On this episode of House Flip Masters Holly is joined by guest Larry Goins. Larry if from North Carolina and has been investing in real estate for over 30 years.
Larry first got started in real estate when he saw a seminar on TV, this seminar is what got Larry to catch the real estate bug. Larry has his real estate and general contracting licenses, he has done stoke brokerage. Larry has dabbled in all areas of real estate but really loves residential. Larry says that there two things that he hates in real estate which are: rehabs and tenants. Larry is currently doing 21 deals and says that the deals that he seems to lose money on are the rehabs. Larry also doesn’t prefer to deal with straight tenants because he prefers to do lease options or seller financing for tenants which he refers to as ‘Home Owners in Training.’
Holly asks Larry to share with listeners about HUD houses; which Larry is said to have wrote the book on. A HUD house is defined as Housing and Urban Development which FHA has insured a home loan on - FHA does not give the loan but they insure the loan. Part of your payment goes to HUD to insure that home, if the home loan goes into default HUD buys that home back.
When asked why he likes HUD homes so much Larry says because there is no marketing that goes into it he does not have to make any calls or put out any bandit signs the homes are already listed and they are generally listed below market value. He also likes HUD homes because they have a PCR, Property Condition Report. A PCR basically lists the major issues with the home - a PCR will not list cosmetic issues with the house it will tell you if the pipes need to be replaced or the roof needs to be replaces. He also likes that a HUD house will already be cleaned out before it’s sold, for example if there were animals in the home and the carpet had an odor HUD will remove the carpet. Larry also likes that there are no deed restrictions on a HUD home and he loves that there is a lot of data available on these types of homes.
Holly asks Larry to share with listeners where he finds his HUD homes. Larry says that all the HUD homes to be bought can be found at www.HUDHomeStore.com and each home that is listed on this website have an realtor already attached to them and the only people who can place a bid on these homes are licensed agents with a NAID, Name Address Identification Number, or a non-profit with an NAID number - HUD is a daily auction. When asked home the HUD home auctions work Larry tells Holly that all HUD homes go through this website, any agent that wants to place a bid on these homes has to be licensed in the state where the home is located as well.
Larry informs listeners that HUD homes for the first 15 days can only be purchased by an owner who intends to occupy the residence, investors cannot even bid on these homes within the first 15 days. Once those 15 days have passed investors can have their agent bid on the HUD homes if the investors agent submits a bid and does not hear back from HUD the next day the bid will automatically expire. When bidding on a HUD home Larry advises that it is vitally important to check the box that asks to keep the bid or to use the bid as a backup if the current offer falls through. If you place a bid HUD has the opportunity to counter your bid, when that happens you have 4 options: you can do nothing about the counter, you can counter back, you can submit a new bid, or you can accept their counter. Lastly, the third that can happen with a HUD home is that they accept your bid and now you own a HUD home.
Holly asks Larry how good the deals are on HUD homes; how much of a discount is he getting on these homes. Larry says that he has bought homes 20 to 103% a list. Homes are already listed very low which allows for a large profit margin. When asked how many of his 21 deals are HUD homes Larry says that of those 21 homes 16-18 of them are HUD homes - HUD homes are a large portion of his business. Larry utilizes virtual assistants in the Philippines to help to automate his HUD home buying process.
When you are submitting a bid for HUD home you can specify your days for escrow but you typically have 2 business days to get your paperwork and money in. HUD homes are not subject to contingencies that being said if you do not get your part of the deal done in a timely manner you will lose the money that you have put into that deal.
Holly asks Larry to share his best advice for someone interested in getting started in HUD homes, Larry advises that listeners should get his book “HUD home half off” - this book is available wherever books are sold but for listeners Larry is offering this book for free at his website www.LarryGoins.com/HouseFlipMasters
On this episode of House Flip Masters Holly is joined by guest Mark Walker. Mark is founder of Luxmana Investments, which focuses on residential and multifamily investments. Mark was able to go from being a part-time investor with a full-time job in high tech, to someone who quit the corporate rat race in pursuit of his passion and now thrives as a multifamily investor.
Mark’s real estate journey started in 2004 when he bought his first property in South Denver where he earned 36.5% cash on cash return. After the sell of his first property Mark sat the business out for some time because he was having a hard time getting deals. Mark admits that had he known what he knows now he would have not sat out the 5 years that he did, because he says that there are always ways to find deals if you keep looking for them.
In 2010, Mark partnered with a general contractor and they scrapped a couple single family homes in a trendy part of Denver, they bought in an area that was getting a lot of investment and built a three story duplex in place of the original house. Before this first project was even done Mark and his partner started another project. In 2011, Mark started to reinvest the gains from his partnership projects into buying single-family homes.
Mark reminds us that as long as you have a formula for success you need to stick to it. Holly agrees that you need to create rules for yourself and live by them otherwise you will be all over the place.
Mark discusses how his journey has been much like the game that many entrepreneurs are inspired by, CASHFLOW. In the game you start off doing small deals and you graduate to doing larger deals. Mark says that is how he has structured his journey; in 2013 he purchased a small deal which was bought from him shortly after. He moved from his first property in Colorado to a complex in Texas.
In 2015, Mark had enough passive income built up that he was able to start focusing on his investments. During this transition Mark had a family member who allowed him the opportunity to job shadow in the market that he wanted to be in. He job shadowed for around 9 months until he started to venture out on his own.
Mark enjoys working with multifamily properties and shares with listeners how you can increase the value of your multifamily property. When you acquire multifamily property you want to increase the revenue and decrease the expenses, if you can do those two things the net operating income goes up and so does the value of the property. You can increase your income by utilizing the utility bill back. You can also reduce your expense by implementing a water conservation plan; in states like California where water conservation is crucial you can hire someone to come in to help you figure out how to reduce the amount of water being used – toilets can be changed out, faucets can be adjusted to reduce the flow of water coming out.
Mark shares advice for those who are interested in getting involved with multifamily investing; he advises that you get a sponsor or a mentor to help you get the education and knowledge to get into the business.
If you are interested in learning more about Mark and what he has to offer you can visit www.Luxmana.com If you are interested in learning about multifamily or maybe you already invest in multifamily and want to learn ways to boost your income, Mark is offering a free guide that he has written to our listeners.
Free Gift for Holly’s Listeners:
Luxmana Investments Company URLs:
Mark Walker Personal URLs:
On this episode of House Flip Masters Holly is joined by guest Greg Pinneo. Greg has over 40 years of experience in the business; he has been a full-time entrepreneur for that long. Greg has become a recognized expert in acquisition, finance, negotiation, property management, and the philosophical mindset that makes possibility a reality.
Greg shares with us the beginning of his real estate journey. When he was 8 years old he was looking forward to playing baseball because he had watched his older brother play baseball. When he was finally able to play ball, he went to the first game and instead of playing baseball the coach lectured Greg and his teammates on their financial responsibility to the team and sent them home with cans of Almond Roca to sell. He went home discouraged but after a pep talk from his parents he set out to sell that Almond Roca. He recounts that he skipped the first house because he knew the people that lived there were not nice and moved on to the second house. At the second house was Mr. Peterson, when Greg presented Mr. Peterson with the Almond Roca; Mr. Peterson invited Greg in to help him with his presentation. Mr. Peterson told Greg to never set a ceiling on what you are trying to sell, if someone wanted to buy several cans of Almond Roca don’t set your presentation up to limit them to one. He also told Greg that when he sets out to sell always bring references; it paves the road to your success. Greg reminds us to never set a ceiling to opportunity, be bold, and to bring references.
Greg got started in real estate investing due the way that his parents operated. Greg’s parents expected after high school for their children to become adults, to move out, and to fund their way through college and beyond. As a junior in high school Greg began to look at rental houses, he found one home that was a mess, a home that he would rather own than rent and put all the work into fixing it. At the time he was only 17 years old and the owner of the home offered to sell it to Greg. The owner drafted up a document for the sell of the house and Greg took it home to have his parents look at it, they agreed that it seemed decent enough so Greg decided to purchase the home. The moment that Greg was writing his first installment to his home he realized that he needed to buy more houses.
Holly asks Greg to share one of his more recent deals – Pinneo recalls that the basics of his very first deal can translate and develop as the deals get larger and as you become more experienced in real estate investing. When he looks at a real estate transaction he always divides up his transaction by finance and sticks, bricks, and dirt. Sometimes you don’t want the home but you want the finance package that the property brings. The current property that Greg is dealing with falls into that category where the financial package has a create return on investment.
Greg reminds us that real estate is the clothing that finance wears. Real estate is the reason for financing. Real estate is the excuse for a finance package. Every investor needs to major in financing and negotiating. You need to frame everything from the seller’s perspective; you need to learn to explain to the seller why this transaction is good for them.
Greg’s best advice for someone just venturing into the world of real estate investment is that the people you hang around, the book you read, the thoughts you think are absolutely critical; you need to control the input into your life. You cannot be a sponge to anything you need to control your influences and input. You need to define failure as not trying, you need to be fearless. And lastly, you have to study and learn every day of your life. Greg reminds us that personal growth will always translate to income and personal freedom.
