Flipping America 265, Private Money

podcast 265 Private Money with Susan Lassiter Lyons


Show me the MONEY! Of course this is one of the more famous movie lines ever from Jerry Macguire. I know many people get involved in real estate after listening to late night infomercials about “no money down” investing and how you can buy real estate with no credit, none of your own money and so on. These deals do exist but you might have to stumble over 100 good deals to find one. Those 100 deals require some money. And that money can ONLY come from one of two sources: YOU or SOMEONE ELSE. Most of us, when we get started are using money from someone else. It can be a friend, family member, or a lender, but most of us just do not have cash lying around to buy a property. 

So how do you find the money and what is the best money to find? Our guest today is Susan Lassiter-Lyons and she is the author of the best-selling book “Getting the Money”. She’s coming along in a few minutes to lay some insight on us. 

Plus we’ve got the news. Attom Data has released the first quarter home flipping report and I’ll be dissecting it for you later. And housing affordability is still in the news – the federal government has taken notice and is taking action. Flipping America is in the news also – more in a minute…

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

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Real Estate News-


  • Lunch with me every Wednesday. Baraonda
  • My latest article in Forbes is out. bit.ly/findredeals.
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  • 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. 
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  • Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

Special Guest: Susan Lassiter-Lyons, author, “Getting The Money”

Your Questions: Send emails to questions@rogerblankenship.com

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

Motivational Thoughts for the day

  • “I’m always doing that which I cannot do in order that I may learn how to do it.” – Pablo Picasso

Expected Air Date: 7/05/19

Private Money


[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.

[0:52] Hey everybody of course that’s one of the most famous lines in the movies ever that’s from Jerry Maguire.

And the Today Show is about money I know many people get involved in real estate after listening to late-night infomercials about no money down investing in how you can buy real estate with no credit.

None of your own money and so on these deals do exist.

But you’re going to have to stumble over a hundred good deals to find one of them those 100 deals at you just stumbled over.

Could get done could make you some money if you had a little bit of money.

But they require money and that money could only come from one of two sources you or someone else.

[1:35] Most of us when we’re getting started are using money from someone else let’s let’s just face it we don’t have enough money to buy a property most of us this money that we get from someone else can be a friend or a family member or a lender but most of us just do not have enough cash lying around to do a deal

and in fact

I routinely speak people who are so broke they don’t have enough money to borrow any money to do a deal and that’s why a lot of people headed to.

Wholesaling to begin with so how do you find the money and what is the best money to find Our Guest today,

is Susan lassiter-lyons and she is the author of the best-selling book.

Getting the money she’s coming along and just a few minutes and she’s going to lay some inside on a send you can trust me folks I’m always looking for other money sources I took note,

and you’re going to want to take some notes to unless you’re driving of course and if you’re driving just make a note that you can come back and listen to this show number 265 on the Flippin America app.

[2:37] And you can also look it up by Susan’s name

later on we got news coming up for you in fact I’m going to lay some of that on you even in just a minute or two Adam data has released the first quarter home flipping report

and I’ll be dissecting that for you in a few minutes and housing affordability is still in the news but the federal government,

has taken notice and is taking action I’m going to tell you today what the federal government has just done and it’s a pretty interesting some of the programs that adjust

either been reworked or introduced flipping America is in the news also more on that coming up.

[3:17] You can reach us here at the show by visiting our website.

Www. Rodger Blankenship. Com you can also find us on Facebook with the show name flipping America its face.

Flipping America media find us and follow us on Twitter and Instagram at flipping America we have the national comment line

which is 404-369-1018 extension 1 please leave your message or your question at that extension and.

If you want to just email your question you can always email your questions about real estate.

Weather from a personal perspective or an investing perspective or just.

I guess life in general send your questions to questions at Roger Blankenship. Com please

when you inquire always tell us where you are from and how you’re listening to the show because we like to know both of those things and let us know how you found out about us if you don’t mind

the more background you can give us a the better it is just gratifying for us to know that the things that we are doing to get the word out about the show or working,

and we also get an idea of some of the things that are not working let’s do the news.

[4:31] Music.

[4:37] In a press release today flipping America hits a milestone our official

Meetup membership pass across the 7,000 threshold last month and we now stand at 7068 that’s fun

I’m proud of it are groups of hosted 1095 events since we started we’re now doing at least two events every week one of them

could soon be in your town and if you’re interested in having flipping America come to your town will do a show will do so a boot camp or something.

