Expected Air Date: 06/2/18
Over the past couple of weeks we have been visiting together around topics that some in the training industry would call “mind-set pieces.” We have talked about knowing your Why – understanding your basic motivations. We’ve talked about Choices and how your life is a reflection of the choices you’ve made and your future will be determined by the choices you’re making in the present.
On the last show I shared some thoughts with you about Confidence. Confidence is a beautiful thing when you have it. Life is difficult without it. Business is nearly impossible without it. So I talked about how to get it, how to keep it when life happens, and how to keep it in check through realistic self-appraisal. I also talked a bit about mistakes and failure as these are often the result of over-confidence.
But even these are not the end of the story, because you can overcome most of life’s obstacles if you have a healthy dose of today’s mind-set topic – COMMITMENT. I’m going to devote some time to this important topic in a bit.
How to Reach us
Twitter and Instagram @FlippingAmerica
Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.
- Lunch with me every Wednesday.
- Flipping America App is in the app store. You can listen to the show, read the show notes, and soon the entire catalog of shows will be 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.
Imagine your life as a car. Your “Why” is the fuel. Your Confidence is the engine. Your Choices are the steering system. And your Commitment is the car’s electrical system. You can have your purpose, your moxy, and your path all figured out, but without commitment you’re going nowhere. Commitment is a decision or a choice if you will, a decision to begin.
Commitment is where you start and how your start. No effort is required to go downhill. Commitment is there to take you uphill. Commitment is completed by its sibling Discipline. They don’t always go hand in hand. Commitment will get you to the gym for a couple of days. Discipline will keep you there for years. Commitment will allow you to plan out and begin your business.
Discipline keeps you at it when it gets tough, when it gets mindlessly easy, or even when it gets boring. The analogy is imperfect though. Both commitment and discipline need to be re-visited, tuned up, or re-stocked as needed.
I’m quite sure there’s nothing I can say about commitment that hasn’t already been said. But repetition is good for the soul, the mind, and the life. So here we go. I’ve said for sometime that goals without a plan is mere wishful thinking. Here’s the next thought. A Plan without commitment is a step-by-step outline of failure.
It’s not enough to WANT success. It’s not enough to PLAN for success. You have to commit. You’re probably familiar Hernan Cortes landing in the new world in 1519 and ordering his men to burn their ships. That was it. No going home. Two years later he had conquered the Aztec Empire.
There’s something about having your back against a wall that gives you that extra unction you need to make things happen. This is a good thing. Your ultimate success is of course going to require Goals, Plans, Confidence, Good Choices, and a reasonable opportunity. But the one thing that will connect all of those is Commitment.
Have you tried to get involved in real estate investing and so far had little or no success? Are you frustrated (and let’s be honest, a little envious) when you see people around you seeming to do so well? Do you get perhaps a little resentful that it seems to come so easily for some while it remains difficult for you? Are you tired of trying and ready to give up?
Let me encourage you if I can. No one’s life is as easy as they may make it appear. And by the way, few whiner’s lives are as difficult as they want you to believe, but I digress… Every person is on a journey to somewhere. You are on yours. If your goal and plan and path are leading to success, then don’t worry if someone seems to be ahead of you.
In fact, choose to rejoice and be happy for the confirmation that this path really does seem to work. Taking too long to get there? Stop focusing on the speed and start concentrating on the difference you are making in others’ lives while on the journey. I can tell you from history and from personal experience that the journey is always more interesting than the destination.
The moment you arrive at what you think is your destination I promise you will find another goal and quickly realize that this isn’t a destination, it’s a waypoint – a milestone. There’s more road ahead. Challenging? Bring it on. Difficult? Let’s do this. Confusing? Interesting – let’s figure it out. Whatever it is that is slowing you down is actually helping you get better and BE better.
So if things are not working out the way you thought they would or should, first double-check your Goals, Plans, Opportunity, Path, and Choices. If they are all sound, then recommit to the process. Embrace hardship as life’s reality and choose joy in the journey. I promise you won’t regret true commitment.
Motivational Thoughts for the day
- Success is not final, failure is not fatal: it is the courage to continue that counts. – Winston Churchill
Comment Line calls and Questions
Call 404-369-1018, press 1 and leave your message!
Questions@flippingamericaradio.com Tell us where you’re from!
- Alyssa, Milwaukee, WI, “I’m speaking with a lady who wants to sell her home to me. She’s in her 60’s and wants to move to a Senior living center. She has lived in the house for the past 35 years. She is a bit of a hoarder with piles of books and magazines in every room in the house. It’s hard to really know if there is any serious damage, but the house seems structurally sound. It needs some serious updating. I don’t know how to price this and I don’t know how to approach her with an offer. Houses are selling in the neighborhood for 400. There’s a new neighborhood going in across the street with similar sized homes going in the 600’s. My seller wants a fair price and I want to give it to her but neither of us have a clue what that would be. Oh and if it matters I’m planning to flip the house.
- Brandon, Kalispell, MT, “I was in Las Vegas last week visiting friends and they told me about your show and that you had mentioned our little town more than once. So I checked it out and you give a lot of really good information. But how on earth did you hear of Kalispell?”
- Connie, Portland, ME, “When it comes to paint, do you specify a particular brand? There are so many – are they all about the same? And why would there be large differences in quality anyway? Isn’t paint paint?”
- Hector, Jacksonville, FL “Can you connect me with a lender who will loan on rental properties — I have a lead on several here from $50,000 to $125,000 in price.?
