Opening:

We are back into my book today – Flipping Houses in Ten Days, due out later this year. Today I’m reading the last two Chapters. Chapter Nine is about building your Power Team – wholesalers, bird-dogs, Realtors, attorneys, accountant, software and hardware. We are into the summer time, which is peak selling season. I hope you have your houses on the market or almost ready to be on the market. 

I want to say a special thanks to my friends at Auction.com for having me speak at their investor breakfast last Saturday morning. I had a great time, met some new people, and enjoyed a fine morning together. 

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

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

Email your questions to questions@rogerblankenship.com. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind. 

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. 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 8% preferred rate of return and can go as high as 16%. 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.  

News:

Real Estate News–

Rising rents for Millennials give rise to a new breed of lender

CIM Group has announced that its $5 billion development of apartments, offices, hotels and retail at The Gulch will be called Centennial Yards.

National News

Do you consider your home a great investment?

26 year old millionaire investor talks about the mistakes he made while buying homes – Buy the Cheapest house in the hood. 

International News

Real Estate firm names the top cities for risk-seeking investors

China-owned tower in New York City reportedly wouldn’t let Amnesty International move in

Venture Capital flows between China and the US surpass direct investment for the first time

Topic: The 10-Day Flipper 

Your Questions: Send emails to questions@rogerblankenship.com

• Fred, Evansville, IN, “Does it really matter what kind of paint I use on the exterior of my flip? I just want it to look good for the next month while I sell it.”
• Candace, Atlanta, GA “I’m working on getting my real estate license in both GA and FL. I don’t have any money so I’m also planning to be a wholesaler. What would you recommend?”
• Cody, Phoenix, AZ “I have seven rentals which I manage myself. It feels like I’ve created another job for myself. When could or should I consider hiring a management company?”
• Terrence, Philadelphia, “I’m a Realtor here in Malvern and have been listening to your show for awhile. How can I mix investments with my work as a Realtor?
• Natalie, Centralia IL, “I bought a house using the subject-to method. My boyfriend broke up with me because he thinks it’s illegal and I’m some kind of a scammer. I know this is ok, but I wasn’t prepared to answer his criticism. I’m not trying to get him back – but I would like to have an answer to this.” Line 503
• Martin, Birmingham, AL “What do you do about the one year right of redemption on foreclosures in AL?”
• Judy, Waukesha, WI, “I heard someone say that if I buy ten rentals I can retire. Is that true? How would it work?”

Comment Line calls and Questions

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

Motivational Thoughts for the day

• “There is no amount of money that makes time irrelevant.”
  -Mark Dolfini

Ch 9-10

Expected Air Date: 6/3/19

Transcript

[0:00] Music.

[0:17] 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 a lower everyone that’s great to be talking about real estate.

Yeah we don’t talk about real estate 24/7 but we do for 3 hours a week here on Flipping America,

I am Roger Blankenship your host and I teach people how to make money in real estate now on the show we don’t encourage people to drop what they’re doing and go out and start flipping houses like you see on TV,

that’s not for everyone and even if you think you want to do it don’t quit your day job just yet,

all right go flip a house or to find out how it goes and see if this is something you really want to do but we do encourage everyone to have real estate as a part of a balanced Investment Portfolio

you can really make money in real estate with only three different broad categories of investing one of them is you know doing The Fix and Flip thing like you see on TV.

[1:38] This is why I call it the flip model where you buy something with the intent to resell it and make a profit

you can buy something with the intent to create ongoing income or cash flow from

that’s the second model that Buy and Hold strategy and the third strategy is invest in one of the other two now this can be

any asset class you can be anything from hotels to Office Buildings to apartment buildings to single family homes,

all of those asset classes you’re really have,

these three ways of making money by with the intent to resell at a profit by with the intent to create long-term cash flow or just invest in the activity of someone who is doing one of those down there are a thousand

subsets and varieties of each of these and we break it all down here for you on the show we obviously can’t talk about all of them all the time but that’s what we do,

about today on the show

we’re heading back into my forthcoming book flipping houses in 10 days due out later this year today I’m going to read the last two chapters chapter 9,

is about building your power team that is wholesalers burgdawgs Realtors occur attorneys accounting software and hardware and.

Chapter 10 is wrapping it all up.

[2:59] Now we’re end of the summer time which is Peak selling season I hope you have your house is on the market are almost ready to be on the market and if you have missed your opportunity to have something to sell or to rent during this time

do not despair my friends houses get sold all year round we even see a slight little uptick in December but.

Generally speaking this is the best time of the year to be selling a house so I hope that’s going well for you and I hope you let me know how it’s going.

I want to say a special thanks to my friends at auction.com for having me speak at their investor breakfast last Saturday morning I had a great time I met some people

and enjoyed a adjust a really fine morning together with you so thank you auction.com.

