Flipping America

Hello Everyone and welcome to Flipping America. Today we are going to talk about how to get started as a Real Estate investor. I'm going to break down some of the big steps for you in the next few minutes. Then we are going to explore what you do when you don't see the opportunities in your area. Jennifer Beadles is in Seattle but she invests east of the Mississippi. Stay tuned as I talk with her about the process of setting up a remote investing business. Thanks for tuning in and we hope you'll stay tuned as we try to bring you the best news and information to help you grow your real estate investing business.

Hello Everyone and welcome to Flipping America. Today we are going to talk about how to get started as a Real Estate investor. I'm going to break down some of the big steps for you in the next few minutes. Then we are going to explore what you do when you don't see the opportunities in your area. Jennifer Beadles is in Seattle but she invests east of the Mississippi. Stay tuned as I talk with her about the process of setting up a remote investing business. Thanks for tuning in and we hope you'll stay tuned as we try to bring you the best news and information to help you grow your real estate investing business.

Guests Today: Desktop Investing with Jon Ionatti Multi-Family Investing with Juan Pablo

Guests Today: Desktop Investing with Jon Ionatti Multi-Family Investing with Juan Pablo

Questions from listeners:

From Bob in Long Beach California: I'm looking at a possible rental property. The rent is about $750 per month less than the payment but I feel like long-term this will be a good investment for me. What are your thoughts?

Research: The median home value in Long Beach is $544,600. Long Beach home values have gone up 6.8% over the past year and Zillow predicts they will rise 0.8% within the next year. The median list price per square foot in Long Beach is $407, which is higher than the Los Angeles-Long Beach-Anaheim Metro average of $394. PITI payment about 2700.

The median rent price in Long Beach is $2,125,

Indianapolis: The median price of homes currently listed in Indianapolis Metro is $164,900. The median rent price in Indianapolis Metro is $1,100, which is higher than the Indiana median of $1,000. PITI: $725

Derek from Atlanta wrote in: "I'm having a really hard time finding a deal in Atlanta. The market is so hot here whenever a property is listed, there are usually multiple offers the same day." Suggestions?

1. If a market is that hot, it's because of low inventory. This is a good time to be a builder or to invest in one.

2. Deals are still out there even though they are harder to find.

   1. MLS may not be the best source.

   2. Driving for dollars

   3. Deal marketing

   4. Pre-foreclosure marketing

3. Move away from the metro area - look to outlying counties. Study population stats - go where it's growing, but not over-heated.

4. Consider other areas completely. Keep listening to this show or sign up for one of our courses and learn how to flip properties in other state.

5. This is the un-sexy part of being a real estate investor. Sometimes it just seems like work.

Francis from Pittsburgh PA writes in with this question. "I found a great deal. A friend of mine needs to get rid of his house quickly because he got transferred. We spoke to a realtor who said it's worth probably $160,000. He's willing to sell it to me for $130,000. All it needs is interior paint and a kitchen makeover. What do I do now?

This isn't a deal if you plan to fix and flip.

If you want to move in, probably fine.

Candidate for a subject-to purchase or take control with a lease option and flip that. Too many details for the time we have here, but do not buy this house thinking you will fix and flip it for a profit.

If you have questions, we have answers or can find them. Send your questions to [email protected]. We don't do tax or legal advice on this show and anything you hear that sounds like that wasn't intended to be that. We are just providing education and using examples for illustration.

We are the real estate investing resource for you. If you need deals, we have them all over the country. If you need training, we have that. Do you need funding? We can do that. How about a combination of training and funding? We can do that. Don't want to do the work but want to make great returns by investing in someone who is getting it done? We can help you there as well. Whatever you need for real estate investing, if we can help you, we will. You can reach me directly at [email protected].

How to become a millionaire with real estate:

1. Cash Flow

2. Appreciation (including forced appreciation)

3. Loan pay-down

4. Tax benefits

Show Guest:

Vincent Polisi

Questions from listeners:

From Bob in Long Beach California: I’m looking at a possible rental property. The rent is about $750 per month less than the payment but I feel like long-term this will be a good investment for me. What are your thoughts?

