Info

SECRETS TO REAL ESTATE INVESTING SHOW

Secrets to Real Estate Investing Podcast with Holly McKhann. Expert Real Estate Investor and House Flip Master.
RSS Feed Subscribe in Apple Podcasts
SECRETS TO REAL ESTATE INVESTING SHOW
2018
December
November
October
August
July
May
March
February


2017
November
October
September
August
July
June
May
April
March
February
January


2016
December
November
October
September
August
July
June
May
April


All Episodes
Archives
Now displaying: May, 2017
May 31, 2017

On this episode of Secrets to Real Estate Investing by House Flip Master host Holly McKhann is joined by Thom Gilbert. Thom graduated college 15 and a half years ago at the age of 23; shortly after he moved to Lake Tahoe where he worked at a ski resort. On Christmas Eve, 2001, Thom was enjoying the beautiful day and the fresh snow with his younger brother. The brothers decided to take one last run in the snowboard park before before calling it a day. Thom had been skiing and snowboarding for several years and at that time he says he just made a bad judgement call by not checking out the jump closely and assuming that it was the same as the year before because it looked the same. Thom says that he took the jump at full speed and when he hit the divot that was made at the end of the jump from other snowboarders he flew ‘superman’ style into the air and landed on his neck and shoulders. Thom says that the impact of the jump causes his legs to basically end up at his chest. Thankfully he was close to the ski lift and ski patrol and they were able to assist him immediately. The ski patrol came to help Thom and after removing his snowboard they asked him to move his toes. It was in that moment Thom says that he realized the magnitude of what had happened to him. Thom recalls not being able to move anything and was airlifted to Reno so that he could receive medical attention. Thom shares that he was diagnosed with an incomplete spinal injury and he had to undergo surgery. 

At the age of 23, Thom’s life was turned upside down; his doctor told him that he would no longer be able to have kids and would have to learn to live his life in a wheelchair because he would probably not be able to walk again. Thom shares that after his accident he had tremendous support from family and friends who helped with medical bills and physical therapy. Once Thom felt confident enough to be on his own again he moved to Oregon where he pursued a masters degree. Thom says that while he was in Oregon he used that time to figure out who he was after this accident and that is also where he met his wife and where they had their first child - both Thom and his wife were told they couldn’t have children but were blessed with two children! 

After Thom graduated with his masters degree he landed a job in the Bay Area with a startup company that ended up closing up shop after just 8 months. Thom found himself looking for a job which is what led him to the San Diego area. Thom found a great job and was there for several years, he was promoted and received raises during his time there but on his final review he was given more responsibilities but was no longer receiving additional income because he was capped out on his salary with the company. The lack of additional income but added responsibility are the factors that Thom said led him to start his real estate investing journey. 

Thom said that before he even knew he was going to do real estate he said that he read a book that he claims planted the real estate seed even before he knew he was going to become a real estate investor. Thom says that he grew up doing a lot of physical labor because his dad was a contractor. Thom shares that he knew he didn’t want to do physical labor his entire life which is why he pursued an education.

Holly asks Thom if he decided to get educated on real estate before or after his corporate job; Thom shares that he started doing it while he was still working. He says that he got up earlier each day and would eat his lunch on his breaks from work and he would make phone calls on his longer lunch. Thom says that he says a friend told him to just do one thing everyday because after 100 days you will still have completed 100 things. Thom shares that he knew that he needed to be patient and focused on what he was learning and trying to put in place. He shares that he took advantage of his corporate job and steady income to learn the business and to gain confidence while also building passive income.

Thom focuses his deals in Central California and Holly asks how he was able to do that while he was working because his deals were 5 to 7 hours away from his residence in San Diego, California. Thom shares that he would go to his deals on the weekends and would check out a lot of properties online through the MLS because he did have a job to maintain during the week. Holly asks Thom to share what he started out doing when he started his real estate journey. Thom shares that he has been doing real estate for 5 years and during that time he started with buy and holds and moved to rental properties. Thom mentions that he’s done fix and flips, as well as created notes but he mostly did buy and holds during the beginning of his real estate journey. 