If you are interested in learning more about what Greg is teaching or reaching out to him you can find him on his website at www.TheCoreCo.com
You can also reach out to Greg by phone or email
On this episode of House Flip Masters Holly is joined by guest Cody Hofhine. Cody is a wholesaler based out of Utah, who is having great success with only 2 years in the business.
Cody’s real estate investment journey started when he was working in insurance. After one year of work Cody brought home only $19,000. He realized that this wasn’t enough money and he needed to do something else, Cody attended some REA events where he learned about wholesaling and he fell in love. He started in May 2015 and in just 36 days he made more money on one deal than he did in a year of work. After seeing how good his first deal went he knew there was no turning back.
Cody finds all of his deals within five major counties in Utah. Cody and his team pride themselves on establishing relationships and trust with the sellers to let them know who they are and what they do. Cody feels that the face-to-face experience is one that produces more results and helps to build types of relationships that phone call conversations do not.
When hiring a team Cody says that you need to think of all the things that you hate and all the things that you love and hire out all of the things that you hate and eventually all of the things that you love so that your business becomes fully automated. Cody uses people in the Philippines to help out with the tasks that he does not want to do or have the time to do. Cody reminds us that there are people who love to do the things that we hate to do, he uses the people from the Philippines to help with his calendar, list scrubbing, and marketing. Holly asks Cody how he finds his help and he her that he uses a website www.UpWork.com - you create an account, make a job posting and interview by creating a task for them to complete.
Holly asks Cody how he gets his deals, he tells her that he started with direct mail and he continues to do direct mail doing 65,000 pieces every month! He also uses Pay per Click, Facebook marketing, bandit signs, door hangers, etc. Cody has his hands on several different ways to get out there so that he can get the maximum amount of deals a month. He says that he would not be willing to spend so much money on marketing if he the return on the investment wasn’t as great as it is.
Cody discusses Facebook marketing and how direct the advertising is. Facebook can be geared to specific individuals, zip codes, and audiences. Facebook will send your ad to the exact audience that you want your advertisement to go to.
Cody’s best advice for people that are new to real estate investing is that real estate is a phenomenal market to be in and that there is no bad time to get into real estate! Get involved today no matter the state of the market. He also advises that you do not reinvent the wheel, there are so many successful people in this business that you can use as a resource to get educated that can help you start your business at a higher level than if you tried to start from scratch.
If you are interested in getting in touch with Cody to learn more about wholesaling visit www.InvestorGrit.com - they deliver content and education about wholesaling, as well as offer the opportunity to chat with someone from the team.
Cody also has a podcast called Wholesaling Inc by Investor Grit
You can also subscribe to the Investor Grit YouTube channel
On this episode of House Flip Masters Holly is joined by guest J Massey. Unlike other episodes where Holly introduces the guests, she asks J to share his story with listeners. Before sharing his story J reminds us that no matter what our stories are not over and his story is just what happened to him to make him wake up and to get out there to do something.
Prior to real estate investing J was a financial planner and his wife was a recruiter by trade. J and his wife were experiencing a lot of great things in their life together and everything seemed to be going their way. J and his wife both experienced serious medical problems that left them squatting on bank owned property with a credit score of 398. A friend suggested that J should become a real estate investor; he agreed that he would take the leap into real estate investment as long as his friend would show him how to do it. From the days of having no money J and his wife have come a long way.
Holly asks J to share with listeners his first deal – J says that most investors when looking back at their first deal realize that they would never do any deal that same way again. First deals are crucial and they are the starting point to your investment success. J met the owner of his first deal at a networking event, the owner was behind on payments and needed additional money on top of payments being brought up to date. J had a deal but he had no idea what he needed to do to get his deal off the ground and running. He knew nothing about rehabbing a house, getting a contract, opening escrow, etc. J was able to go back and forth between his friends to get the answers to his questions and to get this deal closed. J and his wife had no money and were still living in bank owned property but they had the deed to a rental property. Holly reminds listeners that you don’t know what you don’t know, until you are in it. J knew nothing about real estate investing and relied on his friends to help him with this deal, he did what he was told to do regarding inspections and adding air conditioning and eventually this property was a success. Three weeks later J was doing 11 more properties.
Recently J has embarked on a new passion – short-term rentals. As an entrepreneur J had not thought about doing these short term rentals before but once he heard from one of his students about the return on investments and the breakdown of the these properties he decided to understand everything he could about these types of investments. In a 60-day period J went from zero to 7 of these units. J advises that you if you live in an overpriced market where the rent has not kept up with the price of the house this is an area that you might want to look at.
When looking at short-term rental properties you have to keep in mind that you need to outfit your property with furniture and everything that you would need in a home, the people that are using these properties are those who might be having medical procedures or visiting family and they do not want to stay at a hotel and prefer the comforts of home. Providing the comforts of home results in good reviews of the property and of the items you outfitted the homes with.
Holly asks J about reviews; how important are they? J says that reviews matter, he references shopping on Amazon; people want to know what other real people think about the products that they are buying, the same goes for the properties that are being rented. J makes sure to go over and above with his properties because those reviews are what help to promote future prospects renting.
Holly asks J to share how he has educated himself on this new area of real estate. Vacation rentals or short-term rentals are relatively new to the professional real estate investor, but not a new concept. There is a not a whole lot of information out there to guide you on what you should do, this market is changing so quickly that any information that is printed becomes obsolete very quickly. J has filters set up online to be alerted when anything comes out about short-term rentals so that he can stay on top of what is current.
While there is a lot going on in the short-term rental area, some people might be discouraged by some of the news coming out about owning a property for vacation rental use. J reminds listeners that this is a new area and when something is new most people meet that with fear and with that fear comes protection. People want to protect what they know. While there are still many unknowns in this area J feels that there are two things that are known and you should be prepared for: licensing and taxation. Once a city knows how to tax and license these properties it will begin to grow and they will begin to embrace it.
If you are interested in learning more about short-term rental properties and gaining more education on real estate investment check out J’s podcast Cash Flow Diary.
On this episode of House Flip Masters Holly is joined by guest Kristi Cirtwill. Kristi is a native of Canada who has come to Southern California to flip homes and invest in real estate.
Kristi moved from Canada 10 years ago and before her move and before real estate investing Kristi tried her hand in several fields of work, Government, corporate, non-profit, before she realized that she wanted to do something differently. After reading Rich Dad, Poor Dad she realized that she needed to figure out how to get into real estate investing and make it work. She knew that she could make a business of real estate investing in California and decided to make the move.
Kristi started out wholesaling and did not know a lot of people so she joined the Real Estate Investment Clubs, she also got on Craigslist to find hard money – she got out there to just meet as many people as she could so that she could get to know the business. Kristi went to open houses and networking events so that she could educate herself and make contacts in the business.
Holly and Kristi discuss hard money and what it takes to get that money, reminding us that as real estate investors you often times cannot get money for free without some of your own money in on the deals. Holly says that without hard money lenders real estate investors probably would not do as well without them. When asked about private moneylenders, Kristi says that she does use private money; often time money to cover what the hard moneylender did not cover. Kristi says that some of her private moneylenders are just regular people that she meets at the Real Estate Investing Clubs. Holly reminds us that when seeking a private moneylender it is helpful to use someone who knows you and someone who trusts you because without a track record in real estate people might not be so keen on lending private money. Kristi suggests starting with hard money first because this is their business and you have to treat their money like it is your own. With a private lender you want don’t want to take someone’s private money and not know what to do with it.
Holly asks Kristi to share how she calculates her profit goal per deal. Kristi works with homes that are under $1 million, when calculating her profit she has a formula that runs her numbers. Kristi factors in the remodel costs and adjusts the purchase price so that the property gives a 10% return of the resale price per deal.
Holly asks Kristi what she likes most about house flipping. Kristi obviously likes being successful in real estate investing but she also prides herself in the jobs that her investments create; the teams and people that she needs to complete a flip. Knowing that she is creating jobs for those in her community is something that she really enjoys about house flipping.
Holly asks Kristi to share some tips that have helped her to be successful in real estate investing; Kristi says that she does not give up. It was helpful to het to find investors that were successful in this business so that she could learn from them and see that the end result would be there if she did not give up. She recommends focusing on the next deal and making sure that you are networking to obtain more resources. Work hard in the beginning so that as time progresses your work becomes more systematic and the job becomes easier and more manageable.
Kristi found her deals in the beginning by networking and 90% of her properties were coming of the MLS, now Kristi still uses networking to find her deals – about 50% come from realtors, the properties she gets now are ones where the seller wants discretion in their sell. The other half of her deals come from word of mouth and direct sellers.
Holly asks Kristi to share what it is like to be a woman in the business of real estate investing, Kristi says she did not let the male dominated business stop her, she feels that being a woman in this business has helped her because of her sensitive nature and her compassion. Both Holly and Kristi agree that being a woman in the real estate investment business is an advantage.
Kristi advises those that are just starting out in this business to be consistent and persistent, and to remember that sometimes you don’t know what you are good at until you start doing it. Real estate investing is a nice way to make a living and to make a full time business out of it. Kristi reminds listeners to make sure to get educated about the business.