We’re open to invitation contact Carly and that’s early Carly at Roger Blankenship. Com if you’re interested in having us in your town


now having said that I mentioned it to meet up so we do in town here every weekend let me just go ahead and throw this out there and if you’re ever in Atlanta on a Wednesday or Thursday plan to come have lunch with us on Wednesday

and or dinner on Thursday because we do a little Meetup Group every week I say little I didn’t know what was going to happen on July 3rd.

[5:41] Because you know it’s holiday and everything I went in there and sure enough there were two three people there but by the time it was time for the meeting to really get started we had 25 which is basically about our normal group so you never can tell

we’ve had a few hours to we’ve had as many as fifty but you are welcome to come and if you come from out of town and let me know that you

heard about this get together on the show then your dinner or your drink is on me.

[6:11] Here’s a little bit of news that you can use this Ascend realtor.com and housingwire a survey reveals that most homeowners would sacrifice a big yard

for a shorter commute.

They would rather have a small yard and live quote smaller yard and live closer to the place where they work and of course you know my kids are all grown so I would rather have no yard that suits me just fine.

I spend zero time mowing the grass I spend zero time maintaining the machine that I used to mow the grass and you know I did never hate mowing the grass but you know it’s just one of those things I’d rather not do since I don’t have kids play in the yard I’ll let somebody else 10 the green stuff that I look at.

[6:52] All right and speaking of commute I’ve got the the top 10 worst commutes in the in America are average commute time Nationwide cream.

[7:03] Creep.

[7:04] Crept up a little bit it is now 26.9 minutes and I know many of you listening this or saying 26.9 minutes how could it take that long to get to work and some of your thinking

man where do you got to live to only drive 26.9 minutes so here is here are the top 10 worst traffic cities in America

we’ve got a tie at number 10 between Philadelphia and Seattle with an average commute time of 32 minutes I lived in Philadelphia for a while and I can vouch for that.

[7:36] If you got to get in and out of the city on the on 76 it’s a two lane

interstate and they can’t expand it because on one side is a river and the other side is a rock face so you’re stuck.

Seattle 32-minutes Los Angeles and Miami are tied for eighth at 33 minutes Atlanta and Chicago are tied for sixth at 35 minutes average commute

sitting alone in fourth place in the forest worth

worst commute in America is San Francisco at 36 minutes tied for second at 40 minutes.

Is Boston and New York that probably doesn’t come as any surprise however number one is a little bit of surprise the worst traffic

in America and some of your thinking you’re scrambling right now you thinking what cities to see that that must be Los Angeles no it’s not it’s Washington DC.

[8:34] At 41 minutes average daily commute now Washington DC is only one minute worse than New York and Boston but there is a little bit more of a significant difference between those top three,

and then the rest of them so the worst place is to to try to commute to work in America DC New York and Boston surprise surprise.

[8:57] All right now Harvard has come out with a new study and this is what has brought home affordability back a little bit into the news this week

there’s a housing shortage out there and a lot of it has to do with the lack of affordable housing now in this study they came up with a profile of a new home buyer not put this into the show notes because the average profile of a home buyer and I don’t I don’t really know what I think about this because

on the one hand the.

The basic profile of a new home buyer hasn’t changed since they started measuring new home buyer so there’s not any news here but on the other hand when you come up with your average home buyer they this is a Harvard study and four ethnicity it says white.

How can I be I mean all right vs so if

the majority of home buyers are white okay that’s fine but if it’s an average it’s got to be some shade of tan or brown doesn’t it I don’t know.

I I just wish they’d leave the ethnicity question out of it because what difference is that really make.

Aged under 35 marital status is married children yes type of property selected detached single-family home square footage less than 1500 in average home price.

Less than 200,000 now that price point changes over the years but for the most part those are the characteristics of first-time home buyers throughout history.

[10:22] Okay on average who can there are exceptions to every Rule now the study goes on and begins to talk about.

The housing affordability problem and mentioning,

a88 actually cite something we reported on we did a show on affordability a month or two ago and we talked about the main problem.

With housing affordability is the high cost of bureaucratic compliance red the red tape the cost of it in terms of money and time now

while I’m on that subject.

[11:01] I want to bring your attention to another story this is actually kind of an opinion piece written by Shawn fairies from Land gorilla.

But he says that affordable housing issues are studying the mortgage Market but changes on the way so let’s take a quick look at this story.

[11:21] John does a nice job of documenting a lot of the things here that I am about to say from the story so you can read the story and we’ve linked to it and are show notes but.

Cities or municipalities are beginning to feel the heat.

Because they’re people just in the streets crying for affordable housing and pointing out the ridiculous

sometimes ridiculous cost and delays that have to do with building new property.

For example California governor Gavin Newsom has filed lawsuits against the City of Huntington Beach for failing to develop an affordable

housing plan California has created a stylist a pilot program to completely bypassed local permitting requirements on Accessory dwelling units to reduce cost and time to complete.