Holly asks how the transition worked from Thom before he was able to quit his job. Thom says the plan was to quit his job in 3 years but ended up holding on for another year because he needed to try and refinance a few of his properties but they had too much debt to income and they weren’t able to refinance the homes. Thom was getting frustrated with the refinancing and also with his job and he knew that it was time to jump. He said that he knew worst case they could sell the properties that they had and use that income to get what they needed. Thom knew that he needed to quit because he felt like a double agent he was doing his corporate job but the entire time he was there he was thinking about real estate and freedom. Thom shares that he didn’t want to have to ask permission to hang out with his kids and his wife; he wanted more, he wanted the freedom that real estate investing offered. Thom says that his accident really opened his eyes and showed him what was important in his life. He says that real estate has allowed him to get his time back; it allows him to create memories with the people that he loves. Thom agrees with Holly that he is not looking to create a machine and manage other people with his real estate business, he just wants to build freedom for him and his family.

Holly asks Thom to share a great deal and a not so great deal with listeners. Thom says that some of the great deals that he has had are the deals that he has bought and help because of the rising value of the homes. Thom shares that refinancing properties is a great way to get extra money to put to use. 

Holly asks Thom to share with listeners advice that he has for those who are looking to get out of their backyard when they are purchasing and looking for people to manage their properties. Thom says that he had to create a team and get a property manager to take care of his remote properties so that he doesn’t have to go back and forth between his home and his remote locations. Thom says that he lets the property managers do their job and he works to manage the property managers. He advises that you test out several property managers and don’t be afraid to end the business with them just because you’ve built a relationship with them because at the end of the day they are helping your business run correctly and in the most profitable way possible. Thom says that it’s also great to network with landlords so that you can find more properties and realtors who can help you find properties. Thom says that landlords are the best source because they understand the game and they are eager and willing to help you start off your business. 

Thom has created a downloadable resource for listeners of the questions hat he asks landlords and property mangers when he is vetting the people he is considering to keep on his team. You will find that download at www.HardHatHolly.com/54 

If you are interested in getting in touch with Thom you can reach him on Facebook https://www.facebook.com/profile.php?id=100008265465783 or you can email him at TLCInvestmentProps@gmail.com or check out his website www.TLCInvestmentProperties.com

May 24, 2017

On this episode ofSecrets to Real Estate Investing Holly is joined by guest Tim Gordon. Tim quit his job and has been real estate investing for 3 years this week! Holly asks Tim to share the path that led him to real estate investing. Tim shares that he had a variety of jobs before he became a full-time real estate investor; his favorite being the garden shop at Kmart. Tim came to California in 2008 with a his window tinting business, when he realized that wasn’t going to be something that worked out longterm he knew he needed to start to look elsewhere. A girl he was dating at the time introduced him to real estate investing. While the relationship didn’t work out it did lead Tim to the real estate path. 

Holly asks Tim to share with listeners what kind of deals he started out with when he got into real estate investing and Tim shares that he started out with Bigger Pockets. After Bigger Pockets he started attending to the investment clubs which soon lead him to wholesaling for 3 to 4 years while he was also working full-time. Tim shares that the first year he started wholesaling he wasn’t very successful at it. In the beginning Tim was looking for deals of the MLS, going off of referrals and even working off of other people’s deals but found that those methods didn’t produce many deals. Tim discovered that by using direct mail marketing he was able to find more deals. Today Tim does not use direct mail marketing to get his deals but this is because he does not do a lot of wholesaling. Holly asks Tim how much he was spending on direct marketing and he says that he was spending about 4 to 5 thousand dollars a month - which could produce deals that were $5,000 to $50,000 wholesale. Tim shares the best wholesale deal that he ever had which happened a few years ago that he and a partner made over beers at a hotel lobby. 