On this episode of House Flip Masters Holly is joined by guest MC Laubsher. MC is president and chief wealth strategist of Valhalla Wealth Financial. MC also is the host of a podcast called, Cash Flow Ninja.
Originally from South Africa in 2001 after graduating from university he traveled where he ended up in the United States. He played rugby until 2007 during this time he started his journey into real estate investing. After reading Rich Dad, Poor Dad his view on wealth and money was changed. He purchased his first property and he grew from there. In 2014, he founded Valhalla Wealth Financial, where they help individuals, families, small business owners, entrepreneurs and investors create wealth outside of Wall Street.
Cash Flow Ninja looks at concepts and societal beliefs; the podcast questions concepts in popular mainstream media such as savings and investing as well as retirement. He has guests that discuss how they have created income through various ventures.
MC started in real estate at the bottom and worked for a wealthy real estate investor in Chicago and started working from the ground up by working on apartments. He then started leasing apartments, and soon became part of an acquisition team. After that he got his brokerage license and purchased his first property at 21 years old. MC purchased his first property while he was working on the operations side of property management and says that the biggest lesson an investor can learn is to know the operations side of you investment. You want to know how your cash flow statements and financial statements look and how they should flow, as well as areas that could use improvement.
Holly asks MC to share with listeners what knowing the operations side of your property really means. MC shares that when he bought his first property he handed it right over to a property manager because his property was overseas in South Africa while he was out of the country. While he was out of the country the tenants of that property realized he was not in the country and caused MC to realize that he needed to have screening and checklists together to know who is in your building and having strict guidelines to whom you will rent to, as well as consequences for guidelines that are not followed by the tenant. Performing your due diligence as a real estate investor is the most important aspect in your operations according to MC.
Holly asks MC to tell listeners what he specializes in and how he helps real estate investors maximize every dollar. MC teaches the infinite banking concept in his wealth management and education firm. This is a strategy that takes a specialized insurance as a vehicle. MC deals with dividend paying whole life insurance from a mutual insurance company; he uses this type of insurance as a vehicle because when you fund money into dividend paying life insurance it immediately becomes liquid, there is a guarantee on principal, and you earn a guaranteed interest rate on that amount, as well as being a shareholder in the company - If the company participates in dividends you are going to receive these. In addition to this product there are tax deferred accumulation, and the ability to withdrawal money tax-free. As a policyholder you can access the cash value that you have built up as a policy loan.
When using life insurance to take loans MC discusses interest rates – you will receive a fair market insurance rate depending on the insurance company. MC finds that the interest rate is usually between 4 and 5 percent. When you borrow money from the account you are borrowing from the side and not borrowing from the plan that you own. Utilizing insurance for loans help to fund your investments while still earning money.
If you are interested in learning more about MC Laubsher’s strategy go to his website www.CashFlowNinja.com
Send MC an email at email@example.com If you are interested and serious about learning more about this strategy MC will ship you a book from Nelson Nash, Becoming Your Own Banker – which will educate readers on this strategy and learning similar strategies to leverage your capital – Just mention that you heard him on this podcast.
On this episode of House Flip Masters Holly is joined by guest Evan Younger. Evan is a former worker in corporate America turned real estate investor. Evan graduated not knowing what he wanted to do, like everyone else at the time (2004) he got into mortgage industry and around 2008 - 2009 his income went down by 90% - at that time he decided it was time to bail and it was time to figure something else out and that’s when he decided to get into real estate investing. He started his real estate investment journey by reading books on his lunch break. He had a friend who was into real estate investment who took him under their wing to learn about real estate investing. Evan’s biggest piece of advice is to get a mentor when getting into real estate investment. Even quit his job in August of 2010 and has been doing real estate investing ever since.
Evan enjoys spending time with his family and has afforded his schedule, to live life the way he wants, to real estate investing. While he does not work on weekends his week is very busy but some days are more open than others – he even takes days off during the week to go to Disneyland with his kids.
Evan gives listeners insight on his business; how he gets deals. Evan uses MLS, sends out direct mailers, and goes to auctions, as well as he works with wholesalers. Many people say that the MLS is dead but Evan says that if you stay on top of it and are constantly searching you will come across deals. Evan does not use bandit signs to get his deals, he sticks to tradition means to get his deals – you have to put in the effort and grind it out to get good deals.
Evan prides himself on his simple business plan, he is a single-family house flipper – does not focus time and energy on out of state or multi unit deals. Evan does not have a big staff of people that help him find deals; he often will pay people that help him find deals. He does do join ventures for commission. While he does not have a staff or giant team he considers his lenders, escrow companies, etc. as the team that he relies on most.
Holly asks Evan to share with listeners a one of the biggest lessons he’s learned from doing a deal. Evan got involved with a contractor on a six-figure rehab, where they walked off the job half way through the project. The original contractor came highly recommended but Evan feels that his biggest mistake was not doing enjoy due diligence on this contractor.
Holly reminds listeners that it is important to not put all your eggs in one basket when dealing with contractors and others involved in the homes you are investing in. If you only work on one home at a time and something goes wrong and you get pushed back six months that makes a large impact on your income. Make sure to diversify your deals and work on a few homes at once.
Holly and Evan talk about money, which Evan says is the easiest part of the whole equation. When you want to find money to lend the people that you know and that are in your social circle is easier to find money with. If you put the need out there you may be surprised as to who will come out with funds that can help you out financially on your deal. When talking to your circle about your need for money Evan urges that you need to speak with confidence about your deal otherwise people will not want to get on board with your deal.
On this episode of House Flip Masters Holly is joined by guest Chris Weiler. Chris worked in corporate America in the pharmaceutical industry before he made the change to the real estate industry. Chris started his real estate investment journey as a private moneylender. Chris wanted to expand his real estate journey even further and began to look into transactional funding. Chris began to educate himself on transactional funding by checking out websites, contacting people who were already transactional funders and decided that this was the path that he wanted to go down. Chris reminds entrepreneurs that you have to remain flexible to be successful. From transactional funding he moved to into fix and flip funding and because of the people he met through his business encounters he met a person who was wholesaling and he ended up partnering up with him and because of that he now has a land lording business.
Chris has several hubs where he fix and flips homes – he liked the Riverside county area where he was able to fix and flip a home for relatively low cost, now homes require more rehabbing and that requires for investors to have the right resources available to them. Chris reminds investors to always have a backup resource if you have a contractor back out at the last second because time is money and having someone back out of a project without an additional resources lined up can cause delays to your whole project.
Chris constantly reminds investors that you must remain flexible in your investments. He is currently buying in a new market that is proving to be challenging but he knows that his hard work will pay off.
Chris also fix and flips a lot of properties in the Florida market, he is able to do about 10 to 15 properties at a time because of the team of people that he works with and the trust that he has in the team that he has curated. Chris prides himself in his work ethic and the fact that he can be predictable and his partners and sub-contractors know who they are working with and what they can expect of him. Holly also reminds us that as investors and entrepreneurs we need to stick by what he say we are going to do. Chris also adds that it can sometimes be a blessing when someone does not keep their word because you now know what kind of businessperson you could have been working with and that you should avoid them in the future.
Chris talks about his successful deal in his Ohio – Chris and his partner went to a seller and were looking to buy 100 properties, they seller was not interested and told Chris and his partner to go away. This taught Chris that he could not be afraid to make an offer – don’t be afraid to put in an offer; that it is too little or too much. At the end of the story, the seller approached Chris and his partner because the deals that they were interested in fell through and asked if they were still interested in doing business. Chris decided that he was still interested but because time is money Chris made a new offer that was lower than the initial offer because as Chris reminds us, time is money.
Holly knows that Chris works with partners with his remote investing and asks how when working with a partner Chris decides how much and how they split their money and partnership. Chris has created a structure that allows for his money to be paid back while the partner gains more stake in the partnership. At this time Chris and his partner are 50/50 partners. Chris allowed for his partner to earn his way into the partnership. He reminds us that you must keep open communication with a partner to be successful.
Holly asks Chris what his best advice is for new investors – Chris reminds listeners to be mindful of their integrity and to be predictable, be honest with people up front and to figure out what you want to do and stick with it and follow through.
If you are interested in getting in touch with Chris you can find him on LinkedIn and Bigger Pockets.
On this episode of House Flip Masters Holly is joined by guest Don Gilmartin. Don is the VP and CEO of APRIS Restoration Company. Holly and Don talk about how to deal with fire, flood, and even death when you are buying a home as a real estate investment.
Don talks to Holly about how to manage a home that has fire damage. Fire is such a devastating and severe trauma to a home that not only does it leave a lasting odor, but can destroy the framework and even the foundation of a home. When fire impacts the foundation, the rebar and the steel and the concrete, it needs to destroyed and built from the ground up.
Holly asks Don about how to handle a home that has survived a fire but still smells of smoke. Don advises that smoke damage is something that you typically cannot get rid of and it will require for drywall to be replaced in the entire home. Smoke damage permeates the walls and sometimes the foundation and cannot just be masked.
