PAT DORNAN

Opening:

Pat Dornan is back with us today. He’s the inventor of the Ultimate Rehab Estimator and we are going to talk about some exciting new features in the program. Pat is a fix and flip investor, home builder, licensed contractor, and engineer. A few years ago he had a vision to create a tool that would allow anyone to quickly, accurately, and thoroughly estimate the rehab costs on a property. If you are doing rehabs and not using his tool you might be costing yourself time, and money while learning some lessons the hard way. He will be joining us in a few moments. 

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Your Questions: Send emails to questions@rogerblankenship.com

• Rudy, Houston, TX, “I can rehab this project and make $40,000. It would take about six months. But my friend wants to buy it from me as-is for a quick $10,000 profit.” What would YOU do?
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Tags: real estate, real estate investing, real estate investments, real estate education, flipping houses, Roger Blankenship, Flipping America, Rehab estimator, rehab estimation

Ultimate Rehab Estimator

Expected Air Date: 6/10/19

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 thank you girly hello everyone.

[0:50] Dornan is back with us today he’s the inventor of the ultimate rehab estimator.

And we’re going to talk about some exciting new features that have that are in the latest release of the program Pat.

Is a Fix and Flip investor a home builder a license contractor & engineer a few years ago,

he had a vision to create a tool that would allow anyone to quickly accurately and thoroughly estimate the rehab cost on a property if you’re doing rehabs and you’re not using his tools

you might be causing yourself time and money while learning some lessons the hard way he’s going to be joining us in just a few moments.

[1:28] Also today I’ve got some lists I’m going to share with you in just a few minute we’ve got some list of the hot markets and with substitute of declining markets and some news for you about real estate and I’ve got a few questions we’re going to get to in a little while also

all of that is coming up for you in just a few minutes thank you my friends for listening to flipping America I am Roger Blankenship your host I teach people how to make money in real estate

I don’t encourage you to drop what you’re doing and go out and start flipping houses like you see on TV

it’s not for everyone as sexy and romantic and and fun as they make it look

to be it just isn’t for everyone it’s a business and if you want to be successful in this you have to be prepared to own and run a business and if your life hasn’t prepared you for that then you better get prepared if that’s what you want to do

it’s an okay hobby also as long as you don’t quit your day job.

[2:21] I don’t encourage everyone to jump in there and start flipping houses but I do encourage everyone to consider real estate as part of a balanced Investment Portfolio and to that end

my aim with this show is to give you the most complete set of information up to date news

statistics demographics methods techniques access to money,

tools and resources that you can use to maximize your investment in real estate.

All right so without any further Ado let’s jump into the news,

I’ll eating all the news today I’ve got the top 20 markets in

the United States according to realtor.com this is a just in the survey is based on.

[3:13] The average days on Market to sell a property and what we’re seeing is things are moving away from California and the rest of the country is beginning to,

catch fire in fact in a few moments I’m going to do the top 10 Metro areas where prices are coming down and you’re going to see a few of the flipping America projections becoming reality.

First of all the hot list number one the hottest real estate market in the United States in the last quarter has been Boston Mass that’s right folks median days on Market of,

32

that makes them number one now I’m coming in the number 2 is a little bit of a surprise Lafayette Indiana is number 2 is 34 days on market and this is not so much a surprise but the shift in Washington state is a way from Seattle and now Spokane Washington is number 3

Columbus Ohio comes in at number for they’ve been on the list for a while and backed up and not too long ago they were the hottest real estate

Market in the country and they slipped a little bit to number for Sacramento as hot as

it’s understood because you need to get out a way a little bit from Silicon Valley and San Jose and Oakland and San Francisco Sacramento is almost within reach but it’s number five Midland Texas is number 6 Rochester New York is number 7

Colorado Springs hey Colorado Springs were on the are there number 8 Odessa Texas number 9.

[4:39] Worcester Mass number 10 San Francisco is still on the list at number 11 Canton Ohio is that number 12.

Manchester New Hampshire number 13 Modesto California number 14 nicetown went there I was there for a weekend summer of 78 and I still remember nice town.

[4:59] It could be the few things have changed since in Fort Wayne Indiana is in at number 15

La Crosse Wisconsin and is right over there on the Minnesota border it’s in shares kind of a metro area with Onalaska Onalaska Minnesota and that’s number 16 Buffalo is number 17 stock

didn’t California number 18 Santa Cruz California number 19 and Racine Wisconsin number 20 notice that none of the top 20 hottest markets in the united states are in the south

and they’re only a couple in Texas so

that’s that’s a note to me it’s interesting because the market still feels pretty hot right here in Atlanta and when I look around at Charlotte North Carolina and what’s going on there and the Raleigh-Durham Research Triangle Area North Carolina,

those markets are on fire and so I can

I can’t believe we would be too much out of this top 20 list so there’s still a lot of hot markets in the US but now some of you may remember

if you are a longtime listener to the show it was about

this time last year I started saying to you that the entire West Coast is overheated and is due for a correction within the next 12 months and the East Coast from Washington DC to Boston was due for a correction also because they were just over

priced it the fact is the prices went up so much that the average income.

