Flipping America

FAR 038 Topics: Real Estate News Investor Uh-Ohs Contractor Fails Investing SCAMS The Trader’s Top Questions :

1. What is the acquisition cost?
2. What are the holding / improvement costs?
3. What is the selling price?
4. What will the cash outlay be if I use leverage?
5. What is the return on investment?
6. What is the return on my cash?
7. What is my return on effort?
   1. Wages, whether salaried or hourly are 1 to 1.
      1. Hours
      2. Time
      3. Completed work
   2. Start a small business and to begin with it’s as low as ½ to 1.
      1. Add employee to get back to 1 to 1.
      2. Each employee slightly reduces your effort to increase your bottom line.Capitalism is based on the exchange of effort for a living wage. The employer pays a fair wage but it always less than the return that employee will ultimately bring to the company.
   3. Active real estate investing (flipping) still involves effort, but opens up returns in the form of unlocked equity or value creation through improvement.
   4. Active rental investing requires effort but theoretically offers more rewards than exchanging that effort with someone else.
   5. Passive investment has a return of many to 1. Hard to quantify, but the continuing effort put forth is small in comparison to the return.

Emails: Toni from Orlando: How do I decide whether to install hardwoods or just replace the carpet? Carpet is significantly cheaper. Chastity from Dallas, GA: We bought a house where the old garage has been converted into a family room. The room really adds some needed interior space, but it was poorly done and not to code. It will cost as much to make it right as it would to just make it back into a garage. What would you do? Evan from Harrisburg, PA: I have a found what looks like a good funding source online. They say they will provide capital for my business and funding for my deals. I filled out the paperwork and then they told me I just needed to submit $2500 to process the account and set the paperwork up. Bob from Pittsburgh, PA: Should I use one of those 25 year paint products for the exterior of my flip house or just paint it? Francis from Denver: We bought an old one - got into it and found major problems that the GC missed in his original estimates. No way we can make money now. What do we do?

FAR 039 Topics: Real Estate News Investor Uh-Ohs Contractor Fails Investing SCAMS How do I calculate the costs of my deal? Emails: Arianna from Long Beach: "I keep hearing about the 90-day flip rule. What is it? How does it affect me as an investor?" Dennis from Denver, "I'm confused by all of the terms of a hard money loan. Can you explain what they mean and how it works? How can I know what this is really costing me?" ARV CV LTV TLTV Points Rate Term Look for: % of purchase funded % of rehab funded Funding limit (as a % of the total project cost) Additional fees: Draw fees? (inspection - $125-150 is reasonable). Loan processing fees? Doc fees? Blah blah blah fees? Ken from Milwaukee, "You've mentioned on the show that you know your daily cost of a project. How do you calculate that?"

FAR 039 Topics: Real Estate News Investor Uh-Ohs Contractor Fails Investing SCAMS How do I calculate the costs of my deal? Emails: Arianna from Long Beach: “I keep hearing about the 90-day flip rule. What is it? How does it affect me as an investor?” Dennis from Denver, “I’m confused by all of the terms of a hard money loan. Can you explain what they mean and how it works? How can I know what this is really costing me?” ARV CV LTV TLTV Points Rate Term   Look for: % of purchase funded % of rehab funded Funding limit (as a % of the total project cost) Additional fees: Draw fees? (inspection - $125-150 is reasonable). Loan processing fees? Doc fees? Blah blah blah fees?   Ken from Milwaukee, “You’ve mentioned on the show that you know your daily cost of a project. How do you calculate that?”

FAR 040 Topics: Real Estate News Investor Uh-Ohs Contractor Fails Investing SCAMS Emails: Dennis from Wauwatosa, WI, "There seems to be a bunch of different types of deeds out there. Can you explain what they are and the differences?"

• General and Special Warranty (Limited)
• Bargain and Sale Deed (Sheriff's sale)
• Quitclaim Deed
• Foreclosure Deed / Deed Under Power
• Deed of Trust
• Deed in Lieu
• Security Deed - Deed to Secure Debt.