- Donna – Wholesaler in Colorado Springs, CO. “I’m knocking on doors and making friends, getting leads, but when it comes to figuring out what remodeling will cost, I’m just guessing. How can I be more accurate?”
- Whitney, Philadelphia, PA, “I have money to put into real estate and I’m intrigued by your idea of private lending. How would I set this up? I want to loan money to people you recommend.”
- William, Fargo, ND. “I found your show on the internet and I’m enjoying it so far. Do you have an opinion about owning rental properties in a place like Fargo? This is the way I would want to pursue real estate.”
Questions@flippingamericaradio.com Tell us where you’re from!
Roger delivers a powerful monologue on the topic of Commitment. It’s not just the gas pedal — it’s the car’s electrical system. You need it to start, you need it to run, you need it to tie all the other parts of your life together. Without it, nothing really works. Roger also shares what to do when you are feeling tired, resentful, envious of others’ successes, discouraged, or frustrated because it’s taking too long.
[0:28] Name for flipping America 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 brought to you today by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital solutions.com.
And now here’s that flipping America guy Rodger Blankenship,
hey everybody how’s it going hope you had a great weekend over the past couple of weeks we’ve been visiting together around topics that some of the training industry would call.
Mine set pieces we talked about knowing your why,
understanding your basic motivations we talked about choices and how your life is reflection of the choices you’ve made and your future will be determined by the choices you’re making in the present.
Last time we visited about this I talk to Asher tradition thoughts about confidence.
Confidence is a beautiful thing when you have it and life is difficult without it business is nearly impossible without it so I talked about how to get it.
[1:33] How to keep it when life happens and how to keep it in check,
true realistic self appraisal I also talked a bit about mistakes and failure as these are often the result of overconfidence but even these are not the end of the story because,
you can overcome most of life’s obstacles if you have a healthy dose of today’s Minds that topic and that is commitment,
I’m going to devote some time to this important topic in just a bit but first let me just say hello and let you know how to say hello to us,
you can reach us at flipping America net worth,
dot-com and we are absolutely committed to answering your questions and helping you and giving you the information that you need to be successful in your real estate investing career now we’ve made money in multiple forms of real estate but we don’t call ourselves expert in every form of real estate however,
we know people so if you have a question about real estate investing and you want,
an answer that comes from us as honestly as we can get it just send your questions to questions at flipping America network.com if your question is one that we think would benefit a lot of readers and I think we’re going to get some of those today.
Will read it on the air and we’ll answer it for the benefit of everyone so sending a we appreciate it to send them two questions at flipping America network.com and be sure to let let us know where you’re from,
because we’re just going to ask you where you’re from before we read the question on the show because we just like everybody to know,
all right if you want to find this on social media go to facebook.com and look up flipping America media and like that like the page there if you don’t mind but I would prefer that you do.
[3:11] And I just got this from my coach is find a piece of content on the page.
That you like and like that content first before you like the page like the content there’s some sort of us strategy about that which I don’t know because that’s not my business but if you like the content first then that will help us out.
And you can find us on Twitter and Instagram using the handle at flipping America,
we have a YouTube channel you can just look up flipping America on YouTube be careful there’s somebody else out there that just started using the flipping America name and we flight Lee asked them to stop but we’ll see how that goes.
And then on LinkedIn were there we have a Pinterest,
account for flipping America Now and Google Plus and just about anywhere you look online you can find flipping America if you’re not,
really so inclined to do the computer saying or the online thing and surprisingly I know that you young people listening you’re going to have a hard time believing this but there are quite a number of people in our country who just really prefer not to fool around with computers and emails and that sort of thing,
almost everyone is familiar with telephones and so we have a telephone number 404-369-1018 extension 1,
for our national comment line and you can leave your message or question and the again if it’s one that will benefit a lot of people will address it here on the show.
[4:39] Couple of announcements for you just a reminder,
we eat lunch every Wednesday and we eat lunch most everyday but we eat lunch every Wednesday and do it as a little miniature networking event,
and we usually have anywhere from 15 to 40 people show up for this and we are meeting,
for the next several weeks in for the procedure will future at the Hudson Grille.
Restaurant on Roswell Road in Sandy Springs and the way to get more information about this is go to meet up.
Come / flipping Atlanta don’t look for me flipping America there look for flipping Atlanta.
And you can join that group and be advised of all of the meetings,
and especially if you are in the Atlanta Metropolitan Area or is far away is Chattanooga Birmingham or Augusta we welcome you whenever you’re in town it doesn’t matter where you’re from we’ve had people at our lunch meeting from Canada,
from California several times and from Connecticut from Pennsylvania from Virginia,
food get pretty much all over hands at various Caribbean islands we’ve had a lot of visitors come in and it’s always a real treat for me,
to see that people all over the country are actually really listening to the show and and enjoying it and take the time to come and visit when they’re in town and it’s it’s an honor for me truly to meet you and so if you ever in Atlanta on a Wednesday please,
I plan on dropping by to have lunch with us okay you know what I’m just going to say something in the next and say for the month of June.
[6:14] If you drop in from out of town let’s say you’re more than a hundred miles away and you show up at our flipping Atlanta flipping America lunch on Wednesday is called the creative dealmakers here locally,
if you show up for lunch with me and you from more than a hundred miles away then lunch is on me alright I’ll buy your lunch.
Just for the privilege of getting to meet you and talk to you about the show and and real estate.
