Flipping America

When a government declares war on an industry, guess who wins? It doesn't matter how big the industry is, the government has more guns and will always win. Coming up today we are going to talk about rising interest rates, why it's happening, why it NEEDS to happen and we are going to connect some dots between government policies and the situation in which we find ourselves. Today we are talking about rising interest rates and the impact on the economy, real estate in general and on real estate investors in particular.

What the heck is a perceptual sieve and how would you use this in your real life? You have one - you use it all day every day - and you might not even know it. But today I'm going to share an insight with you that could profoundly affect the way you interact with others. On this episode of Flipping America.

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

News and Resources:

• Even the pros agree with me. Perception is NOT reality. Think, people. https://www.psychologytoday.com/us/blog/the-power-prime/201908/perception-is-not-reality
• https://greatergood.berkeley.edu/article/item/eight_reasons_to_distrust_your_own_perceptions

Quote of the Day May the roof above us never fall in. And may the friends gathered below it never fall out.

I've done more than 2000 deals and on most of them I had at least one partner. That's a lot of partners and not all of them have been great. Today I'm going to help you sort out the whole partnership thing.

You can't control who sits at the table where you are doing a deal. But you CAN control who is sitting on your side of the table. And you should. A bad partner can hurt you - can cost you and sometimes can ruin you. Good partners have helped me make hundreds of thousands of dollars and bad partners have cost me hundreds of thousands. In fact, I'd probably be a million dollars ahead of where I am now if I had consistently applied the principles I'm going to share with you today.

In my defense, I didn't know these principles. I learned them while attending the Church of the Painful Truth.

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

Announcements:

• $150,000 giveaway.

News and Resources:

• Some thoughts about the so-called non-disclosure states: https://www.oceancitytoday.com/business/real_estate_report/several-states-do-not-disclose-sale-prices-to-public/article_31fe9010-9dab-11e9-bf92-cb9ad3f9d4ec.html#:~:text=But%2C%20there%20are%2012%20states,not%20available%20to%20the%20public.
• This is a very nice summary of non-disclosure states and what to do with them. https://retipster.com/non-disclosure-states-map/
• The WSJ weighs in on non-disclosure states https://www.wsj.com/articles/the-states-where-home-prices-are-secret-11560956939
• You can get Privy. They are not affected by the data loss: Privy: http://bit.ly/getprivyprogram
• https://finance.yahoo.com/news/sothebys-international-realty-2022-luxury-180000220.html
• https://www.rismedia.com/2022/01/21/international-home-buying-trends-keep-eye-2022/
• https://www.jdsupra.com/legalnews/buying-and-selling-real-estate-in-3826577/
• https://www.geektime.com/op-ed-matan-pertman-rm-group/

Mindset Moment:

The Qualities of a Good Partner

1. Honesty
2. Value
3. Responsibility
4. Complementary Strengths
5. Emotional maturity / stability

Starr Has Questions:

• How do you vet a partner
• Red flags
• before signing the dotted line
• A good deal/split for partnering on a first time flip
• Rules of engagement:i.e. (deeds, loan, operational agreement)

Quote of the Day May the roof above us never fall in. And may the friends gathered below it never fall out.

Last time we talked a bit about investing in a foreign country. We will wrap up that conversation today and then take some of your questions We don't encourage everyone to drop what you are doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of their investment portfolio. Today we are looking at an interesting possibility in another country and I will weigh in with some of my criteria I use when evaluating international investing. How to contact us www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

News and Resources:

• https://wikitravel.org/en/Nigeria
• https://en.wikipedia.org/wiki/Nigeria

Questions from Listeners:

• Sidney, Austin, TX "Where are the opportunities you see in a tight market in 2022?"
• Grant, Macon, GA "I want to do this! I've been watching a show {name of show removed} on TV and I want to get into the business. I found your podcast and you seem to be a guy who can help me. What do I need to do to get started? I have a decent job and about $10,000 to invest. I don't hate my job but I hope I can transition out to this as a career."
• Jenny, Port St. Lucie, FL "New year, new me. I've set some big goals for 2022. I want to acquire 3 rental properties this year and need some advice. 1. Should I try to buy right here in my local area and if so, how do I find possibilities? 2. How do I know a particular house is going to be a good investment? Thank you in advance for your time."

Quote of the Day May you have love that never ends, Lots of money, and lots of friends. Health be yours, whatever you do, And may God send many blessings to you!