Don’s overall motto is that he doesn’t care what size the damage on the home the compassion level stays the same because even if the damage is small this damage is horrific for the individual person that is going through it. Don and his team treat every project the same because they are dealing with people handling a very difficult time in their life, with often times their biggest investment; their home.
Don and his team, by law, have to test for asbestos or lead and cannot come in and restore a home until testing has been done; homes that were built before 1985 require testing and cannot be touched until this has been completed. If testing comes back with a certain level of asbestos or lead a specialist will have to come in and take care of the situation.
Another issue that Don deals a lot with is mold. Don tells us that mold is just a natural element of water and it will leech onto any building material but it is not something to panic over. A seller needs to disclose to a buyer if there was mold found in the home and that it was remediated.
Sometimes investors have tenants and once the lease is over they take a break from tenants and let the home sit vacant for a while, during this time things can happen, such as a slow leak. Holly asks Don if a slow leak is something that insurance will take care of or if there is another way to go about handling this. Don advises investors that when you are dealing with a slow leak and are asking insurance to cover it you need to make sure you are working with a company that can prepare and present your estimate in a manner that shows that the slow leak isn’t considered long-term damage.
Don has rental properties and he personally checks on them 3 times a year, he stresses that investors need to stay on top of their properties and watch for any signs of water damage. He always makes sure to educate his tenants on what to watch for. In educating the tenant as an investor you have a second set of eyes for the times between your own check-ups on the property.
Don advises when flipping in an older home make sure to watch for the joints of the pipes when you are replacing fixtures. Holly agrees that this is extremely important, when she and her team take possession of the home the first thing that they do is replace all of the angle stops. Replacing the angle joins costs a few dollars up front but potentially saves you thousands down the road if there is a leak or any other water problems.
While Don deals with water, fire, and mold damage he also provides trauma scene restoration and services. Don prides himself in being able to help people smile again and give them their home back after they have dealt with a traumatic incident in their home.
Don tells listeners a story about a time when he had a client with limited funds who was dealing with a family member’s suicide in the home. Don and his company were able to go into this trauma scene and help this client out, they were able to restore the home as well as help the client out to be able to have all the financial aspects covered and to help this client rebuild his life after this traumatic incident. Don and his business partner stress the importance of having resources, without their resources this client would have left this home and this incident with a few pictures and other objects but because of the relationships they have built during their years in this business clients are able to walk away with more than just a bad memory of an incident.
Holly asks about how real estate investors should handle knowing that a home they are buying has had a death in the home. Don advises that when there is a death in the home sometimes landlords will try to hide it or cover it up but a death in the home will cause damage within the foundation of the home if not taken care of. Don advises that you need to be honest in your transactions and disclose what has happened in a home in order to flip and sell a home successfully.
If you are interested in reaching out to Don and his team about restoration they can be reached 24/7 by phone or email. They are a Southern California based company with their offices in Corona. APRIS services San Bernardino, Riverside, Orange County, and North San Diego County.
On this episode of House Flip Masters Holly is joined by guest Kathy Fettke. Kathy is an extremely accomplished entrepreneur she is CEO and co-founder of The Real Wealth Network, a California based Real Estate Investment group with 16,000 plus members. She is the host of the Real Wealth podcast, as well as frequent national news contributor, she is a licensed real estate agent and former mortgage broker. Kathy is the past president of American Women in Radio and Television and was recently recognized on Goldman Sachs 100 most intriguing entrepreneurs, 2 years in a row.
Kathy’s story of how she got started was one that was great, her husband was successful with a book he had written, they had bought their first home, they had their children and then one day her husband went to the doctor and had discovered he had a health concern that may only give him 6 months to live. With that news Kathy wanted her husband to enjoy the last 6 months of his life if the doctor was correct. She already had her Real Wealth Show and decided to change her direction; she wanted to interview people who were successful in the world of passive income. This idea of passive income was something that appealed to Kathy and her husband, Rich, and they decided to start educating people on how to apply their assets so that they could create passive income, free up time, and enjoy life.
Kathy and her husband provide people who do not have the time, money, or energy to flip homes with the education on how to flip a home within their reach in the best markets. Kathy defines the best market as job growth, population growth, and affordability. Kathy and Rich help to pair someone who wants to get into real estate investing with the best market for them. This individual will just need to qualify for a loan and a team will take care of the flipping and management of the property.
Holly and Kathy are always asked by people wanting to invest in real estate if now is the right time. Holly reminds people that there are always opportunities in real estate and Kathy agrees that while opportunity is always available you might have to work harder in some markets and be more knowledgeable. Kathy advises that you need to stay educated on your market and that you should pair up with a mentor or a team to help you learn what you don’t know and to help you get started. You can always find a good deal but you need to put in the time and effort. It is a good time to buy in some places and a really good time to sell in others.
Holly asks Kathy to give some advice to people who are thinking about investing in real estate but might not have the equity right now. Kathy advises you to get educated, you can check out her book, Retire Rich with Rentals, which covers a lot of information you need to understand before you jump into anything. If you have a lot of money but not time you should work on your credit. If you have no money at all and you are just getting started you are probably going to go the route of wholesaling or flipping so that you can start to build a nest egg. Kathy says that her best advice is to find someone who is doing what you want to do and offer to help them for free, it will give you an ‘in’ to the business and it will get you the education and experience to help you build your business.
Kathy and her husband offer a Real Wealth Investor Academy for $10 a month that serves to educate investors at an affordable rate as well as giving back to the community. 100% of the profits from this academy go to charity.
If you are interested in learning more about the education that Kathy offers, as well as her podcast you can visit her websites.
Podcast – www.RealWealthShow.com
On today’s episode Paige Panzarello joins Holly. Paige has been in the real estate business for over 20 years working various different aspects of the business. Paige has worked as a landlord, as well as working in land development and owning a construction company. While there are several types of notes available to buy Paige works in non-performing notes.
Non-performing notes allow for Paige to help people who might not otherwise be able to keep their homes, keep them, while also making a profit for Paige.
A recent success story for Paige is one out of Memphis, Tennessee. A borrower had not been able to pay for her mortgage because she was paying for her husband’s medical expenses. The husband recently passed away and the borrower was on the verge of losing the home that she has lived in for over 30 years. Paige was able to help this woman out by buying this note and allowing for the woman to keep her home with repayment and a mortgage adjustment.
Paige speaks about FHA 1023, which are specifically designed for banks, like Paige, to work with borrower. They will come in and refinance after 12 months at 97.5% of current market value, which means the borrower, gets to stay in their home and Panzarello gets cash flow. In the end borrower ends up with a manageable mortgage payment and is able to keep their home. When buying notes Paige reminds us that in every 10 notes, one-third of people will perform as expected and be able to keep their home while a profit is being made.
Non-performing notes have 23 exit strategies but Paige only utilizes about 4 of them. Paige has preset criteria to determine which notes she wants to get involved in. Paige and her team work out, on paper, every stage of the plan to make sure that they are making money, if they are not making money on paper than the deal is not worth it to them. If you cannot make a profit on paper then the chances of you making profit by buying the note are slim.
Paige reminds us that there is plenty of opportunity in note buying, $1.38 billion dollars of bad debt opportunity. To get involved in note buying you need to take the right steps and do your due diligence to make certain you are buying the right notes.
While you can go online and signup for a website and buy a note this is not the best way to purchase a note. Paige insists that you do not want to buy a note this way unless you know what you are doing because there are a lot of steps that go into note buying. Unless you know what you are doing you need to hook up with a mentor and develop a relationship with them so that you can benefit from the education and keep yourself out of trouble financially. You need to do your due diligence before you decide to purchase a note to make sure the comp value is where it needs to be and there are no delinquent taxes, etc. Never buy a note without having someone go to the property and have him or her take pictures of the property. You need to make sure that the debt that you just bought is physically there and still standing.
Paige likes to say that there are no bad notes but there are bad buying of notes, bad buying will occur if you do not do your due diligence. If you buy badly your profit margin shrink or disappears.
Paige finds her deals through relationships. Real estate is a team sport, you cannot do it all yourself. If you do not have good relationships with people on your team you are not going to get very far. Paige funds her deals with her cash, as well as her partner and joint venture partners. Notes are cash and carry unlike conventional loans for homes that you are buying to flip.
Paige has become successful by utilizing her strengths and skills. Paige has been in the business for a long time and has experienced the ups and downs of the real estate market. Paige feels that her most important characteristics are perseverance and dedication. She also feels that having a strong team is crucial to her success. A strong support system can be a very beneficial asset.
If you are interested in learning more about note buying you can check out Paige’s website at www.CashFlowChick.com On her website you can schedule a free 30-minute consultation to discuss note buying. Paige handles all of the emails that come through this website so if you are interested in reaching out to her this is the place to do it.
Paige and Holly also mention a cannot miss event happening on October 23, 2016 in the Los Angeles area hosted by Women’s Real Estate Network (WREN) – Ignite Your Fire From Within. To learn more about this event visit www.WRENinspires.com
On this episode of House Flip Masters Holly is joined by guest Raj Bhaskar. Raj is the co-founder of mobile profit and taxes app, Hurdlr, designed for self-employed entrepreneurs.