Holly asks Tim to share what it felt like to quit his job to work in real estate investing full-time. Tim shares that it was terrifying because he didn’t have the confidence as some other people do when it came to quitting his job. Tim shares that when he was working in the corporate world he had a job that was basically set up nicely for him; he had health insurance, a company car, nearly 6-figure a year income - but he knew that he needed to quit. Tim also shares that he has set up a business that he pays himself out of every two weeks with direct deposits so that he has the same sort of structure a corporate job would offer and this structure allows him to not stress out about where his pay is coming from as well as not spending more money from the business than he has already allowed himself. 

Holly and Tim talk about how mindset is everything in the real estate business. Tim says that he can tell when meeting someone he can tell within a year whether or not they will do a deal based on their attitude during their interaction. Tim says that he can tell within the first minute of meeting someone whether or not they are ‘all in’ or not. Both Tim and Holly agree that real estate investing is a team sport. Without the support system and networks that real estate clubs offer some deals might not even be possible. Holly shares that she has put together a Facebook group for the purpose of networking and to help other post and find deals. You can find this group on Facebook at www.facebook.com/groups/hhhreit/

Holly asks Tim to share a deal that he did with a FHA 203K loan. Tim shares that he likes talking about this deal the most but it seems to get the least amount of attention. At the time of this deal Tim was still working in the corporate world and he needed to get a loan. At the time before this deal took place Tim knew that he wanted to find a deal that was a 4-unit apartment anywhere in San Diego county and a house in Oceanside. When he was searching for his wishlist someone came to him with exactly what he was looking for. Tim shares that the property was in terrible condition and there were people selling drugs out of it. When this property came to him Tim had also heard about a 203K loan. With a 203K loan lenders will give you money to repair the property. The catch is that the lender will appraise the property as if it is fixed up. The amount that you borrow to buy it and to fix it needs to be less than the amount that it is worth once it’s fixed. Tim advises that you really need to find a good deal to make this loan worth your while as well as the sellers. Because Tim was new to real estate this was the perfect deal for him to take on because he could afford to take the risk. On this deal he put down $15,000 which got him a 4-unit apartment complex which was in pretty bad shape - Tim shares that to this date he has gained $350,000 in equity in 3 years. With this property Tim also bought the drug dealers that lived in one of the units and he had to do some strategic thinking to remove that threat and disturbance from his newly acquired complex. With some quick thinking and some serious power plays Tim was able to get the drug dealers to vacate the property and since then he says that they haven’t been back to cause any problems and this property now is nice and quiet. Holly and Tim talk about the trials and tribulations of land lording and the process in which they learned how to be the best land lords possible for their property and tenants. Tim says that one way he dealt with tough situations was to create a fake partner. Anytime an issue came up that he didn’t want to face head-on he would say that his partner said ‘no’ or that his partner said they needed to raise the rent. 

Tim shares a story about a time when he was in Taiwan and he had a plumbing emergency in one of his units. This story led Holly to ask Tim to share what other places that Tim has traveled to. Tim shares that it is because of the flexibility that real estate investing has offered him that he has been able to travel the world and he has been able to makeup for time that he felt that he missed out on in his 20’s. Tim says that real estate investing is a way to challenge yourself but he also finds that traveling is another great way that he enjoys challenging himself with the many adventures that he finds himself on. 

Holly asks Tim to share what his plan is now and what he sees himself doing in the future. Tim says that he does not do a lot of wholesaling anymore and has transitioned to more flipping. Tim says that he is not looking to make a fortune he just wants to make enough money to be able to afford his life and be able to travel and enjoy his free time. Tim prides himself in living simple and not being a slave to the dollar. 

Holly asks Tim to share his best advice for those that are just starting out in the real estate world or are interested in getting started. Tim says to make sure you are kind to yourself in the process; this journey should be fun as well as rewarding. 

Tim has created a great downloadable freebie for listeners; a wholesale contract in the form of an editable Word document for your use which you can find at www.HardHatHolly.com/53 (Please have your lawyer review this document before you set out to use it). 