[6:27] Can’t buy the average price for sale that doesn’t mean that people that virginicum couldn’t find a home it just meant you know we’re looking at averages here in big numbers

but I predicted that in 2019

we’re going to see those coastal areas come back to us a little bit and I included Miami but really nothing much in between Miami and DC most of the you know the southern part of the East Coast was

immune from this projection okay but here is the list of the 10.

Metropolitan areas were home prices fall out have fallen the most and you’re going to see that my projections were pretty spot-on a couple of exceptions San Jose California is number one,

number two is Oxnard California number three College Station Texas. I didn’t say anything about Texas backing up but the so this one made it on the list and I didn’t call it that’s all right,

Bridgeport Connecticut is in the area that I called San Francisco California number 5 high low.

[7:31] Hawaii now I didn’t say we don’t talk much about Hawaii here I’m just going to say I was kind of loving them in with the West Coast.

No Cape Coral Florida is on the list at number seven I think it’s a temporary thing they had a major major problem earlier this year with an algae bloom.

[7:48] People came to town and we’re mediately turned off by the smell I actually think that hurt their their prices and they’re doing some things about that so I think that maybe is an adverb aberration I’m going to say something about the aberrations just a minute if I have time

number 8 Laredo Texas number 9 Huntington West Virginia another I think temporary aberration and number 10 Iowa City Iowa

which I think also is a temporary aberration the three cities here that were temporary.

We seen declines and prices and you know what you should do when the prices go low I think it’s an opportunity in those three cities to buy.

I I don’t think I would recommend you diving in back on those coastal areas but in Huntington and.

Cape Coral Florida yeah okay that music is we’re going to break my friends and after this Pat and we’ll come back to the news and some of your questions in just a moment.

[8:40] Music.

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[10:04] Music.

[10:18] Pat Dornan welcome back to the show always great to be here Rodger

yeah great to have you man thanks for taking time out of your schedule to talk to us today we’ve been talking about the ultimate rehab estimator to course you know our listeners here a little bit about the Old Mill rehab estimator never show but you got a new version out tell us about it.

Oh this is we’re pretty excited about this Rodger we have added the ability to get comps from.

A database of 160 million sold homes.

And comps are what we called valid cops okay so everything with a matching number of bedrooms and matching number of bathrooms.

[10:59] As well as square footage plus or minus 20% all within a quarter-mile radius.

And we also added a half mile radius just in case you’re in an area where nothing has been sold in the last 6 months.

Within a quarter-mile we added a half-mile so you can get a little bit of of a better idea of what the hell is in that area

abyssal plain folks Pat was showing showing me before we came on the air just doing a little screen share and show me how it works and so you have these different colors concentric circles out from your property that shows you exactly where the cam properties are

so that’s that’s good and very useful because it enables you to do a quick analysis right on the field.

Right and all you have to do is click on the icon for each property and you get the date it was sold as well as any reported.

Shell’s price.

Okay now you just I’m sure this works great in the cities I just had this little question pop into my mind I don’t want to get too challenging are but what if you don’t have any sold comps in the quarter or half mile.

Same thing is if you don’t have any sold Khan said you’re using somebody else’s that you are on your own okay you’ve been asked that before I was the already answer all right that’s good now.

[12:20] How does all of this additional stuff affect the price that is the most exciting part we have not increased the price at all.

[12:31] That’s cool so you just add more features and don’t don’t raise the price who ever heard of such a thing

as far as development cost it really wasn’t that expensive and.

[12:47] Y’all I’m an investor myself and I know how cost-sensitive some investors are and I said you know what I can I can do this and make my subscribers happy,

and it’s not going to kill me so this is how I’m going to do it

okay so now I’m we’ve probably picked up a hundred thousand listener since the last time you were on the show so people are really hearing from you the first time even though if they listen to the commercials they hear every show they hear about the ultimate Rio Vista Mater and folks

I want to stress this is the guy behind that he’s the brains behind the old Metairie had best rehab estimator commercial that you hearing on the show.

Tell us give us an overview of the property what it’s designed to do and how it can help Real Estate Investors,

3 * investors right wholesalers rehabbers and buy-and-hold investors the wholesalers job is to find a property get it under contract and

figure out what it’s a RV is the wholesaler also needs to know what the repair costs are to bring it up to a sellable condition they’re not looking to add any value.

They want to bring it up two syllable condition with ultimate rehab estimator.