Raj had his first taste of real estate when he created his first software platform for real estate management; this software was used by housing agencies all over the country helping them to manage their public housing and affordable housing properties. Raj built this company up for 10 years and when it sold in 2010 to real estate software company Yardi.
With his own real estate experience and knowledge from the platforms that he has created Raj believes that real estate should be a part of everyone’s investment portfolio in some way of another whether it is actual property or an indirect real estate venture.
Raj got interested in real estate software when he and his wife bought their first home together and decided to rent the condo that Raj owned. When they decided to rent out this property Raj was asked to get together all his expenses concerning that property – this was the first time he had to do this – and he wasn’t prepared to do it. When gathering the information that he needed Raj started thinking that gathering the required documents was basically a business.
During this time Raj was already building an app for entrepreneurs to help manage all of their business finances – when he was gathering paperwork for this condo he realized that his personal task was a great use case for the app – he then started adding functions to the app that allowed for real estate investors to track their finances along the way so that when tax time came they could just send information to their CPA with a tap of a button.
Raj reminds us that in real estate investing it is vitally important to track your numbers and to invest smart; invest to make a return on your investment. By knowing your numbers you will make good money and have a good business. The best way that Raj suggests to know your numbers is to start off by opening a separate bank account or credit card and use that only for your rental property expenses. With a separate account every time you receive a statement everything will all be related to that specific business you opened the account for. Raj also advises that you do not mix your personal expenses with your real estate investing expenses.
Holly agrees that it is a good idea to separate your flips from your rental properties from a tax perspective; she also says that it will make your life easier to track expenses and to have that separate bank account or credit card opened.
Raj’s app, Hurdlr, allows users to sync bank accounts and credit cards to the app and every time a purchase is made you will be notified and at that point you can tag the expense as personal or business allowing you to keep everything organized. The app will also give real time income tax estimates.
If you would like more information about the app or to download it you can visit www.Hurdlr.com or download the app in the iTunes app store or Google Play Store. You can also reach out to Raj via the website or with the chat function side of the app, you can chat directly with him or a member of his team if you have questions or concerns.
In this episode of House Flip Masters Holly McKhann talks with real estate investor and philanthropist Rod Khlief. Throughout his career Rod has personally owned 2,000 single-family homes and several apartment communities. He has built several multi-million dollar businesses and is dedicated to giving back to the community with his Tiny Hands Foundation, which has helped over 40,000 unprivileged children.
Rod emigrated from Holland at age 6 and moved to Denver where he bought several buy and hold deals as well as flipped houses. Rod saw that he was making money in flipping houses but wanted to increase his cash flow so he bought homes in Denver, Memphis, and Florida. With the amount of properties that he had purchased in 2006 Rod’s net worth increased by 17 million dollars overnight, but it was the crash of 2008 that caused Rod to learn a 50 million dollar lesson, or seminar as Rod calls them. Rod likes to view failures as seminars because there is something to be learned out of something that doesn’t go as planned.
As a way to generate cash flow Rod started with flipping single-family homes but tells us that if you want to increase cash flow you need to take the money from flipping and invest it in a cash flowing asset so that you do not have work anymore. Because with house flipping every January 1st you have to go back to work and with cash flowing assets that is not the case, your money works for you.
Rod advises listeners that if you want to be successful you need to do the things that other people do not want to do. Rod makes most of his money doing the things others do not want to do. He started this tactic in Denver by knocking on the doors of people that had homes going into foreclosure and talked to those people personally about helping them with their situation. When doing something like this Rod emphasizes that you must come from a place of love and caring and not from a place of money because people will sense that and not be open to your help. You need to look for a win-win situation and if you do this you will make a ton of money just by helping people out of bad situations.
When you are getting lists and mailing them Rod advises that you do what others don’t want to do and take the extra step to get the phone numbers of homes that you see have potential and actually pick up the phone and call on those homes. Do no be afraid of rejection because it will get in the way of your success. There is a ton of money to be made in flipping houses if you are willing to do what other people are not willing to do.
Rod reminds us that to be successful in multi-family homes you need to have knowledge and not necessarily money, you can be successful in multi-family homes without money as long as you educate yourself listen to podcasts, create relationships, evaluate properties, and learn in your backyard and that is where you will get your intuition about properties.
If you want to get into multi family houses you need to study. Start with a duplex and work up from there or whatever you feel comfortable with, study and evaluate deals so that you know what you are getting into, learn terminology and develop relationships
If you’re thinking about getting into this or any other business Rod urges listeners to write down your goals, write down your why and what you want to achieve. When writing down your goals you also need to look at the other side of the goals and write down what will happen if you do not reach your goal because people will do more to avoid pain and have a greater chance of reaching their goals. Rod advises using pictures of the things that you want – make a visual representation of the things you want to help drive you to your goals – visualize to manifest. Rod reminds us that you are going to get knocked down and off track but the visuals will get you back on track.
With goals and success you also need to keep in mind the area of fulfillment. Rod had everything that he wanted but he wasn’t fulfilled so he took a page from Tony Robbins and his Basket Brigade and started the Tiny Hands Foundation. With business success and fulfillment from helping others Rod can appreciate and be happy about how far he has come in his life and career because success is empty without fulfillment
If you are interested in learning more about cash flowing assets you can listen to Rod’s podcast on iTunes, The Lifetime Cash Flow, or on his website www.lifetimecashflowpodcast.com
Listeners can also learn more about how to build a multi-family home portfolio by getting a free copy of Rod’s upcoming book, Lifetime Cash Flow, by texting Rod to 414111 – you will be put on a list for when the book is finished, no strings attached.
You can also reach out to Rod by going directly to his website at www.RodKhleif.com
On this episode real estate investor Gerald Lemoine joins Holly. Before Gerald got into real estate investing he had 30 years in general construction. When he met his wife he knew that she would not want him to continue to do construction and travel to different countries and different states for work. He started to research his options and came across real estate.
Gerald started his real estate career with house flipping before he moved to note investing. He felt that his biggest mistake with house flipping was that he rushed into a deal that he bought. He jumped into the project head first started painting and ripping out flooring but shortly after starting the rehab he got a call that the sale had been rescinded. While this lesson was painful it was a learning experience that he took with him into the houses he would flip after.
Gerald got into the note business after attending a seminar where a presenter was offering a workshop on note investing for one thousand dollars. Gerald paid the money to attend the workshop and has since integrated what he has learned into his current note business.
Gerald’s first note that he bought was in Ontario, California. This property was already in foreclosure when he purchased it. Gerald took the property to auction and was not able to sell it so he decided to flip the property. During the rehab Gerald put a ‘For Sale by Owner’ sign up and got several inquires on it before he has even finishing the rehab. A couple approached Gerald about the property and wanted to purchase, the buyer gave him a deposit and signed a contract and the home was in escrow before the rehab was even finished. From the time Gerald bought the note to the day the home sold it only took him sixty days.
After flipping houses Gerald got into note buying. Gerald has purchases 500 notes since 2008. Today he manages about 250 notes that generate about $1 million dollars of income. His team of 4 buys notes and sells them, they also hold onto some of the notes that they buy. Gerald suggests when buying notes to spread your money out, don’t buy one note for $100,000 buy 10 notes for $10,000 each because you don’t know what could happen with the notes that you buy. Some notes end up in court, or some notes are bad notes where you could potentially lose some money.
For those of us not familiar with note investing Gerald lays out what notes are all about. Gerald gets his potential notes on a spreadsheet that tells you about the borrower, the home, the mortgage, and the second mortgage if applicable, as well as the fair market value. Gerald and his partners will buy just about any note if they see that it has potential profit.
Gerald compares house flipping and note investing. He looks at note investing long term and wants to compile a portfolio of notes that he can live off of the return of them. He wants to hold notes and get them performing so that he can create a stream of cash flow. Sometimes borrowers do not cooperate with Gerald’s plans and then he has to send the property to foreclosure.
When investing in notes you need to be mindful of the risks with this type of investment. Gerald reminds listeners to be careful of condition of the property. He has someone go out and look at the property to make sure that he is buying what the note says that he is buying. Be mindful of the condition of property and the value of property.
To get educated on note investing Gerald suggests you attend note training, but make sure that you are not spending a lot of money on training; do not spend thousands of dollars on note training. Some websites that Gerald suggests are:
If you are interested in getting in touch with Gerald you can reach him by phone, email, or Facebook.
Gerald and his team also offer monthly meet-ups for $15 at his office in Garden Grove, California. To get more information about those meet-ups visit:
On this episode Holly is joined by Sep. Sep has been investing for 6 years, while he has lived in Orange County his whole life he did not start investing in his backyard when he got his start. After being laid off he decided to take his life savings and invest it into stocks, which he also lost. He moved in with his parents while he got back on his feet and got another job.
With worries about “what ifs” Sep picked up Rich Dad, Poor Dad and realized that he wanted to start investing and increasing his cash flow. It took him 2 years to get any cash flow with his investments. While 2 years was a long wait Sep was focused on long term cash flow and did not give up on his dreams of real estate investing.