It is what the meeting is about okay flipping America the app is in the app store and I want to encourage you to download it today,
I downloaded it I like the way it looks like the way it works you can listen to the entire catalog shows now,
we’ve been at this a little bit over a year and this is show number 155 and all 154 previous shows are,
on the app and available and this show will be available shortly after it airs you can listen to the show you can read the show notes you can also laugh a little bit about the lack of show notes at the beginning,
but you know hate we get better and we can we improve and things evolve right well,
it’s a free download there are no upsells or in-app purchases it’s always free and we plan for it to always be free okay so go ahead and give it a try and drop me a line and let me know what you think,
hey do you want a quick analytical tools that will help you to tell you how strong a potential Fix and Flip is download the property grade app.
You answer 10 simple questions about the property you kind of have to know the numbers and the app will instantly tell you what you can expect to make your return on investment your return on cash and then the program gives you a project.
[7:56] Gives the project a letter grade using the proprietary flipping America investment property grade algorithm,
okay all that’s in the App Store the property great app and the flipping America app and we look forward to helping you any way that we can and answering your questions when we get back from this little break we’re going to do the news and then on to talking about,
commitment will see you on the.
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[10:19] All right we’re going to change it up a little bit today because during the break.
The staff pointed out to me that we do the news and I joke and cut up about that and cover the news,
and then we do the topic and what’s happening is we’re getting a reek of really big backlog of emails and so,
we’re going to change it around a little bit I’m going to go ahead and take some of your emails right now and we’re going to talk about them so to mail back we go.
Alyssa from Milwaukee Wisconsin says I’m speaking with a lady who wants to sell her home to me she’s in her sixties and wants to move to a Senior Living Center.
She’s lived in the house for the past 35 years she’s a bit of a hoarder with piles of books and magazines and every room in the house it’s really hard to know if there’s any serious damage but the house seems structurally sound,
it needs some serious updating I don’t know how to price this and I don’t know how to approach her with an offer houses selling in the neighborhood for 400,
there is a new neighborhood going in across the street with similar-sized homes going in the 600 my seller wants a fair price and I want to give it to her.
But neither of us have a clue what that would be.
Oh and if it matters I’m planning to flip the house thank you listen for that last bit of information because it does matter and that would be the first question we would ask you what do you plan to do with it so thanks for including that.
Alright so let’s break this down a little bit houses did the there’s a new development going in across the street with similar-sized houses going in the 600,
disregard that information new construction is not going to be a comp for a 35 year old house so that doesn’t matter.
[11:56] If the houses in this neighborhood are going in the 400s then that’s what you need to stick with so you’re not going to.
I’m getting more than similar properties in your neighborhood it’s got to be.
Similar construction similar age similar size usually the similar or same bedroom and Bath County.
And there’s you know there’s a little bit of a difference between a 4-3 in a 4-2 for example but there’s more of a difference between us 3-2 in the 3-1,
because one bedroom houses just for not very desirable in this market and you have to take that in consideration so that second bathroom,
is worth a lot more than a third bathroom so if you’re thinking in the 400s then here’s what you need to be thinking about.
You know the standard mail formula that we all use in the mail formula is pretty reliable there other ways of kind of break it down a deal but I can’t go to that go through all of that on the show or we spend the whole,
next 50 minutes telling you what to offer on a house but.
You know the standard maximum allowable offer formula that everyone teaches including me you take your sale price and let’s just say you said in the 400 but I’m just going to take 400 or a 400 * .7.
And that’s going to leave you with 280000 so,
when you get finished with everything you’re going to do to this house you want to be in it at 280,000 wow that sounds like a man I’m going to make a hundred and twenty thousand no you’re not going to make a hundred twenty thousand.
[13:27] Even if you use your own cash even if you have $280,000 cash you’re not going to make a hundred twenty thousand and this is where the TV shows get it wrong routinely consistently and.
Intentionally this point because they’ve had enough time to get this right and they just refuse to because it’s a little less sexy to say that you’ve got to include the Realtors commission and,
and the caught in the real estate taxes that you have to pay plus you’re going to have your own operating overhead whatever it is you’re doing for marketing whatever expenses that you have in getting out there to the properties all of those business-related expenses are going to,
the kind of bead applied to this prophet.
So you’re not making a hundred and twenty thousand here’s the way I would calculate it I I would say let’s say we get 400,000 for the house okay.
I would take that number whenever you’re selling is Multiplied times .92.
And why do I say .92 well because I’m usually offering a 6% commission to the realtor,
and then there are other expenses that account for another couple of,
percentage points in this is just an estimate it’s just something for me to look at it okay but the definitely we’re going to have to ensure the property during the time of ownership and we are also going to have,
real estate taxes those things are in addition to the rehab cost so I’m at the 368,000.
Now if you pay for a loan a hard money loan on this is probably going to cost you somewhere around 40 to $45,000 let’s just say 45000.
[15:04] Men’s 45,000 broken into my trust it’ll calculate here now we’re at 323000 okay 323000 – 280.
Thousand equals round 53000 well that’s still a great day right you’ve make good money but you see.
It it it it sounds like you might be getting a little selfish here by morning to make that much money think about the enormity of the wrist that you were taking buying a house with a lot of unknowns in it and we buy a lot of unknowns when we buy even if the books and everything were cleared out,
we still don’t know what’s happened behind those walls in 35 years and so we have a lot more mystery in our process than a new construction contractor has,
so we have to allow for that things are going to go wrong they’re going to be surprises there may be some previously deceased animals living in the in between the rafters that we have to get out,
and I miss you that because this happened to me on more than one occasion we pulled out rat skeletons and all kinds of things out of old houses on things that you probably you wouldn’t want me to get any more specific about some of the terrible nasty things that we have found,
and these houses you have these things you have surprises you have extra expenses and in the end of it,
if you have if you make 53000 on a $280,000 investment 53,000.
