there like a bank has a non-performing note
and that note is the interest rate on the note is 4% and you just buy that note and who wants to make 4% on their money right.
Okay we all get that but something that you may have heard him say.
Scott said this on the show is that you buy these notes at a discount to remember that you buy the notes that sometimes a well Scott likes a 50% discount I’ve seen them go as low as 30%
30% or $0.30 on the dollar but let’s go with the 50% let’s just that’s just taking example right now all right now.
I have a financial calculator downloaded onto my iPad
and that makes things pretty simple for me and if you are going to be in this business you probably need one I used the power one ft calculator and you know them.
Definitely not endorsing them over anyone else there a lot of good calculators out there but that’s the one that I use and I have it pulled up on my iPad right now so I can
kind of a talk through this math and I know that the last thing you want to do is specially if you’re driving right now is to have a math lesson in so I’m going to try to keep it short and and kind of to the point.
[2:48] And our ever I’m going to do the math but I’m going to illustrate the point let’s say
that you have a $120,000 loan and it has a 4.5% interest rate okay maybe
it was $130,000 house and you put 10,000 down whatever whatever but the loan is 124000 and.
[3:10] The interest rate is 4 and a half percent then your principal and interest payment is going to be $608.02.
Now if you want to get an idea of how this work,
let’s say that you know Down the Road 2 to 3 years this loan is not performing in the bank rather than foreclosing decides to sell that note and they you know they bring it up to Scott and Scott’s going to give them $60,000 for the note
alright what you do with your with your financial calculator is.
[3:43] This is really easy if you have the right kind of calculator because you have four basic data points that you need to put in when calculating a mortgage the price the interest,
the years and the and the painting.
And I know the payment is kind of calculated based on putting in the other three but you see if you have the right kind of calculator you can replace one of the variables and then solve for one of the other things so let’s do this let’s change the hundred and twenty thousand.
[4:11] Let’s change that number to 60,000 and when we do that and save it and then we solve for the rate of return.
That changes the rate of return to 11.8% and
a lot of this would like to make 11.8% on her money and I know that the first thing you’re going to say is wow how does that even work well remember the borrower is still making that $608 payment right
they’re making it $608 payment on the amount that they had originally financed and so.
But we only paid 60000 for it not a hundred and twenty thousand so that really increases the return now we may go back and Scott talked about rehabbing the buyer at on the show we may go back and talk to that.
Borrower who is in trouble they’re in default they know they’re in The Fault in the banks been threatening to foreclose on them and now we show up and we bought the note
maybe we give them an opportunity and let’s do this let’s say I’m just going to pull around the numbers here let’s say rather than.
[5:20] $120,000 loan at 4% let’s say we’ll give them.
Let’s change the loan amount let’s let’s give them a break okay let’s just give them let’s make it a hundred thousand.
[5:37] And still give them that 4.8%.
[5:45] Let’s go ahead and put 4.5 the same as rate they were paying and.
Their payment now goes down to $506 a month and so we asked them would you like to save $100 a month,
all right now we’ve got them at a hundred thousand we change the loan we redo the loan in the paperwork and we’ve got them in a hundred thousand and they’re $700 a month are half.
They canceling this payment as we forgive whatever happened in the past and we move on with this thing and now we have a performing loan and their face amount on their notice a hundred thousand but we still paid 60000 for it,
should we go back up here and change the loan amount to 60,000 and I wish you could just see this happening on your screen and then solve for the interest rate
and our interest rate now our rate of return is effective rate of return is 9.5% so really
to answer your question asking and that’s as far as I really can go on a radio to answer this you guys need to get your own financial calculator there you know you can.
Get spreadsheets on the internet if you don’t want to buy a calculator but I really enjoy being able to do this on my iPad when I get some crazy idea and you know I’m
Sunday afternoon and I’m sitting there and I can poke around with the numbers but anyway the point of this is those for.
[7:01] A data points are actually all of them can be variables in any of them can be solved for and that’s how you do that and that’s how the MathWorks and Scott is really on to something and
you know as your humble show host I have to,
continually resist the shiny object syndrome I’ve got something that I do very well and with real estate investing and
I need to just stick to my knitting but definitely the note buying thing is a thing and it’s a it’s a good thing and it’s a wonderful way to get involved in this business all right I’ve got some more.
[7:38] Real estate questions but maybe we’ll get those at the end of the show
let’s start the show today by just saying hello everyone I hope that you had a great weekend and Kathy thank you good to see you as always and.
Let’s
get started by talking about flipstarter flip starter is coming up November 2nd and 3rd and we are getting a ton of questions people are already registering a lot of questions one of the most common questions as well what exactly do you talk about and it’s it in other variations on the theme but.
