Flipping America 195, What NOT to do.

podcast 195 investing mistakes

Expected Air Date: 10/07/18


We all make mistakes. Hopefully we learn from them. That’s how we come up with a list of What NOT to do. 

Good morning. We have market news today. There is increasing evidence that the shift we predicted a year ago is happening. Sales are slowing down and we are moving in the direction of a buyers’ market. Are we heading into a crash? In a few minutes I’ll cite a story that says “yes, no, and maybe.” That’s right – a classic example of bold predictions in the real estate market. 

What I’m going to do is cut through all of the hype, equivocation and prevarication and get right down the the heart of the matter – how does this impact real estate investing. And then today I have a great question from one of our fans – “How about giving us a list of what NOT to do?” I love it and I’m going to spend some time on that. All that plus news, headlines, and information you need to continue to do well in real estate investing coming up. 

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


  • TONIGHT – speaking at Atlanta REIA, 5pm. “Real Estate By the Numbers”
  • FlipStarter Nov 2-3, Atlanta, GA  
  • Lunch with me every Wednesday.
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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: What NOT to do in Real Estate Investing

  1. Do NOT pay 30k to learn how to flip houses.
  2. Don’t stumble into the business with no knowledge.
  3. Do not risk your money without understanding the risks.
    1. Takes longer
    2. Costs more
    3. Sells for less
  4. Do NOT automatically trust another person’s conclusions
    1. Realtor
    2. Wholesaler
    3. The Flipping America Guy!
  5. Don’t invest counting on an optimal experience. Things go wrong.
    1. Buy based on a sub-optimal.
  6. Do not let emotions direct your decision.
    1. Your instincts (your gut?) plays a role, but that role is not “director”
    2. Facts and logic should lead you to action.
  7. Don’t fail to establish and understand your buying criteria.
  8. Don’t violate your buying criteria
    1. Unless you know specifically when it’s OK.
  9. Don’t make hiring decisions based on first impressions.
    1. Realtors
    2. Contractors
  10. Don’t wait for the perfect deal.
  11. Don’t wait until you believe you are ready to do a great job.
  12. Don’t lock yourself into one method
    1. If my only tool is a hammer, every problem looks like a nail.
  13. Don’t stop learning.
  14. Don’t stop improving.
  15. Don’t stop thinking about tomorrow… Fleetwood Mac.
  16. Don’t pay $50,000 to anyone to teach you the Fix and Flip Business.

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!


questions@flippingamericnanetwork.com  Tell us where you’re from!

  • Monica, Macon, GA. “How about giving us a list of things we should NOT do?”

Motivational Thoughts for the day

  • Don’t talk – just act. Don’t say – just show. Don’t promise – just prove. -anon


[0:00] Music.

[0:16] 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 good morning everyone how’s it going did you have a great weekend hope you took some time to just chill and relax and you’re ready for a great week.

[0:56] Of life living doing your thing and maybe a little real estate investing

that’s right this is the show about real estate investing for everyone I am Roger Blankenship your host and thank you so much for joining us today

giving us a few moments of your time as we attempt to help you sort out what’s going on in the real estate market and make the best possible choices about

real estate investing just to be clear we do not teach

that everyone should drop what you’re doing and start flipping houses like you see on TV I know the name of the show is flipping America and we do a lot of flipping and

real estate investing that way in an active way with you no buying with the intent to resell but that’s not the only way to make money in real estate we do believe that

everyone should be connected with real estate in some way my dad always used to say I believe in buying.

Dirt because they’re not making any more of it.

[1:53] And that was wise advice then of course he was paraphrasing Lois Glickman who said the greatest investment on Earth is Earth I believe that.

[2:02] I think that the real estate is fantastic for a number of reasons but one of them is it has intangible values the value of it never goes to zero so everyone should have real estate as a part of a balanced Investment Portfolio and to that end

we here at flipping America are absolutely committed to giving you the information the news the trends and the reports that you need to make the best decision for Your Life about.

Your connection with real estate I know it’s a narrow Focus but.

You know give us an Hour 3 times a week and you’ll get a complete education in real estate investing

we don’t talk just about flipping houses we talk about what’s going on in the markets we talked about Real Estate Investment Trust we talk about different things that you can do to invest in real estate and we’re going to talk about some of that today we have market news today

there is increasing evidence that the shift we predicted a year ago is starting to have,

sales are slowing down and we’re moving in the direction of a buyer’s market are we headed into a crash in a few minutes I’ll site.

Outside several stories and and the kind of wrap it up for you but I’ve got one story that says yes no and maybe

that’s right a classic example of bold predictions in the real estate market.

It’s it’s crazy because they just between you and me the real estate market is fairly easy to predict if you know what to look for and do you pay attention to the data it moves.

[3:30] A lot slower than the stock market and it’s

a lot less based on the whims of one individual CEO and it’s it’s like steering a battleship you can kind of see it happening and so real estate is not hard to predict but

there are people out there that want to create waves make headlines get their stories read and so they do things to throw scare curves into their story and this yes no art actually

it’s a story from Australia where the guy says the real estate market could be good it could be better could be ugly well.

