Flipping America

Lauren Kingsbury is a current senior at Hampton University.She will be graduating in December 2019; She attained her real estate license at 18 years old and affiliated with Keller Williams Preferred Properties in 2017. Currently, Lauren is a full-time student and a part-time real estate agent; she currently is working full-time real estate for the summer to acquire her first investment property in August of this year. She works on a team with her mentor/mom Tracy Goins and assists with the day to day residential real estate activities. She hosts "Millennials Moving Out: Your Guide to More Money and More Freedom" at various colleges to spark the real estate conversation with young adults and recently released a rap video about real estate to keep young adults interested in learning about the real estate market/industry.

FAR 263

Lauren Kingsbury, Real Estate Baddie

Link:

https://realestatebaddie.com/

https://www.instagram.com/realestatebaddie/

https://www.youtube.com/watch?v=behHBIkImmo&feature=youtu.be

 

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. 

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind. 

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy. 
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

News:

Regular Real Estate News. 

• Matt Lauer Looking for a Buyer for His Waterfront Estate in the Hamptons
• TechCrunch Founder Sells $1.6 Million House on Crypto Real Estate Platform
• Syracuse.com real estate update includes gas stations, Skaneateles assisted living facility
• Costs $200k and now you have a flight of stairs. Flood Threats Prompt Call to Raise Houses
• You should not be surprised that kitchens and bathrooms are in the budget! 10 Projects That Blow Fixer-Uppers’ Budgets
• Build-to-rent is going public! Build-to-rent housing market explodes as investors rush in
• Let’s blame tariffs, the global economy, and President Trump. Why not global warming? Surely that had something to do with it? New home sales sank 7.8% in May, despite a big drop in mortgage rates
• Are investors pricing out first-time home buyers?
• Doug Duncan, Fannie Mae Chief Economist, points out the wide open opportunity for builders for first-time home buyers. Most new construction is for move-up buyers. https://www.cnbc.com/video/2019/06/27/heres-what-fannie-mae-is-forecasting-for-the-housing-market.html

Your Questions: Send emails to [email protected]

Don’t send your sales pitches to this email. Especially the really terrible “you can buy my product at a discount” with a link and NO explanation. No sales letter. If you think my team is just going to click a link in an email come on. If you have a product or service you would like for us to review, you can let us know and someone from our team will reach out to you. 

• Cameron, Shandria, Atlanta, GA, Eric, Jackson, Kimberly, Cassandra, Elliott, Terrence, Kenedra, and Sharon “What are the steps for getting started in this business?”
• Allison, Fort Worth, TX “I have a plan and I have a local mentor. I’m starting out wholesaling and hope to move on to fixing and flipping and rentals next. I am single and work from 7:30 - 3:30 each day. I don’t hate my job, but I don’t see a future in it either. How long do I need to wait before I quit?”
• Corey, Boulder, CO “Prices are pretty high here. Is it better if I start somewhere else?”
• Natalie, St. Louis, “My boyfriend and I are about 60% finished with our first flip and we are having our first major disagreement. The house is in an up and coming hipster type area and he wants to paint some pretty bold colors, both inside and outside. I know this may seem like the opposite of the stereotype, but I want the colors to be neutral. This might be relationship advice clothed as a real estate question, but what do we do?”
• Xander, Battle Creek, MI “It’s been tough around here for a few years, but it looks like the jobs are coming back and things may be looking bright. So I’m starting to pick up some cheap rentals. My question is about the future. What if the jobs leave again? Where would that leave me and how do I survive?”

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

“When you know what you want, and want it bad enough, you’ll find a way to get it. – Jim Rohn”

Today we are going to talk about failure. Most of us have been there - especially if you have ever launched your own business. According to Forbes 80% of all new businesses fail within 18 months. This is a bit concerning but it's not all bad. Some of the greatest businesses and business success stories were built on the ashes of a previous failure. I know there are some of you listening right now who are struggling with feelings of failure. You've been working at this, or whatever, for awhile now and you're not one of those "success stories" you read and hear about. You go online and see the carefully curated presentations of the successes of others and wonder why it isn't happening to you. The urge is to just give in to self doubt, conclude that you're not cut out for this, owning a business, entrepreneurship, and financial freedom just isn't a part of your destiny. Listen - everyone has been there. Think about the successful people you admire (and perhaps secretly envy). They may ooze confidence and seem to have the perfect life. But I promise you they have dealt with every point I'm going to bring up today and the success they now enjoy came through soul-searching, struggle, some degree of self-doubt, stress, and persistence. It did NOT come to them because of a government program, loan, bailout, or training program. Success arises from within - both the knowledge needed for success and the inner drive that motivates effort. I see new faces in my meetings every week and I'm always glad to welcome everyone to the party. But I usually know within a few moments of conversation whether someone is going to make it in the real estate business. Why? Because I've been observing, noting, learning, correlating certain attitudes and behaviors with success for years now. In a few moments I'm going to break down the top twenty reasons for my own failures and the failures of those I observe.

Topic: Why We Fail

First let's do some sorting.

• Testing various solutions to find what works doesn't equal failure. That's just a way of finding what doesn't work on the way to finding what DOES work.
• Failing at one task or skill set doesn't make you a failure. No one can do everything and everyone is a unique combination of strengths and weaknesses.
• A business failure does not make you a failure. It happens to the best and brightest.
• A relationship failure does not make you a failure.
• A combination of life failures - mistakes - errors - even willful wrong-doing does not necessarily make you a failure.
• Pain is not failure. Neither is suffering.
• Poverty is not failure. And money is not necessarily success.

You are failure only when "failure" is your end result. And if you are listening to this today you are not yet at your end. So hang on and see if we can identify with my top 20 reasons we fail.