[12:09] Depending on where you live most likely government regulation plays the largest role in housing affordability.

Around the United States permitting local government fees can swing from a few thousand dollars in a couple of weeks to obtain in some areas it could be closer to $100,000 and take years to get permission

to build a home on land that already makes the zoning requirements it’s just crazy well

it’s about the change on June 26th President Trump signed an executive order to tackle the lack of affordable housing and make it a priority to remove red tape this can have a meaningful impact on every family and is long overdue.

[12:53] Government agencies are changing their tune as well the federal Housing Authority has made updates to its 203k Rehabilitation Loan program and reduced outdated.

Apartments on new construction inspections the Department of Agriculture hasn’t introduced a new renovation program and the Department of Veteran Affairs has

provided better Clarity and its guidelines to make it easier for lenders

to make renovation loans to Veterans Fannie Mae and Freddie Mac who have been under government conservatorship since the crisis have made major strides in trying to provide affordable financing options.

Within last few weeks Freddie Mac

rolled out a completely new consumer renovation loan program I reported on that when it came out a few weeks ago and so they’re the government is starting to take notice of affordable housing we got more news but we got to talk to Susan just a minute.

[13:44] Music.

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[15:12] Music.

[15:27] Susan lassiter-lyons welcome to the show.

Thank you so much great to be here very excited to be talking to you about this topic because it’s one of the biggies you know finding the deals finding how to do it and then getting the money those are the three big topics and the so you killed the topic in this book

getting the money alright so let’s just Dive Right In where’s the money.

Where’s that is all around you seriously you have to put on your partner vision goggles that’s what I say so the whole basis of the getting the money book and of the

really the foundation of the school system it just has to do with soliciting seed investors right so if you have any of yours

our listeners who are interested or have ever watched Shark Tank

what happens in Silicon Valley when do Starbucks pitch Venture capitalists and other Capital guys in order to

the very first round of capital infusion is going to be from the founder.

[16:34] You’re going to find the first thing usually some money out of your pocket and then we’re going to expand a little bit to the scene round and not just is code for your friends your family and your acquaintances and I’ll tell you

what is the absolute most lucrative place to start easiest money ever wants to start

because of that beer right I don’t want to ask anybody I know to borrow money mindset issue that we need to try to get over

yep and you know I didn’t have the advantage of that book and I bet you notes people ask me how I got into flipping houses and I tell them it’s a combination of sheer desperation and the lack of communicable job skills I didn’t I didn’t really know what else to do so

I am headed up to do hard money loan and the the rates on that were 5 and 15 at the time,

and I thought once I understood what that meant I thought that’s that’s pretty high so I called my dad.

[17:33] And just made it a business proposal and he chuckled a minute and he said well that’s a first and then when I told him what I was interested in doing he ended up

offering to just put up the money if I would do the work and we put the prostitute

and that’s the launch of my career so yeah right it’s

like you and trust you in this case with your dad know you love you and trust you yeah well you know yeah I guess you.

[18:07] I guess he loves me do you know the the from the different generation it’s more like you know if I ever stop loving you I’ll let you know.

I’m not going to tell you.

[18:20] Anyway all right so so you got friends and family what is what if your friends and family don’t have any money or they don’t trust you with theirs then what.

They do I promise you that they do and this is a common objection that I guess it’s like I don’t Susan I don’t know anybody with nobody I know has any money.

I want to tell you a story about my cousins play and this is a story that I highlight in the book as well so I have a cousin play.

Who lives in I live in Southern California clay lives in Missouri and.

He’s five years older than I am and play is just love the sky.

She married his high school sweetheart when he was 19 years old that they already had one baby and they were pregnant with her second baby when they got married and three kids by the time he was 21.

And he worked his ass off to provide for a family and he became a chef and then he worked in a essentially like a a food factory

doing all these pre-made soups and sauces for bread and grocery stores and so forth and you know.

His wife clean houses and they it’s just your standard kind of middle-class family

when I was Raising capital and pitching my friends and family on investing in my projects I didn’t.

[19:44] Ask play because I just assumed that he and Jeannie didn’t have any money to invest because you know they started off their life kind of behind the 8-ball and.

Didn’t live in such a way that let anybody to believe I thought they were doing anything other than living paycheck-to-paycheck so fast forward.

[20:05] My aunt Lenora who is Clay’s mother passes away and I take my mom out to Kansas City Missouri for the funeral.

And I’m sure we’ll go back to playing Jeannie’s house you know for a little gathering and food and stuff like that and I’m just chatting with clay.