People are saying okay you’re charging $200 for this event you know what are you going to cover what we going to learn fair enough
that’s a good question and we’re out we are going to talk about that I’m going to take some time right after the next right after first break and I’m going to talk to you about what we’re covering in flipstarter and I’m going to be very specific so hang in there and also keep in mind that
we have an early bird special going on to October 6th.
[8:36] You got about another week to jump on this at $97 instead of the $499 price so.
My make sure you can get to the website flipping America network.com / flipstarter or you can if you like the bit ly things we’ve got a bit ly Lincoln is b i t.
[8:56] . l y
slash flipstarter and you can register now it’s Friday and Saturday November 2nd and 3rd and Friday we start at 5 p.m. will that means folks you just going to have to take Friday off or at least take half a day off Friday
I want to see you committed to this.
Oh you know we’ve looked at how could you know last time we tried to do it in one day actually the last 2 times we tried to do this event in one day and we just found that we were not getting to all of the information with the amount of depth that I wanted to cover and I want
I want people to walk away and say this thing would have been worth it at,
three or four times the price wow every module my goal is that every module is worth the price of admission and go to do that we just needed more time,
and so the time is coming out of Friday and that means you’re going to have to make a commitment to be there I want you to be there right at 5:05 at the hotel.
And we’re going to start right on time we’re going to go.
Hard and heavy until 7 and I know it’s a Friday evening and you will be tired and so forth but we’re going to give you some energy and some ideas and you’re going to walk away from Friday evening
motivated and then come back Saturday morning when we’re going to get to work.
Okay cuz you have an opportunity to join me for dinner on Friday evening and that’ll be a lot of fun to check it all out by Tye.
[10:21] Music.
[10:46] Have you ever seen one of those Fix and Flip TV shows and thought to yourself I could do that or even better I’d like to do that.
But there has to be a way to get started that’s what we will do for you at flipstarter flip starter is our 8-hour course designed to give you all the information you need in order to get started in the business of fixing and flipping houses on Roger Blankenship.
The flipping America guy who has fixed and flipped more than 800 properties over the years.
I will share with you the tools I developed for use in my own business the strategies the management techniques and the systems are used to build a business that was flipping a hundred properties for year.
What would it feel like if you could quit your job and not only work for yourself but own a business that will ultimately provide you with more income and more free time.
[11:33] My goal is to train the next generation of real estate Millionaires and I want you to be one of them find out more at flipstarter event.com.
[11:45] Music.
[11:59] We have a lot more in the way of announcements also you know the flipstarter is coming up November 2nd and 3rd.
If you’re ever in Atlanta on a Wednesday just come have lunch with us okay come to Huey luey’s.
In Sandy Springs you can look it up on the internet it’s on Roswell Road we would love for you to join us and if you come up and say Hey you heard it on the radio show and you’re from out of town.
Your lunch is on me had the privilege of couple of weeks ago to at least offer to buy lunch for young couple that came from Birmingham Alabama just to
come and sit with us and talk and that was awesome but as it turns out they weren’t even hungry
they didn’t take me up on the offer but the offer is there and if if you if you’re in from out-of-state and you heard it on the on the radio or only podcast.
[12:45] I’d like to know me that’s every Wednesday every Wednesday is Huey Lewis and I want to encourage you if you haven’t already to download the flipping America app in the app store and listen to the show anytime you want you can hear
all of the shows plus the you get the show notes and you’re able to see the things I’m talking about and link to the articles that we cover here on the show.
If you have questions about real estate investing or real estate in general you can send them two questions at flipping America network.com that’s questions at flipping America network.com also
if you don’t want to send an email you can call us at any time day or night 24/7 404-369-1018 why can you call us 24/7 because
we got an answering
machine and you can leave a message just press 1 and you’re talking to the National comment line and you can leave your questions for us there or your comments and we do appreciate the the comments that we here.
About how much you’re enjoying the show that’s always gratifying and you know.
Actually a little boost of the old ego so thank you for your kind words and I appreciate it very much we’re not going to play those on the air but that’s good for me to hear.
[14:00] We encourage you to find and follow us on social media on Facebook look up flipping America media and on Twitter and Instagram we are at flipping America,
and just a word about this we post leads and connections to multiple articles and stories,
probably 10 or 15 a day that we could never have time to get to on the show some of it’s just a little human interest stuff some of its industry stuff some of its practical advice for your household and
all of it is right there for you it’s just a free service from flipping America so.
If you use Twitter and Instagram particularly Twitter because they’re the links are quick R clickable.
Clickable there clickable in on Twitter and you can.
Read the actual stories that are involved I understand on Instagram all you get to do is look at the picture because the links aren’t clickable well alright.
[14:55] Run Google Plus also we’re on Pinterest we’re on house we’re everywhere that you want to be in a few places you’ve never heard of but we are all over the Internet and that’s because we are here to serve your needs,
and speaking of your needs we’ve got some real estate related questions still to answer.
