With Brian Dally of GroundFloor Funding
Brian Dally, Ground Floor Funding
Expected Air Date: 2/2/19
Brian Dally, founder of GroudFloor joins us today to talk about crowd funding and crowdfunded real estate investing.
A little over a year ago we asked everyone in our group what were their biggest needs in their real estate investing work. They were:
- Money to do the deals.
- Help, advice, mentoring for the opportunities they were considering.
You spoke — we heard you. As you may have heard, the Flipping America Network is about to be released in the wild. This is the Buying platform for real estate investors nationwide. Post your property in the FAN and it will be seen by hundreds (we hope thousands) of investors including possibly someone in your zip code. My dream is that one day anyone can jump into the FAN and find a deal.
- The FAN connects real estate investor buyers with actual properties (no dummy listings).
- The FAN allows wholesalers to post their properties. There’s no need to build buyers lists, and maintain mailing list programs. Focus on deal flow.
- The FAN allows homeowners to list their home for sale providing a direct connection to cash buyers.
- Buyers can reserved 48 hour exclusive access to their favorite ZIP codes.
So that’s deal flow.
How about the money?
At this moment, there are literally billions of dollars available to real estate investors. Just in my Atlanta network we get contacted by a new hard money source nearly every week. It is NOT difficult to find. However, it can be a challenge to afford. Wait, if I’m borrowing the money for a project, what is there to afford? First you have to make a downpayment, usually 10-20% of the purchase price. Then you have to pay the loan origination fees up front. On just an average loan this can be $25,000. You will probably have to keep three months of payments in your bank account so that could be another 6-10 thousand. And you have to make those monthly payments. So how many of these can you do at one time? For most people it’s ONE. If they can afford anything that’s all they can afford. That means if you hustle and finish in six months you can do two projects in one year. If you make 40k in each deal after expenses, it’s a decent year. But I bet you’re not ready to quit your day job yet.
Enter the Flipping America Fund, working with DT Investments. We are looking nationwide for qualified operating partners who choose to become a part of our family and access funding for their deals. In short — we put up the money — you do the work — and we split the profit. If you have the contracting and management capacity, there is virtually no limit to the number of deals you can do. Your net take away from each deal may be less, but suppose it’s 30 thousand instead of 40. And suppose you can do ten deals a year instead of 2. I think you see the advantage.
This opportunity isn’t for just anyone. We have to be persuaded that you are a good fit with us. You’ll need to demonstrate proficiency in flipping. Although designed for experienced and effective investors, There is a possibility we will fund newer people as well, but there will be more hoops to jump through and possibly a training requirement.
This funding model has always been a part of our vision here at Flipping America but we have been rolling it out carefully, slowly, and with many tweaks to the program while operating at a small scale. We believe we are ready now to scale this and it’s about to happen.
My guest today is Brian Dally, co-founder of Ground Floor Funding. Ground Floor is an innovative crowd-funded platform that allows passive investors the opportunity to be involved in the activity of people flipping houses. It’s a cool platform and you can make good returns on your money there. We will talk about Ground Floor and it’s operations, but in the second segment of our interview, Brian and I are going to announce one of the biggest developments in the history of Flipping America – a joint venture project. In about three months you will be able to go onto Ground Floor’s website and invest in the Flipping America fund, which will spread your investment over a number of projects being completed by our Flipping America Operators nationwide. And as we split the profits with our Operators, this return will create a dividend for you. Stay tuned and you’ll hear about this incredible opportunity.
How to contact us
Twitter and Instagram @FlippingAmerica
We now have a profile at houzz.com for what it’s worth.
Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.
- Lunch with me every Wednesday. Baraonda
- The FAN is rolling out very soon. First quarter for sure, possibly within the next six weeks. It’s an online property marketplace for investors. Free to use with a small technology fee when you buy a property. Wholesalers no longer need to build a buyers list. Just log on and a massive buyers’ list is waiting for your property. Rehabbers can look at the deals, the pictures, the information on the property, and make a decision. You can also reserve your zip code and get 48 hours of exclusive access to all new listings in that zip code. Homeowners – you can list your property in the FAN for free and get an all cash offer very quickly.
- Hey would you buy me lunch just so you could pick my brain? For less than the price of that lunch, just $9.67 per month, you can have a whole month’s worth of my brain pickings by joining the Premium membership. Just go to flippingamericanetwork.com and click on the FAN. On this show I keep a pretty narrow focus on real estate and small business development. But if you subscribe to my FAN premium blog you’ll find out what I think about a wide variety of topics. I will do my best to give you a $10 or $100 idea with every post and I WILL be talking about real estate, but I’m going to weigh in on some other topics as well. Which topics? Whatever interests me. And I have a wide range of interests. Coming up in the next few weeks I’m going to weigh in on the immigration debate, I’ll be talking about the notion that “you shouldn’t listen to what anyone says, just be yourself.” (one of the more misguided ideas of our time). And I’m going to spend a little time talking about how we learn because we should be making that part of our life journey. I’ll tell you the books I’m reading, the thoughts I’m thinking and the way I’m taking my business.All for less than it would cost you to buy me lunch.
- First Thursdays, Join us at 7:30 pm on Facebook live for free. Next up, Deonna Britt, founder of LawClerk on Demand
- Jan 31, BnB Formula Webinar
- March 16-17, FlipStarter, www.flipstarterevent.com.
- My calendar hit Amazon this week. It’s called the GMS Planner. GMS stands for Goals, Milestones, and Steps. It’s a system I developed for my own use several years ago and after listening to my friends and business associates tell me I should be selling it, we started producing it for the help and benefit of others.
- Now for the really big announcement. Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $10. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 6% preferred rate of return and can go as high as 20%. We have some hoops to jump through at the SEC, which is not open right now but it can’t stay closed forever, right? Once the government reopens we will be about 60 days from launch of this new venture. You can make money with me, the Flipping America Guy.
- Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
- Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
- Zeke, Baltimore, MD. “I went to your website to look at the inexpensive houses you’ve talked about and there is only one house there. Will you be getting more? Is this going to continue?”
- Annalie, Centralia, IL , “I saw you have a house in Du Quoin, about 45 miles away from here. I want to know how you, in Atlanta, GA found a house in Du Quoin, IL. And why would you buy it? I’m just curious.”
- Stanley, Villages of Ocala, FL “I’m always interested in low priced properties and like the cheap houses, but how do you make repairs on a house hundreds of miles away, and how do you look after the tenants?”
- Allison, Pittsburgh, PA, “I researched a couple of the houses you had on the site before they were sold off. You’re asking 10,000 and they are only worth $25-30k and they need work. It doesn’t seem like the numbers add up for a flip property.”
- Buck, Macon GA “What minimum credit score should the people have in these inexpensive houses for me to sell to them? And how do I find that out?”
- Madison, Milwaukee, PA “How do you collect the payment for these inexpensive houses? Do they mail a check? I’m imagining the hassle of dealing with returned checks over long distances, etc. It makes me uneasy.”
Motivational Thoughts for the day
- “People often say that motivation doesn’t last. Well, neither does bathing — that’s why we recommend it daily.” –Zig Ziglar