Opening:
If you’re going to be in this business you’re going to have to spend at least a little time with some numbers. And if you want to do well with the numbers and work with any kind of volume at all, you would be well advised to learn how to use a spreadsheet. That’s what I did. In fact I became quite the nerd with them. At one point several years back when I was single, I was teaching a team how to use my foreclosure analysis spreadsheet. One of the ladies in the group raised her hand and asked, “do you evaluate your girlfriends with a spreadsheet?” That was a GREAT idea!
I was looking around online to see what’s out there and came across several products and possibilities. A few of the programs were so good I immediately reached out to the developers to see whether they would come on the show. One of them joins us today. He is Dave Robertson, from House Flipping Spreadsheet and FlipperForce.
He was a Construction Cost Estimator for a large commercial construction company when he started flipping houses part-time. As an Estimator his natural born instinct was to create an Excel spreadsheet to help him analyze deals and estimate rehab costs. But Dave’s inner nerd took over and he went a little crazy and ended up spending thousands of hours building and tinkering with his spreadsheet which is now known today as the House Flipping Spreadsheet. Dave is currently taking his success with the House Flipping Spreadsheet and investing his time in a new web-based house flipping software called FlipperForce.
Last show we had some fun with the news. Today we are going to take some questions. Normally when we do this we get to answer 4 or 5 questions. I have 9 questions from one person. I love the enthusiasm! So we are going to answer as many of them as we can on the show later. I’ve already answered the questions briefly and let Mark know I would be addressing them on this show.
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Guest: Dave Robertson
Announcements:
- Lunch with me every Wednesday. Baraonda
- My latest article in Forbes is out. bit.ly/findredeals.
- The FAN is here!
- Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
- Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
- Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.
News:
Your Questions: Send emails to questions@rogerblankenship.com
- Mark, Atlanta, GA,
- Could you recommend a couple of good lenders that I could reach out to and start the paperwork?
- Do you have more info on the buy/sale trade association?
- Any kind of network associations that I need to sign up with?
- Is quickflips is that where you don’t touch the properties but use other people’s money and they sell the house for you? Are those hard to do?
- I want to build rental properties in my portfolio – how do you know how to keep it as rental or flip it for cash?
- What is a good price range for buying properties that are for rental properties?
- What is a good way to find an aggressive rental estate agent who is trained to find these type of properties?
- How do I get my hands on the hottest list since I have a call center I can use? In addition I do have a real estate script I can use.
- Are we trying to set appointments to go to the house or are we trying to just set appointments on the phone? Are we setting the appointment for a call back to speak to me or experienced rep?
Lenders:
Michael Braswell. www.Braswellcapitalsolutions.com 770-854-2194
Chip Cagle and Residential Capital: 404-216-5599
FundSource Financial, Erik Barlow, 770-913-6201
Civic Financial, 470-863-6187
Baker Collins: www.bakercollins.com
The Buy Sell network is at www.FlippingAmericaNetwork.com
Brief Video: https://www.youtube.com/watch?v=ynmaTT7VSsk
It’s free to join. As a buyer let us know the zip codes you want to buy in. When someone posts a property in your zip code, you get a text message. If you want exclusive 48-hour access to new leads, you can “reserve” the zip code for $100/month.
Network Associations? I recommend you hang out with us here at Flipping America. But I also like the people behind the Atlanta REIA and the South Atlanta REIA. Both are good groups.
Most of the rest of your questions are covered pretty regularly in my shows and in my training programs. But I’ll give you some quick answers anyway.
4. Quickflips. Not sure what you mean here. It is difficult to recruit Other People’s Money in the first place. But when I do I normally repair the property. UNLESS it is in a different state. For those I either buy them myself or sell them for a 2500 profit. I’ve done a few of them with OPM but I’m not enjoying that process so much.
5. I generally flip three and use the proceeds to buy a rental. There have been occasions where a “flip” didn’t sell and we had to turn it into a rental. Those don’t always cash flow well, but we do what we can. If you can get at least 1% of your total acquisition (purchase and initial repairs) in rent each month, it should be a pretty good rental. There are other criteria besides the numbers, however.
6. I want inexpensive houses in working class neighborhoods for the most part. I have accidentally had “executive level” rentals in nice neighborhoods where I just couldn’t get the properties sold. Even though the returns weren’t great I had a better quality of tenant. I still tend to want to pay less per door for rentals. The cash on cash return is better and the risk is spread out.
7. Talk to a lot of agents. But don’t be under any illusion. The good agents won’t want to take the time to help you find deals – they are too busy because they are good. Newer, hungry agents are likely to be a good fit for this. But they may not be all that great at selling the home.
8. I think the best local lists will come from lawclerkondemand.com. But I also get strong lists from Karen Anderson. karenandersonmarketing@gmail.com.
9. The first thing we are doing is assessing the seller’s motivation. If it is high, we want an appointment sometime today at the house. If it’s medium, we will fit them in. If it’s low we make an offer over the phone.
Comment Line calls and Questions
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Motivational Thoughts for the day
- “As a young man I was scornful about the supernatural but as I have got older, the sharp line that divided the credible from the incredible has tended to blur; I am aware that the whole world is slightly incredible” -Colin Wilson
Expected Air Date: 8/12/19
Dave Robertson