So getting that email address is questions a flipping America network.com and I want to remind you that we will answer.
A hundred percent of the questions that come into the show we always have and we always will so keep the questions coming people and we’ve got some good ones coming up here right now.
[15:33] Now I know that I’ve got a couple of.
Questions that have been waiting for they’re getting kind of ripe so I want to go ahead and deal with these questions so I don’t run out of time today Margaret from
Villages of Ocala Florida I’d be interested in hearing how flipping properties in real life is different from what we see on the TV shows oh I love this question Margaret thank you you know and that’s the first time anyone has asked that question
to us here at that flipping America and you know I watch some of the flipping the house flipping TV shows,
it’s it’s kind of like a policeman watching cop shows there is a lot of home and it never happens like.
Kind of comment and do you know a lot of cops don’t watch cop shows much because it’s so disconnected from what they really go through and that’s the way it is I guess there really actually flipping those houses on the shows,
but.
[16:27] There are some things about this business that they’re never going to show on the show’s why because it wouldn’t make good television sometimes this is just hard work sometimes this is just tedious and they’re not going to show that,
but you’re not going to talk about the fact they may talk about it but they’re not going to show then I’m going to show us reviewing.
100 properties to make 20 offers to get one accepted they’re not going to do that because that’s tedious,
and the interesting thing is there’s plenty of drama in this business and opportunity for things to get kind of exciting but it may not be the kind of excitement that you’re used to seeing on TV so instead of showing that kind of stuff on the shows they manufacture drama
and one of my favorite manufactured dramas is they buy a property they spend all this money fixing it and then at the end of that they bring the realtor in
and they say now what are we going to sell this for no real estate investor does this not any that are worth their salt.
That is a stupid and dangerous way to operate your business you don’t buy a house because you think it has fix up potential you buy a house because it has profit potential but you only know if it has profit
potential if you know what you’re going to sell it for on the back end and in fact,
knowing what you going to sell it for is the first key piece of information that we use when we think about buying a property.
[17:56] You know we’re going to go over the property and review it and maybe change a little bit because a few months will go by from the day you buy it until the day you sell it and marking market conditions or not.
Peanuts not going to change dramatically but they are going to shift a little bit and so it may be up or down from what you thought.
You’re going to go into this thing having a pretty good idea of what you’re going to sell it for another thing that I noticed
consistently in the show’s is they will take the sales price number and they will take your purchase price and what you spend in the rehab and then they will take the sale price and they will subtract that and I’ll come up with your profit
that’s really that’s it’s so misleading.
And it almost can’t be accidental it must be intentionally misleading because there are certain cost that you cannot avoid all right.
If you sell the house yourself you could avoid a real estate commission but I don’t recommend this I recommend that you find a good realtor who can work with you and I’ve done.
I’m done this topic on the show several times and it’s a big part of what we teach.
[19:03] Hire people to do professionals to do the things that they can do so that you can focus on the things that only you can do
you don’t need to be spending your time with your if you intend to make this a business you don’t need to be spending your time marketing your houses and some will say what what if I just go ahead and get my realtors license so that way I can sell my house and then say the money
really okay that’s what you want to do but every minute you spend selling the house is another minute that you cannot spend finding your next deal.
[19:32] And that’s all right if that’s that’s that’s the way you want to conduct your business if you think that that little 3% is worth the time
you know you met you may make another you may save another you know 3 to 10:15 thousand dollars Penny on the price range of the house
verses missing an opportunity to make 60 or 80 thousand because you were too busy trying to sell this one you see what I mean it kind of goes like that so.
And in fact only shows these people are typically not selling their houses they have a realtor and the realtor sells the house is so you’re going to pay commission.
The Realtors are going to work for free just because you’re on TV you’re going to pay commission and.
Aside from commissioned you are also going to pay property taxes for the length of time that you own the house it is an undeniable I’m just a cool fact I’m not aware of any place that doesn’t have property taxes
maybe it exists because you know contrary to popular opinion I don’t know everything about real estate but.
For the most part you’re going to pay property taxes you are going to have some expenses related to the selling of the property that must be included you also have holding expenses that must be accounted for
during the time of your ownership do you think you will have any power bills water bills lawn maintenance.
[20:53] Insurance costs all of those things are real expenses and they come right to the bottom line
and so if you have a house that you buy for a hundred and you spend 20000 fixing it and you sell it for a hundred and fifty thousand hundred and twenty thousand and you sell 450 you did not make $30,000 my friend
you did not in fact probably what you made is about 3 or $5,000 because you have to consider these other expenses and.
That part actually kind of irritates me when I watch these shows because I think they’re just meet misleading people the flip side of the Hat
and this is flipping America but the flip side of that coin is they get a lot of people interested in the business and I guess that helps my shows rating so I can’t complain too much but I do want to be honest about the whole thing and that
to me is intentionally misleading about what your profit possibilities are in the business.