If you are interested in getting in touch with Tim you can contact him via his website www.GordonBuysHomes.com  

May 17, 2017

On this episode of Secrets to Real Estate Investing by House Flip Masters, Holly is joined by guest Matt Cady. Matt is going to share tips about financing for listeners especially those who might be confused about how financing works. Matt has been a mortgage consultant for 17 years with a background in construction financing. In 2007 when most construction products went away, Matt started providing renovation loans. Matt works in San Clemente California for a Summit Lending. 

Holly says that often times people who want to get into house flipping don’t have lots of cash or want to take advantage of the tax free capital gains that you can get from living in a house for two years. Holly asks Matt to compare for listeners  the possible different scenarios. Matt says these programs are great for those who want to minimize their down payment and to have a better alternative than a hard money loan. He explains that renovation loans will save you about half the money in interest that you would normally pay with a hard money loan. According to Matt, renovation loans are applicable to both FHA and conventional purchases.  He gives the example that a buyer who is going to live in the house would only have to put down 3.5% of the total cost of the house with an FHA loan. Holly adds that with hard money loans, 2 points are usually added to them which means that renovation loans definitely will save over half of the interest expense on the loan. 

Holly asks Matt to share what the rules are on the amount of money a person can borrow for renovating a home. Matt explains that a limited 203K is for minor cosmetic repairs, and there is a cap at $25,000 of the repaired value. Matt also says that because the limited 203K requires less documentation, more lenders offer this but Matt  has seen people take as much as $100k for renovations. When asked about exclusions on the loans, Matt explains that you cannot add an in-ground pool or a built-in barbecue with the money from the loan. 

Holly asks Matt about options a buyer has if they are not going to live in the home.  In that case, Matt points out that a Fannie Mae HomeStyle Renovation loan can be used, which is a conventional loan with a minimum down payment of 15%. However,  Matt suggests putting down 20% because mortgage insurance is really expensive on investment properties. The down payment is determined by the price of the property plus the cost of repairs. 

Matt says that he doesn’t deal a lot with flippers because if the house is flipped and sold within six months, lenders be heavily penalized. Holly adds that with hard money, lenders do not have as many parameters and guidelines as loans that are provided by the government. Hard money lenders look at debt to income ratio and where the income is coming from, and they are willing to give money more easily  and quickly than the loans that Matt offers. 

Matt details how the programs that he utilizes works. The loans offer a "contingency reserve," which means that whatever the cost of the renovation, they will lend an additional 10% in case the renovation expenses are more than planned. He also says that another great thing about this program is that it is "fund controlled." Matt says that with both FHA and conventional loans, you can work in six months of mortgage payments so that you can “skip” six months of payments. 

Holly and Matt discuss the contingency reserve a little more in terms of using it when a project is nearing completion. For example, if the buyer had the reserve remaining and wanted to upgrade the flooring from laminate to hardwood, the loan could be used to help offset the cost of the upgrade. Holly asks if the money can be used for energy efficient renovations. In California energy efficiency is something a lot of investors look into. Holly asks if this loan covers changes like solar panels, and Matt explains that it does.

Holly and Matt discuss the expected time needed for this type of loan. More documentation is required because parties such as contractors are involved. These types of loans take a bit longer because of the reports and revisions are involved, typically requiring75 days for approval, which is significantly longer than typical hard money loans. Holly advises people to not be discouraged by the length of the processing time for a renovation loan because the benefits that the program offers are great.

Matt says that the biggest difference between this program and a hard money loan is that here is no "seed money" for this loan.  The loan will not pay out until the job has been completed. Matt says that he has seen unpaid invoices be sent in so that the buyer can eliminate out of pocket expenses. 

Holly and Matt suggest that if this program is one that you are interested in, you should interview the lender extensively to make sure that they know the ins and outs of the loans that you want to use. Matt says that referrals are the best way to find lenders who know how these programs. 

If you are interested in learning more from Matt, you can call or email him with your questions  (949) 238-6035 or email Matt@MattCady.com 

For the free download this week you will find a worksheet that Matt has put together about loans for you to learn and utilize in your real estate journey. You can find this download at www.HardHatHolly.com/52

May 11, 2017

On this episode of Secrets to Real Estate Investing by House Flip Masters Holly is joined by guest Amy Jones. Amy started her real estate career by pulling weeds in Pomona California in 1991 for a slurpee! Amy’s path started by flipping houses with her father in the late 90’s. 