[3:46] If you want to reach out to us here at flipping America send your questions it could be questions about anything related to real estate or real estate investing send them to questions at

Roger Blankenship. Com questions at Roger Blankenship. Com if you don’t have access to an email and hey

we all pretty much have access to email right but my email went down on my phone over the weekend and just quit working for some reason and I don’t know I feel with it for a little while and everything I tried to do to fix it made it worse,

so I can understand maybe your without email for a minute or maybe you just don’t do email you can call us 404-369-1018,

and then press extension one for our national comment or question line that’s for 04369,

ten 18101 8 and leave your comment or question there.

[4:41] We appreciate all the comments and questions that come in via email not many people use the phone line yet that’s okay we’re just have it there and it’s available to you you know we use phone for other things we just dedicated an extension for that so,

let us know and here is my commitment we will answer your question we have answered every question that has ever come into the show,

some of the answers we put on the air last show we had Mark delfine and we had several questions lined up and just had him interact on that was a little bit of fun so

enjoy that but just so you could send your questions to us and we will get it answer don’t worry if you think we’ve heard the question a thousand times before.

[5:23] We probably have but we’ll answer it anyway because we know it’s your first time to ask

okay you can find us on the web at Roger Blankenship. Com you can also find

the show page at flipping America media on Facebook just when you get Facebook look up flipping America media

and then on Twitter and Instagram you can follow us at flipping America and please do follow us and you know

like something on our Facebook page I don’t understand why it helps but the young kids on our team tells me they tell me it helps and so we appreciate you helping us out by liking our stuff and following us on social media

and a lot of things get posted on social media we don’t have time to get to here on the show we have more stories about real estate than we what’s up I’m just not that interested in but will put them out there in case you are and tell him we just really

honestly just don’t have time to get to

okay couple more announcements were we do networking meetings in the city of Atlanta every Wednesday for lunch and every Thursday for dinner Wednesdays are at veronda Italian restaurant in the heart of Midtown

parking is validated so come on out from 11:30 to 1 if you come from out of town and tell me that you are

you’ve heard about it on the show and you’re from out of town your lunch is on me same thing goes for Thursday night except Thursday nights were at City Tap.

[6:49] City Tap in Midtown 848 Peachtree Street and you’ll find us there from 6:30 on don’t know exactly where we’re going to be we move around a little bit to accommodate City Tap.

[7:00] The other groups that they they sell to from time to time we may be in the corner on the main floor we may be in the room upstairs we may have the entire mezzanine upstairs you you never can tell just ask for the real estate meeting when you get to the house Stan,

and we’re always glad to see you and always good to help and answer your questions in any way that we can.

Coming up in a couple of minutes I’m going to lead with a story today about how basically a Payday Advance

company a new payday advance company they are branding themselves as something fresh and and appropriate for Millennials but basically there a payday advance company and they’re taking advantage of rising rent,

in metropolitan areas and this is a huge red flag folks and I’m going to wave the red flag in front of you in a few minutes and especially if you are

if you have kids that are getting out of collagen or thinking about where they’re going to live and how they’re going to manage.

Got to stay tuned for this story and China is in the news Chinese in the real estate news and I’m going to poke fun at,

an article from CNBC even though generally I like the CNBC real estate reporting

this one is it’s not really a knee slapper but there’s an interesting little contradiction between the headline and the content of the article so all that more coming up right after we pay a few bills.

[8:21] Music.

[8:47] What’s around the corner

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

[9:33] Many people are just now finding out that not only can leave with stocks mutual funds and gold in their Ira their Ira skin also invested up passing out of alternative assets like real estate mortgages tax liens Private Stock and the list goes on.

We are at the plan Benefit services in American Estate and Trust Company if the nation’s industry leader in self-directed Ira active Clan has been helping people sales director Ira as per yearly 35-year.

Go to full control irs.com for more information and to download the free guide that’s full control irs.com.

[10:03] Music.

[10:20] Joe picked up this article from realtor.com and the headline is rising rents for Millennials give rise to a new breed of Linder

I thought okay so we have a new lender I wonder if it’s some new kind of mortgage lender what it is but Fades basically it is a pay,

payday advance loan and it’s for their targeting young kids that are just getting out of school or just getting started in a career that can’t afford

where they live.

[10:52] They say it’s because the rents are too high and so they’re getting advances on the money that they’re about to make in the story one gentleman borrowed $10,000 from one of these companies to help him pay his rent while he gets established in his new life

I don’t know folks,

I think that there is a danger here and in some states you’re not going to believe this most of these charge around 20%,

on the interest on these loans,

but in some states they are legally allowed to charge what amounts to an annualized rate of 700%.

You heard it right that’s not a typo and I didn’t misspeak 700% in some states many are.

At the 20% rate which puts them kind of competitive credit cards but would you use credit cards to pay your rent come on people this is just financially unwise

in fact I would go as far as to say it is financially stupid.

[11:57] What we can’t afford to live in and pay these rats well don’t then go somewhere else go do what you can afford.

[12:07] All right now I grew up in a generation and then in anal I was young once and I heard the fake it till you make it and all of that but I think you’re better off just trying to make it.

[12:19] I wish that you hadn’t gotten into such debt with your college student loans and definitely don’t compound the problem the problem with this because what’s going to happen I think is.

If these These Things become popular and I’m not even going to name the name of this provider.