The only way it can get ugly as he throws in a hypothetical but what if kind of things or another words he builds a straw man argument and it’s just

a ridiculous example of reporting and I’m telling you this now because I’m going to post it on social media you can go and you can point the finger at and say and you can laugh and say yep that’s that’s what Rodger said

that’s not real reporting that’s just somebody trying to you know crywolf okay.

So what I’m going to do today is cut through the hype equivocation and prevarication and get right down to the heart of the matter how does this news.

Impact real estate investing.

[4:51] And then today I have a great question from one of our fans the question is how about giving us a list of what not to do I love it I love it and I’m going to spend some time on that.

All that plus news headlines and information you need

to continue to do well in real estate investing is coming up but first a few announcements if you’re in the Atlanta area.

[5:12] Today this evening I’m going to be speaking.

At the Atlanta area is kind of a last-minute invitation I’m actually filling in for someone else that’s fine I’m glad glad to do it glad to help they’ve asked me to come and talk about real estate

by the numbers I happen to be in Atlanta today and we’re coming to you from our studio in Sandy Springs so it’s kind of an easy well

I mean I got to cut across Atlanta traffic at rush-hour you know but those are you that live here know exactly what I’m talking about but

at 5 p.m. at the Atlanta area I will be doing a talk called real estate by the numbers

and they wanted me to talk about numbers and so I’m going to go throw some numbers at him and I’ll put together a little presentation today and have that for you this evening and I think what I’m going to do is I’m going to talk about how you make decisions on real estate by the numbers and I’m going to show some formulas and I’m going to show some spreadsheets where I put those formulas together in a way that

makes it very useful and also you can conduct a quick kind of analysis of a property using this tool that’s tonight at the Atlanta riot

coming up November 2nd and 3rd flip starter Atlanta flip starter Atlanta and that the seats are already filling up we’ve had a an early bird special going on and it ended over the weekend so if you have not signed up the in in just

8 hours time I’m going to give you all of the information that you need to start your Fix and Flip business.

[6:41] Okay let me just back up and say there are three promises that I make about flip starter promise number one I’m not going to tell you everything that you’re ever going to need to know

that’s a promise it can’t be done in 8 hours and I’m not sure I know everything

I ever need to know I continue to learn but promise number 2 is I will tell you everything you need to know to go out and get started I’m going to give you the resources I’m going to give you some of the formulas I’m going to give you the connections that you need to make and a method for you to actually get started if you are a self-starter if you have some business or Contracting experience

this $200 seminar is all you’re ever going to need please do not go sign up for the guru programs until you come to flip starter

okay put starter is $199 for a Friday night Saturday event it’s all day it’s all evening Friday and all day on Saturday and in that time I’m going to share with you so much information that you need and the great thing is all of the screens in.

[7:45] Have you ever been to one of these real estate things when you go in for the weekend.

One of the things they always say is do not record and don’t take pictures of the screens it’s like they’ve got some super secret want me tell you something there is no super secret to doing well in this business if you listen to this show.

You’ll eventually learn everything that you ever really need to know to get involved in real estate investing fixing flipping houses it’s it’s true you can learn everything if you listen to all 194 shows before this one

all right but anyway,

in this 8-hour seminar I’m going to I’m going to tell you everything that you need to know and I’m going to encourage you to take.

[8:27] Pictures of the screens because it’s a lot of information and you can you can record the thing if you want to do quality won’t be great but we’re going to be recording it we’ve already got a video of flip starter on the website that you can buy.

I thought we were changing up the format we’re always improving and so this was going to be a little bit better so we’re going to videotape this one too and I will make the video available to you you know if you when you’ve attended and then it’ll.

Probably become a product on our website as well but we want you to walk away Saturday evening knowing what to do.

[9:03] Now.

Some people want to go deeper some people want a little bit more mentoring and some people want some ongoing guidance and some people want 100% deal funding okay.

Will make an offer about that during the day but you just

I want you to trust me this is not an 8-hour sales pitch into a more expensive program this is full of content in fact I had a coach who wants told me she was in marketing coach that I had heard she told me that I gave away too much information if live starter well that was the beginning of the end of my relationship with that coach

because I want to give away too much information I want to get you started

alright I’m doing fine with the fixing and flipping business I don’t need to make my millions and education.

We do this as an ongoing part of the service that we provide and you know some people do one

additional mentoring and that’s fine we’re glad to help and that’s what we’re here for to that end we have lunch every Wednesday and a networking situation we sponsor lunch every Wednesday at Huey luey’s in Sandy Springs Georgia and once you invite someone invite you to come on out and have lunch with us if you want to end in this Thursday night

this Thursday night is our monthly meeting of the flipping Atlanta chapter of flipping America and

this Thursday night the speaker is none other than me myself and I I’m going to be talking about opportunity spotting how to find the next big thing in real estate.

[10:27] 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 flip starter 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 of living houses I’m Rodger 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 per year.

[11:23] 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 flip starter event.com.

[11:45] Music.

[12:03] Okay we’re back and let’s take a couple minutes right now.