Sep said that when you are investing you often focus on the property but it is much more than that, it is about the team, the area, and the customer. You need to find your investor identity when you get into this business, he found out his identity early on with tenants that were less than desirable. He expected everything to be nice and easy with cash flow immediately but that is not always the case, you have to work hard for what want and know whom the customer is that you want to serve.
Holly reminds us that we need to outfit our investments to the correct spec level for the customer you are serving, you need to keep in mind that a C level customer might be scared away by an A level kitchen upgrade, it is important to know your customer when you are flipping so that you do not spend more money or time than is necessary for the investment.
Sep and Holly talk about their investor identity and how important it is to know what yours is. Your investor identity has to do with the team that you employ also. You need to find a management company that is best suited for all involved in the project.
Most successful and stressful deal for Sep is a deal he did in San Antonio, Texas a 520-apartment complex that was structured with virtually no money down. This deal the seller wanted to get out as quickly as possible so it was an easy buy and was able to pull all equity out of it and increase the cash flow.
Sep’s biggest lesson learned is that real estate investing is a business; once you treat it like a business it is more enjoyable, more fun and less stressful. If you have a system in place your team can send you exactly what you are looking for making your business more streamlined. Holly reminds us that we always need to be flexible and ready for change when the market demands it.
Sep does not manage his properties and always hires management for his properties because he does not have a real estate license and he needs a management company this is able to take care of whatever needs to be done since his properties are out of state. Holly on the other hand manages all of her properties, it is more manageable for her because of the amount of properties that she owns and the relationships that she has with her tenants. You must weigh out if it is more financially beneficial to manage your own properties or hire a team to do it; sometimes it is hard to give up that control but that can also be a point of success or failure for the property.
When looking for seller financed deals you must get to know the seller; what are their needs, wants and desires, and structuring the LOI based on that. You should be prepared to give multiple options to the seller because they will often turn you down. Sep uses Craigslist to look for his next deal.
When trying to find emerging real estate markets look for markets that have markets with 200,00 or greater and job growth at least 2% for the last 2 years and population growth of 2% over the last 2 years.
Education is the best investment you can give yourself when you are beginning in real estate investing, you want to educate yourself and surround yourself with those who are on the same journey as you.
If you are interested in getting in touch with Sep you can reach him via Facebook
or by email at sepehrb1
On this episode Doug Van Soest creator of podcast Spouses Flipping Houses joins Holly as they discuss how to be more successful in your real estate business. Doug and his wife, Andrea, got their start in real estate after reading “Rich Dad, Poor Dad” while they were engaged. This book helped to open their eyes to other possibilities in their life and real estate became a real possibility for them.
Both Holly and Doug got their start in real estate in August of 2008 and have not looked back since. Doug began his career in a concession stand business, Kettle Corn to be exact. Doug got his start in real estate investing by listening to free real estate podcasts where he was advised to go to a REIA club. At his first REIA club he heard Bruce Norris speak. Norris advised those attending to get out that the sky was falling and Doug and his wife took the advice and started a two year process to get homes and started investing.
Doug started out flipping houses off the MLS, flipping about one house a month. In 2011 they decided to ramp up their business and started mailing directly to landlords to get more deal and started growing and introducing wholesaling into their business strategy.
Doug is based in Murrieta and does most of his business in the Inland Empire, San Bernardino and Riverside County areas. He has flipped and wholesaled a total of 300 properties in his real estate career. As of August 1, 2016 he has flipped and wholesaled 35 total properties.
Holly asks Doug what advice he would like to give to listeners, Doug advises that every deal is unique and that as a real estate investor you need to expect the unexpected. If you are going to take on a project that gets the city involved, or a home designated historical, you need to take into consideration the amount of time it will take to turn a property but don’t let time hold you back.
Doug also shares with Holly his most recent best deal. Best deals are when you get homes in a desirable area with good schools and working class people. Families want to live there and they will pay a premium to live in that area in a nice home. Because of the desirable location and low cost rehab on the home he was able to make 30k over their estimated sale cost.
In the beginning of their real estate career Doug and his wife were the only two on their team since then they have grown their team and have added more help as their business becomes more successful.
Doug reminds us that a single person can do the work to start out with but as you grow, you add people into your business and grow one person at a time if you begin to feel that you are too busy. You can look at your schedule and see what tasks you are doing that you can outsource to others so that you can lighten your load and direct that focus on tasks that require more of your attention. Holly also says that you need to learn to delegate to grow
Doug’s best advice for a brand new investor is that you need to take action, get some education but don’t get stuck in the idea that you need to learn more before you take your first step. Take smart action and just do it – look on craigslist and look for opportunities. Opportunities will come by way of your hard work.
Seasoned investors don’t always want to let go of the thing that they are doing but if you want to grow and be successful you need to let go and find people to do tasks for you that are taking up your time. You need to let go of certain aspects of the business and let other people help you so that you can grow your business. Time freed up in your life is a form of success in Doug’s eyes.
To continue to educate yourself and learn business building strategies you can listen to Doug and Andrea’s podcast, Spouses Flipping Houses, as well as checkout their website for more information. Doug can also be reached by email for any inquires that you may have.
Doug Van Soest
Spouses Flipping Houses
On this episode Holly is joined by Joe Fairless. Joe is the creator of the longest running daily real estate podcast, Best Real Estate Investing Advice Ever. On his podcast Joe shares advice and success stories with successful individuals in the real estate business Joe became the youngest vice president of an advertising agency before switching over to the real estate world where he currently owns $54 million in real estate.
Joe graduated from Texas Tech University as an advertising major, after college he moved to New York where he worked for a prestigious advertising agency. After 6 years at the agency Joe became the youngest VP at the advertising agency but didn’t feel like he was growing and that what he was doing was contributing in a meaningful way.
While working in advertising Joe began teaching classes about real estate and investing, he was also buying single family homes in Dallas, Texas and generating income but knew that he could make more. While investing in real estate Joe decided that he wanted to quit an advertising job but knew that without a job he would have a hard time getting investors for his future deals.
While teaching his single-family home classes some of his students reached out to him about partnering when he decided to venture into bigger deals. With no job and no income this was appealing to Joe; multi-family homes became his next product that he would teach so that he could land investors and make his real estate dreams a reality.
Joe reflects on a book that he once read, “Things I wish I knew when I was 20” written by a Stanford professor that basically said that we can wait for people to appoint us to a level that we can achieve or we can appoint ourselves to the level that we want to achieve and rise to that level by resourcefulness.
Those that are interested in real estate need to remember to not focus on what we are unfamiliar with but instead in surrounding yourself with people who are doing what we want to do and something that no one else is doing. Joe reminds us that we don’t have to follow the traditional path as others have, we can appoint ourselves to the position we want and figure out how to make it happen in the process.
Holly also reminds us that we cannot be afraid to put ourselves out there and be frozen in fear, that we need to take action in order to make things happen in your business. Investors wanted to work with Fairless before he even had anything for them to invest in because he had established a track record with investors and he was actively making deals happen. Joe’s advice comes from past as well as current experiences.
Joe outlines his key steps to raising money for anyone looking to partner with others on deals. You must first have their trust, second you must have experience and if you don’t have experience you need to surround yourself with people who do have the experience. Lastly you need to make sure that you have alignment of interest.
Holly and Joe discuss the legal aspect of raising money, which types of documents you need so that you may outline exactly what you and the investor are getting into. They also discuss if you can legally publically advertise for investors on Facebook. Joe says that it depends on the structure of the deal and advises us to refer to his podcast on 506b vs. 506c.
When Joe was looking for investors he used a strategic approach, which he shares with listeners. You must have a referral network and a strategic approach when you meet people; you are either building a brand of trustworthiness and character or you are not. If you are doing these things you will be surrounding yourself with people who want to see you succeed and that will work for you for a long time.
Joe offers listeners a spreadsheet that will help you create a network for yourself of your available investors. To get this spreadsheet you can email Joe and one of his team members will send you over the appropriate information.
If you want to learn more about Joe and his methods, as well as listen to his podcast you can check out his website at www.joefairless.com and for the networking spreadsheet email him at firstname.lastname@example.org
On this episode of House Flip Masters host, Holly McKhann, is joined by Eric Lofholm.
Eric is a master sales trainer who teaches proven sales systems to thousands of professionals around the world. Eric is the President and CEO of Eric Lofholm International as well as the author of 10 books that teach the art and science of selling.
Eric has been helping people for over 17 years with his training. Today Eric discusses points to help make you a better seller with steps from his best selling book The System. Eric reminds Holly that everything is selling; it is a style of communication that increases the likelihood that the other person says “yes.” Anyone can learn to be a better salesperson with the right training.
Lofholm was working as a cook for McDonalds when he attended a real estate investment seminar where he met the speaker, Dante Perano, and began to work for him as his personal assistant. When Eric was not working as a personal assistant he would work in sales. At the end of his first year in sales Eric was told that he was under producing and was at the bottom of the list of sales brought in.