Divided by 280000 then you have made about an 18 or 19 percent return on that money and.
That’s that’s okay but I wouldn’t do it for Less I wouldn’t want to make less than that because if something goes wrong you’re not making any money you might as well take your money.
[16:42] And put it into some sort of indexed fund or invest with the one of the crowdfunders if you’re willing sell for a measly 8 or 9% on your money.
All right but now you wanted to know about getting the repairs and so let me try to answer that question also we’ve got a formula for it it’s not extremely accurate but sometimes it’s helpful and,
I you know I go around giving this formula out when I do public speaking events so here it is Folks at this is part of the teaching that we do we teach that you should end up with 3 repair estimates one of them is the default repairing Smith based on the size and age of the house,
and here it is,
since you think that you’re going to probably redo about 25% of the house and building a house is about $100 a square foot yeah I know you can get it done for last but that’s just use that okay think about $25 a square foot for a remodel.
Plus $5,000 for every 10 years of age on the house now just write that down.
Cradle formula around it and figure it out another way to look at it is 10000 in the kitchen 5003 bathroom and maybe $20,000 so too.
[18:06] Flipping houses I want to show you how to flip houses and there’s probably no one in the country better qualified than me to show you I flipped hundreds and hundreds of them,
and I also have some training and degree and experience and education so I could show you how to do exactly what I’ve done hundreds of times don’t believe me.
Head on over to flip starter event.com but in the meantime Give a listen to Pat caywood.
[18:32] Cleveland Tennessee and I’ve been.
Doing some flipping since about March of this year and had started with a Nationals program that was very expensive I spent today with Roger Blankenship.
Learning about his program and boy do I wish I’d met Rodger first he has a.
[18:56] Program and many tools that are going to be very.
[19:00] And starting and managing a program and the mentorship and Leadership and coaching that he saw frame are invaluable.
Thank you so much Rodger for your time and sharing with us license and certified Bank trainers,
teach you how to increase your sales up to 300% in less than 90 Second Bank the Revolutionary sale system Les Brown calls a game-changer is now in Atlanta.
Call 770-648-3636 to schedule an introduction to bank training.
Or visit us online at bank code.com M3 let us help you take it to the bank.
[20:02] I had to go to a break there but I didn’t mean to cut it off too quickly but.
You’re trying to come up with the repair number and the repair number at this point it’s going to be rough especially if you don’t have a lot of experience,
and so I would say use my formula that I just gave because it’s going to be probably on the high side but that’s going to keep you safe and the way you use it with the Mao formula that I was describing before the break is,
you know you want to be all in at 280,000 whatever your repair number comes up to be subtract that from the 280 and that is actually a fair and reasonable offer,
to give to your seller now the seller may want more money than that they usually do but,
that you have to work on the way that you present this to the seller in that’s,
really more than we have time to do in this call I actually gave you a question one entire segment there so we’ve got to move on but,
just type of negotiating something that you will learn by doing and you can get a little bit of input from,
your mentors there in Milwaukee on hope you have one I got an interesting email Brandon from Kalispell Montana says I was in Las Vegas last week visiting friends and they told me about your show,
and that you would mention our little town more than once so I checked it out and you give a lot of really good information but how on Earth did you hear of Kalispell well.
That’s a good question Brandon and the truth is we just do kind of a systematic search for Real Estate news Nationwide.
[21:33] And the little bit internationally and just at some point,
it kind of randomly showed up there was a story from I think your paper is the Flathead Beacon and I was intrigued by a paper name the Flathead Beacon and where in the country was a place called Flathead and I’m not really sure that,
that sounds all that complimentary but yeah I figured you were talking about a geographic feature not somebody’s face but anyway,
I was amused and so I looked it up and now just kind of connected,
somehow with Kalispell and so we made the checking in with the Flathead Beacon kind of a regular thing and we still do watch for it when there’s real estate news I mean the news out of Kalispell it’s not that,
it doesn’t change that much and that’s all right but sounds like a nice town and you know I’ll let you know I’ll announce it someday when I’m going to Kalispell Montana for a visit maybe we’ll just just adopt that,
town is sucks kind of a second Old Town or something.
But thanks for the question Connie from Portland Maine says when it comes to paint do you specify a particular brand there are so many are they all about the same and why would there be large differences in quality anyway isn’t paint paint.
I like the way you said that isn’t paint paint what paint is paint but not all paints are created equal and it’s not just because some people are better at their formulations another,
there are different formulations for different purposes and some of the range in quality even from the same store as intentional.
[23:05] Because paints are there for dissolve different needs for example some paints May.
Do a decent job of providing a color to a wall and coverage of the wall but they’re not very durable.
[23:22] That formulation is cheaper to produce and it’s cheaper to sell,
and why would you want to paint that’s not very durable well you know what if you have a rental house you’re going to put a Fresh coat of paint on it every time somebody moves out anyway so it might as well be a thin coat that’s relatively inexpensive that,
he’s going to save you a little bit of money because they’re going to scuff up the walls should I mean it’s just part of the think even if the tenants don’t scuff up the walls or put holes in them you need to put a Fresh coat of paint in there anyway just to make,
the the property look fresh and and bright for your incoming tenants so,
that’s a reason why some paint is cheap but I certainly don’t want to see that cheap paint going on one of my flip houses because I want to give a quality product I did show up at a job site one time and caught a,
a painter actually using cheap interior grade paint to do the trim work on the exterior of my house.