[14:04] They get the arv quite easily with their new comps feature but they also get the ability to calculate the repair cost just by measuring the rooms and telling the app what it is they want to do,

self example you walking living room it is 14 ft by 18 ft you want to paint the room you want to replace the baseboards you want to refinish the floor

ultimate rehab estimator does the math for you

all you do is click on paint their own click on new baseboards click on refinished the floors as already done the math on the square footage of the room and those are three things that that’s all you need is the square footage.

Takes care of everything else for you now know what it cost to bring that room up to speed up to sellable condition.

[14:57] Now let’s say you are a rehabber and you need to add value to that house in order to make the profit acceptable.

So you purchase it from the wholesaler but your costs are going to be a little bit higher because in that living room you’re going to have a closet.

[15:13] Or you’re going to open up the living room take a wall out and open up the floor plans you now you’re going into the kitchen there are increased construction cost for that

ultimate rehab estimator knows this and under frame and you click on open up the wall.

And the cost for opening up that wall are automatically of configured for you the beautiful thing is that labor cost different amounts of money in different areas of the country.

Ultimate rehab estimator will.

Automatically adjust the labor cost based on the zip code of the property using a.

A series of what we call factors to change the prices for labor for example I’m in Maryland and if it cost $1,000 to open up that wall this is just an exam and you’re down in Atlanta.

And it only cost 9 90% of that or or.

[16:14] $900 to open up that Walt ultimate rehab estimator knows this and automatically does that calculation for you based on the zip code of the property.

Okay and changes the sales tax from state to state for you.

Okay the end I was going to get into that at some point in this project you’re going to pick out the light fixtures and refrigerators and dishwasher and that sort of thing and you got to wait to do that right.

Absolutely there are the database has.

[16:49] All stainless steel appliances gas package electric package you can get him as a package you can get them as a as individual appliances the one thing that

you need to know is you don’t have to use Pat’s appliances okay this is a.

Budgetary cost for your rehab so if you’re not using Whirlpool maybe you’re using now higher end

wohlfahrt order or something in it in a million-dollar rehab that’s okay you need to know that okay because I had to

I can’t put every single Appliance and every single light fixture and and and yell every every ceiling fan.

In the after just leave the number of of appliances essential just be too long but you have connection to a major retailer don’t you.

I do and the thing that we’re doing is we trying to say who.

[17:47] It’s okay to say who will there be another called Home Depot you probably heard of them has for all of the items that you might choose Home Depot skus,

you click on the skill and the app opens up a link to Home Depot’s website and you can see exactly what you’re buying.

And then you say okay well this ceiling fan is $100 ceiling fan I don’t like the one that has in his database,

that’s okay you have put $100 in your budget for a ceiling that labor to install that fan doesn’t matter what the fan is.

You want to make those changes so you get into a deadly accurate estimate for your cause.

Ultimate rehab estimator allows you to export everything to an Excel spreadsheet and there you got your spreadsheet you can make the changes to

the part number or the price of each individual product

and one of the things that I really love about ultimate rehab estimator is how a thorough it is and how you you seem to have thought of

everything so now you’ve added the cops and people aren’t so run us through a kind of an example you’re out at a property

you’re about to talk to the The Cellar and you’re preparing to go and talk what are you doing with you re right then.

[19:11] The first thing I’m going to do is first of all that works on every device that you have in your Arsenal it works on your phone whether it’s an iPhone or an Android it works on your tablet big tablet little tablet it works on your laptop and it works on your desktop

so whatever you have in your pocket you got a contractor in your pocket and you got a realtor in your pockets I’m going to go out to that house

I’m going to type in the address into the app and I’m instantly going to get the cops for that property.

[19:41] Damn I walk through the property I’m going to measure it I’m going to measure the kitchen I’m going to measure the living room the bedroom,

and the check off through the app okay I want to replace the switches I want to I want new appliances I want new cabinets I want level 1 2 3 or 4 granite.

How are you doing this in the app as you’re walking to the house or you making notes.

I’m doing it in the ass as I walk through the house if I don’t have a tablet if I don’t have.

A phone in sayaw see you’re in an area where internet access isn’t that good and that does happen there I’m going to write the measurements down,

and I’m going to go back to my office and on my on my desktop system I’m going to put the measurements and I’m going to check off what I want to do to the property based on my nuts all right when you’re at the home

are you talking about a home with with with a seller there the people living in the house and you’re walking through the making all these measurements

it can’t be in in my four ticular case most of the homes that I go through in my business are bacon.

Okay if you are going to a seller’s home that’s fine I’ve never had a seller of Jack to two measurements and if they say anything about it’s like well I’m just getting an accurate idea of what I want you to do to the house if we can come to an agreement.

[21:01] Okay and do you have some quick way of measuring a room I mean I can imagine is taking some time if you’re whipping at a tape measure I use a laser measuring device.

Okay yeah you have one you recommend.

Albashas great series of of laser devices and I’ve got the I don’t even know why I use it so often I don’t even I don’t know what model it is I’m sorry,

oh that’s okay that gives us enough information now you told me this we’re getting off track here because I want to come back to the negotiation in the home but you told me a while ago a couple weeks ago about a device is a r r i m.