Amy shared that when she turned 18 she packed up her car and headed out and she ended up in Colorado Springs where she worked as a pizza delivery driver. At the age of 20 she was promoted to restaurant manager and that is when she says she started personally flipping. Amy would flip broken restaurants and during that time she flipped 13 restaurants. Amy attributes what she knows about real estate and house flipping to what she learned during her time in the restaurant business. One day Amy called up her father and told him that she was tired of working the long hours on her feet all day and her dad told her to get into real estate and to help him find a fourplex. With the help of her father they have built a rewarding and profitable real estate career. Amy and her father have successfully retired Amy’s father with their real estate ventures. 

Holly asks Amy to share her first deal with listeners. Amy says that her first deal was an accident. Amy purchased a mobile home for $3,000 and turned around and sold it for $5,000. She didn’t know it at the time but with the purchase and sale of that mobile home Amy had successfully completed her first flip. When she looked into flipping homes later Amy thought that because of the mobile home flip that she knew how to flip but she didn’t realize the elements that were missing from flipping real estate regularly. Amy did her due diligence and got ahold of various individuals to learn from; she learned from people who not only were educated in real estate but also actively practicing what they knew. Amy would take these people to lunch and get information from them about contractors, lenders, etc. so she knew who to hire and who not to hire. 

Holly asks Amy what her suggestions are for individuals who aren’t the greatest in social settings or might be a little timid when approaching new people or presenting to others. Amy suggests that single individuals should go out and flirt with people and people who aren’t single go out and put yourself in awkward settings because the anxious feeling will go away when you’ve experienced and handled the awkward situations a handful of times. 

Amy says that the best and most difficult thing about real estate is that there are so many avenues to pursue. She says that the best thing to do is to learn a little and implement a little. The best learning experiences that you have will be in the field; once you do something you know what to expect and how to do it better. When you make mistakes you will learn how to to not make that same mistake again or how to avoid it in the future. Amy says that even with 1,000 flips under her belt she is still learning. 

Holly and Amy both advise having a network because if you don’t know how to do something you might have someone in your network who you can call or email that knows how to fix your problem and in turn you will continue to learn. Amy says that in business she has no competitors because your network is a great asset and they will connect you to others who can help you. Amy says that it is comforting to know that you are not alone in this business and it’s nice to know that you can pick up the phone and call a contact for help even though you might both be after the same property. 

Holly and Amy talk about auctions. Holly advises that if you are just starting out in real estate that you stay away from auctions because it is a high stakes and high risks situation and you will want to have the knowledge before heading into an auction. Holly and Amy discuss the differences between auctions in California versus Colorado; while they are different in format both women agree that new comers should hold off on participating in auctions. Amy says that when she was dealing in California that her company had a team of 20 when it came to dealing with auctions. Holly mentions that she also has a team, although smaller, when it came to auctions because you don’t know what you are buying. 

Holly asks Amy to share about her belief in the power of people. Amy shares a story about a friend who was chasing a deal but because of the money required for that deal the friend wouldn’t be able to do It on her own. Amy knew someone else that would have the money and would be able to help with this deal as well as benefit from it. Amy connected the two and they were able to complete the deal. When another person asked Amy what she got out of the deal Amy explained that she got a “Karma Cut” from it, while she did not profit monetarily from the deal the act of connecting her two contacts together will help her down the line in some form or another. Holly also asks Amy to share the unique things that she does at the closing table. Amy showers those at her closing tables with gifts to help life the uneasy feeling that comes with purchasing a home. Amy also gives lenders gift cards because lenders are often overlooked and she wants them to know that she gets what they do is difficult and she appreciates them. Holly exclaims that what Amy is doing is very smart and in her 9 years of business she has never heard of anyone doing this sort of thing at the closing table. Holly says that what Amy is doing builds up her reputation and gets her name out there. 