And talk about what’s going on in the world of real estate let’s do the news as I mentioned in the opening we’ve got several indications that the markets are starting


I’ve got from ktvu.com the market is Shifting in the South Bay Area this is in San Francisco area in San Jose

that is becoming a buyer’s market also I have similar stories out of Denver and Seattle and a little bit from Dallas

the interest is Cooling and this is happening especially in the high-end and you know there are multiple stories out about mega mansions and many mansions that are undergoing price reduction Realtors from across country

reporting to me that the luxury market is soft that you’re going to expect to hold on to it for a minute and then drop the price

and one example in this is more anecdotal than really anything that reveals that a real Trend Michael Jordan has had his house in Chicago on the market for a while.

[13:14] And I started out of 50 million and he’s down to less than 25 million and still not getting any bites and.

You know there’s a sad story on realtor.com right now about the Pillsbury Mansion a developer investor bought that from the family wave way back in 1992,

spend millions of dollars trying to fix it up and sell it and he’s had it on the market for years and years and finally he gave up

and for some reason that was not real in the story.

[13:44] Demolished the entire place after spending Millions on it I don’t understand that and it seems a shame to me but.

That’s what’s going on at the super high end things are not selling we’re seeing this

in the coastal areas that I’ve been telling you for a while here on the show or overheated prices are starting to come back just as predicted and D Fuller,

they’re trying to sell their homes are having to reduce the prices sometimes multiple reductions and they’re holding on to them longer than they ever really thought they were going to have to just to get them sold because.

Times have changed all right the market is Shifting now.

[14:24] And I do have the story and I’ll post this on social media from Australia

you know the market could be good it could be bad or could be ugly and the only way that the guy.

Can get it too ugly is to propose shut down in the issuing of new building permits and at that point he says it’ll get ugly of course that’s not likely to happen

that’s okay if you’re just trying to scare people that are reading you can propose in you know hypothetical situation that is

not likely or remotely likely and then you’ll go from there and fill up your story with scare tactics which is what it is,

sometimes we just have to call him like we see him not everybody that’s actually doing writing for news outlets is actually reporting on anything true sometimes they’re just trying to make a point and I want to encourage you again,

to make sure when you read the news you watch for those signs of bias and someone trying to prove a point.

With sometimes mixed results and backed as I pointed out here on the show sometimes they put one thing in the headline and then they proceeded to do their peace and the piece itself disproves the premise of the headline

it’s amazing to me that they

continue to do this and editors kind of overlooked it or maybe that’s just a statement about the quality of Education these days I don’t know but it seems a little dumb and way too obvious to me.

[15:48] Then I got an interesting story from the Seattle Times about what Millennials are looking for in homes and how might it be different Millennials are beginning to buy homes

they’re starting this process at a later age then you know the preceding Generations but that’s alright they’re getting it now.

And they’re beginning to move out of the urban areas and.

And where they want to be in the suburbs with safe areas and good schools and yards for their kids to play in all of those are you no good signs.

And it’s a normal part of life in America I think but there are a couple of little differences.

[16:23] The preceding Generations like the idea of moving into gated communities with and the focus was on a minute he’s in the community like tennis and pool like a community pools boy in the in them.

90s in the early aughts that was a big thing you know your subdivision had to have a pool and and tennis court and it was better if it was gated.

The Millennials want.

[16:50] They want access to restaurants and bars and opportunities for them to continue to pretend that they’re young I guess and I need to get out and to socialize and now I don’t find me fall of that everyone is entitled to

be a product of their own generation right so that’s what they’re interested in and.

They’re not as interested in the tennis courts and if they wanted to play tennis they would go to a large Center that has multiple.

Tennis courts work everybody pays for the privilege of playing and they don’t want to be in the communities where everybody pays for

do you know the two residents in the neighborhood who actually use the tennis courts I get that and they do value the idea of being able to hang out with her friends and and to gather and you know


For most of my adult life walkability has not been a factor in the way we look at buying houses but now even my wife and I as we

consider places that where we want to you don’t lay our heads down at night we consider walkability what can we walk to

one of the things we love about the high-rise life in midtown Atlanta is we can take the elevator down to the ground floor and we can just start walking in any direction pretty much and in a couple of minutes we’re going to be at some

he knows three to five star restaurant or some interesting place that has a little bit of Pinot entertainment value to it or just a place to gather and sit and talk with friends.

[18:20] That’s right around us all around us and you know if we were out in the burbs we have to get the car to go to any place like that and you know we we don’t have anything against chain restaurants.

In The Burbs that’s pretty much all you have and we like the little one off and sometimes we like the little hole-in-the-wall places that things have their own unique character that’s all the great part about living in the city we don’t have to worry about children in the yard all the children are grown

and mostly gone and so that’s that’s the stage of Life worrying but this was really a comment about walkability the.

Millennials are moving to the suburbs but they still want some things within very close range even out there in The Burbs so as you’re thinking about,

you’re buying audience if you’re in the single-family home business senior fixing and flipping when you’re thinking about this.

Make that another little consideration in fact it may that may work its way into the.