This show is called Flipping America, but what if we were talking about other places besides America? Flipping the World? Today we are going to talk about International Possibilities.

We don't encourage everyone to drop what you are doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of their investment portfolio. Today we are looking at an interesting possibility in another country and I will weigh in with some of my criteria I use when evaluating international investing.

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

"Create the Life You Want" just $29. bit.ly/dreamthenplan

News and Resources:

• https://wikitravel.org/en/Nigeria
• https://en.wikipedia.org/wiki/Nigeria

Questions from Listeners:

• Sidney, Austin, TX "Where are the opportunities you see in a tight market in 2022?"
• Grant, Macon, GA "I want to do this! I've been watching a show {name of show removed} on TV and I want to get into the business. I found your podcast and you seem to be a guy who can help me. What do I need to do to get started? I have a decent job and about $10,000 to invest. I don't hate my job but I hope I can transition out to this as a career."
• Jenny, Port St. Lucie, FL "New year, new me. I've set some big goals for 2022. I want to acquire 3 rental properties this year and need some advice. 1. Should I try to buy right here in my local area and if so, how do I find possibilities? 2. How do I know a particular house is going to be a good investment? Thank you in advance for your time."

Quote of the Day May the best day of your past be the worst day of your future.

We don't get many breaking news headlines in real estate – much less in the real estate investing world. In fact the general public didn't notice this at all, but this week we had a minor earthquake in the investing world. Third party data providers lost access to failed listing and sold property data. What does it mean, who is affected, and how should you deal with this - today on Flipping America.

Panic is never a good first response. But it's understandable when you unexpectedly lose a major tool that your business relies on. And this is why your business should never rely on just one tool or one platform. If your entire operation is based on a technology owned and controlled entirely by someone else, your livelihood is in their hands. Amazon third party sellers are unwise to stake their lives on the Amazon platform. I've seen sellers lose their ability to sell for a variety of reasons - none of which were their fault. I've seen sellers sell the same product for months or years and suddenly be told they can no longer sell that product. Or worse yet, Amazon decides to sell it. I've seen people build a nice following on Patreon and YouTube only after taking a position those platforms don't like, become de-platformed or de-monetized.

I do not and will not put all my eggs in one basket. I don't talk about this much but I work hard to develop multiple income streams. At the moment they are all generally in the same field, but that isn't the long term plan. I'm not going to talk about that today because all of this is leading to one simple statement: If you are completely dependent on Propstream for your real estate business, you are probably unwise.

Propstream announced this week that due to some changing regulations, they will no longer be allowed to provide information on failed listings or sold properties. Failed or expired listings is but one of over a hundred possible data points from which to build a marketing list. And it's not one of my favorites. If a listing expires without selling - especially in the past three years - it's almost always because the seller is asking too much. I've marketed to this list in the past, but don't find many who are willing to lower their expectations simply because the listing expired. So this really isn't a big deal.

The lost of sold comps is a big deal - a huge deal. We run comps based on sold properties. This is without question the most reliable way to know what your potential investment is potentially worth. This data is essential for appraisers, lenders, and even tax assessors. Well guess what, you can't really develop a solid "after repair value" without sold comps.

Or can you?

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

Announcements:

• $150,000 giveaway.

News and Resources:

• Some thoughts about the so-called non-disclosure states: https://www.oceancitytoday.com/business/real_estate_report/several-states-do-not-disclose-sale-prices-to-public/article_31fe9010-9dab-11e9-bf92-cb9ad3f9d4ec.html#:~:text=But%2C%20there%20are%2012%20states,not%20available%20to%20the%20public.
• This is a very nice summary of non-disclosure states and what to do with them. https://retipster.com/non-disclosure-states-map/
• The WSJ weighs in on non-disclosure states https://www.wsj.com/articles/the-states-where-home-prices-are-secret-11560956939
• You can get Privy. They are not affected by the data loss: Privy: http://bit.ly/getprivyprogram

Mindset Moment:

What should you do if you don't have access to the sold comps?

1. Simply enter the address into your search engine. Look at several links, see several opinions about the value. If they are all similar (but not necessarily exact), you might have a good number.
2. Look at your subscription data providers - Privy, PropStream, Batchleads, ets. And see what they might say.
3. Develop a relationship with a realtor in your target market. The best way to do that is make them some money. Don't ask them to run your comps. Ask them to look at your work and see whether they agree. It's almost a certainty they will know more about the local market than you will.