[20:26] I’m like woah

I don’t know play you know I just I was trying to let him down easy I said you don’t really have anything in the pipeline right now but if I let you know what he says,

the house is completely paid off we don’t have any debt all the girls are through college Genie and I are both maxed out are 401ks and we’re just looking for some place to put all this money.

So, what are you kidding me.

[20:57] All this time I had just assumed something about play I told myself a story that I made up about him and I believed it I was completely

off base

so I tell a story to demonstrate the fact that I don’t care if you have this huge fundamental belief and just a huge resistance to pitching your friends and family if you’re using excuse that you don’t know anybody with any money you were telling yourself a lie just like I did about my cousin play

everybody know somebody with money everybody alright okay well I can believe that so now let’s take the next step.

8U they have money or you think they have money what’s the next big step that you take what they call a specified,

or you can do at a blind stitch I like to do a hybrid which is what I call a non Spotify so

most people what happens when they are trying to put together the funds for real estate deal is they do it exactly backwards

and then they’re scrambling around like a chicken with her head cut off trying to find the funding for the deal.

[22:12] In order to close that deal the other way that you can raise is

what we called black people and say hey invest money in my real estate company when I get a deal I’ll be using it.

But you don’t give any description or details about the kinds of deals in the X potential returns that those people could be getting back so that’s a super difficult.

[22:35] So it’s it’s because you put way too much pressure on yourself.

Freaked out and it’s tough to do a blind stitch because your people have no idea what they’re going to be investing in so both of those are kind of

not ideal but I know it was the hybrid the seventies as a bike fit so I can get Crystal Clear exactly what it is we’re investing it.

5 to 10 unit multi-family in these for zip codes we’re looking at this side of a cat

so I put it as much concrete detail as I possibly can about the specific properties on targeting.

So that they feel confident in knowing they have a good indication of what they’re investing

and I take all the pressure off myself by raising capital in advance of actually having one of those deals under contract so I’m not going to running around like a chicken with my head cut off

yeah okay that’s good that’s good and I.

[23:44] Let me put it to you this way are there one or two key statements are types of statements that you make in this process.

Absolutely yeah so there are a couple of Tricks right to putting together this picture or small there are a few questions that they’re going to have

that you need to make sure that you answer in that picture even if they’re not asked right so

what is it how much do you need when do I get my money back what happens if this deal goes south and if you’re not prepared to like answer all those questions in that pitch

then you need to rework your pet I remember one of the,

early on right I kept hearing a lot of no’s before I got the style in I’m like why I reached out to a couple of the guys who told me no and I was like you know I know it’s a no and that’s cool I just want get some feedback from you.

Why why did you say no and both of them said it well because you’re kind of a one-woman band and it wasn’t really clear to us what’s going to happen to our investment if something happens to you.

[24:50] It sounds like that’s a fair question so then I started letting them know exactly how are things going to be,

winding down and then I started.

The same thing is in the pitch I called their two things I like a covered the first is what it called a coolness Factor

alignment and the coolest actor sobers up with alignment is I like to know the person that I’m bitching and I like to know,

what other lights are what their dislikes are and if there’s something that we can kind of sync up on this guy and I did some research on him.

And I found a family blog of his that he had been cut keeping on and off online for a few years.

[25:44] And in a couple of the most recent bought those he was talking about his beloved dog,

it was a German Shepherd at that time I had a German Shepherd Husky mix was my sole not at the time and I was like oh my God.

And we did bring some sat down and immediately just disarmed and eliminated all the tension from the whole conversation when I was like nah I’m so sorry.

To hear about your daughter like you don’t have a a German Shepherd but I adore as well not really talk to you.

You know it’s like his entire demeanor just changed he completely relaxed and he was able to kind of hear what I was bitching and lean into it and wanted to work with me.

[26:24] So the second piece of it is what I call the coolest actors he got to figure out like what is it exactly about your project that’s cool right I always thought I was give is everything being equal.

What would I prefer to invest in Apple or Campbell Soup.

[26:42] I’m all right because it’s cool and sexy and kind of new and fun and shiny another soup you know I mean I don’t get too excited about going to dinner party

go tomato soup I just made a bunch of money

I like that

and get a lot more money than we ever would have otherwise okay well speaking of picture books already a best-seller getting the money but give us a pitch tell us what else is in the book that makes us want to go out and get on Amazon and order it right now.

[27:27] Because if I didn’t hold anything back,

nothing I didn’t hold it back so a lot of times and you don’t have a $10,000 training course after the book

people who are like I love the book now what I do it’s like just do it do what’s in the book right I don’t leave anything out I mean I gave you the whole process so in the book I take you through the

pitch decks like all of the components of it so you can like build your own template I think there’s a lot of questions that I had initially when I was trying to figure out how to use private money

okay so now I understand how to race it what do I do once I get it like what are the technical aspects in the logistics.