Flipping America property great at one of these days we met at another factor for walkability.

[19:28] Now I know that we just did a show on list but

I went last week to hear a talk and yes the flipping America guy still goes and gets educated and I went to hear a talk with him by a young man who is in the air B&B Market in this is his real estate investing strategy and he’s he’s got a whole

Life Plan built around Air B&B was fascinating to listen to and that got me thinking about you know where would you want to own Airbnb course I think we’re going to end up doing an entire show on,

the Airbnb so hang on to that but it got me looking around for.

Possible places to own an Airbnb and Krishna I’m thinking vacation Mark at the one of the things I learned is if you have a.

[20:16] An area that is a.

Destination for business Travelers that can be a lucrative Airbnb Market as well business Travelers coming to town they don’t necessarily need to you no four-bedroom house but they might.

Would enjoy a two bedroom one bathroom or two bedroom two bathroom smaller house but it’s fully outfitted with the kitchen is comfortable there is

a driveway for them to park the rental car and they’re going to be in working all week at this is a big thing in Atlanta and I think it’s a growing thing another cities as well but I got to looking at you know.

Ideal spots you know kind of vacation spots

so I pulled up a list off of realtor.com of second home do you know what a top 10 list of second home communities and I was surprised at some of the city’s on here and I don’t I have to say I’m not necessarily convinced.

[21:05] All right but I will share this with you anyway because they

seem to have a reason and is based on an annualized rate of return and I need to look into a little bit more about what the same as rate of return means some of the cities on this list of Ideal second home locations

that’s what it really what it is is ideal second home locations some of these are understandable and some of them are not for example here’s one that I am not sure I get.

[21:30] Traverse City Michigan alright dance so it’s on the lake but you know.

It’s enjoyable for three months out of the year and the rest of the time wow especially in the winter time wow double wow.

You’re not going on vacation Traverse City Michigan more than a few months out of the year and the same thing is for number to Claremont New Hampshire.

How many of you have booked your vacation to Claremont New Hampshire no offense to Claremont New Hampshire I’m sure it’s a wonderful town but really is it a vacation destination.

[22:02] Then Clearlake California okay I get this is just a couple of hours North San Francisco you got Clear Lake and you got fordable housing right on the lake that one I get

number for another one I don’t get and I guess it’s because I have been admitted bias toward warmer weather places but Brainerd Minnesota is number 4

Brainerd Minnesota it’s about 2 hours north of Minneapolis which.

Ditto for those of us in Deep South that is just about 2 hours south of the frozen tundra you know you’re going to be spending most of the Year either too cold to do anything outdoors,

okay you can go hunting then you can go snowmobiling but when I think of doing things outdoors I think of golfing and motorcycling course anyway.

[22:51] Brainerd Minnesota

maybe people are going on vacation to Brainerd Minnesota this one I get this is Port St Lucie Florida hey Port St Lucie where on the air in Port St Lucie and so

you’re one of the destinations that I do understand on this this is a place where people can own and people could go on vacation there

number 6 is Bend Oregon now I’m not really sure about this one.

My own dad owned property in Bend Oregon for years we had some Tax Strategies around that that we won’t go into right now but

Bend Oregon is out kind of in the middle of nowhere and I’m not sure what the tourist attractions there.

And then there’s Aberdeen Washington same kind of a thing it’s a sleepy little Beach town in Pacific Northwest but it’s beginning to gain some renowned and also prices are starting to go up

because retirees from Portland Oregon and Seattle are are discovering this area so it.

It might be a place to consider but you know if you ever been to the beach in the Pacific Northwest.

[23:57] The Pacific Ocean is bitterly cold you’re not going to go swimming.

Okay some Hardy individuals may you know I want to come out there and serve but they’re going to serve with full body suits on.

[24:11] It just doesn’t seem like the beach

life that most of us think of them we think of the beach life all right not knocking it too much but knocking in a little bit and number a Tanaka a little bit also I had to look this one up Wenatchee Washington

Wenatchee Washington it’s okay

and and here I get to T’s realtor.com and that don’t do that very often but deep in central Washington at the foothills of the Cascade Cascade Range and along the Columbia river is this quiet town or vacationers go to unwind

that sounds kind of wonderful and the scenery looks

beautiful and it kind of reminds me of going to the mountains in North Georgia and so I can I can understand this the part that I’m teasing about is they say

2 hours.

It’s just 2 hours West of the city the lamp made me look it up because if you’re in Seattle if you go 2 hours West here in the Pacific Ocean so it’s actually 2 hours East of Seattle just a little dig their realtor.com,

it’s alright it’s just one of those things that the kind you could be easy to miss but when I cheat Washington they call it the Apple capital of the world well you know here in Georgia,

in the North Georgia Mountains with a lot of apples are grown and I lived for a few years in a town called Ellijay Georgia that is the Apple capital of Georgia of course you know.

[25:33] I guess it doesn’t take much to be the Apple capital of Georgia Georgia doesn’t produce that many apples Washington is renowned for its apples.

[25:41] And if we’re not she is in the center of that didn’t good for them all right number 9.