Questions from Listeners:

• Lydia, St. Paul, MN, "Our city is experiencing a crime wave like I've never seen. I want to sell all of my rental properties (I have 9). But where could I put the money?
• Cameron, Chattanooga, TN, "My partner and I just had a falling out. We own 17 rental houses and currently have 3 flips together. We don't want to be friends any longer but both of us are fair-minded and want to divide the assets as evenly as we can. Can you offer any guidance?"
• Sidney, Austin, TX "Where are the opportunities you see in a tight market in 2022?"
• Grant, Macon, GA "I want to do this! I've been watching a show {name of show removed} on TV and I want to get into the business. I found your podcast and you seem to be a guy who can help me. What do I need to do to get started? I have a decent job and about $10,000 to invest. I don't hate my job but I hope I can transition out to this as a career."
• Jenny, Port St. Lucie, FL "New year, new me. I've set some big goals for 2022. I want to acquire 3 rental properties this year and need some advice. 1. Should I try to buy right here in my local area and if so, how do I find possibilities? 2. How do I know a particular house is going to be a good investment? Thank you in advance for your time."

Quote of the Day May the best day of your past be the worst day of your future.

Today we are going to talk about how to engage in forward thinking. No… not the kind that will get your face slapped… the kind that will propel your business where you want it to be.

We have answers to your questions, we have forward thinking trends, we have issues, we have some messing around, and most of all, we have what you need to move your business forward. Welcome to 2022 everyone! I'm glad you made it this far and we are thrilled that you've joined us for the ride.

We are starting something brand new today. Although we are still on our nationwide radio network doing the hour-long show, we are breaking each show into logical components to create multiple podcasts out of each radio show. Like most things we try, we don't know how it's going to work or whether it will work, but we suspect that people have a hard time committing to an hour long listening experience. Yes I know you could just stop and pick it right back up, but depending on the platform you are using, it may not be that simple. So let us know what you think about the new format if you are listening to the podcast.

Coming up today is a little forward thinking of our own - the Flipping America Colors of the Year.

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

Announcements:

• $150,000 giveaway.

News and Resources:

• Marketing trends? The first one is just a statement of the obvious, not a trend. It gets a little better.
• https://www.forbes.com/sites/forbescoachescouncil/2021/12/07/twelve-digital-marketing-trends-for-2022-and-how-to-take-advantage-of-them/?sh=38cadaf27138
• The answer is, https://www.cnbc.com/2021/12/29/what-will-the-2022-housing-market-look-like.html
• 5 housing trends for 2022: What's ahead for mortgage rates, home prices, demographic trends? https://www.bankrate.com/real-estate/5-trends-for-housing-market-in-2022/
• 7 Marketing Trends That Will Define Success in 2022 https://www.entrepreneur.com/article/394483
• Some thoughts about the Color of the Year. https://www.wsj.com/articles/pantone-picks-a-color-of-the-year-so-does-everybody-else-11639068306

Mindset Moment: Questions from Listeners:

• AJ, Macon GA, "I get lots of emails from wholesalers and don't know whether I can believe any of them. Can you give me other ideas for creating some deal flow?"
• Kerry, Elizabethtown, KY "I just watched a YouTube video where a guy said the real estate market is set to crash in 2022. What do you see happening with foreclosures in 2022? Are we going to see a huge crash?"
• Lydia, St. Paul, MN, "Our city is experiencing a crime wave like I've never seen. I want to sell all of my rental properties (I have 9). But where could I put the money?
• Cameron, Chattanooga, TN, "My partner and I just had a falling out. We own 17 rental houses and currently have 3 flips together. We don't want to be friends any longer but both of us are fair-minded and want to divide the assets as evenly as we can. Can you offer any guidance?"
• Sidney, Austin, TX "Where are the opportunities you see in a tight market in 2022?"

Quote of the Day May the road rise up to meet you. May the wind be always at your back. May the sun shine warm upon your face, The rains fall soft upon your fields, And, until we meet again, May God hold you in the palm of His hand. "A person who never made a mistake never tried anything." Albert Einstein

The Bad News is Time Flies. The good news is you're the pilot. -Michael Altshuler Another Year has flown by. So how did you do? We will talk about what and how we did here at Flipping America and make some predictions for next year.