Where does the money get wired and how do I give instructions to the title company how do I really want to try to highlight from A to Z

and that’s a very good segue we’ve got to take a break but can you hold on to the break and talk to us for a few more minutes

okay she’s Susan lassiter-lyons I’m Roger Blankenship she’s the author of getting the money which is available at Amazon I’m sure in a bookstore near you but the

we’ll be right back in Chicago pay as you go.

[28:46] Music.

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[30:29] Music.

[30:49] We’re back I’m Roger Blankenship and I teach people how to make money in real estate and part of the teaching that I do is to get people smarter than me to come on and talk about how they’ve made it work.

And today we’ve got one of those Susan lassiter-lyons has joined us she’s the author of the book getting the money if you just joined this you need to go back at the podcast and and listen to the previous segments because so much helpful information.

And we got a little bit more to come so you’re talked about and now we’re at the stage you got the money and you’re putting together the structure and you’re covering all of this in the book exactly what to do with it.

Okay and then exactly how to report on it.

[31:24] Yeah absolutely and you know one of those big things that I talked about as well is what I kind of referred to as partner management.

The first one I want to make is I think that we’re doing ourselves a big disservice by calling.

Private money partners by referring to them as private money lenders because what it does is it immediately puts us in that subservient mindset when you’re going to borrow money from somebody right they have the money and you’re like in the inferior position,

and I don’t know about you but I don’t ever like borrowing money from anybody just need like a nauseous pit in my stomach and makes me feel gross like.

You know what I had to borrow money from my grandmother once when I was in college I do not like sweaty hands and I felt like I was going to park.

I don’t like feeling like that so just a simple kind of mindset right that I did just going to flip the script was I just called on my private money partners.


They’re still in apartment with us by providing.

[32:37] One of the things that I think is so important and one of the ways that you know I’ve been able to get away with just a handful of private money Partners over many many years is that I treat him really really well

right you have to manage your partner’s appropriately you have to treat them as the most important people in your business because that’s exactly what they are I like to do a couple of things first I like to celebrate our anniversary.

[33:03] And ducks like nuts

because it’s like wedding anniversary or birthday or anything like that it’s the anniversary of the very first deal

that we did together so I always celebrate that and I’ll send them like a card or maybe a bottle of champagne or something

it’s been three years I thought we’ve been in business and look what we’ve accomplished and I’m just looking forward to

are so many more profitable years working with you and thank you so much for everything you’ve done for my business.

And the other thing is I have a friend this is what I lived in Denver we just moved down here Southern California about a year-and-a-half ago but back in Denver

I had a friend who had a friend who had a suite at the Pepsi Center


SoJO who take off the poem tickets and I would take the other half of them tickets and then I don’t use that like a plan and private money partner appreciation,

I sorry I can fit 12 guys in the suite and if you like come on everybody we’re going to make a party we have catering in there without alcohol.

[34:16] Back on the Nuggets were quite as good as they are.

Flipping a house where a lot of fun and I think that’s an important piece of it that’s how you avoid

going out and having to pitch after pitcher pitch after pitch and get new private money Partners that’s how you can get maybe five or six really good ones and then you just keep working with them over the years.

[34:44] Okay all that sounds good now I’m I’m going to throw you a little curveball right now Susan okay.

Are you done a great job a picture in your book and let me just remind everybody it’s available at Amazon just go look for it Susan lassiter-lyons in the book is getting the money and the.

Now you’re a full-time real estate investor and best-selling author and all of that but.

[35:10] I would say 99% of the guests I’ve had on the show are you know they’re doing something in real estate.

This is not what they plan to do with their life.

And so here’s a question I want to ask you when you were a little girl and you were thinking about growing up why did you want to be when you grew up.

I want to be a journalist I wanted to.

This is a crazy story I agree I love to write I love to write and I wanted to be a journalist and.

[35:45] So I thought you know

I’m going to join the Navy okay that’s a logical said hey you know they have like a two-year journalism program in the Navy and if you like join the Navy.

Do a two-year stint will be able to maybe see the world really it was more about getting away from home kind of been in the Navy but I thought I’d like a free ticket

in a way that I could kind of jumpstart my journalistic Endeavor and so I go to the recruiter and he’s like

an entrance exam or something go to join the Navy or,

the armed services I suppose I was in a room with maybe there maybe fifty or sixty of us in this room we took the test,

and we laughed and my recruiter was all excited he’s like oh my gosh you got the highest score on the test he’s like this is amazing he goes we want to put you in a 6-year.