Well that led to a confrontation and a warning and we nearly fired him over it but that meant that we are also checking on him,
I’m a damn shame down what was there and redo it and do it right and it’s it’s so funny this guy I can’t believe what he said to me he said all I didn’t give you a quote for a good paint job.
[24:39] I couldn’t believe that he said that that right there.
Meant that I would never again hire him and we never have and we never will because why would anybody intentionally set out to do a poor job.
Somebody that does does that mean.
And you know that’s not a question to be asking her interview either because I can’t I couldn’t have imagined anybody intentionally sending out to do a poor job,
now it is something that we ask about no back to paint we do specify a particular brand,
and you know what the risk of alienating potential show sponsors I’m not going to name a brand but.
You can read consumer Publications about the quality of paint the fact is the top producers of paints.
Are all pretty equal in quality I mean you could find a good paint at Home Depot you can find a good paint at Lowe’s you can find a good paint from other stores that all they sell is paint and paint related materials,
so just go and talk to them about their good grade and also talk to who’s going to do the painting and tell them that you want a good paint,
do a little bit of homework on your own and know the good brands the top brands and see what your painter recommends and if it’s one of those if that’s what they’re comfortable with fine.
Then once you have selected your color then you need to each of the different brands has their own,
color names and boy there are hundreds and hundreds of potential colors and I don’t know where they come up with the people who sit down and come up with a name for 45 shades of.
[26:16] You know light gray or 120 shades of cream colors that are just very slightly different from each other but each one of them has a name and remarkably,
those names vary from brand brand and so do the the color numbers but what you want to specify on your scope of work as a color number and.
Hey I’m the name of the color and the Sheen and so you need to do some research into the different Sheen and what’s recommended,
we always use the eggs egg shell sheen on the wall itself and semi-gloss on the trim thickly in the wet areas and but even then sometimes we just we don’t even go to Santa Claus on the trim.
We use the satin finish it just depends depends on the house and then situation but.
There’s a lot of reading and information you can do but trust me all pain is pain but not all pain is equally created right.
[27:19] Are you one of the 70% of Americans living paycheck to paycheck and tired of the stress if so I understand as I used to be in that 70.
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Hey flipping America listeners have you ever walked into a property and said I have no idea what it will cost to repair this home those days.
[28:04] It was in your pocket designs by Real Estate Investors,
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adult materials and increase a deal analyzer which helps you determine if the deal is really a deal and the app adjust 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 experienced,
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 skip,
contractor in your pocket today at ultimate real.
[29:25] They were back I’m Rodger Blankenship and I teach people how to make money in real estate we are here to give you the best information,
statistics markets Trends style demographics whatever we can to help you make the best possible decision about your connection with real estate investing,
we don’t encourage everyone to drop what you’re doing and start flipping houses like you see on TV.
Indeed this is not for everyone we do encourage everyone to consider real estate as a part of a balanced Investment Portfolio.
We believe and we teach that there are three main ways to make money in real estate either by actively purchasing property and repairing it for quick resale or.
Purchase property and repairing it and putting it in to condition and put tenants in it in order to.
Create cash loan now that could be residential or commercial but there’s that rental marker Eve either one of those can be.
Residential or commercial ways to loan money,
or invest your money passively into the work that other people are doing and you’re a flipping America we give you opportunities to engage in all three of those opportunities we have a mentoring program around.
Our fixing and flipping we have a mentoring program around.
Renting and we have a program that will allow you to invest your money safely and securely in real estate.
And we can get you connected,
with any of that all you have to do is go to the website flipping America network.com and press the button at the top of any page that says click here for a strategy called.
[31:05] And you’ll be connected with the AAA calendaring service that,
shows you a bunch of available time slots and you can just pick one from there and you’ll be on the phone and hate you know I sometimes take these strategy calls myself because we have a pretty small team that. Qualified for,
taking the strategy calls so who knows you might even get to talk to the flipping America guy so that’s a flipping America network.com.
[31:34] The blue button and we’ll be talking soon now back to the questions actor from Jacksonville Florida.
Says can you connect me with a lender who will loan on rental properties I have a lead on several here from 50000 to 125000 in price,
actor the answer is yes and I want to give a shout out to my good buddy Michael Braswell and Braswell,
Capital Solutions they are a title sponsor for the flipping America show I know there are a number of Fix and Flip hard money lenders out there,
Michael is one of the few lenders who also can help you with rental properties and I suggest that you give their office a call or find them on the web at Braswell Capital solutions.com,
and I know Michael personally have known him for years he is a truly signed gentleman a classy man and he will take care of you and get,
and get you the help you need one word of caution nectar I was actually on the phone with Michael sometime in the past couple of weeks and,
we were talking about another listener who needed a loan on some properties and Michael told me that.
The lenders now have a loan minimum of $75,000 on rental property.
Now you can go to your bank and get a loan on rental property I don’t mean to mislead you here you don’t have to call Michael I want you too but you don’t have to you can go to your bank and get loans and you’re probably going to get slightly lower rate,
there are some challenges to borrowing from from the bank you have to be able to qualify to make the payments based on your current income they won’t count the rental income towards.
[33:13] The equation for a loan income until you’ve had rental properties for 2 years or more,
on your tax returns and so that’s a little bit of a hindrance there that there are a number of other jokes that you have to jump to not the least of which is a.
Two fairly strong credit score you can do rental properties to Michael with a little bit lower credit score and also.