Yes thing is so cool okay you plug this device into your phone that uses the phone’s camera,

and you point it at a wall and it does the measuring for you.

[21:55] Using laser in your phone and the phone can’t and you can take pictures so say you’re looking at a wall with a hole in it

you just make a note this whole is wall in the living room and then you know when you go back to your office I need to replace the sheetrock in that wall.

Skype or you’re looking at something that is rotting you take a picture of it okay this is got to come out of the house we are,

talking to the people that are on right now to see how we can incorporate their device into ultimate rehab estimator I’m not going to make any promises Rodger

I’m very excited about this product and they are very excited about working with us and if we can.

Come to an agreement with these guys.

[22:41] What I want to happen Okay is to measure the wall and have that data pump automatically into my app.

That’s cool where we’re working on it and right now I just finished the consti sure that’s what I was working on their working on a 360 degree view of a room,

and when they’re finished with that we’re going to talk in detail about.

Integrating our products together that’s very exciting I got a bunch more questions for you we got to go take a break can you hang out through the break absolutely I hold on folks will be right back I’m talking to Pat Dornan with the ultimate rehab estimator will be back in just a minute 30 seconds.

[23:21] Music.

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[24:08] Pay 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 increase 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

using the properties of code alternate 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.

Contractor in your pocket today at ultimate rehab estimator.

[25:08] Music.

[25:24] We’re back I’m Rodger he’s Pat.

And we’re talking about the ultimate rehab estimator and exciting new additions and maybe some things that are around the corner the big exciting news today is the addition of comps.

And then we talked a little bit about Aaron and I hear you’re talking with someone else about maybe doing some some additions to your deal analysis.

[25:48] Absolutely Rodger on you might know this guy his name is Roger Blankenship.

And we are talkin about incorporating some of his features of the fan of product line to Ultimate rehab estimator.

Yeah winterguard should deal analysis and numbers and you know nerdy math and Excel formulas or one of the things I’m kind of good at anyway

back to the home now you’re out there talking to the okay now you say most of the time.

You’re in vacant houses so how long does it take you to go through your house and make your measurements and put it all down together in your amp.

I’m pretty good at this I’m doing it for a while and a license contractor for the last 15 years so I can zip through a house in half an hour maybe 45 minutes if it’s bigger house.

And.

[26:41] Everybody that subscribes ultimate rehab estimator gets a free copy of my ebook called expect the unexpected and that is a guide on how to walk through.

Property for investment purposes

goes through everything that I do starts with the outside and soft on the inside and everything that I look for when I’m evaluating the house is described in that 20-page book

that sounds like it should be a short video series that become a part of the ultimate rehab and ultimate real estate investing course.

That sounds like a great idea all right I’m getting I’m getting some other ideas here I’m going to take some notes but now.

[27:23] If you take 30 to 45 minutes I tell people when they’re doing their due diligence inspection to plan to spend an hour and a half to two hours at the house but probably with with.

It was practice you say they couldn’t think they can get it down to an hour,

so easily and then and you don’t see her rehab her you’re walking to that house in in half an hour you can’t necessarily tell what

value you want to add to the house you have to know for example what some of the other houses in the neighborhood have what feels like it does the house next door have two bathrooms are only one was it has two and you’re competing with that house you need two bathrooms

that’s easy to figure out but what if you haven’t walked through that house next door

you don’t know what has two bathrooms so you’re going to walk through the house and and start thinking in your head what am I going to do to this property to add value.

[28:17] I can do that quickly cuz I’ve been at this for a long time newer investors.

Maybe he takes a little bit longer okay if you’re evaluating.

5 houses in a week say one house per day then you got the time to take care of this okay if you’re doing five houses in a day you’re going to go through in a little bit faster cuz you got a lot of stops to make longer.

It all depends on your business goals and how you.

Watch proceed how many houses of your buying per month on the house your buying per year for example.

Yeah all right and do you ever get tempted to just take a look at a house and say I don’t even need my own app for this I’ll just like an eyeball this I know most been 25,000.

I use my app for everything.

Yeah you’re the detail-oriented guy that I’m not that’s what it takes to be the kind of engineer and then build the successful product that you have okay tell people how to reach you.

You can reach me via email sales at ultimate rehab estimator. Com.

You can see the app at HTTP colon slash slash ultimate rehab estimator. Com.

And if you want to talk to me live you can reach me at 410-489-4944.

[29:43] And also you can use my 800 number if your long-distance 88833 house.

88833 house okay alright so someone is trying to get into this game and they’ve got their first deal.

[30:03] Now they’re going to go to ultradry have estimator and they’re going to sign up to to to.