[36:45] Electronics program because that’s what your attitude is and I was like dude,

like I don’t know anything about Electronics like I will fully electrocute someone this I know it’s like I don’t even know the AC DC I don’t know any of that stuff

like even to jumpstart a car back in the day I member I was like oh my God I’m going to like explode the

song goes where the red and the black is so unlike and now you’re saying that you’re going to put me in a 6-year like promise program

I don’t think so so I didn’t go into the Navy didn’t become a journalist didn’t begin riding or anything I just went into business and

ghetto kind of have followed this path where it led so yeah I’m just like everybody else very rare that we kind of end up doing the things that we had a big idea during we were kids,

it’s also so rare for people to end up doing something they majored in in college but I say it doesn’t really matter that much what matters is that you learned how to learn.

[37:53] Yeah absolutely you learn how to learn and you know you got some really great life experiences along the way and I think that part of that learning how to learn is understanding how to be adaptable.

And how to maximize the opportunities to come to you.

Now that’s really what it’s about when you can recognize that even if you know right out of the gate you’re not doing the thing that you wanted to be doing

you know I do it for hockey now like I

I’m running but I wrote a book written a couple of books I love to write screenplays you know there is a little script writing group tear down here and we

make a pretty good life for myself doing,

well you never can tell some really weird things get you know some movies get made better yeah alright so what’s next for Susan lassiter-lyons.

[38:57] Oh boy well Ashley I started a financial publishing company and so one of the things that we do is talk about investing for income

so I’m trying to steal back the active real estate investing and on a scale in some more passive real estate investing with

publicly traded REITs and you know some of the private

note funds an individual real estate notes.

[39:35] Yeah give me the opportunity to get all of my eggs out of that one main actor real estate investing basket and put it to work on some other areas in a cup up the jam on the return easy way.

Very good what’s happening in your local market there sounds like you’re in LA.

[39:53] I’m actually down in the desert so we live in Rancho Mirage which takes 10 MI

we live in a it’s very much a Retirement Resort area so there’s no there’s not a lot going down on the population doubles when the weather gets cooler and it clears out when it’s warmer like it is now

you know I’m not like where we came from Jennifer which was just on fire I mean I was like oh my gosh like I have to take the money off of the table we.

What is the last house that we did we built like 800,000 we ended up selling it for almost twice as much and I’m like we’re just going to take the money and run.

The plan was to come down here and retire here in Rancho Mirage.

I’m only 54 we ended up you know arriving at our retirement destination like about 10 or 12 years early but I was like.

Yeah alright so you know there is a snowbird flip model.

Other is I don’t know if anybody’s teaching it but yeah okay maybe I will maybe we’ll talk about it when the show’s over.

[41:14] Let’s just kind of go back and recap okay if you’re talkin to a new investor and they’re coming to you and they’re saying Susan.

I have a deal and I just don’t know where to go to get the money I’ve got a hard money lender but I still I’m going to have to come up with $40,000 out of pocket and I don’t have it.

What are the types of things you say to that person kind of wrapping up our talk today,

but my answer is always this all roads lead to private money it just us what do you need $40,000 for a second coming in behind a hard money loan.

Or if you need to raise all of the capital to cover the deal or if you’re raising for just the first position and then somebody else is going to come in behind position.

[42:01] All roads lead to private money you need to be in your friends your family your doctor chiropractor.

[42:10] You know I think the biggest problem but a lot of these new folks have is they have this problem of the secret identity.

[42:20] Maybe there is like a dentist or

plumber or whatever and that’s what they’ve been known as to their friends and family forever

private they’re doing real estate on the side and they’re not really talking a lot about it right because they’re a little embarrassed like I don’t know if this is going to be.

But everybody know what I’m doing just in case I fail so they have created a secret identity,

I don’t like screw that right you need to read without your new real estate

need to let everybody in your life know what you’re doing and let them know and see what you’re doing with your projects and then it’ll create

the bite your friends near gallon of your acquaintances / with you on these projects.

Be loud and proud about it I’m with you know the platforms that we have now like Facebook and Instagram especially.

Show me pictures of what you’re doing in properties that you’re looking at a real estate investing ideas that you have but get other people interested in and get them to Rally behind as well.

[43:31] Yes alright that’s great Susan lassiter-lyons has been our guest today on Flipping America and her book is called getting the money and I know you want to get this book it’s on amazon.com and if you have questions about.

Getting money private money or lending or anything real estate or real estate investing related Cinema questions at,

it’s questions at Roger Blankenship., almost gave you the old email questions are Roger Blankenship. Calm and there will be happy to answer that we answer all the questions and if it’s a really tough one that we don’t know the answer to we know how to get ahold of Susan.