1. We don't start. We think about it, dream about. Perhaps even get a website (or 50) and form an LLC. Read, study, talk, get business cards and imprinted shirts. But never launch.
2. We have a solution without a problem. There's no market desire for what we are selling.
   1. Startup considerations.
   2. Making profit
   3. Scaling
   4. Staffing
   5. Financial obligations
   6. Taxation
   7. Business planning, forecasting
3. We don't understand business.
   1. How to hire,
   2. How to supervise,
   3. How to manage
   4. How to lead
4. We don't understand THIS business. You don't know what you don't know.
5. Wrong Team. We start the business with a friend or a significant other and the relationship is the only criteria.
6. No team. We try to go it alone. The problem is, no one is good at everything.
7. We let our lack of knowledge keep us from taking a chance.
8. We are woefully underfunded.
9. We stop planning - revising, testing, planning more.
   1. Time required
   2. Difficulties encountered
   3. Actual profits vs. projections
10. Unrealistic expectations (check mark projections)
11. Lack of self-knowledge. Especially when it comes to weaknesses / blind spots.
12. "If I build it they will come" mentality.
13. We get out-hustled. We just don't know what hard work looks like. The hardest thing in your life when you were 5 looks like child's play to you now. And if you haven't put in 6 straight weeks of 12 hour days of actual work (not social media surfing in-between meetings), what you call "hard work" is child's play to someone who is out-hustling you.
14. We peck around the edges. Seminar here, meeting there, talk about the future a lot.
15. Quest for perfection. Get everything set up just right.
16. We ignore the need for marketing.
17. We don't understand or we ignore our customers.
18. Surprised by and unprepared for challenges.
19. Overconfidence when it starts going well.
20. They give up.

• "I have not yet reached all my goals. And by far the most important word in that sentence is 'yet'". -Roger Blankenship

Today we are going to talk about failure. Most of us have been there - especially if you have ever launched your own business. According to Forbes 80% of all new businesses fail within 18 months. This is a bit concerning but it’s not all bad. Some of the greatest businesses and business success stories were built on the ashes of a previous failure. I know there are some of you listening right now who are struggling with feelings of failure. You’ve been working at this, or whatever, for awhile now and you’re not one of those “success stories” you read and hear about. You go online and see the carefully curated presentations of the successes of others and wonder why it isn’t happening to you. The urge is to just give in to self doubt, conclude that you’re not cut out for this, owning a business, entrepreneurship, and financial freedom just isn’t a part of your destiny. Listen - everyone has been there. Think about the successful people you admire (and perhaps secretly envy). They may ooze confidence and seem to have the perfect life. But I promise you they have dealt with every point I’m going to bring up today and the success they now enjoy came through soul-searching, struggle, some degree of self-doubt, stress, and persistence. It did NOT come to them because of a government program, loan, bailout, or training program. Success arises from within - both the knowledge needed for success and the inner drive that motivates effort. I see new faces in my meetings every week and I’m always glad to welcome everyone to the party. But I usually know within a few moments of conversation whether someone is going to make it in the real estate business. Why? Because I’ve been observing, noting, learning, correlating certain attitudes and behaviors with success for years now. In a few moments I’m going to break down the top twenty reasons for my own failures and the failures of those I observe.

Topic: Why We Fail

First let’s do some sorting.

• Testing various solutions to find what works doesn’t equal failure. That’s just a way of finding what doesn’t work on the way to finding what DOES work.
• Failing at one task or skill set doesn’t make you a failure. No one can do everything and everyone is a unique combination of strengths and weaknesses.
• A business failure does not make you a failure. It happens to the best and brightest.
• A relationship failure does not make you a failure.
• A combination of life failures - mistakes - errors - even willful wrong-doing does not necessarily make you a failure.
• Pain is not failure. Neither is suffering.
• Poverty is not failure. And money is not necessarily success.

You are failure only when “failure” is your end result. And if you are listening to this today you are not yet at your end. So hang on and see if we can identify with my top 20 reasons we fail.

 

1. We don’t start. We think about it, dream about. Perhaps even get a website (or 50) and form an LLC. Read, study, talk, get business cards and imprinted shirts. But never launch.
2. We have a solution without a problem. There’s no market desire for what we are selling.
   1. Startup considerations.
   2. Making profit
   3. Scaling
   4. Staffing
   5. Financial obligations
   6. Taxation
   7. Business planning, forecasting
3. We don’t understand business.
   1. How to hire,
   2. How to supervise,
   3. How to manage
   4. How to lead
4. We don’t understand THIS business. You don’t know what you don’t know.
5. Wrong Team. We start the business with a friend or a significant other and the relationship is the only criteria.
6. No team. We try to go it alone. The problem is, no one is good at everything.
7. We let our lack of knowledge keep us from taking a chance.
8. We are woefully underfunded.
9. We stop planning - revising, testing, planning more.
   1. Time required
   2. Difficulties encountered
   3. Actual profits vs. projections
10. Unrealistic expectations (check mark projections)
11. Lack of self-knowledge. Especially when it comes to weaknesses / blind spots.
12. “If I build it they will come” mentality.
13. We get out-hustled. We just don’t know what hard work looks like. The hardest thing in your life when you were 5 looks like child’s play to you now. And if you haven’t put in 6 straight weeks of 12 hour days of actual work (not social media surfing in-between meetings), what you call “hard work” is child’s play to someone who is out-hustling you.
14. We peck around the edges. Seminar here, meeting there, talk about the future a lot.
15. Quest for perfection. Get everything set up just right.
16. We ignore the need for marketing.
17. We don’t understand or we ignore our customers.
18. Surprised by and unprepared for challenges.
19. Overconfidence when it starts going well.
20. They give up.

 

 

• “I have not yet reached all my goals. And by far the most important word in that sentence is ‘yet’”.
  -Roger Blankenship

 

 

FAR 261 We have that Stats Opening:

How good is that professional athlete? Well, let's take a look at his or her stats. What's the batting average? What's the shooting percentage? From 3-point range? Free Throws? What's the yards per carry average. What's the yards after contact average? What is the average air-speed velocity of an unladen swallow? Be the first person to write in or call with that movie reference and I'll send you a Starbucks gift card. What's your miles per gallon? How long is your average daily commute? On average, how many hours do you spend watching TV every day? Statistics are all around us all the time. Today I'm going to BLOW YOUR MIND with a complete set of real estate statistics.