What WE have done

How many properties? Bought and/or sold 123 properties

How many meetings? Did 45 live events

How many shows? 143 shows / podcasts

Sales numbers in $4.9M

What's happened in the market

Values up 18% year over year. I predicted 9%

Interest rates held steady below 3% for a 30 yr fixed rate. I predicted this

Number of homes sold: 6.49M I predicted 5M

Effects of the pandemic none or negligible. I called this

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

Announcements:

• FlipStarter November 2021 is sold out. But we've already scheduled it again for January.
• • Learn how to Find, Fund, Fix and Flip houses
  • Four weeks of video instruction (2 hour sessions)
  • Four weeks of group coaching
  • You'll get my book, "Fantastic Deals and Where to Find Them", the exact procedure I used to get 10,000 deals per week in my inbox.
  • You'll get my book, "How to Put Skin in the Game When You Are Running Out of Skin", my little book on how to do deals - even big rehabs - with none of your own money.
  • You'll get my book, "Stop Being Poor" which describes the poverty mindset and suggests a way out.
  • Includes online courses, ($800 value)
  • • REI QuickStart - 15 lessons to have you making offers in 2 weeks.
    • REI By the Numbers - All of the formulas I use for deal analysis, project tracking, and ROI calculations.
    • Find Your Fit in REI
    • Create the Life of Your Dreams
  • Purchase and Sale Agreements for your offers
  • Contractor Docs, my package of eleven documents that describe policy and procedures for working with contractors, including the actual Construction Agreement I use. I paid a lawyer thousands to create this bullet-proof agreement and I'll include it.
  • How to manage the rehab process
  • How to make $5000 in the next 30 days
  • "Double Your Investment" guarantee. Although it's a 30 day program, you stay on the coaching calls until you have at least doubled your investment in this training.
  • Money back guarantee. If at any time you believe this isn't the thing for you, notify us and you can drop out and get a refund for remaining sessions
  • Your investment: $997.67. Or pay three installments of $350.
  • Early Bird Discount: Register before December 1st and save $200.
  • 100,000 people want this - we only have 100 seats.

News and Resources:

• Several members of the Fed believe interest rates will rise 3 times in 2020. https://www.cnbc.com/2021/12/15/the-majority-of-fed-members-forecast-three-interest-rate-hikes-in-2022-to-fight-inflation.html
• Is there a conflict of interest here? https://themortgagereports.com/86225/mortgage-rates-forecast-2022
• Inflation projections https://knoema.com/kyaewad/us-inflation-forecast-2021-2022-and-long-term-to-2030-data-and-charts
• More inflation projections https://blogs.lse.ac.uk/usappblog/2021/11/25/the-us-may-be-stuck-with-higher-inflation-in-2022-and-potentially-beyond/
• Real estate leaders and experts weigh in on 2022. https://www.forbes.com/sites/brendarichardson/2021/12/13/experts-predict-what-the-housing-market-will-look-like-in-2022/?sh=404ab0f93942

Mindset Moment:

For 2022

• Interest Rates. Last year Roger predicted rates would remain at or below 3%. Correct!
• Inflation. Roger made no prediction - it had been several years since inflation had been a thing.
• Housing Market in general
• • How many homes will sell next year? Roger predicted 5M. It was over 6.
  • What percentage of those will be flipped? 5% (That's too easy)
• The impact on real estate investors. What should we be doing? Where should we be looking?
• What's new for 2022

Quote of the Day We will open the book. Its pages are blank. We are going to put words on them ourselves. The book is called Opportunity and its first chapter is New Year's Day. -Edith Lovejoy Pierce The Bad News is Time Flies. The good news is you're the pilot. -Michael Altshuler

Location, location, location. Today we are talking about places - a LOT of places. The best places to live, work and invest for 2021, coming up.

I'm going to go through a lot of articles you could easily find on the internet yourself. But what you won't find is my interpretation, comments, and insights into those articles. For that, you'll just have to keep it here for the next 59 minutes while I lay a little perspective on ya.

Criteria

Everyone who compiles a list of any sort or ranks anything must have some type of criteria. As we dig into the articles I'll talk about the criteria used for making these lists and in a few cases, tell you why I know the writers don't actually invest in real estate. They just do some math and write articles. And in one article today, I am sadly going to have to take issue with a very good friend. It's ok. We are still friends - we can disagree on things.

Local or not?

US

World

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

Sponsors

Flipping America Funding : Get the money you need for your business, for your training, for infrastructure, and for your projects. Flipping America Funding is your one-stop shop for all of your business funding needs. FlippingAmericaFunding.com.