I told us a couple of the glaring differences.
Otherwise I guess you know they don’t do this on all the shows but.
I think that marriages have the potential to have enough of their own drama that you don’t need to add drama by the way you conduct yourself when husband and wife teams are are working their business.
[22:20] Did I say that nicely enough alright.
And I know as far as the love of my life Diana and I we don’t have any drama in our relationship and we’re not going to fake it.
Just for a TV show.
I know that sounds crazy but it’s just really a fact we’re both easy to get along with and we were both really in love with each other and
we both know there’s no one on Earth would rather spend more time with and we don’t do anything behind each other’s backs we don’t hide anything from each other including our faults and foibles and and so.
There’s no drama there and we’re not going to manufacture some just for TV.
That I think that some of that drama is just made for TV of course you know what’s driving them is not necessarily a quest for the truth.
What’s driving them is a Quest for Ratings because that brings in your advertisers and that’s what goes right to their actual bottom line
and their bottom line is not what they’re doing in the proper to use their bottom line is what the advertisers are willing to pay for minutes of time.
Advertising on their show Etienne Los Angeles California what are some of the unique things about your training.
[23:35] This also is a good question and it’s a fair question and it did isn’t one that I had actually planned to cover in the talk coming up
in a few minutes about flipstarter because I was just going to answer some of things recover but some of the unique things I’m going to say more about this a little later but we have adopted an anti Guru model now we are not
against anyone
we’re not naming names and taking prisoners in any of that kind of thing at that’s just not our style is not the way we conduct ourselves
other people are welcome in a free market and a capitalistic economy they’re welcome to conduct their business in their own way so when I say anti Guru it’s not because I’m against anyone individual it’s just I am I am.
Kind of setting myself up to be the opposite of the guru model what is the guru model the guru model is where,
you hear an advertisement on the radio or late night TV or some infomercial and we are coming to your town and it’s usually somebody famous and it’s a person is not famous enough they may have a celebrity TV indoor sir.
[24:45] You know some name that you recognize and we’re coming to your town,
we’re coming and we’re going to do this free event to give you are super secret technique and a bunch of free gifts to go along with it you know lunch and and all this and it’s free it’s completely free you just need to go to the website and sign up
all right when you get there just.
Prepared because what you’re going to get if it’s a two hour or four hour whatever it is it is really a little bit of,
information about the business and a two-hour or for our sales pitch into another seminar and that seminar is going to be relatively reasonably priced.
Relatively reasonably priced,
I’m talking between 300 and $1,500 typically and that’s going to be for like a whole day or two days or whatever and it did may seem like a great deal for what you’re going to get,
I have been to some of these I haven’t been to all of them but I’ve been to enough of them that I was thoroughly disgusted with this model and the way they treat people in the way they pray on people’s hopes and dreams and.
[25:58] Basically Bilk them out of their hard-earned life savings to pay for these courses when really.
It just you know it’s possible to start this business with no prior training so why would anybody pay $50,000 and you see that’s where they’re going where they’re heading with all of this the free seminar in do they one day or 3-day thing,
that one day or 3-day thing is just a sales pitch into something that’s going to cost $30,000 and I know for being an indoor industry Insider
all of them believe that they’re going to get into you if they can get into you for 25 or 30 to begin with they can upgrade you to 50,000
all of them are going to have you spending $50,000 that’s their altimate target and that’s spending $50,000 out of cash or open up a bunch of new credit cards and so forth so on so I,
let you know the reason I got into the business is because I was sick of seeing this kind of abuse that’s. At the end.
I was so tired of it I was complaining to my realtor after a weekend at one of these events and he said man why don’t you just
won’t you stop going to these things and start teaching them yourself you flip more houses than any of those guys besides that you’re a teacher.
[27:09] Oh yeah that makes sense so that’s why we got in but I was determined to do it different a couple of other things that are different about us,
I actually stopped to think about what made it easy for me to get started you know what really made it easy for me to get started I had a financial backer right from the beginning who is willing to put up the money let me do the work and we split the profit so what I decided to do,
was Duke extend that same offer for the people I was training to do the business.
[27:38] And so 100% deal funding is available to our students and the other thing is.
I felt you know I needed guidance along the way now I am motivated and inquisitive and a researcher and I got out there and I found the information that I need it but it was a lot of work and it wasn’t all in one place,
and there were a few missteps along the way
so I decided to what I would do also is provide ongoing coaching with no further upfront Financial commitment instead there’s a little profit sharing on the back end.
So anti Guru deal funding and coaching those are three big ways that we are different,
then the traditional model at the end and I thank you for that question in the opportunity to explain when we come back I’m going to go into detail about what we cover in the flipstarter flip starter kit.
[28:26] Music.