[44:05] Cheers and thank you for joining us today we appreciate it.

[44:09] Music.

[44:21] 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.

[44:38] 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 you can download the app will anyone can download the app.

And in the App Store it’s called flipping American 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 that’s the snap.

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

[45:46] 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.

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[46:18] Music.

[46:34] All right I think I’ve got time to get into the house flipping report from the first quarter.

From our friends over at Adam Data Solutions 49059 us single-family homes and condos were flip

in the first quarter of 2019 down 2% from the previous quarter and down.

8% from a year ago to a three-year low that is in the wrong number but as a percentage of home sales it is the highest in recorded history.

[47:08] Okay it’s 7.2% of all home sales and that’s up 5.9% from the previous quarter and up 6.7% a year ago the highest home flipping rate well.

[47:18] Been a long time okay.

[47:22] So what is this mean well actually it means it we’re hanging around 7 7% rate of Home flips that we’ve been you know it’s always you know.

[47:33] Anywhere from 6 1/2 to 7% of

home sales are Flips and it’s always been that way this is not that big of a difference we’re just we just had a temporary bump in terms of their percentage all right

homes flipped in quarter won the 2019 sold at an average gross profit of $60,000 no This concerns me a little bit because that’s a gross number down from an average gross flipping profit of 60 mm in the previous quarter down from 68000 in 2018 see we got a little bit of a trend going here

the average gross flipping profit of $60,000

q1 translated into an average 38% return on investment compared to the original acquisition price

there’s nothing wrong with a 38% return on investment especially since most of these don’t take a year most of them take around six months and so you could double that for an annualized rate of return but the problem is this is a grocery turn.

Except they’re they’re doing the math here and I don’t

I’m not faulting Adam date up there because they don’t have access to commissions and that sort of thing and they don’t even have the repair numbers and note that the repair numbers are not considered in here so is 60000

just difference in the sales price a in that 60000 you have to fix it and pay commission I’d say that.

[48:52] On the average deal that we see now if you have a gross margin of 63rd gross.

Number for gross profit of $60,000 you are going to be doing well to make $10,000 out of.

Because you got to repair the property to flip it and you’re going to pay commission most of the time so.

Here’s a quote from Todd Teta Chief product officer at Adam data with interest rates dropping and home price.

Increase is starting to ease investors may be getting out while the getting is good before the market softens further.

Maybe it sounds educated.

But I’m a man and I can’t dispute the dataguise and I’m not going to try to dispute the daytime but I am going to say there’s a fairly long history of Home average.

[49:42] The flipping rate averaging around you know anywhere from 5 1/2 to 7% and it’s been that way for

ever since I’ve been in the business and especially since I’ve been paying attention we sell about the same amount of homes every year and we have this about the same amount of flips every year.

I think the difference is there is a significant difference in the numbers when you start really getting down to it.

What happens is people break into this business every year and they break their banks in it and they go off and they lick their wounds and do something else so what’s happening now


the market has the market is strengthening for Real Estate we see hundreds of new Realtors you know flashing their licenses and getting out there and sell houses


We see diminishing numbers of investors when the market goes the other direction we see Dominion diminishing number of Realtors and those who are

just really not very good at it they’re the ones that fall by the wayside and we see increasing numbers of investors and so when the market is like it is now with decreasing numbers of investors the ones that are left are the ones that are pretty good at it.

[50:53] All right the whole flipping rate was up a year ago and 62% of local markets 85 of 138

Metropolitan statistical areas analyzed in the report posted a year-over-year increase in the home flipping rate this includes

Columbus Georgia which was up 83% Raleigh North Carolina up 73% Charlotte North Carolina up 65%

McAllen Edinburg Texas at 55% and Milwaukee Wisconsin up 49%.

[51:28] Along with Raleigh Charlotte in Milwaukee other Metro areas with population of at least 1 million and a home flipping rate increase in the double digits were San Antonio Texas

up 47% Houston Texas up 41% Atlanta Georgia up 38% Pittsburgh Pennsylvania up 36% and Minneapolis Minnesota up 33%.

The number of homes flipped reach new peaks in first-quarter for Raleigh North Carolina and San Antonio Texas in the first quarter of 2019.

Now here’s a little factoid from this report that you can really use you want to know the top.

Flipping markets in the United States right now where you have the chance of of making the highest gross return on investment.

[52:17] Of course you want to know.

[52:19] And now you’re going to know why we just did a show featuring Pittsburgh because number one is Pittsburgh Pennsylvania at 131.2% followed by

Flint Michigan.