But if these things become popular in a few years you’re going to see a lot of young people ruining their credit by defaulting on these loans and you’re going to hear a cry from our politicians for us to,

get loan forgiveness for these are maybe maybe the next thing after free college is we have to give them a free place to live while they’re getting established in their business

no one needs their life handed to him.

[13:04] Young people need to struggle because you don’t grow without struggle you don’t get stronger without effort.

Young people need this they don’t need to have everything handed to them.

Okay in the rent next new story there’s an office tower in New York city that is not going to let Amnesty International move in and the office tower,

the reason is the office tower is owned by a Chinese company so the Chinese company owns the office tower now.

If you’re not digging into the news you may not know that China as a country.

Still harasses and persecutes in prisons and tortures religious believers.

Christian Muslim.

Anything that they consider to be extreme we might not even know about this except for the heroic work of Amnesty International but they tell us that over a million people

a million people are being held in detention camps in China because of their religious beliefs.

[14:16] Yeah let that sink in for a minute as you think about everything going on with China.

[14:22] Okay well Amnesty International is pointing this out.

The Chinese own this building so they have declined to allow Amnesty International to rent space in the building and their statement was.

[14:38] They’re probably not the best fit as a tenant and in a message they sent to Amnesty International you probably wouldn’t want to be attended here anyway given who owns the property.

[14:50] All right so I was just a little interesting thing and opportunity to talk to you a little bit about.

China now I got another story this the one I told you I was going to,

teach me a little bit about I’m going to TC and BC Real Estate firm names the top cities for risk-seeking investors and then it goes on to give you a list of the Worlds

ten most resilient cities,

a resilient city is a city that just doesn’t seem to ever lose value doesn’t slow down it doesn’t stop and it looks like it’s always going to be always has been and always going to be a great place to invest in the real estate,

okay well that kind of contradicts the the headline.

[15:37] Real estate firm names the top cities for risk-seeking investors and here are the 10 best cities in the world now I will.

Tell you that down toward the end of the story they give you if you was really scroll through a bunch of ads and so forth they will give you some story some cities that are on the rise that May challenge but.

I I thought it was funny that the headline lead is,

I’ve looked looking to our basic are you looking to risk something somewhere well here is the 10 riskiest places you can put your money and then it names the 10 safest places you can put your money and of course those 10 are in case you’re curious I know you want me to

give you that information New York

Tokyo London Los Angeles Chicago Paris Washington DC Dallas Singapore San Francisco now.

[16:30] Having said that I think that you may be.

[16:35] Okay in New York in Chicago if you’re not doing residential but with rent controls in New York and the looming possibility of rent controls in Chicago

I would suggest that you want to stay out of those cities if you

are owning residential if it’s office and other kinds of assets than sure.

Okay so you want to know what the Challenger cities are this is this these are the cities where if you’re willing to take a risk maybe you could put some investment money and you guys right in and let me know if you’re ready to put some money into these cities Hangzhou China.

Riyadh Saudi Arabia Nanjing China Ningbo China.

Delhi India Mumbai India Jeddah Saudi Arabia India.

[17:29] All right there are two in India there three in India.

2 and Saudi Arabia and 3 in China Saudi Arabia and China have remarkable.

Oppression of Human Rights that’s only say you want to invest their.

I guess I’m just a simple country boy in some ways I’m fine just investing in my own country for the most part but I’m also fine keeping my money where,

there is not systematic abuse of the citizenry by the government and I’m not saying that.

There aren’t abuses by the government here in the United States but it’s not a part of the philosophical system and it is a a contradiction of our.

Moral code when it does happen okay.

In other news I’ve got a story from CNBC to talks about Venture Capital flowing between China and the US and.

[18:30] It doesn’t it’s not affected by the tariffs it was an interesting read and that’s all I’m going to say about accept it it cost me to do a little bit more research did you know that the United States has had the number one economy in the world for the last hundred and forty-nine years.

[18:45] And there really hasn’t been anyone even close until recently China is catching us and on one measurement they have caught us already,

this is the PPP or the purchase of the purchasing power parity purchase power parity although there,

gross domestic product is not the same as the United States and the average income in China is not the same as the United States it’s much lower,

but with the lower prices the average person can purchase the average amount of things

it in a similar way to the canyon Estates so average income of an average purchasing power those are pretty much the same between those two countries that doesn’t concern me a whole lot,

but what does concern me is that China is about to overtake the United States and other real and important measurements and they’re doing it

based on stealing intellectual property and hacking into the technology that’s created in the United States and elsewhere and the basically

running a lawless when it comes to copyright and intellectual property they they they run a lawless business culture and can’t be trusted.

[20:00] You can say a lot of things about our president and boy lot of things have been said and they’re things that I wish he wouldn’t say and and so forth and so on but one thing I do know from his experience as a developer in New York City,

he knows how to deal with a crooked politicians he knows how to deal with

dirty officials he knows how to deal with thugs and Mafia and organized labor and I think.