Legal Shield

Announcements:

• FlipStarter November 2021 is sold out. But we've already scheduled it again for January.
  • REI QuickStart - 15 lessons to have you making offers in 2 weeks.
  • REI By the Numbers - All of the formulas I use for deal analysis, project tracking, and ROI calculations.
  • Find Your Fit in REI
  • Create the Life of Your Dreams
• • Learn how to Find, Fund, Fix and Flip houses
  • Four weeks of video instruction (2 hour sessions)
  • Four weeks of group coaching
  • You'll get my book, "Fantastic Deals and Where to Find Them", the exact procedure I used to get 10,000 deals per week in my inbox.
  • You'll get my book, "How to Put Skin in the Game When You Are Running Out of Skin", my little book on how to do deals - even big rehabs - with none of your own money.
  • You'll get my book, "Stop Being Poor" which describes the poverty mindset and suggests a way out.
  • Includes online courses, ($800 value)
  • Purchase and Sale Agreements for your offers
  • Contractor Docs, my package of eleven documents that describe policy and procedures for working with contractors, including the actual Construction Agreement I use. I paid a lawyer thousands to create this bullet-proof agreement and I'll include it.
  • How to manage the rehab process
  • How to make $5000 in the next 30 days
  • "Double Your Investment" guarantee. Although it's a 30 day program, you stay on the coaching calls until you have at least doubled your investment in this training.
  • Money back guarantee. If at any time you believe this isn't the thing for you, notify us and you can drop out and get a refund for remaining sessions
  • Your investment: $997.67. Or pay three installments of $350.
  • Early Bird Discount: Register before December 1st and save $200.
  • 100,000 people want this - we only have 100 seats.

News and Resources:

• Best Places to Live and Retire Now https://www.aarp.org/retirement/planning-for-retirement/info-2021/best-places-to-live.html
• The Best Places to Live in Georgia in 2021 https://www.rent.com/blog/best-places-to-live-in-georgia/
• The 10 best U.S. cities for renters in 2021 https://www.cnbc.com/2021/08/14/wallethub-best-us-cities-for-renters-in-2021.html
• 20 Best Places to Invest in Rental Property in 2021 https://www.yahoo.com/now/20-best-places-invest-rental-134710597.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEHx5l76uJkMxDQO9ZwiuNmzjpkcf2tJshMKMRZ8b3cIy9ekXfJjbFSCEz4sn62uIUcwfDOTCS7SuDaNHliz3LAbVPM45G1CwUApLMabsTiOUiqUv-llBO4rGcz2RtnC4q-te8ezN0U7s1l5UcoGXhrZqhrs75INFgQLNGExyZph
• This North Texas suburb is the best place in the country to live, according to the New York Times https://www.wfaa.com/article/money/economy/euless-texas-is-best-place-to-live-in-america-new-york-times-says/287-f6f246fb-082e-4f91-8aa5-288d251ac142
• Best Cities For Renters 2021 https://www.forbes.com/advisor/renters-insurance/best-cities-for-renters/
• Understanding the Price to rent ratio https://www.millionacres.com/real-estate-investing/the-power-of-understanding-price-to-rent-ratios/
• Best places - Quality of life: https://realestate.usnews.com/places/rankings/best-places-to-live-for-quality-of-life
• Best Places: Safest. https://realestate.usnews.com/places/rankings/safest-places-to-live
• Norada's take on best places to invest: https://www.noradarealestate.com/blog/best-places-to-invest-in-real-estate/
• The best places to invest according to Real Wealth Network: https://www.realwealthnetwork.com/learn/best-places-to-buy-rental-property/
• Best places to invest according to Millionacres.com. https://www.millionacres.com/real-estate-investing/rental-properties/10-best-places-buy-rental-property/

Mindset Moment:

We need to talk about Price to Rent Ratio

Quote of the Day If you know you're going home, the journey is never too hard.Angela Wood

I've seen the 2021 House Flipping Report and some of you should be terrified. I'll tell you why on this episode of Flipping America.

It looks like we are going to finish 2021 with about 350,000 homes flipped nationwide. How does this compare to 2020? And what does 2022 look like? We will get into that today on the show.

We won't know the actual numbers until about March of 22, but based on what I've seen so far, it looks like we are flipping about 80-90,000 homes per quarter across the country. That volume is down a bit from 2020, but we are holding steady at about 5% of all homes sold. Here's something important - gross profits are down. According to Attom Data, gross profits this year averaged about $69,000 per property, which is just slightly less than last year, but this is the important part, the average ROI is down to 33% - down from 40% last year. In a few minutes I'll break down this data, talk about why this is happening and suggest what you might do about it.