Have access to the program but this is basically a responsive web base app and so they’re not downloading anything there they just have a login,

am I right that is correct you create an account and you can access it from like I said earlier any device you got in Your Arsenal

and if you got some helpful tutorials right there and they’re going to get a copy of her book how to walk through a house so forth

so when you are sign up for the e-book what you can do right on the site you’ll be part of our mailing lists and we can mail you a schedule of the webinars and Daryl do a live

demonstration using a house that we first show how much would cost to bring it up to.

Sellable condition and then we do another example where we are adding value to the house and you can see the difference

and how much coffee would make by adding value to the house now you’re an experienced investor and I’m going to get off the subject of the.

You are a for just a minute because we got a couple minutes here I want to ask you this a lot of people are scared to death.

[31:17] The bubble is about to burst real estate going to crash and burn and we’re going to have a repeat of what happened in 2008 or something like it how do you see it from where you sit up there in Baltimore.

I hear the same things that that you’re hearing and I see and feel that fear.

Yeah the the first rule whether you’re investing in real estate or whether investing in stocks is Buy Low sell high right.

[31:45] Just because the bubble is about to burst doesn’t mean that you can no longer make money.

It just means you have to be more careful and that’s where.

Ultimate rehab estimator becomes your bestfriends because you will know what the house is worth you’ll know what it takes.

To make it more worthwhile.

And you also know when to walk away what’s happening with pricing and the speed of sales right in your Market.

We live in a very pretty hot Market I live in Howard County Maryland and that has the fourth-highest medium

family income in the country and I also buy houses in Montgomery County Maryland which has the 19th is median family income in the country so houses are staying,

we’re we’re not experiencing what people in other parts of the country have have described are you getting any kind of a bump from the Amazon effect.

[32:47] Not yet and I am that’s only because I don’t get into Northern Virginia very much for a licensed contractor in Maryland so

I got some friends that that I can talk to about that and see what they’re saying

yeah I thought it might be kind of far away but do you know the day this suggests that there is a bump that’s happening already 45 minutes to an hour from where I.

Really focus my investing okay so your Market is strong and you’re not seeing any signs of a tailing offer even slowing down.

You know what there might not be as many investors per property as there were say a year ago.

Okay maybe there are some investors that are getting scared and you know I would just say to them.

[33:43] Don’t be afraid be smart what’s the top one or two sources for your properties you buy.

Call my wife’s a realtor so that’s certainly MLS properties are always looking on the MLS and a wholesalers.

Okay when you’re buying from the MLS you’re buying from regular home Sellers and just looking to find a way to add value to an older house.

Okay that’s that’s a that’s a good strategy it’s worth wow anything you get anything from Banks.

No not really I mean there is certainly on the MLS you see the foreclosures it is just as difficult as ever to get in touch with the bank’s acquisition manager

he also once they say they put a house up for an auction for example and it does not sell

Dan they listed with a realtor and it goes on the MLS so it’s a real at this point so.

No not not really and that’s something that I really wish I could I could find those acquisition manager they don’t want to talk to me.

Well for the past few years they haven’t wanted to take the price that we would offer.

But I predicted in January that was going to change by the end of this year so we’ll see.

[35:01] Yeah you know it in when I first got into investing full-time you know everyone would say something to the effect of well the bank doesn’t want that property you know they just want to get it off that books.

Well there is nobody better anywhere than a bank.

[35:18] At making money Banks do not give properties away okay they don’t want it on their books but they’re also I’m not going to lose money on it either.

[35:29] Ladies and gentlemen this is Pat Dornan with ultimate rehab estimator and thank you for taking time to join us on the show today we appreciate this Insight party words

good investing folks okay I love this business and I know you will too and let’s work together.

[35:46] Music.

[35:59] 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 don’t have to sit on the app,

all you have to do is tell us what you’re looking for your profile includes your cell phone number which will verify 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.

[36:56] 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 does a seller you could be at the property negotiating a deal with someone that you want to wholesale you can take a few pictures of the property and that’s the snap part then you can.

Take to upload this property to the fan put a little information about the property there and.

Immediately that property will get texted,

to 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 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.

[37:56] Music.

[38:13] Okay we’re back we got time for some announcements in so let me make a few every Wednesday we do lunch and every Thursday we do dinner,

right here in Atlanta at our local networking events if you’re ever in Atlanta at Wednesday on lunch time or Thursday evening at dinner time then you just need to find our meeting you can go to Roger Blankenship,

common scroll down and look at the events and you can see that we’re meeting every Wednesday we do lunch at an Italian restaurant right here in the heart of midtown Atlanta and Thursdays at City Tap which is right down the street,

from out there do you tighten restaurants called baranda and.

City Tap on Thursday nights to excellent restaurants great places to make great venue and here’s the deal folks I am there to share I am there to give

and if you have questions about real estate you know you could send them here to questions at Roger Blankenship. Calm and I’ll answer them but if you’re in town and you want to talk

just come on out we have a good time,

Thursday’s even a little bit more laid back most of the time but coming up this next Thursday night we’ve got Zero to Hero 3 guys who went from no.