What gives him the best background for dealing with someone like China and I know that everyone’s worried about the Chinese tariffs and you know I’m not unconcerned but,

I also think that at least we’re trying to do something and we ought to try to do something rather than the nothing we’ve been doing for the last 25 years while China has been stealing the world’s technology and ideas and using that to catch up.

Let’s make them an honest player they have you know a billion people surely there is

intellectual capacity in that country to make them a player on the world stage without having to steal everyone else’s technology and ideas so let’s just hold their feet to the fire,

and I just want to say I appreciate the policies of our current Administration and the get tough on China stands that we see.

[21:19] Quick break and we’re going to be right back with chapter 9 from my book flipping houses in 10 days.

[21:26] Music.

[21:48] Braswell Capital Solutions is the number one source for investor-friendly residential and commercial real estate loans across the u.s.

We offer a variety of loan programs designed to meet the unique needs of Real Estate Investors we provide fast reliable and Professional Services so that our clients clothes

simply in order to take advantage of great deals

beat the competition and get great rates and competitive terms without sacrificing service contact us today at 800-577-1959 and visit us on the web at Braswell Capital Solutions. Com.

[22:19] Hey flipping America listeners have you ever walked into our property and said I have no idea what it will cost to repair this home those days are over

with ultimate rehab estimator you now have the tool you need to calculate repair cost as if your contractor was in your pocket designs by Real Estate Investors,

for Real Estate Investors ultimate rehab estimator just needs to know their properties measurements and what you want to do it produces a statement of work

adult materials and includes a deal analyzer which helps you determine if the deal is really a deal and the Abba just for labor cost in sales taxes by your state

do you think the property Zip Code Ultimate rehab estimator is for all Real Estate Investors new and experience

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

the contractor in your pocket today at ultimate rehab estimator. Com.

[23:19] Music.

[23:35] Chapter 9 the Real Estate Investors team we’ve established that you’re going to need a good tea before you make this work.

Below is a list with a brief description of each person’s role.

Before you start selecting people think for a few minutes about how you will select them I’m speaking of your criteria for evaluating each person as a potential team member the specifics will vary the principles behind them are the same.

[24:04] Suggested hiring principles everyone know what you are about.

[24:10] You need to have a clear understanding of your plan your goals and your values.

You’re playing and your goals are subject to revisions that come from life experience and the wisdom of others.

Your values should rarely change and only with much soul-searching and evaluation.

This may seem like a weird place to start but it’s the only place to start.

How can you select the right people for your team if you don’t have a clear focus and direction for the team.

Number to understand that the people you hire fit you and not vice versa.

They do not have to share your plans are your goals they don’t even really have to know them but they must fit well with them do not adjust who you are to try and fit with someone you want to work with.

This is especially true of your values if for example you value honesty do not hire anyone ever.

So you know we’ll be willing to lie if they are willing to lie they will lie to you when they believe they need to.

I met a wholesaler once you told me she would lie her Fenty off in order to build her buyers list I excused myself from the conversation as soon as I could I simply don’t have time to try and figure out when and if she would be telling me the truth.

[25:32] Number three check out the skill sets.

Can this person do what you’re considering hiring them to do have they done it do they have a good reputation.

Do they have references when it comes to contractors you cannot check them out enough and you should be interviewing new ones all the time.

[25:54] Number for pay attention to their presentation.

I’m not talkin about PowerPoint I’m referring to the way this person presents himself or herself to you if you value neatness does this person appear to be neat and clean organized punctual.

Respectful both of your time and your opinions number 5.

Assess their motivation does the potential hire show an interest in you do they understand what you need and are eager to do it.

You don’t want to hire someone even if they are a good person with solid skills who is just marking time until retirement

it’s a person yawns looks out the window or frequently checks their phone while talking they are clearly not that interested.

You want someone who wants this.

[26:47] Number 6 check references everyone has done something with someone somewhere.

Of course the references are going to say good things that’s why the person chose them so ask the references for another person or two you could call if it’s a professional or license person check publicly available sources.

[27:09] The team Realtors.

I can’t say enough how much you will need a strong realtor for every Market you enter Realtors rarely enjoy repeat customers.

So by the time they are sold three or four houses for you you will have a friend indeed their cost-per-acquisition goes down their life gets easier and their bank account gets heavier.

I do not generally speak to a realtor about discounting their commission until after the third or fourth house and then I usually ask only for one point.

We haven’t discussed remote Clips in this book as this is an advanced strategy but when I do a remote flip I ask the realtor to coordinate the contractor work and offer them an extra point of commission.

[27:58] Birddogs and wholesalers in our business a bird dog is someone who brings you a deal if you like it you negotiate the sale or put it under contract and give the bird dog of fee usually 500 to $1,000.

This person only prospects for deals in point you to them they have no risk at all.

[28:19] A wholesaler finds properties negotiates with sellers gets control of the properties to ra contract or option and then flips the option or contract to you they can charge whatever they want as long as the deal still works.

They have more in the deal including more risk and deserve to be paid you can’t have too many of either of these.

The standards for hiring are lowered somewhat because your only connection to the person is the deal itself if you don’t like the deal you don’t move forward.