[29:06] 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’ve looked hundreds and hundreds of them,
and I also have some training and degree and experience and education so I can show you how to do exactly what I’ve done hundreds of times don’t believe me.
Head on over to flipstarter event.com but in the meantime Give a listen to Pat caywood Cleveland Tennessee and I’ve been.
Doing some flipping since about March of this year and had started with a Nationals program that was very expensive.
I’ve spent today with Roger Blankenship learning about his program and boy do I wish I’d met Rodger first.
He has a clear concise program and many tools that are going to be very hot.
[30:01] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are invaluable.
Thank you so much Rodger for your time and sharing with you never know what’s around the corner
but you can be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living life,
LegalShield is a prepaid legal service for individuals
businesses for a low monthly rates you get comprehensive legal coverage and provide advice whenever you need it.
Protected number of legal issues and assistance with common legal need just go to Rodger b helps. Com right now to sign up that’s Rodger V.
Dot-com Legal Shield protection for every part of life.
[30:59] Music.
[31:28] And we’re back I’m Rodger Blankenship and I teach people how to make money in real estate.
[31:33] And you know I say that all the time and that’s what it’s printed on my business card I don’t have a title on my car just to talk about what I do.
[31:41] And it is what I do and coming up the first weekend in November.
We are going to teach people how to make money in real estate by fixing and flipping properties now there’s there more than.
85 ways to make money in real estate the one of the most commonly known in this climate in this market is
fixing and flipping houses that’s how I got started it’s how I’ve made most of the money that I’ve made over the past 15 years and
in the past 15 years I have fixed in flip just over 800 houses and during the commercial break just now.
Found out that we had an offer on one of our houses here in the Atlanta Georgia so we’re still continuing to fix and flip houses and,
it’s kind of fun is gratifying to get to the finish line on the house and see how it all took shape and,
became a beautiful thing when it was an ugly thing to begin with but with that experience.
And you know you heard me talking with the talking to at T N A little while ago we had decided to launch into teaching other people how to do it and when you want to teach someone how to
I flip a house I looked at a lot of different ways and considered the guru model and rejected that and decided that what I would do is just teach people,
all right.
[33:03] And we tried to do it in one day and then we went what we tried to do it in a few hours then we went to a one day then we went to a two-day then we went back to a one day we’ve been you know kind of fiddling around with the best way
to approach this topic because at the end of this session I want people who.
If you have some business experience if you have some Contracting experience or preferably both you may not need any further guidance be on the flip starter event but we’re finding is that
people do need and want further guidance and want to be a part of an ongoing mentoring program so as much as I’m not a big fan of the guru program.
We we do have a mentoring program that basically you pay us for ongoing access to us,
and our time and our expertise and our guidance to the projects and a lot of people feel that that’s what they really need and that’s okay.
But we still design flipstarter to be if it’s enough it’s enough it’s good.
[34:09] And then we try to get to create a sense of complete information,
and because it’s a lot of information coming at you in a hurry once you have attended a flipstarter
we basically give you the keys to unlock a video of the flipstarter event so you can watch it again and again as many times as you want.
From now on because really where our heart is is to give you the information that you paid for and.
Make sure that you can go through it enough times that you really get that information.
[34:47] Some have told us that coming to flipstarter is like drinking from a firehose and you know after flipstarter if you.
Are part of our mentoring program we have a 3-day which is going to be turning into a four-day maybe even a 5-day intensive training course.
And that’s like drinking water from a fire hose in my opinion but there is a lot of information that we’re going to give you at flip starter and so,
2 answered questions coming from many different directions and and sources I just want a kind of cover for a few minutes what we’re talking about in the course what would it feel like.
If you could stand in front of a beat-up run-down house and make a confident offer knowing.
That you know how much money you can make on it and you understand how the variables impact your bottom line is you negotiate what are those variables well.
They are the purchase price but you’re going to pay for it,
you’re holding cost in terms of your repairs and other holding costs identified some of those earlier in answering a question
you’re selling price this is the after repair value are to use a little real estate investor lingo the arv and the selling cost associated with that.
One thing you need to know about real estate is that everything in this business is negotiable except for the location of the real estate.
[36:15] You can negotiate your purchase price you can negotiate to some degree you’re holding cost now the power company is not going to negotiate there right with you so don’t even try.
[36:26] But you can negotiate some of the other things and we negotiate with contractors all the time not because we’re necessarily trying to get the absolute cheapest price because sometimes you get what you pay for but we want
a a very fair price in a competitive price and we we go to bed.
Are you use whatever metaphor you want we go to the mat we will basically hold out for the very best pricing we can get on the very best work,
it can be done we still want the the best possible work to be done but we also want that a fair price that means.
That we’re probably going to end up paying more than the lowest price we could get this work done for but it also means that we put a product out there on the street that is.