Amy has generously provided her four page business plan that details how she built her multi-million dollar business in less than a year. You can find this free download at www.HardHatHolly.com/51

If you are interested in learning more about Amy and her business you can go to the website at www.SuperiorRenovatedHomes.com

You can also reach Amy on Facebook https://www.facebook.com/amycrandalljones?hc_ref=SEARCH or by email at Amy@SuperiorRenovatedHomes.com 

May 3, 2017

On this episode of House Flip Masters Holly is joined by guest Andrea Arciga. Andrea is a broker from Irvine, California who has ventured into real estate investing by doing a handful of wholesales and now she is here to share with us.

Andrea shares that her most important job is being the mother to 4 children ages spanning from 13 to 24. She also shares that she has been working since the age of 16 and that she has always been in some sort of sales role during her time in the workforce. Andrea was in the tech world until shortly after September 11th when she was laid off, during her time in the tech industry Andrea shares that she taught herself a lot of graphic design and such to stay within her advertising budget at her position. With the graphic design knowledge Andrea created postcards which were used for direct mailing. Andrea shares that after she was laid off a friend, Tina Estrada, who was a Caldwell Banker franchise owner asked her to come in and to help break Andrea into the real estate market. Andrea helped to get Tina going and they got 3 deals together. Shortly after Tina’s husband offered to show Andrea how lending works. Andrea says that she started working with other agents, by helping to brand them for their loans and that is how she got her break into the real estate world. Andrea did loans for about 5 years, and after that was when the bubble burst where she continued to work on loans for another 3 or 4 years. When the market crashed, Andrea got involved and was a founding board member of a group to help teach families how to keep their homes during that terrible time when so many people were losing their homes and ending up homeless. Andrea says that while she did do some retail real estate it was not something that she loved to do but there was a time when it was her bread and butter. When the market crashed Andrea saw the error in her ways by living high on the hog and not saving money while there was money to be had. While a lot of her friends, after the crash, went out and got jobs again in the corporate world Andrea kept fighting the real estate fight because she knew that she was not going back to a corporate job. When real estate began to dry up again for Andrea she knew that she had to reinvent herself again and that is when built herself a brokerage in Belmont Shore, California. Fast forward to now Andrea says that she took the 60-day challenge with Invest Club for Women with Iris. Andrea credits Iris for teaching her how to be a real estate investor. Because of her past and having experienced losing a home Andrea decided that she wanted to be in the business of helping people who are in a time of distress or need to sell their homes quickly for whatever reason.

Andrea says that she hopes that people see from her story that it is okay to reinvent yourself time and time again when things are not going exactly as planned; and in doing so you can make a lot of money.  

Today’s show features a little different formatting than what listeners are accustom to. Instead of Holly asking questions, Andrea will be asking Holly questions since Holly has a bit more experience in real estate investing. Today’s show will be somewhat of a coaching call where Andrea and listeners can gain insight from Holly’s years of real estate investing experience.

Andrea’s first question to Holly is about when Holly gets into a contract when she knows she is ready to fix and flip a home, what do the first 5 days look like for this contract; start to finish. Holly shares that first there are the non-physical stuff such as checking titles and such. On the physical aspect of the deal Holly and/or her husband will go and check the home out and see if there are things that need to be fixed, opportunities to change different areas of the structure. Holly shares that in the beginning it is common for flippers to have contractors go and look at the property and get several bids on the things that need to be changed about the property. Holly recommends hiring a professional home inspector because they will tell you what is wrong and be able to estimate how old things are on the home. After you’ve had enough experience having contractors and inspectors come into your properties Holly says that you can start doing it yourself, she recommends having a contractor come to the first 5-20 homes until you feel completely comfortable not having that person there with you.