They can lie all they want to about the numbers but they should know I’m not just going to automatically believe them.

If they consistently exaggerate the numbers to try to make their deals look good I don’t need to fire them I just ignore them.

Go to any Rhea meeting stand up and say I’m a cash buyer if your a wholesaler here’s my email address.

And boom you get emails probably the next day virtual assistants in call centers.

With the rise of the internet there are a number of services that have become very inexpensive one of them is the virtual assistant or VA you can find them from a number of sources and they handle a number of different projects

they can keep your spreadsheets updated answer the phone.

[29:40] It could be someone overseas for whom $5 an hour provides a very nice lifestyle

call centers are another service which is getting less expensive as time goes on you can have a call center

answer all of your marketing calls screen colors with the script and forward the results to you via email many call centers can now even provide the pop-up chat window on your website.

That’s pretty cool contractors and subcontractors.

This one is so important I’ve dedicated appendix to to a list of questions you should ask potential hires in this area when I have a really good contractor or to my business hums along beautifully.

When I hire a subpar contractor things begin to flounder and when I hire a crooked one it’s the same as if I roll down the window on the interstate and start throwing bags of $100 bills out,

no one sets out to hire an inept or crooked person but if you do,

the best contract in the world really doesn’t help much if you find a good contractor who is honest reasonably priced and reliable,

hang on tight.

[30:51] Even while continually in the interviewing others there is an ebb and flow to life that means nothing lasts forever even your best contractor will eventually move on so it’s always good to have another one waiting.

This person will make you or break you

so you owe it to yourself and your business to check them out thoroughly that them carefully and run from anything that looks fishy.

[31:17] If you discover the contractor has done business in the same town under several different names that’s a red flag.

Check out those entities and you are likely to learn that you don’t want this person.

[31:31] Attorneys if you live in a state where title companies conduct your closings apply some of this paragraph to them,

I found an attorney who was a likeable person does great work and has a great team around him and consistently delivers Excellence so I sent him as many closings as I can when I’m purchasing selling,

coaching or lending money I encourage everyone to close with my guy why well,

it helps him grow his business but it also creates Goodwill between us there have been a number of occasions I needed a legal opinion I’ve given my attorney hundreds of closings over the years he’s more than happy to take a call from me from time to time.

You may also need to find a litigating attorney see my comments above about crooked contractors.

When and if that time comes find one who knows real estate and real estate law pay for an hour of his or her time from time to time.

We do not generally use attorneys for dispossess trees because the laws in Georgia strongly favor the landlord but there have been some cases that have gone beyond magistrate or small claims court for which we have needed a litigator.

[32:46] You can find good legal assistance through the use of a prepaid legal service I use Legal Shield for a variety of things including preparation of special contracts Wills traffic violations Etc.

The wheel alone is worth the membership cost many of their services are included and those that are not included are discounted.

Find out more and sign up at www. Rodger b helps. Com.

[33:18] Home inspectors it’s good to have a home inspector on speed dial I’ve used my inspector friend to look at houses I was thinking about buying and had some questions about.

Usually Foundation or electrical I’ve also had my inspector go through houses I finished with a new contractor to check up on him before final payment.

[33:40] Insurance agent you will need insurance coverage on every property you buy the coverages will be different depending on your intended use for the property.

Rental property may use a fire in dwelling policy but a Fix and Flip needs a builder’s risk or vacant dwelling policy

you will also probably want to get blanket liability coverage for your company and an umbrella policy for you personally

you will probably need to find a local Independent Insurance agent to get all of these coverages from one place I found my agent through a networking event.

[34:16] Accountant / bookkeeper.

[34:20] In chapter 7 I suggested that you first hire the accountant and let them provide or recommend your bookkeeper,

unless you are already a bookkeeper you do not want this burdensome in position on your time it’s worth every penny to pay a good one.

Talk to other investors and see who they use it has been helpful to me that my accountant has been in real estate Development and Construction he understands pretty well what I do.

[34:48] Hardware and software.

Okay these are not team members in the people sense but they are an important part of your business you probably already have a computer and whatever you have will work I recommend you look into using Google Docs is what I use to write this book.

You can share any doc spreadsheet presentation drawing or form with your team members and Grant permission for them to edit

the cool part is both of you can be in the document at the same time making live edit switch you can see in real-time there are a number of software products that can assist your business,

but rather than

recommend one let me just suggest some categories mailing and contact management especially if you wholesale project management.

Database spreadsheet and presentation.

Pay attention to Trends in new products as much as you can once you get something that works well for you ride that horse all the way to town.

[35:50] The strength and quality of your team will be the strength and quality of your business find people who are first of all good people.

Then make sure these good people have the skills needed to do their job last Lee make sure this is something they really want to do.

With the right people doing their jobs you will enjoy good success with relatively low stress and soon you’ll be the one writing the books telling people how to do this makes it and I already did.

[36:21] Music.

[36:32] If you’re a real estate investor you owe it to yourself to get a profile on the fan.

The flipping America Network it’s a flipping America network.com the profile is free if you’re a buyer a landlord a rehabber.