Frannie from Long Beach, "I have a lot of equity in my house. Is there a way I can tap into that to do a real estate deal?" Don from San Diego and many others. "Please explain about Subject-To Financing. What is it, how would I do it, why would I want to?" Patricia from Monroeville, PA, "Please explain the mortgage wrap and how it might be a way to buy a property."

FAR 040 Topics: Real Estate News Investor Uh-Ohs Contractor Fails Investing SCAMS Emails: Dennis from Wauwatosa, WI, “There seems to be a bunch of different types of deeds out there. Can you explain what they are and the differences?”  

• General and Special Warranty (Limited)
• Bargain and Sale Deed (Sheriff’s sale)
• Quitclaim Deed
• Foreclosure Deed / Deed Under Power
• Deed of Trust
• Deed in Lieu
• Security Deed - Deed to Secure Debt.

Frannie from Long Beach, “I have a lot of equity in my house. Is there a way I can tap into that to do a real estate deal?” Don from San Diego and many others. “Please explain about Subject-To Financing. What is it, how would I do it, why would I want to?” Patricia from Monroeville, PA, “Please explain the mortgage wrap and how it might be a way to buy a property.”

FAR 041 Today we have a guest in the studio who is a start-up funding specialist. Ed Bogle has worked in the banking and financial sectors his entire career and for the past several years has been a consultant for small businesses seeking strategic planning and capital formation. Emails: Patricia from Monroeville, PA, "Please explain the mortgage wrap and how it might be a way to buy a property." Cynthia from Ft. Wayne, IN, "I heard someone talking about gap funding. Are you familiar with this? Sounds like a scam to me." Interview Guests: Ed Bogle

FAR 041 Today we have a guest in the studio who is a start-up funding specialist. Ed Bogle has worked in the banking and financial sectors his entire career and for the past several years has been a consultant for small businesses seeking strategic planning and capital formation. Emails: Patricia from Monroeville, PA, “Please explain the mortgage wrap and how it might be a way to buy a property.” Cynthia from Ft. Wayne, IN, “I heard someone talking about gap funding. Are you familiar with this? Sounds like a scam to me.” Interview Guests: Ed Bogle

FAR 153 Expected Air Date: 05/17/18 Opening What has life handed you? Is it really that easy to make lemonade when life is a bowl of sour cherries? Today I'm going to share with you an essay I've written on the subject of Choices. Our lives and even our eternal fates are completely dictated by choices. I would say more but I'll save it for when we get to the topic. Thanks for joining us today. On this show we try to give you the most complete and up-to-date information about real estate, real estate marketing, and real estate investing. We bring you the news, the trends, the styles, the markets, and the demographics to help you have an edge. We don't encourage 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 a balanced investment portfolio. On this show we have documented at least 85 ways to make money in real estate, but they all boil down to 3 broad categories. 1. Active purchase and re-sell, 2. Buy and hold for cash flow. And 3. Passive strategies including lending, partnerships and REITs. We can help you tailor an investment strategy around your personal goals, needs, and life situation. And we do this for free. All you need to do is go to the website, flippingamericanetwork.com and click on the big blue button that says "Click here for a strategy session". How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

• Lunch with me every Wednesday. Yesterday was the last day at Baraonda for awhile. We have opened up offices in Sandy Springs and moved our studio. So we will be doing our lunch networking at a place closer to the new offices and studio. Stay tuned for the exact location.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and soon the entire catalog of shows will be 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!