It’s not second rate in anyway it is a quality value project.
So if you knew how all of those pieces and parts work together wouldn’t that be cool well.
What would you do for your confidence to know with certainty that you that you could sell the property for your number we’re going to teach you in flip starter to think like an appraiser,
to understand the ins and outs of property valuation where else are going to teach you.
How to figure out what it’s going to cost to repair the property.
[37:55] I’m going to give you a formula that we use in our business.
To estimate repair cost with that before you even go look at the property plus you’re going to have access to a tool that’s going to give you.
[38:10] Database of repair cost in course will talk to you a little bit about our friend Pat Dornan and the ultimate rehab estimator as well.
[38:20] We’re going to show you how to use the property grade app now that property great app is free in the App Store and a lot of people don’t really know exactly what to do with it or what the logic is we’re going to go to the whole thing
talk to you about how it was developed what it’s the purpose it ensures and that is to be able to compare one possibility with another and select only the best most profitable projects if you have one on your side of town or you can make X dollars in
another one in a few for a few miles further away but you can make more money and how do they stack up against each other really,
that’s what the property great app is for so we’re going to show you how to compare all your possibilities because you always want to be going for the most optimal investment that is if you can only do one of the the two.
We’re going to teach you how we analyze our deals I’m going to show you and our deal analysis software is second to none.
If I found something better I would buy it and I would use it and I would recommend it to you I just haven’t found anything better.
[39:23] Of course we’re going to cover the maximum allowable offer formula we’ve covered that many times on the show you know it’s your arv * .7 – your repair cost we’re going to talk about why that formula make sense what it does to you in terms of repairs,
I am in terms of returns and we’re going to.
Explain to you why you need to stay firm on that margin because your net margin is going to be less and and will explain all of that.
I’m going to give you the repair for me not to talk to you about but we’ve actually got eight formulas that will cover kind of quickly as we go through this thing and you know.
[40:00] Real estate investing is a little bit more Hands-On but sometimes there’s a math component I have broken down some formulas for this business that give us a lot of guidance
and since I’ve already done that work you don’t have to in fact I’ve already done the spreadsheets so you don’t have to but we have a whole time formula that’s right,
I can tell when we buy a property how long we’re going to hold it based on.
Plugging in the answers to a few variables answering a few questions and So based on our whole time we can figure out
all of our costs and once we figured out all of our costs we have a daily cost formula so we break these properties down we understand how much they cost us every single day that we hold them why is that important.
[40:46] Because if you’re looking at a lowball offer early on you need to consider,
how that’s going to impact your bottom line if you take it versus getting more money later on maybe you can get $3,000 more in 30 days but maybe it’s going to you know you’re holding cost you’re going to cost you
$2,500 to hold it at that extra 30 days so,
if you know what your daily cost is you have a clearer way to make a decision here then we’re going to talk about return on investment.
But it’s not just a simple return on the deal we’re going to show you how to annualize you return on investment
they’re going to talk about return on cash and annualize that as well and when we compare return on investment with return on cash I’m going to help you understand.
[41:34] The power of Leverage and this is going to come
I become a factor when you think about how to get your deals funded but I’ll say more about that just a moment and last they were going to give you a rental purchase formula because part of this is we
we don’t want to just Fix and Flip houses ultimately we want to buy rentals now.
[41:53] Obviously we are not going to be able to cover everything that you’re ever going to need to know about fixing flipping properties and we’re not even going to really do more than just scratch the surface of the whole rental game,
I’m we’ve got other courses around that and those will come later but.
We do want to give you enough information so that you can buy a rental property with confidence as well they were going to talk about how to find the deals.
We got 10 sources here for deals at the flipping America and we only have three of them actively turned on right now and we still are getting
thousands of properties a month
to look at and people say you know deals are in short supply can’t find enough to look at blah blah blah blah blah where you’re just not working the sources if you work the sources,
you’ll have plenty to look at we’re going to show you what the sources are and we’re going to teach you how to take advantage of them and we’re going to ask you before you even leave on Saturday to get some of this setup so you can be finding
your first second and third deals.
Okay now what you have found the deals and you run the numbers on it you got to come up with the money so we’re going to talk about how to find the deals.
[43:05] We’re going to talk about all of the options and show you how to compare them because you have other options than just using your own money.
[43:16] Obviously many people talk about this this is one of the big selling points for a lot of the guru programs what if you could flip properties without using any of your own money alright is that possible yeah it is and I’m going to show you how in fact,
how would it feel to be able to buy as many flip properties as you can handle without using any of your own money and now I.
[43:37] I gave this away when I was talking to Etienne but we work with our students and partner with them and fun their deals all you have to do is work the project,
the money part is handled yes we’re going to talk to you about raising private money to find your deals and we’re going to talk to you about hard money to find your deals why we’re going to talk to you about this because when you,
if you do a we put up all the money and we split the profit thing you’ll make a little less money.