You enter what you’re looking for.

Particularly the ZIP codes of interest you can put up to 10 but we’ve already we’re working now to expand at 2:25,

you don’t have to sit on the app you don’t have to sit on the on the website.

All you have to do is tell us what you’re looking for your profile includes your cell phone number which will verify at the time you register and when a property is posted in the zip code you’re interested in your going to get a text message that says,

look what just hit the fan everyone should register.

All 43,000 ZIP codes in the United States are included and you could be finding your next property just by listening for your text tone we call it snap click sold because.

If you are a seller.

[37:38] You can download the app will anyone can download the app and in the App Store it’s called flipping America Network all one word no spaces you download the app flipping America Network and.

[37:50] If the course has a buyer you can search for properties using the app but as a seller you could be at the property negotiating a deal with someone that you want to wholesale you could take a few pictures of the property that’s the snap,

then you can click to upload this property to the fan put a little information about the property there and.

Immediately that property will get texted to 5:10 doesn’t hundred I don’t know

however many investors have expressed an interest in that zip code you no longer need to manage a mailing list you don’t have to go out and put together your flyers in your brochures or create

ads for Craigslist or other sites just posted in the fan dozens of people will see it it may be sold by the time you get back to the office that’s why we’re calling it snap,

click sold www.dot flipping America Network. Com register now.

Chapter 10 wrapping it up.

[39:08] In this business you need to know when Good is not good enough and when good enough is better than perfect.

[39:17] When you were analyzing a deal to make an offer good enough is always better than perfect by the time you get a perfect analysis that deal will be gone and you won’t have time to analyze others but when you are rehabbing a property.

Good is not good enough.

Your conscience and your reputation rests upon you doing the best you can to make that property as perfect as possible unlike normal sales businesses,

our consumers are not really our customers will you sell a rehab house you are selling to a consumer unless you go to the closing you will never meet them,

and would never know them if you met them on the street someday.

Our conscience and our commitment to Golden Rule rehabs guides the way we treat them even though we will never meet in person,

our public-facing clients are actually the Realtors who sell our homes this is where we find repeat business.

I learned this early on I decided to start branding my home’s by stating in the comments another quality Whitestone renewal.

This was back when I still went to all my closings I mentioned previously that I

met an agent that are closing who told me this was the second home of mine he had sold he said that when he saw the white stone name on the listing he took his buyer their first 10 years later

and you still will show anything I list in his area.

[40:46] You’ve spent perhaps a few evenings learning the basics of flipping houses by reading through this book as I promised in the introduction,

this little volume doesn’t tell you everything you will learn or need to know that learning will come over time and through necessity but if you act on what you know you will learn what you need when you need to.

I encourage you to get something going.

Then look for me online at www. Rodger Blankenship. Com sign up to go more in-depth.

[41:21] Consider coming to one of our Live Events where you can sign up for one of our coaching programs and catch me on the radio or download the flipping America app in your app store it’s completely free.

Let me wrap it up by reviewing the major steps.

Number one form an entity register with your state the IRS and get a URL.

Number to start recruiting your team particularly those who will help you find deals.

Number 3 make offers lots of them.

[41:59] Number for wholesale fu number 5 get more training.

Number 6 rehab one perhaps with a partner or a coach number 7 repeat.

[42:17] It’s not necessarily easy but it is simple.

Simple enough to do in your part-time simple enough you could teach and work with your teenage children in this business.

Simple enough that you could build Financial Freedom into your life and devote yourself and give generously to a higher cause.

To your success wow that was a short chapter you’re welcome.

[42:45] Music.

[42:56] We got time for some questions today Fred from Evansville Indiana does it really matter what kind of paint I use on the exterior of my flip I just wanted to look good for the next month or so while I sell it

okay 3 snot brought this question up Fred is too kind of call you out my friend

because this is not the attitude we want to take it does matter what kind of paint do you use on the exterior of your flip not just because you wanted to look great for the next month but because you want to treat people well,

you don’t want to put something on them that a year later they’re going to have to repaint.

It’s just not a good way to look at doing your business and I meet people all the time who are willing to cut corners

who want to save a buck or two maybe on this you could save a full three or four hundred dollars on the paint

but what you’re doing is setting yourself up for a bad reputation and let me tell you this Fred Evansville Indiana isn’t that big of a town if you’re flipping houses there and you’re willing to

give us a short shrift to the people who are buying your houses it’s going to come back to bite you in the fanny at some point.

[43:59] Don’t do it just go out and get a good quality paint talk to somebody in the paint store.

And match the paint for the surface you didn’t say anything about that what it is your painting but match the paint for the service and do it right,

and this the reason we put the question on the air not to embarrass Fred but to just encourage everybody do it right.

Save money where you can but don’t cut corners and don’t take advantage of people that will hurt you in the long run.

[44:29] Candice from Atlanta Georgia I’m working on getting my real estate license in both Georgia and Florida I don’t have any money so I’m also planning to be a wholesaler,

what would you recommend now this is a question that actually came up at the event I spoke at Saturday and so I’m just kind of reliving in here and what I said at the event was.