Yes I studied statistics in college AND in graduate school. At the graduate level my statistics course, FED 790, was one of my favorite courses. Not so much because of the content, but because the professor was one of the most delightful persons I have ever met. He managed to make a drudgery topic into a class I looked forward to each week. That's no small feat, because when you are digging deeply into research summaries looking for statistical significance, errors in math, illogical assumptions, blah blah blah. I won't make you go through any of that pain today. In fact, you don't even have to do the research. BUT - if you get a copy of the show notes, you will have clickable links for every stat I'm about to throw at you.

First let's do the news!

News:

• https://www.foxnews.com/real-estate/chip-joanna-gaines-invest-10-4-million-waco-magnolia-market-expansion
• https://therealdeal.com/national/2019/06/23/canadas-favorite-alternative-investment-real-estate/
• https://www.nydailynews.com/news/politics/ny-rikers-island-closure-real-estate-development-de-blasio-20190621-6uhjrlb2wjamvgui7moxfva6fq-story.html
• https://learn.g2.com/real-estate-blogs
• https://weartv.com/news/nation-world/florida-family-loses-77000-in-real-estate-scam
• https://globalnews.ca/news/5403597/wait-theres-more-money-laundering-bc/
• https://realtybiznews.com/ben-carson-targets-single-family-zoning-laws/98754712/

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don't mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That's right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out an 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

Topic: Real Estate Statistics!

Between all of the different real estate terms, types of real estate, and people that make up each sector, the industry is pretty complicated. To keep things as simple as possible, we've divided up the following stats into relevant sections.

Residential real estate statistics

Residential is what most people think of when they hear the term real estate. It refers to the types of properties that people live on – those that are not intended to be used for anything business-related. This includes single and multi-family homes, as well as condos and townhouses.

• As of April 2019, there have been roughly 673,000 houses sold in the US this year, which is 12.4 percent more than last year (U.S. Census Bureau, 2019).
• 5.34 million existing homes were sold in 2018 (down from 5.51 million in 2017). (NAR, 2018)
• The Midwest has the highest rates of homeownership in the nation at 68.2%, followed by the South at 66.2 percent (U.S. Census Bureau, 2019).
• 64.8% of U.S. citizens were homeowners in the fourth quarter of 2018 (up from 64.2% in 2017). (United States Census Bureau, 2019)
• 35.4%of homeowners are under 35 years of age. The age bracket with the highest rate of home ownership (78.5%) is 65 years and over (U.S. Census Bureau, 2019).
• Madison, WI and Grand Rapids, MI are the two most popular cities for millennial movers (National Association of Realtors, 2019).
• Based on buyer activity and active inventory, the hottest real estate markets in the country are in Boston, MA and Lafayette, IN (Realtor.com, 2019).
• Nationwide, the average sale price of a luxury home fell 1.6% in 2019 (Redfin, 2019).
• Across the US, the median price of a home is $267,300 (National Association of Realtors, 2019).
• Fishers, IN and Carmel, IN top the list of best cities for families (Apartment List, 2019).
• 36% of homeowners listed unexpected maintenance or repairs as their biggest regret (Zillow, 2019).
• The least competitive housing markets in the country are Miami, Dallas, and Houston (Redfin, 2019).
• The real estate industry will account for 22% of total commercial drone use by 2020 (Federal Aviation Administration, 2016).

Homebuyer statistics

Buying a home is no small feat. Below, you'll find a few statistics specific to homebuyers.

• The average homebuyer took 73 days to close on a property after the first initial visit to the home (Redfin, 2019).
• 50%of buyers found their homes through the internet, while 28 percent found them through their real estate agent (National Association of Realtors, 2018).
• On average, buyers are spending 3 fewer days searching for homes in 2019 than the previous year (Redfin, 2019).
• Virtual house tours are most important to buyers that fall within the 53-71 age range (National Association of Realtors, 2018).
• Finding the right home tops the list for most difficult steps in the home buying process (National Association of Realtors, 2017).
• 33% of home buyers in 2018 were first-time home buyers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 10 weeks was the average amount of time buyers spent searching for a home in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 14% of buyers purchased brand new homes, while 86% of buyers purchased previously lived-in homes. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Selling statistics

Selling a home can be just as big of a hurdle as buying one. From getting a property listed to setting up the open house, finding qualified buyers is a feat in and of itself.

• Thursday is the best day to list a home. Properties listed on Thursday sell for $3,015 more than on Mondays, which are the worst days to list a home (Redfin, 2019).
• On average, 98% of final sale prices matched the original asking price of a property in 2019 (Redfin, 2019).
• This year, the median number of days that a property was on the market before an offer was accepted is 40 (Redfin, 2019).
• 73%of sellers are more likely to list their home with an agent who leverages video to market their property (National Association of Realtors, 2018).
• Staged homes sell 25% faster than non-staged homes (Coldwell Banker, 2019).

Rental statistics

Not everyone can afford to buy a home – that's where renting comes in. Many residential properties are offered as rental units to tenants for non-commercial purposes.

• Globally, the most expensive place to rent is San Francisco where the rent averages out at $3,690 (Zumper, 2019).
• In 2019, Henderson, NV and Phoenix, AZ saw the fastest rent growth in the country with an increase of 4.5 and 4.1 percent, respectively (Apartment List, 2019).
• Across the US, the cost of renting has gone up 66 percent (Realtor.com, 2019).
• Troy, MI is ranked as the most affordable renting city for families (Apartment List, 2019).
• Only 8 percent of homeowners regret purchasing a home instead of renting (Zillow, 2019).

Real estate demographic statistics

It may seem like millennials are abandoning home buying in favor of renting, but these stats prove that that may not be the case.