When he was under producing in his sales he knew that he needed to make a change. Eric met with Dr. Donald Moine who taught him his system for sales. With Moine’s system Eric went from the lowest producer to the highest producer of sales in his department.
Eric reminds us that we should be embracing sales because it is a great place to make a lot of money especially in real estate investment.
As a salesperson you are more than just that, you are an educator, you are a helpful person who has a solution. Sales is about moving people to action, and with your guidance you can have an outcome that benefits both parties by showing someone how they can get what they want, by giving you what you want.
When discussing a distressed homeowner scenario, Eric stresses that trust and rapport are vitally important when trying to persuade or influence someone. As a real estate investor and salesperson your greatest persuasion asset if your ability to story tell. When you are telling a story it is important to be strategic in your preparation, having a plan will increase your confidence and the likelihood that the other party will say “yes.”
People skills are a huge necessity if you are going to interact directly with sellers. You need to be able to understand what is important to people, or what Eric refers to as the hinge point, knowing what causes the influence. You need to be able to know what is important as well as be able to isolate the objection, doing so eliminates all other objections.
It is very important to you that you are mindful of who you are being when you are with the seller. To influence someone you need to lower his or her resistance, which is where rapport comes into play.
When starting off in real estate it is helpful to team up with someone to help to sell yourself in your deals – it helps to build your reputations and credibility – it is more powerful to be able to lean on the power of a team.
If you would like more information on Eric and his proven system you can visit his website at www.SalesChampion.com
As a special offer to those listening to this podcast Eric is offering his bestselling book, The System, free as a digital download which can be found on his website.
In addition to a free digital copy of his book Eric will pair you up with a coach that has been personally mentored by Eric himself to help you get better at sales. They will have you complete a free assessment, which goes over your strengths, weaknesses, and opportunities ($195 value).
To gain access to this extremely valuable coaching text Eric at (916) 626-1945 and mention that you were on the podcast and would like the free assessment.
Holly and Eric agree that confidence issues are common and you can overcome them if you take the actions that you need to overcome them. Once confidence is built you have it for the rest of your life and it spills over into other aspects of your life outside of sales.
On this episode Holly is joined by Justin Williams. Justin has flipped over 600 houses and has most recently flipped 100 houses in a year using systems. Justin uses automation to flip his houses; he also coaches students and has programs to help people learn more about flipping on automation.
Justin got his start when he fell on some tough times and was selling satellite dishes door to door; it was then he decided that he wanted to go into real estate. When life threw Justin a few more curveballs he got into real estate and found that he was not making much money until he started selling the rental properties that he had previously bought. He made enough money to live on for a year in the rental properties that he sold. At that moment he decided to take action and get more into the real estate lifestyle.
Currently Justin operates with a small team that helps him to manage his systems business. To get the word out about his business Justin uses direct marketing. When asked about which direct marketing technique that he recommends Justin reminds us that how you market depends on your location and the capital that you have available to you. While there are many marketing option available he finds that he gets best results in marketing with direct mail and direct online marketing.
Justin is currently working on a flow chart, a choose your own adventure type chart, that will help people to decide which marketing technique is best for them given their situation. Marketing is similar to buying and selling; one size does not fit all. And if you pick something that doesn’t work for you make a change.
When it comes to flipping houses Justin offers this advice, be careful if you’re flipping and you are outside of your market. It is best to pick one area and get to know the market very well because you branch out to another market. This is because buying in other markets can increase risk. Risk is unavoidable in the real estate business but there are things that you can do to mitigate risk. Holly reminds us that you can get into real estate without risking your entire life savings by starting small and by finding financing opportunities.
Justin wants us to know that money is everywhere and if you don’t think that it is you have to work on your mind. There is always going to be someone who is willing to give you money whether that is private money, hard money, or a joint venture partner.
Justin got his start in wholesaling – getting another investor to finance your deal by buying you out – which eliminated his risk and also got him financed. After wholesaling he started doing private money, and then when he started working on higher volume flips he worked with a joint venture partner. After having a JV partner Justin started using hard money and some of his own money. He is now moving into eliminating hard money and using his own money as well as JV partner money because they do not have points and interest.
Both Holly and Justin remind us to not take money unless you have the experience and to use the same rules for risk aversion. This business is about getting your foot in the door – sometimes you have to give up some of the profit to blow the door open and to own your craft. Even if you know what you are doing you can still lose money, you need to know the risks that each investment takes. Finding someone who has experience to help you will be the best ROI you can get. Education is key to this business because people will take advantage of you if you are not educated about your decisions.
Justin offers several different learning opportunities to flip on automation. Justin and his team spend 50-60k a year in coaching education masterminds because he believes in practicing what he preaches.
The flagship program that he offers is called house flip formula and more information can be found on www.houseflippingformula.com
For serious investors Justin offers Seven Figure Flipping, which will cost $25,000, and this is a program that must be applied for and is not for everyone. More information on this program can be found on www.7figureflipping.com
Justin will also be hosting an event in San Diego, October 6th-8th called Flip Hacking Live, tickets can be bought on the website www.fliphackinglive.com
For more information about the systems that Justin and his team offer or to reach them you can get in touch at www.houseflippingHQ.com or 949-391-6527
On this episode of House Flip Masters Holly is joined by guest Jefferson Lilly. Jefferson is a mobile home park investor who currently owns 13 properties in 8 states and counting!
Jefferson says that the decade before he began his real estate investment business he worked in the high-tech business and was par of the .com world and was in it from the time of the boom to the bust. Having gone through that time Jefferson says that he became more interested in investment with the stock market and shortly after decided to diversify and take his investments into real estate. When he was looking into real estate he kept seeing mobile homes, a unique multi family niche that was showing a great return on investment and he knew he needed to get into this part of the business; although initially he was wanting to buy apartment buildings in his home of San Francisco, California. Jefferson said that it took him about 1 year to learn the mobile home real estate space and land his first deal. After his first deal Jefferson decided that this was where he wanted to be and continued to make his living in this very unique real estate space.
Holly asks Jefferson if while he was learning about mobile home real estate if he was working a corporate job or if he quit his job to pursue real estate full-time. Jefferson says that for about a year, during the time he was learning about the business, he overlapped having a corporate job and doing real estate. Jefferson says that he transitioned full-time into mobile home park investing over the course of a few years so that he could make sure that his plan was going to work out while he was still making money from his corporate job.
Holly asks Jefferson why he become interested in mobile home park investing. Jefferson says that most people are repulsed by the idea of mobile home parks so there is a not a lot of people working in this area, therefore there is less competition. Jefferson says that a lot of mobile home parks get a bad reputation because of the 1% that news and media like to showcase. Secondly, he likes this niche of real estate because it is the only area of real estate that is actually shrinking - other forms of homes and retail space, etc. is expanding. Mobile home parks have had a lot of changes in zoning against them making it impossible to build more mobile home parks - he estimates that 1% of parks get plowed over and a new strip mall is built on-top of where the park once stood. Jefferson says that while the parks are shrinking the demand to live in the parks is growing and that intersection of two elements mean that space rent goes up and in turn means more profits. Jefferson also mentions that in mobile home parks you only own the land and usually don’t own the homes and if he does he likes to put them on rent to own agreements. As a landlord he has a lower maintenance cost, all home repairs are the responsibility of the tenants which also makes for a better park because the tenant starts to become proud of their home and they will take better care of it which is why he wants tenants to own their own home. Lastly, when tenants become owners they are unlikely to move because of the cost to move the home from one area to another. If a tenant gets a job in another state or another city they are more likely to sell the mobile home and buy a new one rather than moving their existing home. Jefferson says that mobile home parks are a compelling niche because the cash flow is constant.
Holly asks Jefferson to share a story about one of his first deals with listeners and Jefferson recalls that when he had his first park he was buying homes to bring into the park and then when he went into the DMV in Oklahoma to get titles on the homes put into his name the woman at the DMV looked him over and exclaimed “you own more than one mobile home?!,” making Jefferson feel like a big shot.
Holly asks Jefferson how he ended up owning properties in 8 different states, when it comes to mobile home parks the amount of parks up for sale nationwide are much fewer than traditional homes that are up for sale which is why he has such a wide market place. With his parks spread out Holly asks if he has a park manager at each park and he says that he does because it is in his best interest to have a park manager who is close by because he is in Northern California and cannot get to the tenants and their needs in the same time that a park manager who lives in the park would be able to. Jefferson likes to pick his tenants by who has the best looking house and they will approach them about managing the park, including collecting rents, scheduling maintenance, etc. Aside from the park manager he will have a remote asset manager for instances when people abandon homes and there are bigger issues at hand that the park manager might not be able to handle.
Holly asks Jefferson to share the path of a mobile home park investor. Jefferson says that the path is the same as that of a fix and flipper and he says that Lonnie Scruggs is a great source for information on mobile home park investing. Lonnie’s book “Deals on Wheels” is a great educational resource for someone looking to be a mobile home park investor. Jefferson says that this business has a very easy onramp for people who are wanting to do this form of real estate investing.
If you are interested in learning more about mobile home park investing from Jefferson you can go to his website www.ParkStreetPartners.net where you will find valuable resources. You can also call (949) 415-4271 or you can email Brad@ParkStreetPartners.net for more information.