High low Hawaii okay I can kind of understand that I can understand anything in Hawaii never 10 I get also Key West Florida so there you have 10

the top 10 cities for owning second homes and I think some of those might be a profitable market for you if you wanted to own a vacation home as an Airbnb but some of these cold-weather things I would check out really what your possibilities are because

it just seems to me that you can’t make enough money in 3 months to balance out the the cost of ownership for a year

that’s just a you know I’ve got more research to do but I will be doing it and we will be doing a show on this topic coming up pretty soon.

[26:29] Then the last thing I’ve got from the news section today is from the commercial news market and just a story from The Press-Enterprise that

the commercial Market is cooling off as well and all this is a sign that

we are moving toward a balanced Market in commercial and residential okay now I’m in the opener I.

Ask the question what does this mean to all of us how does it affect us who are investing in real estate all right if you are possibly investing in real estate do you need to pay attention to the returns that

you’re getting of course but you need to look at Trends I would say I would encourage you to possibly avoid,

reach that are heavily invested in shopping centers and shopping malls and you know I’m

I’m not saying you know the online shopping experience seems to be like a big scary think it only accounts for about 15% of sales but that 15% is a significant number so it Bears watching

when it comes to single family homes in and let me just talk to active investors for a minute if you’re out there beating the streets looking for possible deals and you’re worried about the market and what it means and that sort of thing

just know this there’s always something challenging in real estate investing and there’s always a counteract

2 over counter or another side of the coin that means that there’s something good.

[27:51] So the markets loosening up it’s getting harder to sell homes but it’s getting easier to find homes and buy homes so Advocate and and work hard and try to get your purchases done for the lowest possible price and then on the other side.

You’re going to have to be aggressive in your pricing to sell the property.

That’s what it means it doesn’t matter what the markets doing as long as you’re doing the right thing and buying it right what not to do in real estate investing.

[28:21] Music.

[28:54] Do you want to learn how to flip houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them.

And I also have some training and degree and experience and education so I can 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 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.

[29:43] He has a clear concise program and many tools that are going to be very healthy.

[29:49] And starting and managing a program and the mentorship and Leadership and coaching that he’s offering our invaluable.

Thank you so much Rodger for your time and sharing

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

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

Protect it for a number of legal issues and assistance with common legal 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.

[30:47] Music.

[31:14] And we’re back I’m Rodger Blankenship I am the flipping America guy and I teach people how to make money in real estate.

We here at flipping America are training the next generation of real estate millionaires you want to be one come on join the journey with us.

This show doesn’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV but we do encourage everyone to consider real estate as a part of the balance.

Investment Portfolio and to that end we are absolutely committed to bringing you the finest information news demographic stories trends.

And predictions about the market.

[31:51] You can find anywhere plus we’re committed to answering your questions we answered 100% of the questions that come into the show we do not charge for this service.

It’s completely free.

And we will continue to answer every question that comes into the show as for as long as we are able we are not yet overwhelmed so.

Questions coming folks and then do questions at flipping America network.com that’s questions at flipping America Network.

I come or if you just want to call in with your question you can call our national hotline at 404-369-1018

extension one so we want to hear your questions we we love getting your comments and if you have observations or if you have scam alerts or anything like that about real estate

help us keep everybody informed by either emailing or calling in now I’m going to spend some time.

[32:47] Dealing with one of my favorite questions that I’ve ever received here at flipping America.

And the question is from Monica in Macon and she says how about giving us a list of things we should not do and so here goes

I have given some thought to this and I’ve created I thought it would be a top 10 list then it got the 15 and then I threw one in there just extra so we have the top 16 things of what not to do

in real estate investing

so here they come with a little musical Sounder all right stop 16 things of what not to do in real estate investing number one.

Do not pay $30,000 to learn how to flip houses.

[33:36] I can’t tell you how many people I have spoken with who have paid.

$30,000 or more and have learned nothing and have done nothing with it my friends.

If you just pay attention you can get into a deal for $30,000.

Sometimes you can buy an entire property for $30,000.

Come on you’ll learn more by doing it then you will by 10:30 Grand to take an online course you know who benefits when you pay $30,000 to learn how to flip houses the person selling you the course that’s who.

Not necessarily you okay full disclosure.

[34:19] I actually bought one of these courses for the girl that the lady that is now my wife why.

Because she wanted to get in this business she wanted me to teach her how I didn’t have time I had 60 houses in inventory and we were flipping a hundred houses a year

and I just didn’t have time to sit down and explain what we were doing

and so we went to one of these seminars and at that time it was 25,000 so I wrote a check and paid the $25,000 and said here you go.


And so I know first-hand my wife is a wonderful person as one of the most disciplined individuals I’ve ever seen and she made it about 2/3 of the way through this course and said you know what this just really isn’t for me please don’t get your feelings hurt my feelings weren’t hurt

that’s okay and she didn’t finish the course and you know she hasn’t bought an investment house and that’s okay she learned that she.