Focus don’t try to be two things or three things all at once.

[44:56] We’re going to start using another quote for my friend and Mentor Gordon cats in starting next week but the quote is going to be a dog that chases five rabbits catches none.

You need to zero in on one thing and do that and I would suggest if you have no money while you takes a little bit of money to get your license but don’t bother getting license in Georgia and Florida get license in Georgia where you live.

And focus on Georgia get with a broker start building your real estate business you have no risk in that you can just put your time into it throw your time and your effort into following what they tell you to do now.

Those of us,

that have been around awhile know that the licensing course that you take to become a realtor teaches you absolutely nothing about actually selling houses all it’s doing is teaching you about the regulations concerning real estate and being a real estate investor in your area

are are your state.

Show to learn how to sell the houses are to learn how to make money you’re going to have to get with a good broker who is willing to Mentor you but you can do that it’s going to take some time and so I understand the desire to wholesale

but if you want to be a wholesaler you’re going to have to turn around and focus on that and that don’t think that you can develop either one of them if you’re trying to do both of them at the same time

ultimately you can do both of them but you’re going to have to do one and then the other.

[46:23] I would suggest that you focus on being a realtor first.

And start getting listings and start getting into a rhythm of making cold calls and talking to people and,

if you will read up and acquire some of the knowledge and some of the skills with regard to wholesaling then it’s possible when you do a cold call you can walk away with the listing or sometimes you can walk away with a deal.

That’s kind of The Sweet Spot as a realtor.

Who is going to be calling on potential sellers out there in the market and so that could be a very nice tool fit but first learn how to be a realtor

focus on one thing and forget Florida for now you live in Georgia just focus on Georgia

I give you control of a your knowledge of one market and really zero in and make that work because you’re going to learn principles that you can then apply in other markets as well.

[47:18] Cody from Phoenix Arizona.

I have 7 rentals which I manage myself it feels like I’ve created another job for myself when could or should I consider hiring a management company that’s a good question and the answer depends a lot on you.

And how big of a part of your life is this do you have other things going on do you have other sources of income know that a manager company is going to take around 8 to 10% of your income and it’s not going to eliminate

all of your problems you’re still going to have some occasional issues where you have to decide

and you didn’t ask about what to look for in hiring management company but whenever I hire management company I tell them since I also have my own cruise and flip my own houses I tell them,

all I want them to do is everything related to

Hino leasing the property out and collecting the rents and so forth its repairs need to be made I want to be notified and I’m sending my people to make the repairs because I can get them done far cheaper

then the management company can and the management company pays like a retail price and then puts a 10% service fee on top of that simply because they made the call I don’t want that so think about that,

well as you go out and look and then when you feel like the money is okay with you if you can live without a 10% of your rents then you know whenever you’re ready go do it.

[48:45] And I would also say,

nobody who is in this business who intends to really do what our guest from last week marked off any said that is to really value and capture your time no one’s going to manage your own rental properties for long.

[49:02] Terrence from Philadelphia I’m a realtor here in Malvern and have been listening to your show for a while,

how can I mix Investments with my work as a realtor that’s kind of what I said to to Candice but you’re already an established realtor so you it’s okay

if you,

start fixing and flipping some houses maybe you talk to someone who’s got a house to sell and and of course you’re disclosing that you’re a realtor every time that’s one of the rules you have to do that but perhaps

you tell them you’ll buy the house

I don’t know if you have any of the eye buyers up there in your area Terrence but you can be like one of the ibuyers you can create your own guaranteed offer program and tell people I’ll give you an offer on your property.

And it may be a straight-up straightforward offer and.

As an investor then you can wholesale it you can fix it you can you can do a lot of things you just have to first of all.

Anytime you’re doing anything slightly unusual you got to notify your broker.

And make sure that he or she understands what it is you’re doing and is okay with it but a lot of people makes this and

I’m going to repeat something I just said when you knock on a door for potential seller you may not come away with the listing maybe their house needs too much work maybe they’re behind on their mortgage in there isn’t enough time you may come away with a deal.

[50:31] That you can just put in your pocket and sell to a friend or are go get a hard money loan and make this thing happen.

[50:39] Natalie from Centralia Illinois.

I bought a house using the subject to Method my boyfriend broke up with me because he thinks it’s illegal and I’m some kind of a scammer I know this is okay but I wasn’t prepared to answer his criticism,

I’m not going to try to get it back but I would like to have an answer to this.

All right Natalie here is your best answer people for years have been telling me that you have lawyers tell me that buying a property subject to is it legal and real estate lawyers,

for those of you that don’t know I let me just give you a quick primer here when you buy a property subject to you are actually

purchasing the property and taking title to the property but leaving the existing financing in place so the person who just sold you the house has a loan on the house that they’re still responsible for but you own a house

how in the world is that happened well you.

[51:36] Write an agreement and sign it where you promise to pay the note on the house for the person who has sold you the house so this gives them the opportunity to go find someplace to rent and move on with their life.

