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