• http://www.cbc.ca/news/canada/british-columbia/greater-vancouver-s-luxury-real-estate-market-is-softening-report-shows-1.4656221
• https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/10/how-do-you-find-money-for-real-estate-investing/&refURL=https://news.google.com/&referrer=https://news.google.com/
• http://www.heraldtribune.com/news/20180509/florida-real-estate-market-healthy-but-challenged
• https://www.cnbc.com/video/2018/05/10/tax-reform-effects-beginning-to-positively-affect-real-estate-investors-says-ceo.html
• https://www.forbes.com/sites/elyrazin/2018/05/09/good-jobs-numbers-signal-extended-economic-recovery-and-these-real-estate-segments-could-benefit/#52b6a9a86ee8
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/09/is-your-401k-jeopardizing-your-future-invest-in-real-estate-to-quadruple-your-returns/#5b561f8974cd
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/14/identify-your-niche-to-usher-in-real-estate-investing-success/#1e08e1ce3b89
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/15/seven-steps-to-protect-yourself-from-private-real-estate-investing-mistakes/#625c50ea14cd
• https://www.forbes.com/sites/panosmourdoukoutas/2018/05/14/bitcoin-gold-stocks-bonds-or-real-estate-which-is-the-best-investment-to-build-wealth/#2b6dbf9f51ae

Topic: Choices In life there are laws and then there are implicit rules. For example, gravity is a law - and it will happen whether you believe it or not. Retaliation is an implicit rule. We naturally think that it is the only option we have. On the basketball court one player pushes another. The other pushes back harder. The first player throws a punch. Other players jump in, punches thrown, benches clear and the brawl is on. But retaliation is NOT a law. Not one of the participants HAD to jump in. Those that did, made a conscious decision to do so. Wait, what? We often respond so quickly it just seems automatic. You lash out at me, I lash back. You cut me off in traffic, I'm obliged to show you the results of your last IQ test. We respond without thinking, so how are we supposed to control that? I submit that you react that way because you've already done your thinking. And somewhere along the way you've concluded that retaliation is your only choice. Not only are you wrong, you are living your life under the control of anyone who might press your pre-determined trigger. Has anyone ever deeply wronged you? They made you angry right? You were angry and there was nothing you could do - the decision was completely out of your hands. So you had no choice but to be angry for like - a day or two - or a week - or five minutes. How long were you angry? Well that depended on the severity of the injustice right? Or whether something else distracted you? Or something nice happened that changed your mood? So what will it be? Angry for 5 minutes, a week, or the rest of your life? The extent of your anger is the full extent of that person's power over you. Okay okay, what about something like sadness? Have you ever lost someone you love to death due to unexpected circumstances? There can be a sadness that grips your life and profoundly impacts the way you live the rest of your days. Unavoidable right? No one plans on bad things happening in their lives, but we somehow instinctively accept that when these things happen, our lives are controlled by them. This may come as a surprise to you but this is not true. You are not a victim of your circumstances or even other people's choices. You always have a choice about how to respond to whatever life hands you. Now I'm not saying it's easy, especially if you are not used to living this way, but you DO have a choice and what you choose matters. What you choose to think, to act, or to react, is the sole determiner of the outcomes of your life. Life is 100% choices. In today's world, your mother even had a choice about whether to bring you into this world. Here's a challenging thought for you. From about age 15 onward, your life is increasingly the direct result of the choices you have made and are making. Someone right now is saying, "but Roger you don't understand my circumstances." That's probably true but it doesn't matter. Your current circumstances exist largely because of your choices and your way out, around, over of through those circumstances will come from the choices you make going forward. Yes you have circumstances, I have circumstances. We ALL have circumstances. But whether you remain "under the circumstances" is a personal decision. You can choose not to be under them. You can choose something else. If your life is filled with drama, it's because you choose and even embrace drama. If your life is a struggle, it's because you choose and embrace struggle. If your life is peace, it's because you have chosen peace. If life for you is filled with complexity, it is due to the fact that you have added complexity to the simple process of breathing. Can it really be that simple? Nah - unless you think it can be. If you think it has to be tough, it will be. If you think you need to be sad, you will be. If you think you are content with wherever you are and whatever you have, you will be. This is true whether your choices are positive or negative. This fundamental reality doesn't rise to the level of self-fulfilling prophecy. Deciding you will respond to injustice with rational thought rather than out-of-control anger is a choice that is manifested immediately by rational thought. If you choose to focus on the things that anger you, you will be angry. If you choose to focus on the things for which you are grateful, you will be grateful. Should you somehow try to condition your brain to ignore everything negative in your life? Quite the opposite. You can't do that and you really shouldn't. Some of the negative things coming your way are warnings. Don't ignore the negatives, don't ignore injustice, don't ignore your feelings. Embrace these inputs into your life with a determination to respond to them with intentionality. Occasionally anger is the proper response. But this is best delivered through the filter of reason and self-control. Sadness and loss are givens in this life. Embrace this as a part of life. Feel the feelings deeply within you. Recognize the inevitability of loss and focus on the sadness as a teacher, allowing catharsis, and showing the contrasting value of the moments of joy. Choices have consequences. Small or large, every decision has consequences. They aren't always easy to predict, but most are much easier than we think. Choose to live beyond your means and you'll always be broke and financially stressed. Choose to spend your time with others who wreck their own lives with bad decisions and you will find yourself entangled in the wreckage. Spend time with people you admire and you'll be more like them. Seek out people who are smarter, or who have the type of life you seek and you'll find yourself on that path. It's up to you. Don't tell me "but I love him/her." This too is a choice. Love is not some cosmic force that overpowers you. You tend to love based on previous choices you've made about your ideal companion. I do believe in love at first sight, but even that love is determined by standards, conditions, and desires that both parties had established beforehand. I tell my wife frequently that I've been in love with her since my teen years although I didn't meet here until after I was 50 years old. I can say this because I had an image of my ideal life partner. It took awhile to find her. Your current circumstances are the direct result of the choices you have made up to today. Your future will be the direct result of the choices you are about to make. So choose wisely. Motivational Thoughts for the day