 

Research: The median home value in Long Beach is $544,600. Long Beach home values have gone up 6.8% over the past year and Zillow predicts they will rise 0.8% within the next year. The median list price per square foot in Long Beach is $407, which is higher than the Los Angeles-Long Beach-Anaheim Metro average of $394. PITI payment about 2700.

 

The median rent price in Long Beach is $2,125,

 

Indianapolis: The median price of homes currently listed in Indianapolis Metro is $164,900. The median rent price in Indianapolis Metro is $1,100, which is higher than the Indiana median of $1,000. PITI: $725

 

Derek from Atlanta wrote in: “I’m having a really hard time finding a deal in Atlanta. The market is so hot here whenever a property is listed, there are usually multiple offers the same day.” Suggestions?

1. If a market is that hot, it’s because of low inventory. This is a good time to be a builder or to invest in one.

2. Deals are still out there even though they are harder to find.

   1. MLS may not be the best source.

   2. Driving for dollars

   3. Deal marketing

   4. Pre-foreclosure marketing

3. Move away from the metro area - look to outlying counties. Study population stats - go where it’s growing, but not over-heated.

4. Consider other areas completely. Keep listening to this show or sign up for one of our courses and learn how to flip properties in other state.

5. This is the un-sexy part of being a real estate investor. Sometimes it just seems like work.

 

Francis from Pittsburgh PA writes in with this question. “I found a great deal. A friend of mine needs to get rid of his house quickly because he got transferred. We spoke to a realtor who said it’s worth probably $160,000. He’s willing to sell it to me for $130,000. All it needs is interior paint and a kitchen makeover. What do I do now?

This isn’t a deal if you plan to fix and flip.

If you want to move in, probably fine.

Candidate for a subject-to purchase or take control with a lease option and flip that. Too many details for the time we have here, but do not buy this house thinking you will fix and flip it for a profit.

 

If you have questions, we have answers or can find them. Send your questions to [email protected].  We don’t do tax or legal advice on this show and anything you hear that sounds like that wasn’t intended to be that. We are just providing education and using examples for illustration.

 

We are the real estate investing resource for you. If you need deals, we have them all over the country. If you need training, we have that. Do you need funding? We can do that. How about a combination of training and funding? We can do that. Don’t want to do the work but want to make great returns by investing in someone who is getting it done? We can help you there as well. Whatever you need for real estate investing, if we can help you, we will. You can reach me directly at [email protected].   

 

How to become a millionaire with real estate:

 

1. Cash Flow

2. Appreciation (including forced appreciation)

3. Loan pay-down

4. Tax benefits

 

Show Guest:

Vincent Polisi

Alison Feliciano at 5 Credit Restoration Mark Hall. As always I am going to share some investing tips for you and answer a few questions. Later in the show I'm going to tell you why I prefer RE investing to stocks. But first let's check some emails. Wrap up with about 7 minutes Open: Mailbag: From Tyler in Tampa, FL. "Roger do you have some guidance for what you would pay for a rental property and where you would buy it?"

1. Rent times 60 is almost always a good deal.
2. Stable neighborhood or one with upside.
3. Avoid chronically bad parts of town. Who wants to live there? Only people who want that lifestyle or who can't afford to get anywhere else. Our heart goes out to good people who are struggling financially. Been there done that. We can do things to help out in other ways including support for local and national housing charities. But this is business and it is not a good business decision to own assets in areas like this.
4. Small low maintenance homes. - brick is great.
5. Duplex, Triplex, Quad - usually excellent choices.
6. The town doesn't matter that much to me as long as I can find good property management. I recommend you secure the property manager before you close on the purchase. I also recommend purchasing multiple properties in the same area if possible to get you preferred treatment from the property management.

From Virginia in Atlanta, GA. "Roger I need some help. I am a real estate agent and I see properties out there that look like a good deal, and I know I want to get involved in investing, but I'm nervous. I haven't done this before and even though I know a lot about the transaction, I don't know for sure whether I can make money and I don't know how to get the rehab done correctly and most of all, I don't have enough cash to buy the property and fix it. Is there anything I can do and if so, what?" Virginia that's a GREAT question. I hear this one probably more than any other.