This week in Summary
Investing Tip of the week
Resist the urge to “make it fit.”
I’ve occasionally stumbled into a deal that looked attractive for several reasons – the numbers, the asset itself, the community, and occasionally just the fact that I’m the one who found it.
Then when doing deeper analysis it starts looking like this deal isn’t really a deal. I have found myself defending my previous decision that this was a deal I wanted to do. I would say, “well, if the repairs stay in budget,” or “I think it will sell for more than it appears right now.”
These rationalizations seem silly when printed on paper, but they don’t feel silly when you’re desperately looking for more deal flow. That’s a danger in this business. You have to be willing to walk away, even if you walk away from a little earnest money.
Resist the urge to “make it fit.”
Joke of the Week
You know, it’s really difficult to find clean, inoffensive jokes that are also even a little bit funny. So it’s time to introduce you to a part of my philosophy of humor.
1. It is a proven fact that laughter is good not only for the soul, but also for the body.
2. Most jokes are corny and not all that funny.
3. What we find funny falls within the realm of human choice.
4. Choose to laugh at even the corny jokes. You’ll be healthier.
In light of that, here’s this week’s joke:
Question: Did you hear about the first restaurant to open on the moon?
It had great food, but no atmosphere.
This Week's Video: Biden's Housing Proposal
I do my best to stay out of politics, and despite the title of this week’s video, I’m still staying out. However, the President of the United States has issued a proposal to address housing shortages and it cannot be ignored.
Upon reading it (and yes, it is a government policy proposal and yes, it is pretty dry but yes, I stayed awake through the entire thing) I had some misgivings I needed to share with you.
Why is the government proposing to build and/or renovate homes? Will they do better than the private sector?
Oh, and also, I DID find one praiseworthy point in all of this. Take ten minutes and watch the video and please, “like, subscribe, and share.” Help our YouTube channel grow.
The Flipping America Show
When a government declares war on an industry, guess who wins? It doesn’t matter how big the industry is, the government has more guns and will always win. Coming up today we are going to talk about rising interest rates, why it’s happening, why it NEEDS to happen and we are going to connect some dots between government policies and the situation in which we find ourselves. Today we are talking about rising interest rates and the impact on the economy, real estate in general and on real estate investors in particular.
We’ve documented 85 possible careers in real estate and real estate investing. With all of the sub-branches and variations, it’s likely there are more than a thousand ways to make a million bucks in real estate. Today we are going to talk about one of the best, on Flipping America. Bill Ham was an airline pilot who thought he had a nice life and easy money. Then he got into real estate, particularly multi-family, and he found just exactly what he had been missing. He’s joining us in just a few moments. We will take some of your questions on the next show, so send them to firstname.lastname@example.org. You’ll get an answer even if we don’t use it on the show.5
What’s the point of all this anyway? I’d say “Financial Freedom” is most of it. Flipping houses can be lucrative, but passive income is where you want to end up. Today Chris Miles is going to start us in the right direction. Chris is the founder of Money Ripples and has an interesting take on financial freedom. I know you’re going to enjoy the interview in just a few minutes. I promised we would take questions from listeners today and we got a monster question – ok, maybe not a monster QUESTION but it might be a monster ANSWER. Darla, from Manchester, GA asked, “I am thinking about flipping some houses, but I’m a studier. I want to know what I’m getting into. What are the biggest risks in flipping houses?” My answer to that led to a little essay that is probably going to go up on YouTube and will likely be the only question I get to today. Don’t worry! Keep the questions coming and we will get to them all. I promise. Send them to email@example.com.
Flipping America REIA News
Upcoming Meeting August 3, 2022
Wednesday August 3 I introduce our NEW next level deal analyzer, Flipping America GO. Developed in partnership with House Folios, GO features the calculations from my own deal analyzer, including my repair formula and coming soon, the Property Grade. I’ll show you how to begin with a property address and discover the viability of the investment as a flip, rental, short-term, or BOR. It’s power in your fingertips! www.flippingamericaGO.com