Deals no experience to multiple deals and properties within just a few months time and that will be Sheamus Goss.

[39:27] Jason Schiff and Cody Hansen.

They’ll be joining me for a live panel discussion Thursday night at City Tap and I hope that you make plans to get out and be there for that and,

all goes well we’re able to get the agreement set up with City Tap and all of that we will take the gear over there and we’re going to do this show in front of a live audience with these three guys should be a great time.

[39:49] Hope to come out for that I already said you could send your questions to questions are Roger Blankenship. Com it doesn’t matter if you think we’ve been asked that question a thousand times before because we probably have

but you know what it’ll be your first time to ask it and so we’re going to treat it like it’s your first time and we’ll answer the question,

we answered every question that comes into the show always have always will.

[40:11] And we will answer yours some of them we will answer on the air and I’m going to do a couple of them just a minute.

And we’re just here to help you folks if you don’t want to send an email or you can’t just pick up your phone and call 404.

That’s the Atlanta area code while it’s one of several now that 404.

369-1018 somebody called in and said why don’t you get a toll free number and my answer to that is do we really need to,

does anybody have to pay for long distance calls anymore if you if I hear from you guys that you need me to get a toll free number then I will otherwise just do 404-369-1018 hit extension one.

As soon as you hear me talkin when when the phone rings go to extension one and that’ll be the national comment line you can all you can leave a comment or a question.

Appreciate them we we really love hearing from you so just drop us a line send us a message on her Facebook group and that tells me I need to remind you how to follow us on social media and Facebook we have a group you look up flipping America media and you will find us on Twitter and Instagram

the handle is at flipping America and please follow us there like our content and that helps us out quite a bit.

[41:24] All right let’s take a couple of questions from you guys maybe we might have time for three or four questions today let the sea

but the it’s alright folks if you’re waiting to hear an answer to one of the questions just keep listening because we go into the mall Rudy from Houston Texas.

[41:41] Oh yeah that reminds me when you send the question and tell us where you’re from because the team he was going to ask you that first thing cuz we like to know where people are listening we like to also know how you listen

and oh yeah yeah but by then

by the way I’ve got to make this little announcement to we’re very proud of the fact that we really haven’t tried very hard to get listed on iTunes we just posted the show on iTunes in a couple of months ago and.

A week ago we were ranked number 120 now that kind of jumps up and down a little bit from week-to-week though I’ve got the picture that shows we were never 120 in the business podcast and so we’re pretty proud of that.

Our head of some people that are well people that I admire in and think think are wonderful people

anyway Rudy from Houston Texas I could rehab this project to make $40,000 it would take about six months but my friend wants to buy it from me as is for a quick $10,000 profit what would you do

what Rudy I would look at the numbers a little bit longer and I would probably be biased toward take the money now because

do you know you don’t know what’s going to happen over 6 months you don’t know if that 40,000 might turn into 20000 and if it was 20000 and 6 months vs 10,000 now I would definitely take the 10,000 how to not think you would have just sent that question in there,

those were the numbers but it doesn’t take long for a $40,000 profit to become 20.

And if if something happens with the some unforeseen thing you know.

[43:11] It’s kind of a Bird in Hand thing but now you do have to consider the time value of money and you have to Compare the numbers and also really you need to ask what you need what are you up to if you have that $10,000 profit I’m not sure.

How you are finding your deals but can you take that ten thousand and spend a couple of thousand of it and farm and get to three more deals like that one you know that’s a thought.

Also could you bump your friend up to make you 15,000 if it was 15000 vs 40000 I don’t think I would have to think very long about that I believe I would always take the.

That those kinds of numbers up front but even then I would probably take the 10,000 now,

Cloud that money back into my business somehow I’m probably in the area of deal marketing buy more list do more marketing favor more as whatever it is you’re doing to find the deals find them or find some more deals that way

okay Musa

from Waukesha Wisconsin I’m just outside of Milwaukee I know that Musa I’ve been to Milwaukee a bunch of times and actually I like Waukesha,

I’m just outside of Milwaukee trying to get my first rental properties the better numbers are in the Lesser neighborhoods I’m 29 and I want to own 10 to 15 rental properties by the time I’m 40.

[44:32] A very good go by the way.

Do I go with the much better numbers in the tougher areas and do our settle for less profit in better neighborhoods that I go with better neighborhoods I’ll have to buy more properties to reach my goals

one of the things I want to say Musa is first of all excellent question and I’m so glad that you’re really thinking this over

I’m glad you’re just thinking about it and my answer is not just for you Melissa but for anyone who’s looking at similar things because this is a truism for all of us looking to buy rental properties

typically.

[45:05] The rental properties that are going to cash flow the best that are going to represent the highest possible cash-on-cash return are going to be in sketchy your areas.