Yeah maybe they haven’t solved the water problem but they’re flipping houses they’re hundred and 27% I have flipped the house recently in Flint Michigan Shreveport Louisiana 112%

Scranton Pennsylvania 112% Knoxville Tennessee 105%.

[52:50] Lowest Pittsburgh Pennsylvania Metro areas with a population of at least 1 million and an average gross flipping Roi of at least 79%.

Cleveland Ohio at 100 Philadelphia at 100 Buffalo at 89 Memphis Tennessee at 79.

[53:07] And that you met some some of you may remember is I go to these numbers you.

May recognize cities that make other lists for example the highest per capita zip code for flipping in.

2018 was a zip code in Memphis Tennessee so not only is there a lot of activity in Memphis there is a high Roi in Memphis and if you live anywhere close to Memphis let’s say you’re getting strangled in Nashville

maybe think about moving down the road a little bit and it hit Memphis.

[53:39] I made a couple of dollars flipping a house in Memphis last year it’s not someplace it’s been on my bucket list of places where I want to live or retire to.

[53:48] Hey you know that doesn’t really matter if you can make money you can make money now the average time to flip Nationwide.

This is an interesting little fact also the average time to flip basin-wide is 180 days.

That’s up from the average hundred 75 days now keep in mind what I just said about how long it takes you to get a permit sometimes to get a permit to build a new house can take you a year just get the permit.

[54:14] But we can complete a flip in 6 months this makes played why some of the former home builders are now.

Flipping houses among 138 Metro areas analyzed in the report.

Those with the shortest average days to flip wear McAllen Edinburg Texas hundred and twenty-seven days Memphis Tennessee hundred thirty-six days Raleigh North Carolina 142 days.

Mobile Alabama hundred 44 days in Phoenix Arizona hundred 51 days

areas with the longest average days to flip or Naples Florida at 235 days Bridgeport Connecticut 230 days New Haven Connecticut 225 days Provo Utah 219 heart.

Connecticut 219th so

there are some areas maybe if you want to just turn the money you stay out of Naples is a wonderful City a great place to live but maybe not an ideal place to be flipping houses right now

however if you went right up the road even 40 miles to Fort Myers are going up to Sarasota and Tampa it’s hot hot hot.

There didn’t make this list but I can tell you that it’s hot.

[55:22] The percentage of flipped home sold FHA buyers increased a little bit from the previous quarter and you know if you ask the average flipper how many.

I mean what percentage of your properties get sold to FHA buyers they’re all going to say 80 to 90% what’s the overall percentage of home buyers using FHA is fairly low

it’s 14.2% in the first quarter of 2019 these that’s the percentage of homes

bought with FHA Loans from house flippers.

That number is up a little bit from last quarter but down from a year ago when it was at 15.2% I think I would start getting a little concerned about where the housing market is going if we see

FHA buyers higher than 20% of home sold.

I don’t have a lot behind that number other than just a hunch let’s talk about

the 8 zip codes with a home flipping rate of more than 30% among 1433 u.s. zipcodes with at least

10 home flips in the first quarter they were 8 zip codes where those home flips accounted for more than 30% of all home sales and here are the top five.

[56:35] 93212 in Kings County California.

11433 in Queens County New York 33147 Miami Dade County in Florida.

38115 in Shelby County Tennessee and 92802 in Orange County California more than 30% of the homes sold

or a flip this data is coming to us courtesy of Adam data that’s a t t o m and.

[57:06] If you haven’t heard me say this before let me recommend that

every one of you take some time to go to Adam data.com and just see the wealth of information that is available to you there this report.

Is actually a free report they have some things that you can pay for as well but this is a report that you can read for yourself and I will link you to it in the show notes

very helpful useful information it’s useful if you’re willing to.

Piano get outside of your own local community but it’s also useful because it gives you an idea about some of the trends.

These types of Trends and the statistics that we constantly monitor here at flipping America are the reason why I say we may be in a little bit of a market correction in some areas in the us but we are not

in a bubble that’s going to pop we don’t see any kind of a housing crisis on the horizon other than the affordability crisis that were already in.

[58:08] We don’t see a collapse coming we see good strong lending policy.

And a very low rate of foreclosure in all of those things point to a sound single-family home environment for the foreseeable future.

[58:23] That music means we’re out of time my friends it’s been great talking with you today.

[58:28] Music.

[58:50] The day comes from the art World Pablo Picasso said I’m always doing that which I cannot do in order that I may learn how to do it.

[59:00] That’s a good one and 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. Net10 is always your gift in any amount this tax deductible and very much appreciated that’s it for today my friends will see you very soon.

[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.

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