• 86% of younger millennials (aged 21–28) and 52% of older millennials (aged 29–38) were first-time home buyers. Meanwhile, Generation X (people between the ages of 39–53) consisted of 24% of 2018 home buyers. 18% of younger baby boomers (people between the ages of 54–63) and 14% of older baby boomers (people between the ages of 64–72) were home buyers in 2018. 7% of home buyers belonged in the silent generation (people between the ages of 73–93), the smallest segment of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 2020 is expected to be the peak year for millennial home buying. (Realtor.com National Housing Forecast, 2019)
• Millennials will account for 45% of mortgages in 2019. (Realtor.com National Housing Forecast, 2019)
• 25% of Generation X home buyers identified as a race other than white/Caucasian, making them the most racially and ethnically diverse population of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 25% of home sellers in 2018 belonged in Generation X, making them the largest segment of sellers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 63% of home buyers were married. Additionally, 18% were single females, 9% were single males, and 8% were unmarried couples. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 37% of home buyers had children under the age of 18 living at home. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Real estate financing statistics

As student loans continue to ensnare the population into a collective $1.7 trillion debt, real estate financing has been impacted.

Notably, home values are increasing while millions of Americans are spending more than 50% of their earnings on their home purchase.

• As of February 2019, the median home value in the United States is $226,300. (Zillow, 2019)
• United States home values have gone up 7.2% since 2018. (Zillow, 2019)
• The median rent price in the United States is $1,650. (Zillow, 2019)
• 88% of home buyers financed their home purchase. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• For 58% of buyers, their down payment came from their savings account. 39% of buyers financed their home using the proceeds gained from the equity of their previous residence. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 13% of all buyers cited that saving for a down payment was the most difficult step in the home buying process. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• Around 50% of renters are paying more than 30% of their income on rent. (PWC Emerging Trends in Real Estate, 2019)
• 12 million Americans spend more than 50% of their earnings on their home purchase. (PWC Emerging Trends in Real Estate, 2019)

Real estate marketing statistics

Real estate agents understand the benefits of a good marketing plan. The majority of agents are using their budget for marketing efforts in 2019 in the hopes of gaining better leads.

• On average, 31.5% of brokers and real estate agents plan on spending more than $400 a month on real estate marketing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 46.4% feel their top marketing challenge is generating enough high-quality leads. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 16.5% of real estate agents had success with purchased leads. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)
• 53.6% think adding more locally focused content to their real estate website will make it more appealing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 84.6% of brokers and real estate agents use Facebook for their social media marketing efforts. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 30% of brokers and real estate agents want to learn more about the specific housing interests (e.g., home types) of their audience. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 49.5% of brokers and real estate agents want video marketing to be a big part of their marketing strategy. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 43.8% of real estate agents would invest in referrals if they had extra budget for marketing. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)

Real estate agent statistics

A real estate agent or broker is a professional that is licensed to sell property in their state. The business of buying and selling properties can be incredibly lucrative but doesn't come without its difficulties.

• 49% of agents report working 40 or more hours per week, while 22% report working less than 30 hours (Placester, 2019).
• The largest expense for working real estate agents is transportation at around $1,370 per year (National Association of Realtors, 2019).
• Agents earned 17%of their business from referrals, and only 13% from returning clients (National Association of Realtors, 2019).
• 62% of agents spend at least one hour a day on marketing (Placester, 2019).

TIP: Getting your titles mixed up? Learn the difference between a real estate broker vs agent.

Commercial real estate statistics

Commercial real estate refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

• In 2019, the average commercial real estate sale was $1.2 million (National Association of Realtors, 2019).
• The total dollar volume of commercial sales in the US has decreased since 2018. In the large market (sales greater than $2.5M), sales decreased by 11%. In the small market (sales less than $2.5M), the decrease was closer to 8 percent (National Association of Realtors, 2019).
• Toledo, OH and Syracuse, NY have the highest rental vacancy rates in the country at 18.1% and 17.9%, respectively (National Association of Realtors, 2019).
• Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world (Statista, 2019).
• With an average cost of $255.50 per square foot, Hong Kong is the most expensive city in the world for renting office space (Statista, 2019).

Your Questions: Send emails to [email protected]

• Nikhil, Atlanta, GA, "Good morning. I was listening to a recorded show of FlippingAmerica. I am new to this business and getting organized before I can actively wholesale or rehab. You mentioned that you have some spreadsheet that you can share that estimates the cost of rehab. Could you please share the details?"

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

"The dog that chases 5 rabbits catches none."-Gordon Catts

FAR 261 We have that Stats Opening:

How good is that professional athlete? Well, let’s take a look at his or her stats. What’s the batting average? What’s the shooting percentage? From 3-point range? Free Throws? What’s the yards per carry average. What’s the yards after contact average? What is the average air-speed velocity of an unladen swallow? Be the first person to write in or call with that movie reference and I’ll send you a Starbucks gift card. What’s your miles per gallon? How long is your average daily commute? On average, how many hours do you spend watching TV every day? Statistics are all around us all the time. Today I’m going to BLOW YOUR MIND with a complete set of real estate statistics.

Yes I studied statistics in college AND in graduate school. At the graduate level my statistics course, FED 790, was one of my favorite courses. Not so much because of the content, but because the professor was one of the most delightful persons I have ever met. He managed to make a drudgery topic into a class I looked forward to each week. That’s no small feat, because when you are digging deeply into research summaries looking for statistical significance, errors in math, illogical assumptions, blah blah blah. I won’t make you go through any of that pain today. In fact, you don’t even have to do the research. BUT - if you get a copy of the show notes, you will have clickable links for every stat I’m about to throw at you.

 

First let’s do the news!

News:

• https://www.foxnews.com/real-estate/chip-joanna-gaines-invest-10-4-million-waco-magnolia-market-expansion
• https://therealdeal.com/national/2019/06/23/canadas-favorite-alternative-investment-real-estate/
• https://www.nydailynews.com/news/politics/ny-rikers-island-closure-real-estate-development-de-blasio-20190621-6uhjrlb2wjamvgui7moxfva6fq-story.html
• https://learn.g2.com/real-estate-blogs
• https://weartv.com/news/nation-world/florida-family-loses-77000-in-real-estate-scam
• https://globalnews.ca/news/5403597/wait-theres-more-money-laundering-bc/
• https://realtybiznews.com/ben-carson-targets-single-family-zoning-laws/98754712/

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out an 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

 

Topic: Real Estate Statistics!

Between all of the different real estate terms, types of real estate, and people that make up each sector, the industry is pretty complicated. To keep things as simple as possible, we’ve divided up the following stats into relevant sections.