You can there’s no limit to the amount that you can do that’s another problem with the bank so you know you’re limited to a total of 10 mortgages but with Michael there is no limit to the number that you can do and they will count the income.
Toward the evaluation of the deal.
Donna writes in and says I’m a wholesaler in Colorado Springs Colorado I’m knocking on doors and making friends and getting leads but when it comes to figuring out what remodeling will cost I’m just guessing how can I be more accurate.
You know I’d I included that in my answer to Alyssa above and that we do get this question over and over again everyone seems to want to know how to,
calculate repairs and so I gave you kind of a quick formula let me review it it’s $25 a square foot plus,
$5,000 for every 10 years of age that is just an estimate if you want to get seriously accurate.
Then I suggest that you go to www.
Ultimate rehab estimator calm and sign up for the product from a good friend Pat Dornan Pat has.
[34:50] Done a terrific job helping to walk you through every nook and cranny of the typical house and.
You put down what you going to do and you can even go and select the product from the Home Depot catalog he’s got the SKU numbers in there and when you get finished.
[35:10] It prints out of scope of work and materials list and he even covers the labor rates in every zip code in the United States quite an impressive product,
Pat Dornan is actually going to come visit us in Atlanta in just a couple of weeks and we’re going to do a show with him at our local networking group on June 14th will be needed meeting,
again at the Hudson Grille on Roswell Road in Sandy Springs and I’m just letting everybody know Pat Dornan the inventor of the ultimate rehab estimator will be here,
and we’re going to do an entire show around his product we’re going to try to do a demonstration there get a video of it put on YouTube channel and also I talked with him a little bit about the product and how it’s been going,
so that’s the ultimate rehab estimator and if you listen to the whole show you’ve probably already heard a little commercial spot for it.
[36:00] Whitney from Philadelphia Pennsylvania right in and says I have money to put into real estate and I’m intrigued by your idea of private lending how would I set this up.
I want to loan money to people you recommend Okay Whitney you let me start off by saying I don’t want that responsibility.
[36:19] Do you need to if you’re going to loan money you need to make your own judgement about the the people in the projects at your lending on but now there are several ways to go about this in the interest of balance and fairness let me say that you should,
certainly take a look at the other opportunities if you haven’t already done so that are available to you.
Through the internet there are various crowdfunding platforms and brother than get into any of them right now I suggest that you just look up.
Crowdfunding real estate and look at all of the multitude of sites that will be happy to take your money.
And put it into real estate I know that whenever we are talking about her own money trust is.
A big thing and I hope that I have and will continue to earn your trust here to the show and I appreciate even the show trust that you have demonstrated by the message that you sent so far.
I know there are things that you can do with the flipping America team,
that involves loaning your money we have a variety of programs actually we have an interest-bearing program that if what we really need to do is just jump on a strategy call and if you’ll go to the website and,
I’m answering Whitney’s question but we get this question a lot and so I’m answering this question for all of you,
but again go to the website flipping America network.com and while you’re there just click on the blue button at the top of every page.
[37:50] Of it any page it doesn’t matter which one is there on every page but,
put on that button that says click here for a strategy call and we’ll get you on a strategy called to talk about this but here is the exclamation in a nutshell we have programs where you can,
just receive income for a long-term we’re going to start,
this conversation by asking you about your goals and your plans what is it you’re trying to achieve and then we’ll describe one of.
[38:18] Programs that may fit your investing objectives if you’re after just steady income on a long-term and it’s regular and you can count on it then we have a program for that if you think that you would.
I’d like to be involved in funding flip deals.
With awareness the understanding that those deals are going to return a higher rate of return but they’re going to be on again off again because the money is used in the money comes back and then the money gets,
redeploy it into the next deal and there’s sometimes as a few weeks lag time in between the deployment of the funds so your average return.
May not be as large it won’t be as large as the return on any individual deal but it will almost certainly be more than you would receive with the.
The longer-term program there are no guarantees about any of this so there’s a little bit higher risk then in the long term broken the long-term program is a a loan on property secured by real estate the short-term program is a loan on property secured by real estate,
nothing going to happen to that property without you getting paid.
The difference is that the interest rate is guaranteed on the loan on the lower just like you guarantee an interest rate to a bank on the larger.
Ion on the fix and flips we have two plans within the Fix and Flip one of those is you can get a higher rate of return higher interest rate to Decay into the long-term program.
If you want to do an equity split we have a few properties that are available for that where you your money is used to do the deal and then the profit is just split at the end.
[39:58] You don’t have very many of those opportunities so if you want that you need to jump on it.
And will explain all of this little bit more in detail and then the last thing I want to tell you about is something that’s a relatively new investment.
I’m happy to announce that.
Flipping America is putting together its own fund this phone will be available in online pretty soon and we’re working out the details now.
But here’s the upshot the fund is going to invest in Fix and Flip properties across the United States.
Many times finding the deals found by those that are participating in the flipping America mentoring program the flipping America mentoring program takes,
individuals through a step-by-step process to know how to fix and flip properties just like the you know,
your host is living America guy has done hundreds of times we give them our systems or analytical tools the spreadsheets that we use to run our business,
and the basically they’re running a miniature version of our business and their location and once we have the confidence in our training and a local Coach that has experience in and meets our values,
we turn those people lose with with money in but so far we’ve been using our own money to do the deals,
and there is a particular way that we structured this to mitigate the risks and we’re happy to talk about that or even share the business plan with accredited investors Whitney if you are an accredited investor and if you are you know what that means and if you’re not then you.