Then you would make if you had a private lender car private investor so
it may be in your best interest down the road when you are confident you know what you’re doing and you have enough cash to the handle the monthly payments to use a private lender or hard money lender,
and we’re you know we’re happy to partner with Braswell Capital Solutions and Michael Braswell is a great guy and he’s standing by.
To do your loans on your property if you have that much confidence and you have some cash your bottom line is enhanced by going that route rather than using our money
to find you deal so we talked about all of your options and how to make it happen.
[44:46] Alright I’m going to cover a little bit more what we’re going to do what we do is look starter when we come back from this break we’ll be right back.
Not too long ago we did a one-day flipstarter 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.
[45:07] Peter Falkner here I send it a one-day flipstarter training session led by Rod.
[45:14] And I was amazed to see what has happened in Rogers Live from the last $15 plus years.
[45:20] Music.
[45:48] Birthright that died in preciate.
[45:53] You never know what’s around the corner but you can be confident that you’ll be ready for whatever comes your way Legal Shield and ID shield look out for you so you can get back to living will,
LegalShield is a prepaid legal service for individuals
businesses for a low monthly rates you get comprehensive legal coverage law firm of professionals and provide advice whenever you need it.
Protect it for a number of legal issues and assistance with common legal need just go to Rodger b helps. Com right now to sign up that’s Rodger b.
. com Legal Shield protection for every part of life.
[46:39] Music.
[46:55] So how would it feel to be able to buy as many properties as you can handle without using any of your own money all you have to do is work the deal.
You can walk away Saturday afternoon with financial commitments to cover as many deals as you can handle and the person making that commitment will be in the room and we’ll make that commitment to anyone and everyone present who qualifies.
There’s that much money that will be in the room wouldn’t be great if you never had to spend any of your own money just are even.
Spend time raising money just focus on the deals you’re basically creating an income stream for you and your family.
[47:34] Do you have the chance to become part of the flipping America family of investors.
As I mentioned before we shun the guru model but we have options for those with different different situations but once you’re in the family.
There’s no upsell to move to a select Inner Circle or platinum level these are contrivances develop solely to put more of your money into the guru’s pockets am I missing an opportunity to hear perhaps but one thing is clear.
My priority is your success when I help you achieve your financial goals My Success will take care of itself.
I would feel to have a clear process in finding hiring and managing contractors.
[48:17] We’re going to cover the entire process this will be on Saturday what we’re going to talk about how to find them how to vet them how to make sure that they are,
people of integrity and out of hire them how to manage them supervise them and what to do when things kind of go wrong because occasionally things go wrong.
[48:38] All of that.
Is covered in the contractor module now our students average 15 to 20000 profit on each flip using none of their own money can you imagine what it would do for your life if you could just do two or three of these next year.
[48:53] As far as being a part of the flipping America family it’s great to know that someone has your back.
That you have an experienced coach who will guide you through the process helping make sure you complete the project on time
and on budget as I was getting started in through the early years of this business I spent a lot of time agonizing with myself about certain decisions I had to made,
to make in those those houses and you know we didn’t lose money on the deals but I look back and I realize that I probably left.
Pay my first 500 deals I probably left 200 to $250,000 on the table
because of things that if I had known better I could have done them better I could have found small economy’s here saved a few.
Dollars there and done a few things and you know if you’re talking about 500 to $1,000 a deal and you do this 2 or 3 hundred times that starts to add up and become real money.
[49:50] No one does this business alone we’re going to help you recruit a team not employees.
That’ll come later maybe but right now you need a team other people who are in this business and are essential for your success.
[50:04] We’re going to talk about professional deal finders wholesalers and bird dogs how to find them and how to deploy them how to take advantage of what they can bring to you
we can talk about Realtors and yes we firmly believe in using Realtors as you’ve heard a hundred times on the show I’m sure.
[50:21] And we can talk about the contractors and the lenders and the attorneys and more.
We’re going to show you why you need each of these individuals and point you in the right direction to find them we’re going to introduce creative deal funding or creative deal-making what is a subject to we talked about it a little bit on the show
and if your regular listener you probably know what a subject to purchase is
we won’t have time to go into great detail on this but I want you to know that you have these options we’re going to talk about.
Mortgage wraps we’re going to talk about seller financing and all the different ways you can put together a deal to buy it and the ways that you can put together a deal to sell it
to dispose of the property because it do you have more options and just listing it with a realtor
and then as we get on toward the afternoon on Saturday I’m going to show you how I scheduled my business from a part-time.
Maybe two or three houses of year with me trying to do everything myself into a business that flips more than a hundred houses a year with minimal employees and for a long time I did it all from a home office
growing and scaling your business requires the right mindset and the right systems.