Residential real estate statistics

Residential is what most people think of when they hear the term real estate. It refers to the types of properties that people live on – those that are not intended to be used for anything business-related. This includes single and multi-family homes, as well as condos and townhouses.

• As of April 2019, there have been roughly 673,000 houses sold in the US this year, which is 12.4 percent more than last year (U.S. Census Bureau, 2019).
• 5.34 million existing homes were sold in 2018 (down from 5.51 million in 2017). (NAR, 2018)
• The Midwest has the highest rates of homeownership in the nation at 68.2%, followed by the South at 66.2 percent (U.S. Census Bureau, 2019).
• 64.8% of U.S. citizens were homeowners in the fourth quarter of 2018 (up from 64.2% in 2017). (United States Census Bureau, 2019)
• 35.4%of homeowners are under 35 years of age. The age bracket with the highest rate of home ownership (78.5%) is 65 years and over (U.S. Census Bureau, 2019).
• Madison, WI and Grand Rapids, MI are the two most popular cities for millennial movers (National Association of Realtors, 2019).
• Based on buyer activity and active inventory, the hottest real estate markets in the country are in Boston, MA and Lafayette, IN (Realtor.com, 2019).
• Nationwide, the average sale price of a luxury home fell 1.6% in 2019 (Redfin, 2019).
• Across the US, the median price of a home is $267,300 (National Association of Realtors, 2019).
• Fishers, IN and Carmel, IN top the list of best cities for families (Apartment List, 2019).
• 36% of homeowners listed unexpected maintenance or repairs as their biggest regret (Zillow, 2019).
• The least competitive housing markets in the country are Miami, Dallas, and Houston (Redfin, 2019).
• The real estate industry will account for 22% of total commercial drone use by 2020 (Federal Aviation Administration, 2016).

Homebuyer statistics

Buying a home is no small feat. Below, you’ll find a few statistics specific to homebuyers.

• The average homebuyer took 73 days to close on a property after the first initial visit to the home (Redfin, 2019).
• 50%of buyers found their homes through the internet, while 28 percent found them through their real estate agent (National Association of Realtors, 2018).
• On average, buyers are spending 3 fewer days searching for homes in 2019 than the previous year (Redfin, 2019).
• Virtual house tours are most important to buyers that fall within the 53-71 age range (National Association of Realtors, 2018).
• Finding the right home tops the list for most difficult steps in the home buying process (National Association of Realtors, 2017).
• 33% of home buyers in 2018 were first-time home buyers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 10 weeks was the average amount of time buyers spent searching for a home in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 14% of buyers purchased brand new homes, while 86% of buyers purchased previously lived-in homes. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Selling statistics

Selling a home can be just as big of a hurdle as buying one. From getting a property listed to setting up the open house, finding qualified buyers is a feat in and of itself.

• Thursday is the best day to list a home. Properties listed on Thursday sell for $3,015 more than on Mondays, which are the worst days to list a home (Redfin, 2019).
• On average, 98% of final sale prices matched the original asking price of a property in 2019 (Redfin, 2019).
• This year, the median number of days that a property was on the market before an offer was accepted is 40 (Redfin, 2019).
• 73%of sellers are more likely to list their home with an agent who leverages video to market their property (National Association of Realtors, 2018).
• Staged homes sell 25% faster than non-staged homes (Coldwell Banker, 2019).

Rental statistics

Not everyone can afford to buy a home – that’s where renting comes in. Many residential properties are offered as rental units to tenants for non-commercial purposes.

• Globally, the most expensive place to rent is San Francisco where the rent averages out at $3,690 (Zumper, 2019).
• In 2019, Henderson, NV and Phoenix, AZ saw the fastest rent growth in the country with an increase of 4.5 and 4.1 percent, respectively (Apartment List, 2019).
• Across the US, the cost of renting has gone up 66 percent (Realtor.com, 2019).
• Troy, MI is ranked as the most affordable renting city for families (Apartment List, 2019).
• Only 8 percent of homeowners regret purchasing a home instead of renting (Zillow, 2019).

Real estate demographic statistics

It may seem like millennials are abandoning home buying in favor of renting, but these stats prove that that may not be the case.

• 86% of younger millennials (aged 21–28) and 52% of older millennials (aged 29–38) were first-time home buyers. Meanwhile, Generation X (people between the ages of 39–53) consisted of 24% of 2018 home buyers. 18% of younger baby boomers (people between the ages of 54–63) and 14% of older baby boomers (people between the ages of 64–72) were home buyers in 2018. 7% of home buyers belonged in the silent generation (people between the ages of 73–93), the smallest segment of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 2020 is expected to be the peak year for millennial home buying. (Realtor.com National Housing Forecast, 2019)
• Millennials will account for 45% of mortgages in 2019. (Realtor.com National Housing Forecast, 2019)
• 25% of Generation X home buyers identified as a race other than white/Caucasian, making them the most racially and ethnically diverse population of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 25% of home sellers in 2018 belonged in Generation X, making them the largest segment of sellers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 63% of home buyers were married. Additionally, 18% were single females, 9% were single males, and 8% were unmarried couples. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• In 2018, 37% of home buyers had children under the age of 18 living at home. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Real estate financing statistics

As student loans continue to ensnare the population into a collective $1.7 trillion debt, real estate financing has been impacted.

Notably, home values are increasing while millions of Americans are spending more than 50% of their earnings on their home purchase.

• As of February 2019, the median home value in the United States is $226,300. (Zillow, 2019)
• United States home values have gone up 7.2% since 2018. (Zillow, 2019)
• The median rent price in the United States is $1,650. (Zillow, 2019)
• 88% of home buyers financed their home purchase. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• For 58% of buyers, their down payment came from their savings account. 39% of buyers financed their home using the proceeds gained from the equity of their previous residence. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• 13% of all buyers cited that saving for a down payment was the most difficult step in the home buying process. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
• Around 50% of renters are paying more than 30% of their income on rent. (PWC Emerging Trends in Real Estate, 2019)
• 12 million Americans spend more than 50% of their earnings on their home purchase. (PWC Emerging Trends in Real Estate, 2019)

Real estate marketing statistics

Real estate agents understand the benefits of a good marketing plan. The majority of agents are using their budget for marketing efforts in 2019 in the hopes of gaining better leads.