In this episode Holly talks with top 200 lender Ken Starks. Ken has been in the mortgage and real estate fields for over 14 years, he has been featured in USA Today and The Wall Street Journal, he is a flipper with an investor mindset with 80 flip properties under his belt.
Ken has joined House Flip Masters to share his money strategies as well as to help us make sense of the various terms used regarding the money needed for your next investment.
Starks is a lender who deals with many types of loan options and he describes to us what hard money is all about. Hard money is high level loan backed by the asset and current market value or purchase price, whichever is lower. Although the name suggests otherwise hard money is easy to get but it has to do with the asset value.
Someone who is a hard moneylender might nor care about your credit score or your debt to income ratio (DTI) but you can expect a high interest rate on this type of loan. Some hard moneylenders will be able to help you acquire properties or even help you renovate them depending on their skills and the relationship that you have with them.
Holly and Ken discuss points on a hard money loan; points per loan can vary by lender and if you get a line of credit but they average around 2 points per loan. Starks advises that a way to void points is to go with a loan that has a higher interest rate if that fits for your property.
There are many types of loans that Ken deals with but the most noted is the niche program he has created to help someone who has more than 10 properties to acquire unlimited loans. Conventional loans with Fanny Mae, Freddy Mack, or FHA have limitations on the amount of properties that can be financed per investor. Ken’s advice to investors is that the right loan and the right lender will depend on the circumstance and you want a lender who is going to strategize with you.
When talking about getting another loan when you need a co-buyer Holly and Ken both agree that you need to partner up with people who have good credit and want to be passive to help you have more purchase power. But they remind us that before you put your name on a loan and lend your credit you need to know who you are doing business with, knowing their ethics and knowing that you can trust them is vitally important. Open communication is even more important because if the buyer misses a mortgage payment you are also responsible for that money. A co-borrower’s credit is affected if any good or bad circumstances occur within the life of that loan. Stark advises more over less control because it is your destiny.
Ken is not your typical lender; he is able to find the best way to find money for your investment. When searching for a new lender you need to ask questions of the lender and of yourself; what kind of volume do they do, what loan programs do they specialize in, what is their experience with investors, and most importantly are they the right choice for you.
If you are looking to refinance a property for whatever reason these are the actions steps that Starks advises you to keep in mind: how long have you been in your loan and what are your goals? If you have a high interest rate (4%+) on a 30-year primary now might be the time to have a refinance conversation.
To get in touch with Ken
Deborah Razzo – 20 years entrepreneurship, made her way into real estate 6 years ago. Razzo started her venture into real estate due to a life-changing situation; she was in a car accident that forced her to change her focus. She educated herself on real estate, reading Robert Kiyosaki’s book Rich Dad, Poor Dad, before she took the leap.
Razzo’s core investment philosophy is to flip for capital and to reinvest that capital for long-term wealth; making a bunch of money on first flip started her addiction to house flipping.
Razzo does not flip multiple houses at the same time so that she can be more involved and focused on the house the is her current project and so that she may be more present with the team helping her to flip a home. Holly reminds us that team members always seem to preform better when they are given attention and are reminded that you are watching their progress; Razzo believes it is a tremendous gift to give people your presence and it is a key to her success.
Razzo’s greatest influence is Tony Robbins, he has taught her to live the life that she wants, real estate affords her freedom of her own time allowing her to spend time with her friends and family.
Razzo reminds us that real estate can cause Shiny Object Syndrome, where we want to get into each facet of the business but need to direct our focus so that we can create freedom and success in flipping.
Partnering with a successful flipper is a great opportunity for those that are new to house flipping; Razzo feels that joint ventures help everyone involved because it allows you to see the different flipping styles that different individuals use, it also opens up the door to several different connections and teams used in doing a flip.
Razzo’s biggest lesson learned in her real estate path was knowing when to bow out; do not let commitment keep you in a deal that is causing you to lose money, don’t fall in love with your babies and walk away from a deal that is causing you to lose money. Both Holly and Deborah remind us that it is okay to take a loss but be mindful of your choices and keep moving forward.
Deborah feels that the most rewarding aspect of her career is her freedom of time and the most frustrating part of being an investor is persistent, keeping the focus going on your goal because you can enter a deal that may never make escrow but you need to keep moving forward.
Razzo created Women’s Real Estate Network (WREN) to help surround herself with other women who are successful in real estate and to create a space for her and other women to network in a male dominated profession. You can check out this network at www.WRENinspire.com
In this episode of House Flip Masters Holly McKhann talks with Bryce Robertson and the lucrative business of mobile home park investments.
Bryce has been investing in real estate for many years, he is a Native Australian, he is an entrepreneur, and educator with more than 20 years experience in major construction, and real estate business.
Growing up in Australia and doing construction lead to Bryce traveling all over the world. On one traveling stint Bryce met his wife who has a background in mortgage and finance. The two decide to started down the basic path of fixing and flipping until they realized they were not passionate about this venture. Bryce’s wife moved over to doing luxury real estate in Newport Beach while he educated himself on mobile home park investing. Once Bryce found mobile home park investing he has not looked back to his old fix and flip ways.
Mobile Home Park investing appeals to price because he deals mostly with land and not with houses. Bryce supplies utilities and maintains the dirt.
Bryce describes to us the 2 types of tenants who occupy Mobile Home Park; those living there because of lifestyle choice and those that live their because of affordable housing. Those that fit into the lifestyle category is people who want to live there and they do so because of the amenities that the park offers. Those that are in the affordable housing category are there because they might have enough money to live elsewhere and they feel that this is the best, affordable choice for their budget.
Bryce deals with mobile home parks in the affordable housing space The affordable housing space has a lot of mismanagement and poorly managed parks and offers investors a lot of increase in profit to turn those things that are not working well around.
Bryce reminds us that cap rates are something that we need to keep in mind when thinking of investing in a mobile home park because they are typically higher than other comparable house rate classes.
Bryce’s company Property Workz LLC aims to own, operate, syndicate, and educate those that are involved in mobile home park investment. Bryce and his company own and take care of property management and improvements, they also provide a platform for investors to gain returns on their investments. They also provide an area for people who want to break into mobile home park investing to educate and help them with their first deal. Property Workz has something for everyone depending on his or her risk tolerance and time that they have in their schedule.
Bryce offers advise on how to find a park for your investment, he suggests visiting www.mobilehomeparksstore.com, the dominating site for sales on MHP. The best route that Bryce has taken is cold calling because it allows for a relationship to be built and those relationships can help to create a sale.
If you are looking to invest in a MHP Bryce advises that Southern California, Florida, and New York are not the best for a business model due to low cap rates and more people living the lifestyle choice. The Midwest and Southwest are the key places to make investments.
When buying a park Bryce’s checklist includes a park with 50 to 200 spaces nothing over that, city water, city sewer, no private utilities, and a low percentage of park owned homes would be an ideal park. He also suggests that occupancy needs to be at least 50% with 80% being a park that is stabilized.
When needing a loan for a MHP investment Bryce goes to specific brokers but says that larger banks are now dealing in this investment space because it is being seen as a solid investment but loans may only be available at specific branches.
Once you acquire a MHP what’s next? Bryce advises to look at the business side of things to lower expenses and increase revenue – fill lots, bring up occupancy, fix up esthetics, signage, landscaping, etc. Also keep in mind that when you have occupants and you intend to make changes that you need to keep them informed, send out notices to those that are living in the park.
Bryce likes investing in mobile home parks because of the fact that it is in the affordable housing space. It allows him to turn around a park that looks ugly and that is being mismanaged.
If you are interested in mobile home park investment you can contact Bryce, he is available to advise and educate those that are interested in investing. You should also look at numbers and properties on www.mobilehomeparksstore.com.
Bryce can be reached at:
Danny Johnson has been flipping homes for 13 years and is from San Antonio, Texas. He has 5 kids from ages 4 to 24. He started flipping to gain financial freedom as most investors do.
He helped his father who was a contractor when he was a teenager, and then majored in computer science in college. He worked as a software engineer while he flipped homes on the side, doing so for 3 years before he finally quit his day job.
You can read about Danny’s personal experiences in his Flipping Houses Exposed book which you can download at www.FlippingJunkie.com
He shared that typical numbers are 100 calls from sellers lead to 10 offers which lead to 1 deal. He says his conversion rate is about 14% due to his excellent marketing, pre qualifying, and closing skills.
He advises to ensure that your website includes testimonials to speak of your trustworthiness and performance.
His latest project is www.REIMobile.com which includes a follow up system for investors to track seller leads, which is so important since many deals are completed after months or even years after the initial contact.
Danny’s best advice for a new investor is to give your efforts and system time to work. Don’t quit. For a seasoned investor he recommends to grow your team. Know that other people can do things as well if not better than you, like buying houses from sellers.
You can see what your website looks like on various devices at www.mobiletest.me for free. Make sure your site’s mobile friendly, as Danny sees most of leads coming from mobile devices. Of course if you use his lead propeller site he takes care of that for you.