Andrea asks about when it comes non-physical elements what are the due diligence items that Holly takes care of to make sure that everything is lined up accordingly. Holly says that when it comes to the financial aspect of the home she makes sure to have finance covered as soon as she knows that she wants a property because she wants to make sure that everything is taken care of. Holly likes to line up the money using hard money lenders and private lenders so that she can use the least amount of her own money as possible. Andrea asks how Holly keeps all of her information and files organized and Holly says that she loves technology so she uses Dropbox and Google Drive a lot to keep organized and for convenience because the files can be accessed whenever and wherever she might need them. Holly stresses the importance of making sure to check your titles because there may be a lean on a home that you might not know about; there may also be leans that might not fall off of the title which could impact the sale of the property. Andrea asks Holly if she goes to the city to check the history of the home to check difference elements of importance. Holly stresses that depending on the area of the house you might need to do this sort of thing because sometimes you might buy a home and end up having to tear something down because it wasn’t built to code.

Andrea asks after money is funded how does Holly manage the accounting part of it. Holly says that after 8 years of doing this business she mentions that she uses QuickBooks. Holly says that paying the contractor has always been a problem for her and her husband and recently Holly has come up with a way to pay contractors that works for her business. Holly and her husband were once paying contractors by the day until one day they paid $70,000 for a job that should have cost $30,000. After that mishap, Holly created a Google Sheet to share with her contractor that is listed line by line with all of the plumbing, kitchen, etc. and each week when Holly pays her contractor he needs to allocate that payment to each line item listed on the Google Sheet. This Google Sheet allows for Holly to not get a head of the contractors so that they stay motivated to finish the work because they will not be paid for the entire job before it is finished. In this week’s downloads, you will find a copy of Holly’s Google Sheet she uses for her contractors so you can see how she manages paying them.

Andrea asks Holly some great ways to get referrals for handy men or insurance for each county and area outside of the norm such as Yelp, etc. Holly says that she has used multiple avenues to find contractors. Holly shares that when they are driving around in her area if they see a work truck they will pull over and strike up a conversation with the contractor to see if they are looking to do more work or if they might know someone else that offers what Holly might be looking for. Another tip that Holly has is to go to the stores where contractors hang out at or might be picking up supplies at. Holly says that one of her favorite contractors she has they picked up at a glass store and they have been working with him for 8 years. Holly mentions that when you are talking to contractors let them know you are an investor and that you have a lot of work and have friends that will have work for them as well. Contractors will give an investor a better price than a home owner because they know investors are not as picky as a home owner might be. You can also check out Facebook for recommendations or for referral groups. 

Andrea asks where Holly found her deals in the beginning and where is she finding them now and what happens when Holly finds a deal that she just doesn’t have room for on her plate what does she do with them? Holly says that she has never wholesaled anything, they fix and flip everything that they purchase. The first 100 or so houses that they got were from auctions. When hedge funds pushed the small fish out of the auction area Holly says that she started networking to find her deals. Holly says that she networks with real estate professionals as well as everyday people.

Holly and Andrea talk about insurance policies and the importance of making sure you know what policy covers which homes because you cannot put all houses on the same polices. Holly emphasizes the importance of making sure that you trust your insurance person and that they aren’t doing anything wrong with your properties. Holly highly recommends her insurance person Karen McMasters who is located in Norco, California. You can reach her by email at KarenMcMasters@DFIInsurance.com or by phone at (951) 735-5335

Holly asks Andrea to share any advice she might have for someone starting their real estate investment journey or someone thinking about getting into the business. Andrea shares that if you are a non-professional real estate person aside from the DIY shows you watch on HGTV the number one thing to do would be to change your mindset and get yourself ready for a big experience because it is very different than the real estate that you are accustom to doing. Andrea emphasizes getting educated about the change that you are about to make because you cannot make big money if you don’t get your mind ready for that. Andrea says to find a group that you trust to network with because we all work together to make things happen.

To get the Google Sheet that Holly uses for paying contractors and tracking expenses you can download it at www.HardHatHolly.com/50

If you are interested learning more from Andrea you can check out her website www.BlackLabelBrokers.com they deal with homes from Los Angeles to Mexico and all the places in-between. You can reach Andrea by text or phone call at (714) 501-9155 or you can email her at andrea@blacklabelbrokers.com

1