That that it was not for her but you don’t have to spend 25 or $30,000 you know what you need to do you need to,

go to flipping America network.com and click on the little blue button at the top of every page that says click here for a free strategy call you know what we’re going to do in the strategy called we are not going to try to sell you anything

what we’re going to do is ask you a series of questions to help you kind of sort out where you are and maybe what you should be thinking about.

[35:40] All right and we do this absolutely free why do we do this

because we are committed to giving you the information that you need and one thing that you need to know is you do not need to pay $30,000 to learn how to flip houses.

[35:57] Number to don’t stumble into this business with no knowledge just don’t do it.

[36:04] You you could do it and actually end up okay I’ve known some that have.

But you also could make a big mistake and you know the old saying one sure way to make 2 million dollars in real estate does it start with four million dollars.

Right it’s a.

[36:26] And it’s very easy to make mistakes in this business and if it is specially if you take on a sizable project okay on the other hand there’s not.

$30,000 resume information that you need to have you need to have some basic information about how to buy it and if you have business experience or if you have construction experience you have in the edge but if you don’t have that get yourself educated

there’s a lot of information you can get on the internet for free you can come to flip starter for $200 and you can learn everything you need to know to start your business seriously.

[36:59] Alright so you owe it to yourself if you want to be in this business to get some knowledge the internet

can’t always be trusted but there is a vast repository of information on the internet news and information that you can use in order to make sure that you are doing the right thing

for your real estate investing career.

[37:23] So number three do not risk your money without understanding the risks.

I wrote a story for Forbes on phone.

Probably 6 or 8 months ago on the top 10 risks of flipping houses and how to mitigate those risk there are risks and you know I could summarize it this way you know things.

Take longer than you think they’re going to take they cost more than you think you’re going to cost and you usually end up selling for less than you thought you would.

[37:56] When you put all of the wrist together.

You run the risk of not only not making money but losing money you have to know where the risk points are and you have to understand what that is and you should do that before you risk your money never for.

[38:11] Do not automatically trust another person’s conclusions.

[38:15] All right I am saying don’t trust your realtor now I’m not saying don’t trust their integrity.

[38:22] I’m saying don’t automatically trust them to have the right number because coming up with the right number.

I own a RV or what you going to sell the property for is as much art as it is science

the realtor needs to have a very good knowledge of the market so I’m but I’m saying is do not automatically trust now I have a certain realtors that I trust.

And when they give me the number I don’t even question them I just go with it why do I trust them it was an automatic they prove themselves to me and so that’s what I want you to do the same is true and especially true if you’re dealing with a wholesaler.

A person who is trying to sell you a house they have under contract they’re just wanted to assign the contract.

Wholesalers know the formula they know you’re buying rules say they know what numbers need to get there and a lot of times they have no idea what it actually takes to repair a house they don’t repair house is there wholesalers

alright so they don’t really know what it takes but they know what number they need to put on their sales flyer to make you interested and that’s the number that they put

what you mean they would intentionally mislead you you know actually that happens sometimes I know you may find this hard to believe but sometimes people are intentionally misleading.

[39:36] And sometimes people are just not entirely informed or competent.

Either way you should not automatically trust anyone and I include in their the flipping America guy me.

Don’t automatically trust everything I’m saying go verify it for yourself read the stories that we post and maybe you’ll come to the same conclusion maybe you’ll come to a different conclusion believe it or not but not everyone agrees with me.

[40:07] And you’re not obligated to agree with me simply because you’re listening don’t automatically trust anything anyone says to you including me if someone says well that house is worth $189,000 don’t automatically believe them.

Unless they have come to but prove themselves in a reliable to you and some other way but.

When it comes to giving you the value of a home in a particular area I don’t trust myself.

[40:36] And I know how to look at the numbers I don’t make a decision to buy

simply based on my own research I always have a realtor that I either trust or I am watching to get to look over my shoulders and make sure that my numbers are right before I buy.

Why do I do that because you know.

I don’t look in one particular area you know we buy all across the southeastern United States.

And for that reason we can’t be specialist in one area or neighborhood I have investor friends who.

Their practice is to stay in one neighborhood or one area and they know it they know it like the back of their hand and this what they teach others should do and foremost the most part that’s fine

most of them don’t have a nationally syndicated radio show that you know gets them opportunities all over the country and that’s fine for the average person stay in your area know that area

and sold out

for that reason I would say don’t trust the flipping America guy when it comes to values because I don’t trust myself I always bring local knowledge in on.

The Experience just to make sure that we’re doing the right thing I number 5 don’t invest counting on an optimal experience.

[41:57] Things happen all right sometimes things go wrong.

I want you to think about the things that could go wrong and do some what is scenarios and I want you to invest based on a sub-optimal experience.

[42:14] Instead of dinos in your imagination spending.

$60,000 that you’re going to make and then daydreaming about the things you’ll do with that extra money imagine that deal you know going south a little bit and seeing the implications and all and we’re not going to make 60 we might make 20

and kind of focus on that and then if you’re not making 25 or if you meant to make them 30 that’s just gravy even then you know.

You really shouldn’t spend time daydreaming what you’re going to spend the money on because you need to focus on the fact that you got to pay taxes out of it and you need to give at least 10% of that to charity or your church or something and so think about living on.