• On average, 31.5% of brokers and real estate agents plan on spending more than $400 a month on real estate marketing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 46.4% feel their top marketing challenge is generating enough high-quality leads. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 16.5% of real estate agents had success with purchased leads. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)
• 53.6% think adding more locally focused content to their real estate website will make it more appealing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 84.6% of brokers and real estate agents use Facebook for their social media marketing efforts. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 30% of brokers and real estate agents want to learn more about the specific housing interests (e.g., home types) of their audience. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 49.5% of brokers and real estate agents want video marketing to be a big part of their marketing strategy. (Placester Real Estate Marketing Strategy Survey Report, 2018)
• 43.8% of real estate agents would invest in referrals if they had extra budget for marketing. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)

Real estate agent statistics

A real estate agent or broker is a professional that is licensed to sell property in their state. The business of buying and selling properties can be incredibly lucrative but doesn’t come without its difficulties.

• 49% of agents report working 40 or more hours per week, while 22% report working less than 30 hours (Placester, 2019).
• The largest expense for working real estate agents is transportation at around $1,370 per year (National Association of Realtors, 2019).
• Agents earned 17%of their business from referrals, and only 13% from returning clients (National Association of Realtors, 2019).
• 62% of agents spend at least one hour a day on marketing (Placester, 2019).

TIP: Getting your titles mixed up? Learn the difference between a real estate broker vs agent.

Commercial real estate statistics

Commercial real estate refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

• In 2019, the average commercial real estate sale was $1.2 million (National Association of Realtors, 2019).
• The total dollar volume of commercial sales in the US has decreased since 2018. In the large market (sales greater than $2.5M), sales decreased by 11%. In the small market (sales less than $2.5M), the decrease was closer to 8 percent (National Association of Realtors, 2019).
• Toledo, OH and Syracuse, NY have the highest rental vacancy rates in the country at 18.1% and 17.9%, respectively (National Association of Realtors, 2019).
• Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world (Statista, 2019).
• With an average cost of $255.50 per square foot, Hong Kong is the most expensive city in the world for renting office space (Statista, 2019).

 

Your Questions: Send emails to [email protected]

• Nikhil, Atlanta, GA, “Good morning. I was listening to a recorded show of FlippingAmerica. I am new to this business and getting organized before I can actively wholesale or rehab. You mentioned that you have some spreadsheet that you can share that estimates the cost of rehab. Could you please share the details?”

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

“The dog that chases 5 rabbits catches none."
-Gordon Catts

FAR 260 The University of Wealth Building Opening:

Money isn't everything. Real Estate isn't the only thing you need to know about money. As I discussed on the last two shows, true life success is so much more than money. It's not enough to just create a profitable business. It's also how you live the rest of your life, connect your work with the people you love, the causes you support, and the life you want to live. Today I have a very special guest joining us. Ramon Tookes has been on the show before, but in the past few months he has launched something I believe is very important: the University of Wealth Building. This is an educational and mentoring program that I believe can have a profound impact in many lives. It's in part because of the topics covered, but primarily due to the founder himself, Ramon Tookes. He is a man of great knowledge, practical wisdom some would call street smarts, business experience and life perspective. He brings all of that together in a beautiful mentoring program that is already making a difference. We will welcome him to the show in just a few minutes.

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don't mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That's right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out an 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

Special Guest: Ramon Tookes Your Questions: Send emails to [email protected]

• Multiple people: "How do you get it all done?"
• • Great Team - not employees. VAs, Partners,
  • GMS Planner - clear direction for each week.
  • Technology and organizational tools.
  • Enjoy what I do.
  • Exercise and get plenty of rest.
• Terrence, Gadsden, AL, "When you buy properties far away from you, how do you get around to them to assess the repairs and then how do you get them done?"
• Alfred, Atlanta, GA, "Do you have a mentoring program?"
• Charles, Boulder, CO "I enjoy my job and listen to your show sometimes as a curiosity. I'm not interested in being in the business, but I'd like more information about investing in it, particularly if you have an opportunity. What do you have going on in that area?"

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

• "I have not yet reached all my goals. And by far the most important word in that sentence is 'yet'". -Roger Blankenship

FAR 260 The University of Wealth Building Opening:

Money isn’t everything. Real Estate isn’t the only thing you need to know about money. As I discussed on the last two shows, true life success is so much more than money. It’s not enough to just create a profitable business. It’s also how you live the rest of your life, connect your work with the people you love, the causes you support, and the life you want to live. Today I have a very special guest joining us. Ramon Tookes has been on the show before, but in the past few months he has launched something I believe is very important: the University of Wealth Building. This is an educational and mentoring program that I believe can have a profound impact in many lives. It’s in part because of the topics covered, but primarily due to the founder himself, Ramon Tookes. He is a man of great knowledge, practical wisdom some would call street smarts, business experience and life perspective. He brings all of that together in a beautiful mentoring program that is already making a difference. We will welcome him to the show in just a few minutes.

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out an 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

Special Guest: Ramon Tookes Your Questions: Send emails to [email protected]

• Multiple people: “How do you get it all done?”
• • Great Team - not employees. VAs, Partners,
  • GMS Planner - clear direction for each week.
  • Technology and organizational tools.
  • Enjoy what I do.
  • Exercise and get plenty of rest.
• Terrence, Gadsden, AL, “When you buy properties far away from you, how do you get around to them to assess the repairs and then how do you get them done?”
• Alfred, Atlanta, GA, “Do you have a mentoring program?”
• Charles, Boulder, CO “I enjoy my job and listen to your show sometimes as a curiosity. I’m not interested in being in the business, but I’d like more information about investing in it, particularly if you have an opportunity. What do you have going on in that area?”

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

 

• “I have not yet reached all my goals. And by far the most important word in that sentence is ‘yet’”.
  -Roger Blankenship

 

 

FAR 256 Opening:

Today we are talking about Opportunity Zones. You may have heard about them. You might have even heard they are the next BIG thing in real estate investing. They represent a tax break for real estate investors as an incentive to bring economic development to underserved areas. I had a chance to speak with Jillian Sidoti and Nancy Tegeder of the law firm of Trowbridge and Sidoti out of southern California.