How to contact us

www.RogerBlankenship.com. Leave a voicemail right from the home page!

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 877-55-ROGER (877-557-6437) ext 1. Leave your message or your question.

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News and Resources: best places to flip houses 2021

• Do we have a "vacancy crisis" in the US? Nah. https://www.millionacres.com/real-estate-market/articles/cities-with-the-most-vacant-homes-and-why-it-matters/
• ATTOM :Home Flipping Profit Margins Drop Again Across U.S. in Third Quarter of 2021 Even as Flipping Activity Keeps Rising https://www.attomdata.com/news/market-trends/flipping/attom-q3-2021-u-s-home-flipping-repor
• Home Flipping Increases While Profit Margins Continue to Drop Across U.S. in Second Quarter of 2021 https://www.attomdata.com/news/market-trends/flipping/attom-q2-2021-u-s-home-flipping-report/
• Home Flipping Rate and Gross Profits Decline Across U.S. in First Quarter of 2021 https://www.attomdata.com/news/market-trends/flipping/q1-2021-u-s-home-flipping-report/
• Top 10 ZIPS to Flip Based on Raw Profits in Q2 2021 https://www.attomdata.com/news/market-trends/figuresfriday/top-10-zips-to-flip-based-on-raw-profits-in-q2-2021/
• 10 Best Places To Flip Houses https://www.fa-mag.com/news/2021-s-best-places-to-flip-houses-63327.html
• South Carolina city named best to 'flip' a house in U.S. https://www.wltx.com/article/money/south-carolina-city-best-flip-house/101-de8a4240-459e-4acd-91ab-3fd94cbc5ab5
• Not everyone is making money flipping homes. https://www.attomdata.com/news/market-trends/figuresfriday/top-10-u-s-counties-where-home-flipping-isnt-flopping/
• Here is the full home flipping report from the definitive source. https://www.attomdata.com/solutions/market-trends-data/home-flipping-report/
• The Best and Worst Cities to Flip Houses https://www.nytimes.com/2021/08/05/realestate/the-best-and-worst-cities-to-flip-houses.html

Mindset Moment:

Why does Attom Data only report gross profits? They don't know cost of repairs or other expenses, like cost of capital. But I would put it at 25-30% of ARV.

How does the profit remain the same and ROI go down by almost 18% (from 40% ROI to 33%) on flips?

What should we do? Lower our expectations? Accept lower profits or margins?

Acq 400k. ROI 33%. ARV? Feel free to double check my math.

Gross Profit = ARV - ACQ. Let's say ARV is x and ACQ is y. Because we know the ROI average is 33%, we want to solve for something else. Let's solve for ARV.

ROI = GP/ACQ, right? And GP = x-y. So here's the formula.

ROI = (x-y)/y. We want to solve for x (ARV).

(ROI)y = x-y

(ROI)y + y = x

ACQ = 400k

ROI = 33%

ARV is $532.

Based on the average numbers from flippers across the country, costs are about 25% of ARV. In this case that's $133k.

This is a ZERO profit deal. So according to ATTOM Data averages, most flippers aren't making any money. You would do just as well to sit home and do nothing.

Furthermore, if your net ROI is less than 10% you're wasting your time. Put your money into a fund and do something different with your time.

Questions from Listeners:

• Devante Holmes North Charleston, SC I got into real estate for the money, seven years later, I am still here because I love being an investor. I have had my fun, and now I am thinking more about how to retire from real estate in the next 10 years. Retirement to me looks like 15 million at the least. What's your strategy? Do you have a blueprint for retirement?
• Paul Brown Decatur, GA there is a big debate going on amongst friends about the best season to sell. Are Fall and Winter not a good time to sell properties? Tis is the season.
• Timothy Fayley, Manchester,NH Hey "I am about to rent out my property. It's considered "move in ready", but I have some minor things I want to fix. Should I fix these things, before I get a tenant; i.e basement door, paint, updated standard light decor, change the carpet to wood or test the waters?.``
• Cinnamon Bradley Buckhead, GA I sold my first house last week, however I believe I lost out on a lot of money because I did not understand the numbers. I wanted to take away 60,000 but ended up taking away less than 30,000. The wholesaler got 12,000, which I thought was too much. The realtor got 3% and I was left with 30,000 after closing. I really wanted 60,000. Oh, and the bank with penalty fee money of 9,000. I thought I calculated right, how did this happen?

Quote of the Day "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." – Winston Churchill