I have friends that will buy these but there’s a limit to how sketchy they’ll go and they have their criteria and that’s definitely were thinking about that mean there’s bad and then there’s real bad and then there’s war zone.

You know what I mean.

[45:32] I think though I think just from the tone of your question that you’re already thinking this through in a way that you kind of expect what I am going to say next if you are in this for the Long Haul.

[45:48] When it comes to buying single-family homes I’m going to let you guys in on kind of a not well-known and definitely the rental property gurus aren’t going to tell you this because they’re trying to sell you something.

Single family homes are not the easiest way to make rental income in fact maybe the toughest.

[46:11] A little easier than single family is a duplex.

A little easier than that is a quad and a little easier than that is an apartment and you’re not that far away from buying apartment buildings okay.

[46:26] But you asked about single family homes and you have this goal and I think it’s a good goal there’s nothing wrong with it

I hope that you have a plan for management and and expenses and Taxation and all of those things that go with a proper preparation to own a rental portfolio.

But having said that if you’re going to buy single-family homes.

[46:51] I know the numbers I know the numbers inside now I know the number so well I’ve forgotten some of the ways of coming up with some of the numbers I’ve studied all the ways that the big money people analyze the numbers in,

sometimes big money.

Analyze numbers I think as a way to avoid getting down and dirty with the actual deal and sometimes we spend so much time looking at the numbers that we use it as a form of procrastination now I’ve said that.

[47:15] I’m going to say that in spite of what the number cruncher numbers will say.

About return on cash and the power of Leverage and all that in my experience the best cash flowing rent single-family rental properties I’ve ever had.

Were modest properties in good neighborhoods that I owned free and clear.

[47:41] That’s it I know.

That I was not getting the most return on Equity or the most return on cash by owning these properties free and clear I understand that

but I also know that those properties tend to be the least hassle the least worried in the least management concern the other thing that I’ve noticed Musa in my

experience only rental properties over the years is when I buy

rental properties based purely on the numbers and the areas are a little sketchy I get people

who are willing to or by necessity of Life have to live in sketchy areas and here’s what happens.

The people that are willing to live there don’t care.

They also know the game they know how to stick it to you and they consider you the man because you’re the owner it doesn’t matter that you’re barely affording this rental property they think you’re wealthy and they will stick it to you whenever they can.

Okay that the other people you may find some good people who are there only because of their life situation in the necessity of being there.

But there are two words that come after this for those kind of people for now.

[48:54] They’re willing to live there for now but they are not going to stay there long-term.

The other thing that I wanted to say to you about single family homes and just.

Psychology of cash flow is the best single family rental homes are the ones that people move into and stay for at least three years if they stay for 5 years or 10 years and raise a family they’re even better.

[49:18] And with those people that pay the rent on time if if you’ve got a fixed rate mortgage I would leave their rents alone even if over 10 years their rents are far less than the market just let him stay let them have stability because

you would rather have that reliable month after month cash flow.

Then have to rehab the house and put somebody else in there because every time you put somebody else in there you’re taking a chance on what’s going to happen then

next this is a risk mitigation strategy so Moussa I guess you’re hearing my answer I would go with the better neighborhoods even if the numbers aren’t quite as good.

[49:55] Altomare from Lancaster PA right in and says I am in a medium-sized town and most of the possibilities here either don’t have enough profit or are too old,

with huge rehabs what would you recommend well all tomorrow

thanks for listening first of all we know right where you are we also know that in 45 minutes going in One Direction you could be in Harrisburg Pennsylvania even less to the outer suburbs

where there’s quite a bit of opportunity and if you go 30 to 40 minutes in the other direction you’re in the outer suburbs of Philadelphia,

where you will find abundant possibilities and a lot of new construction and growth going on in Philadelphia a lot of opportunity there I think you should keep your eyes open in the town that you’re in there and Lancaster but I believe I really believe that you need to,

I think about picking one of these other areas don’t pick them both because they’re opposite directions but pick one of them and start focusing their for deal flow,

I just plan to commute over there a couple of days a week while you’re working on deals while you’re fixing houses and while you’re marketing for the next one I think that’s probably the best way to go

some of you that are listening that are out in small towns really in the middle of nowhere

I’m afraid I don’t have a lot of advice for you and how to make this full time but I believe that your play is going to be,

buy-and-hold just buy things that come available as they come available and hold on to them.

Advantage that you have small towns usually have lower crime rates and you have less likelihood of instability and all the kinds of problems that we have in the big cities.

[51:24] Okay this next question is one that we get so often we’re just going to sort of combine several from

Kimberly Vicki Steven Christopher Brian Chris Jeff Steve Kristen Casey and Casey and we get this all the time from a whole host of other people we have paraphrase your questions and put them together in one question at folks please don’t let this stop

stop you from continuing to ask even the same question because our hearts are with you we want to help you but here’s the question help I just spent.