It’s usually not going to work if they want to go find another place to borrow money,

but most of the time when I get into a situation with subject to hit someone who is behind on their credit their credit I mean behind on their loan their credit is damaged and they’re not going to be able to qualify for a new house loan anyway not right now

and so I’m taking over their loan and I’m bringing it up to date making it current and keeping it up-to-date and therefore ultimately improving their credit,

and they’re standing with the lender and within a year or two I

it’ll take them out of that long either by selling the property or refinancing it whenever it makes sense but.

[52:29] That loan is still in their name.

And if I stop paying it would that responsibility would fall back to them again alright now that’s what subject to is and people just think this sounds fishy.

I call your attention as my key piece of evidence the HUD-1 settlement statement that has been used in the real estate industry for many many years HUD-1 means it came from the.

Housing and Urban Development Department of the United States of America and if you look at a HUD-1 settlement statement line 503.

Line 503 says and I’m quoting.

Existing loan princes s that could be loans taken subject to.

The federal government on one of its official documents used and closings for years and years recognizes that.

Loans can be taken subject to if it was illegal it wouldn’t be there.

[53:41] And it’s not something different meaning this is exactly what we’re talking about it’s not illegal and it’s not immoral it’s perfectly fine.

[53:52] Now you know line 503 Natalie and everyone else that’s thinking about subject to s-line 503.

[54:03] Martin from Birmingham Alabama says what do you do about the one-year right of redemption on foreclosures in Alabama am I answer that is nothing.

And that’s why I don’t buy foreclosures in Alabama and not many people do because the.

Homeowner has one year to redeem it they never do

as far as I know I’ll talk to the attorneys and other investors in Alabama they never go back and redeem it because they have to get some other form of financing and pay you off completely within that year they don’t do it but.

They can stay there they can live in the property because they have one year and that’s that’s kind of a a different rule.

There’s only a couple of states that are that have that,

that long of a. Anyway and the it makes it difficult to the standard to steps in and plug your money down knowing it could be tied up for at least a year I have talked to one attorney and I’ve never tried this but he did say you can approach the former homeowner,

and ask them if you don’t give them a like a cash for keys and amount of money

in exchange for a waiver of the right of redemption and that’s legal in a can happen so you can consider that the reason I don’t is there’s no guarantee you’re going to be able to work that out.

And without that guarantee I don’t want to type the money.

[55:24] Judy from Waukesha Wisconsin I heard someone say that if I buy 10 rentals I can retire is that true.

How would it work.

[55:34] Well Judy it you know it could be true but there are so many variables this situation I can’t say 100%.

But think of it this way if you let’s just say that you could get by on $100,000 a year in retirement most people can.

Okay if you have 10 paid for rental houses in average markets they’re all going to pay you but you know 1100 to 1400 a month in rent then,

you’re going to net out of all of that maybe.

About $100,000 a year if you have 10 of those so you know if those are what the numbers look like and if that’s what you need in retirement then yeah

that’s how it works but of course buying these houses and having them paid for is a different little matter.

[56:27] We didn’t say anything about your age I don’t know how much time you have.

If you’re in your twenties and you can find or even in your 30s and you can find one house a year.

That you can buy and get financing on 15 or 20 year notes and get them paid off by the time you retire so you end up having 10 paid off houses.

By the time you retire then yes you’re going to be set if that’s the number so what I was suggested that you do Judy and all of you that are listening is make a plan sit down and think about how much you need,

you know ignore.

This is just a suggestion okay but ignore what you think you’re going to get from Social Security just ignore that if you get anything call it gravy but.

[57:18] It’s not going to be enough to live on.

And you don’t necessarily want to end up being one of the people that stands at the door and says welcome to Walmart so you want to have some additional income coming in during these golden years of your life,

all right I don’t know why they call him golden years but there that’s different anyway.

During these years you need this income and so think about how much you need how much you want and how many houses is it going to take,

to create the cash flows even if you have debt on them there are net cash flows and if you if it if you’re later in life if you’re in your 50s now you may not have time to acquire 10 before you retire

not paid for anyway unless you have your sitting on a big stack of money somewhere.

So maybe what you want to do is get twenty or Thirty houses that have some leverage on them.

And what you got to do is figure out how much money you’re going to make on each one and then you’ll know how many you need to have based on what you think you need to live on that sort of how the math work.

All right hey everybody thanks for the questions keep them coming to questions are Roger Blankenship. Come will help you in any way that we can and thanks for listening will see you very soon.

[58:33] Music.

[58:49] A quote for the week is from Mark delfine there is no amount of money that makes time irrelevant.

[58:56] This quote is brought to you today by the foundation for Renewal working together with communities across the country to bring lasting life change and impact.

Find them on the web at renewal fund. Net and is always your gift in any amount is welcome and tax-deductible thanks again my friends will talk again real soon.

[59:15] Music.

[59:31] You’ve been listening to flipping America real estate investing for everyone if you have any questions about real estate send them two questions at flipping America network.com,

listen three times a week on stations across the country or on the flipping America app free in the App Store,

be sure to like us on Facebook find and follow us on Twitter and Instagram and keep your eyes open opportunities are everywhere.