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don't mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That's right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

News: Opportunity Zones

Ram Realty CEO isn't buying into Opportunity zones, says "Anyone who has [Opportunity Zone properties] for development thinks they're sitting on gold, but if you are trying to underwrite and make sense of the project with today's rents and costs, it's very challenging for these areas"

https://therealdeal.com/miami/2019/05/10/ram-realty-ceo-isnt-buying-into-opportunity-zones/

Fund sponsors and their investors began buying assets in Opportunity Zones en masse this past month, their enthusiasm triggered by the U.S. Treasury's mid-April release of a second tranche of proposed regulations for the tax-sheltering vehicles.

https://financialadvisoriq.com/c/2285063/278413

U.S. Opportunity zones are incredible tax savings zone for Entrepreneurs.

https://www.forbes.com/sites/theyec/2019/03/25/u-s-opportunity-zones-incredible-tax-savings-for-entrepreneurs/#42d78b9f5e6a

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) designated Opportunity Zones in 18 States.

https://home.treasury.gov/news/press-releases/sm0341

Top 10 opportunity zones in the US

https://fundrise.com/education/blog-posts/the-top-10-opportunity-zones-in-the-united-states

Facts about Opportunity zones

https://taxfoundation.org/opportunity-zones-what-we-know-and-what-we-dont/

The Opportunity zone program in New York State

https://esd.ny.gov/opportunity-zones

Trump's Opportunity zone rules deliver on investors' wish list

https://www.bloomberg.com/news/articles/2019-04-17/opportunity-zone-rules-aim-to-draw-capital-to-distressed-areas

Treasury issues second set of highly anticipated opportunity zones guidance

https://home.treasury.gov/news/press-releases/sm660

In a former warehouse on a dimly lit street in the South Bronx, developers sipping Puerto Rican moonshine listened as a local official urged them to capture a new U.S. tax break by rebuilding the decaying neighborhood.

https://www.investmentnews.com/article/20190115/FREE/190119959/fervor-over-opportunity-zones-heats-up

The U.S. Department of the Treasury and Internal Revenue Service (IRS) approved Michigan's application for Opportunity Zones -- areas eligible for tax benefits aimed at spurring private investment, economic growth and jobs in the state's distressed communities.

https://www.michigan.gov/mshda/0,4641,7-141-7559_9637-465897--,00.html

Ben Carson explains benefits of investing in 'Opportunity Zones' for areas facing economic challenges

https://www.foxnews.com/politics/ben-carson-opportunity-zones-low-income-americans

c

EXTRAS

Opportunity zones resource center

https://www.novoco.com/resource-centers/opportunity-zones-resource-center

Opportunity zones map tool

https://www.enterprisecommunity.org/resources/opportunity-zone-eligibility-map-tool

The Real Estate Opportunity Zone Meeting

https://www.rclco.com/event/the-real-estate-opportunity-zone-meeting/

Speaker: Eric Willett

Email: [email protected]

Phone: 310-752-9032

Special Guest: Your Questions: Send emails to [email protected]

• Carlton, Chicago, IL "I'm getting back into investing and thinking about Atlanta. What are the opportunities I should be considering there?"
• Tracy, Senoia, GA "I'm interested in reserving my ZIP code on the FAN. Is it $100 for every ZIP code?"

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

"There is no amount of money that makes time irrelevant." -Mark Dolfini

FAR 256 Opening:

Today we are talking about Opportunity Zones. You may have heard about them. You might have even heard they are the next BIG thing in real estate investing. They represent a tax break for real estate investors as an incentive to bring economic development to underserved areas. I had a chance to speak with Jillian Sidoti and Nancy Tegeder of the law firm of Trowbridge and Sidoti out of southern California.

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

News: Opportunity Zones

Ram Realty CEO isn’t buying into Opportunity zones, says “Anyone who has [Opportunity Zone properties] for development thinks they’re sitting on gold, but if you are trying to underwrite and make sense of the project with today’s rents and costs, it’s very challenging for these areas”

https://therealdeal.com/miami/2019/05/10/ram-realty-ceo-isnt-buying-into-opportunity-zones/

 

Fund sponsors and their investors began buying assets in Opportunity Zones en masse this past month, their enthusiasm triggered by the U.S. Treasury's mid-April release of a second tranche of proposed regulations for the tax-sheltering vehicles.

https://financialadvisoriq.com/c/2285063/278413

 

U.S. Opportunity zones are incredible tax savings zone for Entrepreneurs.

https://www.forbes.com/sites/theyec/2019/03/25/u-s-opportunity-zones-incredible-tax-savings-for-entrepreneurs/#42d78b9f5e6a

 

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) designated Opportunity Zones in 18 States.

https://home.treasury.gov/news/press-releases/sm0341

 

Top 10 opportunity zones in the US

https://fundrise.com/education/blog-posts/the-top-10-opportunity-zones-in-the-united-states

 

Facts about Opportunity zones

https://taxfoundation.org/opportunity-zones-what-we-know-and-what-we-dont/

 

The Opportunity zone program in New York State

https://esd.ny.gov/opportunity-zones

 

Trump’s Opportunity zone rules deliver on investors’ wish list

https://www.bloomberg.com/news/articles/2019-04-17/opportunity-zone-rules-aim-to-draw-capital-to-distressed-areas

 

Treasury issues second set of highly anticipated opportunity zones guidance

https://home.treasury.gov/news/press-releases/sm660

 

In a former warehouse on a dimly lit street in the South Bronx, developers sipping Puerto Rican moonshine listened as a local official urged them to capture a new U.S. tax break by rebuilding the decaying neighborhood.

https://www.investmentnews.com/article/20190115/FREE/190119959/fervor-over-opportunity-zones-heats-up

 

The U.S. Department of the Treasury and Internal Revenue Service (IRS) approved Michigan’s application for Opportunity Zones -- areas eligible for tax benefits aimed at spurring private investment, economic growth and jobs in the state’s distressed communities.