We’re going to conclude today talking about some of both of these essential topics you know.
[51:37] Mindset gets talked about a lot and it’s not overrated people kind of.
Poo poo the idea and say just get busy and get after it but you sometimes you have to get your mindset for Success you have to get your mindset for business ownership you have to get your mindset.
For focusing on the right things and we’re going to talk about all of those things and look I don’t claim to know everything about this business I’m still learning as I go.
But I know some things and I know what it took to scale my own business up to a hundred houses a year and so I can teach you exactly what I did and that’s what we’re going to do.
[52:15] Every module in this course all six of them are designed to be worth the entire cost of admission I had a marketing coach a while back who attended flipstarter.
[52:25] She was a little critical of me because I and this is a quote gave away too much information.
[52:31] Not listen to what she had to say respectfully and.
All the time she was talking about how I was giving away too much information and should be saving something for the other side of the mentoring program blah blah blah blah blah I couldn’t help but think of just one word, and the word that I was saying was
perfect if I’m giving away too much information perfect.
[52:55] I’ve been told I’ll never build a 50 million dollar training business if I don’t follow the proven techniques that the other gurus of used my response.
I’m not trying to build a 50 million dollar training business I’m trying to make a positive difference in lies starting with yours.
My goal is to train the next generation of real estate millionaires.
Not to cover a curriculum and not to build a business My Hope Is that through the values we teach and pass on the Public’s perception of Real Estate Investors as a whole will improve.
My dream is that a generation of investors would refuse to take shortcuts and property repairs treat tenants with respect and provide safe clean and affordable housing.
And work with cities and towns to improve neighborhoods one house at a time.
My plan is to inform hundreds of thousands of maybe even millions of people as they listen to flipping America and then work with,
thousands of people through flipstarter and perhaps hundreds more in our mentoring program and working together all of us can touch.
A million lives with something positive that’s really what we’re all about.
[54:12] That’s why the mentoring program exists and is really kind of the driving force behind this radio show.
[54:20] Tell him to go back and summarize if you sign up for flipstarter here are the things that you can expect we’re going to have a session on.
Understanding and analyzing a deal when is it look like we’ll have another session on
how to find those deals won’t have another section on how to fund those deals will have another section on how to fix those deals will have a session on.
Structuring deals for Maximum Impact we’re going to have a session on creating your business I’m not sure I even mention that and we’re going to have a session on
scaling your business for maximum success all right now I just counted those out in that seven sessions we kind of combined the.
The shelling in with the fixing because of the just a time thing so there’s 6 overall sessions 6 videos.
And all of it is designed to be a complete course to show you how if you’re interested in signing up go to bit. Ly / flipstarter.
[55:22] Or just go to flipping America network.com and it’s right there on the main page,
make sure you jump on the early bird special it’s going away at the end of this week folks you got to jump on it now and sign up and also sign up for the opportunity to have dinner with me I’d love to in
to chat with you and talk real estate answer your questions and going to a little bit more depth at dinner on Friday evening it’s always a fun time to get the little bit more personal with some of the people that come to these events.
[55:53] I want to conclude Today show with talking about some of the mindset things in this is just a little I call it my personal Mantra I developed this really over. Of years and I say it to myself often
it provides motivation that provides a little bit of perspective for me and so
and it will be saying this and I’ll give you a printed copy of this a flip starter I have a massive vision.
Which creates massive pressure leading to Massive Action.
[56:24] Which is the only chance I have to achieve massive results.
[56:30] The world doesn’t owe me success God doesn’t owe me success no one but me is going to work hard for my success.
Therefore no one will work harder for their success than I will for my.
[56:46] I will give my all and then push a bit more so tomorrow my all will be more.
[56:57] When I look in the mirror I see the reason the credit for my successes the blame for my failures.
I cannot make it without my team and I tell them often but when they succeed it’s because I chose well and eyelid well when they fail it’s because I did not choose or lead well.
[57:20] I am the reason I may have setbacks but I cannot fail if I don’t ever give up.
[57:29] You got circumstances I’ve got circumstances we all got circumstances.
But you won’t find me under mine.
[57:41] My situation will not dictate my emotion my circumstances will not control my results.
[57:48] External forces will not take away my power to choose.
[57:52] I cannot change the world but I can change me and the way I relate to it.
[57:59] So I charge on I am the reason.
[58:06] That’s all the time we have for today thanks for joining us when we come back next time we’ve got some big lists and we’ve got a list of lists and will see you soon.
[58:17] Music.
[58:51] George Herbert said do not wait the time will never be just right.
Start where you stand and work was whatever tools you may have at your command and better tools will be found as you go along.
[59:03] This thought for the week is brought to you by the foundation for Renewal find them on the web at renewal fund. Net working together with communities across this country to improve an impact lives will see you soon.
[59:15] Music.