Think about what you might do with 40% of what you think you might make in a sub-optimal experience and your life is going to go a lot better if you get in the habit of investing

based on an optimal experience sooner or later you going to pay too much for something and you’re going to get burned.

[43:13] Number 6 do not let emotions direct your decision.

[43:18] People say trust your instincts people say trust your gut I will say your instincts are your gut plays a role but that role is not director I refer you back to the show we did not trusting your emotions don’t.

Don’t deny them don’t rule them out but.

Facts and logic should lead you to action and not emotion I have watched people buy houses because they love the house and in the

not making any money I watch people buy houses because they

they were feeling spiteful because someone was about to add outbid them at the auction I kid you not if you’ve been to any auctions you probably seen this happen people get emotional and they paid too much,

you cannot let the emotions direct you specially in the situation like that you will regret it.

[44:11] Instead use facts and logic.

And use facts and logic to evaluate your emotions if your emotions are saying do this then ask yourself the question why are you emotions why are you saying do this and be honest with yourself.

So let the emotions feel what you feel that’s all right but don’t let them direct you number 7.

Do not fail to establish and understand you’re buying criteria.

[44:43] Now we’ve got to go to a break when we come back I’ll elaborate on that a little bit more you’re buying criteria what is it you got to know it and you got to understand it will be right back.

Not too long ago we did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.

[45:07] Peter Faulkner here I send it a one day flip starter training session led by Rodger.

[45:14] And I was amazed to see what has happened in Rogers Live from the last $15 plus years.

[45:20] Music.

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[46:40] Music.

[46:50] Do not fail to understand and to establish and understand you’re buying criteria we got formulas for buying rental houses and we’ve got formulas for buying flip houses and we stick

we understand and we know why they’re there we know why those numbers work

and that gets his tooth number 8 in our list of what not to do when buying houses or investing in real estate don’t violate your buying criteria

just don’t it when we go over the margin I’m not going over the formulas now that’s a different show and different videos and courses and if we’ve got here but.

[47:27] When you know you’re buying criteria just stick with it and don’t.

Violate your own criteria unless you know specifically when it’s okay.

There are times when we will violate our rules about margin those times include but are not limited to when we’re dealing with very high end properties we met.

Be willing to relax a little bit on the margin because the profit numbers will be so strong keeping in mind that.

I’m very high in properties we’re going to be holding them longer server holding costs are going to be more based on our daily cost which course we have that boiled down to a formula as well.

And then we also sometimes when we are doing creative deal structuring we will.

Operating on a different set of buying criteria when I really violating are buying criteria but if you looked at it on the surface she would look like we’re violating one of our rules about the margin but

when were using creative deal structuring we have a different set of margin rules that were looking at based on the amount of cash that’s put in

so we have it all broken down and we understand what we’re doing and if you don’t understand.

When it’s okay to violate your rules then don’t ever break them.

[48:46] All right number 9 don’t make hiring decisions based on first impressions.

[48:53] You know first impressions are Lasting Impressions and they’re not always right.

It’s easy to fool Somebody To You know if you’re if that’s what you’re sitting out to do based on the first impression now,

because we know that people often make decisions based on First Impressions we try to make First Impressions a good one

this goes all the way back to my youth when I was in school and I’ve taught my kids this hey we need likes wrestling College when you get into a course with a new professor who doesn’t know you know in high school and so forth that the teachers all

I knew who you were you know you kind of had a rich Babyface Never Said you sometimes spit if there is a new teacher then

bust your fanny the first 3 weeks and and

turn every project in early and Ace those tests and just knock them out of the park because that.

Professor will get the idea that you’re an a student which is the ideal you want to put in their mind that first impression and then later on when you need a little slack cut are they more likely to cut slack

talk to some of the thing this snow is an a student or someone who you know barely puts out and you know is you can buy with a c minus.

[50:03] They’re going to be more inclined if they would ever cut slack they’re going to cut slack to the a student right so.

Establish right from the beginning make a good first impression however do not fall prey to this don’t make your hiring decisions based on first impressions

I’m you can get a good first impression from most of the Realtors and most of the contractors that you meet but before you hire them you need to check out what is their performance actually it’s easy to talk a good game it’s quite different when that game is on the line.

[50:35] Ancho what is the performance of this individual.

Okay don’t make hiring decisions based on First Impressions number 10 don’t wait for the perfect deal.

Oh man oh man I wish I could say this loud and clear maybe you should be number one don’t wait for the perfect deal so many people that are out there wanting to get into this game or waiting for the,

the perfect deal because you know I understand the reasons the motivation you don’t want to lose money on your first deal.

I get it but if you wait for the perfect deal.

It’s going to be a while and maybe a year maybe longer before you get into that first deal because there are very few perfect deals there is something wrong with nearly every deal or something that can go wrong with nearly every deal

and so as if you’re working with a mentor you need to understand

the imperfections of a deal and which ones could be addressed which ones could be corrected and which ones are what we sometimes called irreconcilable defects that have to do with things about the property you cannot change.