https://www.michigan.gov/mshda/0,4641,7-141-7559_9637-465897--,00.html

 

Ben Carson explains benefits of investing in 'Opportunity Zones' for areas facing economic challenges

https://www.foxnews.com/politics/ben-carson-opportunity-zones-low-income-americans

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EXTRAS

Opportunity zones resource center

https://www.novoco.com/resource-centers/opportunity-zones-resource-center

 

Opportunity zones map tool

https://www.enterprisecommunity.org/resources/opportunity-zone-eligibility-map-tool

The Real Estate Opportunity Zone Meeting

https://www.rclco.com/event/the-real-estate-opportunity-zone-meeting/

Speaker: Eric Willett

Email: [email protected]

Phone: 310-752-9032

 

Special Guest: Your Questions: Send emails to [email protected]

• Carlton, Chicago, IL “I’m getting back into investing and thinking about Atlanta. What are the opportunities I should be considering there?”
• Tracy, Senoia, GA “I’m interested in reserving my ZIP code on the FAN. Is it $100 for every ZIP code?”

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

“There is no amount of money that makes time irrelevant.”
-Mark Dolfini

A few days ago we got a question from Lamar asking, "What questions should new investors be asking?" We liked the question so much we decided to make an entire episode out of it. We conducted a survey online and got some interesting responses which I will share plus I will weigh in. Here's why this is important. If you are new, you need to make sure that your first project has the best chance of succeeding. In order to do that, you must engage in risk mitigation. And how do you do that? Ask questions. Ask a lot of them. Don't be afraid to be new. Everyone was at some point. The question may be obvious, even to you, but ask it if you don't know or are unsure. Today I'm going to focus on questions that may not be so obvious to you, the newbie, that we all wish we WOULD have asked if we had known.

Plus we have news about the world of real estate coming up in just a few minutes.

How to contact us

www.RogerBlankenship.com

Facebook.com/flippingamericamedia

Twitter and Instagram @FlippingAmerica

Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to [email protected]. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don't mind.

Announcements:

• Lunch with me every Wednesday. Baraonda
• My latest article in Forbes is out. bit.ly/findredeals.
• The FAN is here!
• Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That's right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It's a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
• Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.

Real Estate News-

Local News

The biggest mall owner in the US 'can't guarantee' there won't be more retail wreckage this year

https://www.cnbc.com/2019/04/30/us-mall-owner-simon-property-group-reports-first-quarter-2019-earnings.html

One of the most valuable malls in America is getting a makeover

https://www.cnbc.com/2019/04/30/westfields-garden-state-plaza-mall-is-getting-a-makeover.html

Rising rents for Millennials give rise to a new breed of lender

https://www.realtor.com/news/real-estate-news/rising-rents-for-millennials-give-rise-to-a-new-breed-of-lender/

CIM Group has announced that its $5 billion development of apartments, offices, hotels and retail at The Gulch will be called Centennial Yards.

https://atlantaintownpaper.com/2019/05/real-estate-briefs-gulch-project-named-centennial-yards/

National News

Do you consider your home a great investment?

https://www.cnbc.com/2019/05/22/do-you-consider-your-home-a-great-investment-think-again.html

26 year old millionaire investor talks about the mistakes he made while buying homes

https://www.cnbc.com/2019/05/23/self-made-millionaire-investor-dont-make-the-huge-homebuying-mistake-i-made.html

Home sales fell in April despite a big drop in mortgage rates

https://www.cnbc.com/2019/05/21/home-sales-fell-in-april-despite-a-big-drop-in-mortgage-rates.html

The most splendid housing bubbles in America

https://seekingalpha.com/article/4258900-splendid-housing-bubbles-america-april-update

International News

Real Estate firm names the top cities for risk-seeking investors

https://www.cnbc.com/2019/05/01/real-estate-firms-names-the-top-cities-for-risk-seeking-investors.html

China-owned tower in New York City reportedly wouldn't let Amnesty International move in

https://www.cnbc.com/2019/05/14/china-owned-nyc-tower-reportedly-blocked-amnesty-international-lease.html

Venture Capital flows between China and the US surpass direct investment for the first time

https://www.cnbc.com/2019/05/08/venture-capital-flows-between-us-china-surpass-direct-investment.html

The Questions new investors ought to be asking:

• From our friends:
  • Bryan "How do I determine the finished value of my flip home before I begin repairs?
  • Cindy "Could my resources (time, money, skills, etc) produce a better outcome sooner if used elsewhere?"
  • Stewart "How do you quickly determine the cost of repairs to determine if it's a good deal or not? (I'm assuming there's other interest and there's little/no time for due diligence)"
  • Tom: "Why am I doing this? The answer has to be more than 'make money.'"
  • Victoria: "Do the numbers really work or am I working the numbers?"
  • Jeff: "Am I prepared to lose the money I am investing? Never invest money you can't afford to lose."
  • Damion: "How do you pull comps if you're not a realtor?"
  • Pat: "Is there an app that includes both repairs AND comps?" :)
• From Roger:
  • What type of investment is this? (one time income, cash-flow, appreciation, speculation?)
  • When should I expect to see returns?
  • How liquid is my cash?
  • How could this deal bite me in the fanny? In other words, What are the risks and how are they mitigated?
  • What happens if things get sideways?
  • What are the numbers I need to know and how can I know them?
  • What's Plan B?
    • Pricing alternative
    • Alternative funding source?
    • Alternative exit strategy?
    • Backup Contractor?
  • What is the pricing trend (rents or sales, depending on your exit plan)?
  • For flips, what is the average DoM for this price range in this area?
  • For rentals, what is the long-term outlook for this neighborhood? Which way is it heading? (the best hoods are those that are immune to value swings)
  • For rentals, how are the schools?
  • For AirBnB, are there any rumblings in local government that threaten this business model?
  • If investing cash in someone else's deal
    • What is that person's experience?
    • What is that person's reputation?
    • Do we have values alignment?

Questions

• Sandra, Kansas City, MO, "How do you get in and see all the properties around the country you and your investors are buying?"

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

• "It does not matter how slowly you go as long as you do not stop."
• - Confucius