Okay and the amounts in these emails go from 30000 to $65,000 learning how to do this business but I don’t know what to do next or I don’t know what to do first.

What should I do.

[52:12] Andina I just shake my head bugs I’m not going to get in my anti Guru granth right now you’ve heard that enough and if you haven’t heard it just you know listen back a few shows I get on it every once in awhile.

Noi everybody to listen to the show knows that I I don’t believe you need to pay someone $30,000 to learn how to flip houses so you can just go buy a house for that and you’ll get your education right there and consider the purchase of that how’s your tuition what do you make any money or not but it’s almost a certainty you won’t lose all of it

if you paid thirty thousand in all you’ve done is transfer your house buying 30000 into the pockets of somebody who really doesn’t need it

okay just don’t do it enough of that all right here is what you do.

[52:56] And I can’t believe that you can go to these courses and not at least Come Away with this number one.

[53:05] It’s the same whether you spent $5 or $50,000 number one get information.

[53:13] Now I’m not talking about this esoteric out there whatever whatever information get information including information on how to own and run a business because you’re going to be in a business.

If you,

that much money that tells me that you want to make a job out of there so you want to make a career out of it and I know that you’re trying to get out of your job at folks it’s going to be a job for a while and this is one of the Insidious things about the guru State they make it,

they try to make you think that there isn’t work involved in this and there is its work and you’re going to own a business you’re going to run a business and you’re going to work some hours to get this thing off the ground can it be easy later on.

[53:52] Heck yeah you can be easy and it can be great it can be fantastic but you’re going to work to get it lifted off and part of that work

is getting your head filled with the right now that she’ll get information join meetup groups go to local meetup groups read books your your Mentor probably isn’t teaching you how to own and run a business that’s a different thing you need to know that if you don’t have a business degree while actually even if you do have a business degree I’m not sure that poorly equipped shoe to own and run a business you also need to get the entrepreneurs mindset this doesn’t mean go to a bunch more seminars and so forth

get the information I don’t care how you get it get it on YouTube by a book listen to a book

go to the library I don’t care how you get the information although I do care that you continue to listen to the show you get a lot of information that way but,

after you start getting some information don’t wait till you have it all get a mentor.

[54:48] Find someone in your area that you know you like and you trust.

Who is willing to partner with you and Folks by partnering that means you’re bringing something of value to this situation.

Whether you’re bringing money or Hands-On are grunt work whatever it is partner with a mentor I highly recommend that most of you don’t go out and do a flip on your own,

with no one else involved for your first one.

Highly highly highly recommended back if you come through my mentoring program we don’t even really allow it I mean we do in some cases because we have people who are experienced business operators and we have experienced contractors and up that other,

the blight you know people who have been Professionals in their own businesses before will make exceptions okay but generally speaking we don’t even let you go out and do a flip on your own.

[55:45] We want you to work with a mentor

and so we try to provide mentors in all the areas where we are at work number three this may seem obvious but this is not something that the seems to be at the top of Mind awareness for people who are new in this business

go get a property just get one.

[56:06] Well how do I get that okay listen to the show over and over again because if you go back and start listening many many times and I’ve done an entire show on how to go find properties but find a property.

And yes you’re not going to find a property

most of the time by sitting at your computer get out into your community talk to people you know get a business card that says I buy houses and put it in the hands of hundreds and hundreds of people.

Not the same one each person gets their own car okay but do what you have to do to get a property and number for get cracking.

[56:43] Because here is what happens.

[56:46] Less than 10% of the people that go through one of these courses go out and actually make it happen that is a heartbreaking result

I can’t change it it’s just the reality people will pay money for things that they think’s going to solve all their problems as it’s throwing money at it is it is the solution when really throwing money at things maybe what the problem was in the first place.

But look I’m not here to criticize you if you’ve spent money on these courses I understand I’ve been there I understand the Allure of it all tonight and it sure looks really great and excited people in happy and all that but,

the further distance that goes between that event where you were all excited and today’s date.

The less likely you are going to be successful in this business get cracking don’t delay.

Do something tomorrow we’ll do something today if you’re listening to this in the morning do something today just take a step investigative property run the numbers even if it’s just for practice but do something.

[57:55] There you go folks there’s your first four steps get information get a mentor get a property and get crackin.

[58:04] The music is started that means we’re out of time for today show but I want to thank you all for listening and thank you for.

Patronizing our sponsors and make sure that you check them out and the particulate today we focus on altamed rehab estimator and Pat Dornan.

Make sure you get the ultimate rehab estimator. Come and check out this amazing tool.

[58:27] Music.

[58:50] For the week comes from my friend and Mentor Gordon cats who said the dog that chases five rabbits catches none.

This is his Homespun way of telling us Focus thank you Gordon.

And this thought has 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 much appreciated and tax deductible.

[59:18] 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.