[51:41] Here’s an example of an irreconcilable defect the property is

is on a lot that backs up to an interstate highway and so you live the occupants of the house will live 24/7

with the constant little dull Roar of the interstate highway which turns to a whooshing sound when it rains

and that is going to be something that affects and

not everyone is actually even tune into this in the city environment but it’s going to affect the certain number of buyers however there’s nothing you can do about that.

Okay there’s a difference between that and a bad lay out to the basement remodel because.

In theory anyway the bad basement remodel could be addressed you can address the location of the property but you can address a lot of other things about it so you don’t wait for the perfect deal.

[52:38] But you do understand.

The difference is between the things that are wrong with the property okay number 11 don’t wait until you believe you are ready to do a great job.

[52:51] The fact is your first effort will be like the first time you tried to skate.

Very few people were really good at it when they jumped out there for the first time we wheels on their feet all right but.

Do you do a passable job you do okay do you learn a few things and then next time you do better.

[53:11] And did this is so true of anything that you do in life any skill that you acquire it’s like anything else get enough information to do an okay job then get out there and you’ll learn and do better because you’re doing.

You know I’m at Laidlaw Sports and I practice a lot of piano.

[53:31] And this particular when it comes to sports you’re not really getting better at practice you get better in at game speed and so now you need to get into the game and you’re going to get better.

[53:45] Number 12 don’t lock yourself into anyone method if my only tool is a hammer than every problem looks like a nail.

[53:56] If you only have one tool in your toolbox then you’re going to be trying to use that in every situation and some situation it just doesn’t work

because you’re not going to advance or screw very far with a hammer you need a screwdriver so you need to have a couple of different methods in your toolbox for.

Acquiring Properties or selling properties you need to have some of this knowledge out there don’t lock yourself into 1 methods that’s why we do creative dealmakers every Wednesday at lunch

we don’t always get into some creative deal situation Jack most time we don’t but the the purpose of it is if somebody has a situation that requires some creativity I’ve got some experience and creative deal-making and I’m glad to share.

All right number 13 don’t stop learning.

[54:44] I think I shared with you earlier in the show that I just went to a little evening there was a real group on the Airbnb strategy.

10 years ago that wasn’t a thing however it is now.

And not only is it a thing it’s a way to make money 10 years ago I looked at second home and you know doing cabin rentals and there was no way to make it pay.

But with the Airbnb there is a way that makes it pay and it pays well and it most of the time is a better alternative than just renting out your property to.

Tenant to live there year-round so.

There’s always something new coming down the pike and you owe it to yourself to keep learning and of course.

We need to keep learning about things that have been around for a hundred years as well so never stop learning number 14 don’t stop improving.

[55:42] Always thinking about how to get better at what you’re doing always always working to improve to.

Maybe structure this deal better maybe do that paperwork better maybe get a better quote maybe get home then on your numbers there’s always room for improvement and.

So don’t stop improving number 15.

[56:06] Did I was I was going through these things and you know I did I said. Don’t stop learning don’t stop improving and all the sudden I don’t stop.

Thinking about tomorrow and you know the Fleetwood Mac song Don’t stop thinking about tomorrow for real because what are you investing for your investing for your future right.

And who was your hero you 5 years from now and so you’re investing with the future in mind and so don’t stop thinking about it

don’t stop thinking about what you’re really pressing on for because that’s going to help you get through the hard days that’s going to help make things a little easier when they’re difficult because you’re focusing on the future so I ain’t no good song and a great thought

to wrap up our top 15

things that you should not do in the real estate investing game and I told you that I had a bonus and here is the bonus

the bonus is don’t pay $50,000 to anyone to teach you the Fix and Flip business

yeah I know whenever number one was don’t pay 30000 but you know 30,000 isn’t.

The hit the number that some of them go for sometimes it’s $50,000 this just blows my mind now I want to flip this around for a minute and just think about 50,000 just a minute.

[57:27] You pay a lot more than $50,000 to get a college degree in fact you know the app

average cost of a college education now is well over $120,000 and what do you get an exchange for that you can come out with a bunch of college debt and you can get yourself a job for 30 $40,000 a year maybe $50,000 year was a possibility of working your way up

people do that they make that trade all the time

if you could pay $50,000 and end up with a job that paid your half a million a year that seems like it would be a good thing and that would be a good thing

the problem is the people that are charging you $50,000 to learn this business they’re not getting you there.

They’re succeeding less than 10% of the time in fact most of them less than 5% of the time.

Will see their students pay all that money and then get out there and make the money but you don’t have to do it.

Please just stay tuned to flipping America will show you how to do it with a lot less money and a lot less time.

[58:24] Speaking of time we’re out of it for today will be back again very soon see you.

[58:28] Music.

[58:52] We don’t have an attribution for today’s quote but it’s a great one don’t talk just act.

Don’t say just show don’t promise just prove.

And this thought is brought to you by the foundation for Renewal working together with communities across this great country of ours to bring lasting impact and life changed find them on the web at renewal fund. Net.

And your gifts are the tax deductible and very much appreciated will see you soon.

[59:20] Music.

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