[41:36] If you’re unfamiliar with what it means and you probably are not an accredited investor but you need to provide certification that you are an accredited investor then you could take a look at the particulars of this fund and you may choose to invest in it,
and it is we’ve done a pro-forma and all of the things that are necessary with the business plan to see how the the fund is going to work out,
so the fund is open and available now and the original,
the first offering is going to close we believe in September so if you want more information on this you need to let us know right away so you have time to think about your options and consider the information that we will share with you.
So that you can be a part of the first round.
[42:24] So that’s pretty exciting news and glad to share it with you and glad to answer your question Whitney.
[42:32] And I think let’s do one more William from Fargo North Dakota says I found your show on the internet and I’m enjoying it so far do you have an opinion about owning rental properties in a place like Fargo,
this is the way I want to pursue real estate well first of all will you let me say thank you.
And to everyone let me encourage you please share this show with your friends,
now with the flipping America app anyone anywhere can listen to the show and I have access to the information and we’re excited when we get emails like this from places that are a long way from,
the broadcast stations where we are on the air so thank you again for taking the time to write and here’s what I think I’m going to answer the question,
and it’s not please don’t take offense it’s not so much about Fargo it’s about,
owning rental properties in general the Arium that you need to own rental properties needs to be an area that you can get to unless you’re going to hire,
property management and I’ve got a few little ground rules about this when you buy your first one or two you probably going to manage them yourself,
so you need to be in touch with us about the resources for managing your own rental properties and make sure you do it right,
according to the rules and they’re even federal guidelines as well as state laws,
that govern the tenant-landlord relationship you need to be aware of those and I’ll be on that when you’re thinking about,
the prop at an area where to own property it needs to be an area where people live.
[44:04] Who have jobs to go to schools they want their kids in areas that are relatively stable I’d stay away from vacation towns and boomtowns because boomtowns usually become ghost towns,
but Fargo has been there for a while I’m sure that you have a stable economy and so you want to be in let’s call it.
For lack of a better term I don’t mean this to be the meaning in anyway but let’s call it working class neighborhoods those are.
The that’s the area where you’re going to find most of the people that want to rent a house and in those neighborhoods in decent school districts.
You want to buy properties at you know the right numbers and so forth and then you didn’t ask about that so I don’t want to cover that in just a few minutes that we have here but I want to.
Just kind of pull back and say you need to make sure that there are,
multiple employment sources if the entire town we get we receive questions about the see it the entire town,
revolves around the existence of one Factory and that factory shuts down for whatever reason then the entire town is going to struggle until they can attract someone else to come take over that factory so that would make me a little bit reluctant but if there are multiple strong Employers in a diverse economy,
Any place that fits that description is going to be fine and I think I’m just going to kind of go out on a limb here William I haven’t really researched it but I’m going to suppose that Fargo is.
[45:36] A Fine Place to own rental property because people live in Fargo people,
come to Fargo people are growing up in Fargo and people are going to be there for the foreseeable future so that market is as good as any that we received a bunch of other questions about market conditions in that sort of thing but I really want to get onto the topic for the day.
Alright so let’s do that.
[45:59] Done going to shift gears a little bit if if I can and I can because it’s my show so let’s talk about commitment imagine.
Your life as a car your why is the fuel and we talked about your why here on the show.
[46:20] Your confidence is the engine your choices are the steering system.
And commitment is the car’s electrical system it’s connected to all of it.
You can have your purpose and your Moxie and your path all figured out but without commitment you’re going nowhere commitment is a decision or a choice if you will a decision to begin.
[46:46] Commitment is where you start and how you start see it doesn’t take any effort to go downhill.
Commitment is there to take you up hill.
[46:57] And commitment is I think completed by its sibling discipline this is not really going to be a talk about discipline we can talk about that little bit later on,
you need really both they don’t always go hand-in-hand though commitment is what will get you to the gym for a couple of days disciplines going to keep you there for years commitment will allow you to plan out and begin your business and discipline keeps you at it,
when it gets tough or when it gets mindlessly easy or even when it gets boring.
[47:27] This analogy is not necessarily perfect both commitment and discipline unlike your electrical system in your car commitment needs to be Revisited it needs to be tuned up and it needs to be restocked,
and so if you think of tuning up your car that’s fine you going to turn up the electrical system you going to replace the spark plugs and oh okay well we could go on with the analogy if we wanted to but I’ve taken it far. I’m quite sure,
there’s nothing I can say about commitment that hasn’t already been said.
But repetition is good for the soul the mind and the life so here we go.
[48:01] You know I said for some time and it’s not original with me but I’ve been saying it ever since I first heard it that goals without a plan is mere wishful thinking.
But here’s the next thought a plan without commitment is a step-by-step outline of failure.
[48:18] It’s not enough to want success it’s not enough to plan for Success you have to commit.
[48:25] You’re probably familiar with her Hernan Cortes the Spanish Invader Landing in the New World in 1519 and ordering his men to burn their ships that’s commitment.
There’s no going back and two years later he had conquered the Aztec empire.
There’s something about having your back against the wall that gives you that extra unction you need to make things happen.
[48:50] Listen to my friends I know that some of you listening to my voice right now or about to give up you’ve been trying this thing you’ve been working on it you’ve been looking for a deal and you can’t seem to get started.
And it could be I hope this isn’t true but it could be there is a listener out there somewhere who went ahead and quit your job please.
If you’re thinking about it don’t do that well for whatever reason.
Someone listen to me right now that your back is against the wall and it seems like desperate times.
[49:22] That can be a good thing because that’s going to give you what you need to take the extra commitment here just think of it like the the Invaders burning their ships behind them okay you got nowhere to go but make this thing work okay.
Your ultimate success is going to require goals plans confidence.
Good choices and a reasonable opportunity.
It doesn’t help you to have goals plans confidence and good choices if you’re trying to sell ice cream to Eskimos or if you’re trying to sell real estate on an asteroid.
You know that’s not a reasonable opportunity but if you have all of that goals plans confidence good choices and a reasonable opportunity and then you just need the one thing to make it all work that connects all of these things and that is,
commitment okay have you tried to get involved in real estate investing and so far had little or no success.
[50:26] I know at least one or two if you have and I sit and talk with people who.
Experience this are you frustrated and let’s be honest a little envious when you see people around you seeming to do so well do you perhaps get a little resentful that it seems to come so easily for some wallet remains difficult for you.
Are you tired of trying and ready to give up let me encourage you if I can.
No one’s life is as easy as they make it appear especially the carefully curated photos that show up on Facebook and social media.
Okay hey I know I make this look easy but it’s not alright I just take my word for it and by the way.
Few whiners lives are as difficult as they want you to believe,
so no one has it is easy as they want you to make the thing sometimes and no one’s life is as difficult as they want either usually it’s somewhere in between but I digress every person is on a journey somewhere.
[51:30] You are on yours.
[51:33] If you have a goal and I plan and a path that leads ultimately to success.
[51:41] Don’t worry if someone seems to be ahead of you in fact.
[51:47] Just the opposite choose to rejoice and be happy why because now you have confirmation that This Thing Really Works.
[51:57] Well it’s just taking too long to get there we’re going to talk about what to do about about that when we get back I’m Rodger Blankenship.
And I’ll share more about the secret in just a moment.
[52:22] Not too long ago we did a one-day flip starter in Chattanooga Tennessee and low and behold one of my old College friends came out to the event his name is Peter Faulkner and here’s what he had to say about the event.
[52:37] Peter Falkner here I tended a one-day flip starter training session led by Rod.
[52:44] And I was amazed to see what has happened in Rogers Live from the last.
[52:49] Flipping over 800 houses and then this one day training he told how he did it and what the pitfalls the blessings of benefits.
And how to do it and I was so impressed with how well organized and how smooth the training wheels.
[53:36] So when we went to the break we were talking with those who are a little frustrated in the journey and their commitment is wavering.
[53:47] It’s taking too long.
To get to that destination that we have out there that image that we have is Success here’s how I would like to try and encourage you today my friends,
stop focusing on the speed,
or the lack of speed and start concentrating on the difference you’re making and others lives while you’re on the journey oh you’re not making difference in others lives or you don’t feel like you are hey.
You’re touching lives.
Are you are you intentional about it are you being a blessing in the helping and doing something good for your fellow humans on the journey.
Or are you just so focused on getting there that you’re missing the opportunity to make a true difference and you know let’s let’s just talk about making a difference okay you think it’ll make a difference when you achieve your success.
Maybe and you know they they say that money doesn’t make you happy but it’s more fun to cry in a Mercedes and in a Volkswagen Maybe.
But when you’re talking about terms of lasting impact.
Lasting impact is really found when we make a difference in someone’s life around us.
[54:56] So yeah we got this goal word we’re working to get to success there’s nothing in the world wrong with that we’re not talking about being a naturally in love with money or the pursuit of money or,
are wearing yourself out for filthy lucre or anything else that the preachers want to say about money we’re not out of balance on that it’s,
okay to be pursuing profit and gain there is nothing wrong with that however along the way we have the opportunity,
to maybe improve people’s lives around us,
and I want you to focus not so much on the destination but on the journey because if you take a minute and look around there other people on Journey with you,
they’re people who are on the same path they they’re trying to accomplish the same thing maybe not in the real estate space maybe something else but there are people on the path and you can encourage them and let me tell you something.
I can tell you from history and from my own personal experience that the journey is always more interesting than the destination.
[55:58] And I say that unequivocally the journey is always more interesting than the destination the moment you arrive at what you think.
Is your destination I promise you you will find another goal and quickly realized that this wasn’t a destination at all.
It was a waypoint a milestone there’s more road ahead there’s a larger success go out there.
[56:26] Okay that’s a natural part of life,
no I think that one day you know life will come to an end then and we will achieve our ultimate destination and I hope that was a good one for all of you listening and that’s the destination where I think we will finally arrive in the destination will be better than the journey,
but as long as we’re in this life the journey is always going to be more interesting than the destination is cell so what about the journey ahead of you does it look challenging.
Bring It On does it seem difficult let’s do this is it confusing.
[57:02] All right let’s just acknowledge that confusing is interesting and so let’s figure it out.
Whatever it is that slowing it down is actually helping you to get better and to be better.
[57:15] So if things are not working out your way or the way.
You thought they would or should first double-check your goals your plans your opportunity the path and the choices.
If all of those things are sound then recommit to the process I want you my friends to embrace hardship as life’s reality.
And choose joy in the journey these are choices that you can make that goes back to the show about choices but I promise if you do this you will never regret.
[57:57] I finish this with the thought from Winston Churchill that has been our motivational thought for a few days Success is Not final failure is not fatal.
It is the courage to continue that counts.
[58:12] But you know what that music means it means we’re out of time for today I hope you’ve been informed encouraged and enlightened to jump into the real estate investing game.
That’s what we do here that’s what we teach and even if you’re not going to do it thanks for listening in any way we’re having a good time doing the show and we’ll talk again soon.