• If your ship doesn't come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: [email protected] Tell us where you're from!

• Candace from Kennesaw, GA, from lunch yesterday, "We are looking to get started, should we focus on wholesaling or fixing and flipping?"
• Hector, Topeka, KS "Please tell us when you'll be holding your next FlipStarter. Are you coming to middle America anytime soon?"
• Emma from Austin, TX "I'm about to buy my first rental. I'm following the exact process suggested by a local guru here in Austin. I'm buying the property for $149,000. I'm prepared to make a $30,000 down payment. The loan amount would be $120,000. My principle and interest payment is $638. The rent on the house is $1000/month. This seems like it works to me but (mega-bank) won't approve the loan. I have a 750 credit score, and good income. But they cited two reasons:
  • Debt to income ratio: insufficient income.
  • Debt service coverage ratio is insufficient. What the heck is debt service coverage ratio? I looked it up but don't understand what I'm reading and why didn't the guru talk about this? When I asked the banker she told me she just processed the loan and didn't make the decision, but it has something to do with a 30% expense factor. None of this makes sense to me.
  • DSCR = NOI / debt costs. 8400 / 7656 = 1.09
• Francine, Long Beach CA, "If you were buying rental properties anywhere in the US, it probably wouldn't be CA. Where would it be?"

FAR 153 Expected Air Date: 05/17/18 Opening What has life handed you? Is it really that easy to make lemonade when life is a bowl of sour cherries? Today I’m going to share with you an essay I’ve written on the subject of Choices. Our lives and even our eternal fates are completely dictated by choices. I would say more but I’ll save it for when we get to the topic. Thanks for joining us today. On this show we try to give you the most complete and up-to-date information about real estate, real estate marketing, and real estate investing. We bring you the news, the trends, the styles, the markets, and the demographics to help you have an edge. We don’t encourage 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 a balanced investment portfolio. On this show we have documented at least 85 ways to make money in real estate, but they all boil down to 3 broad categories. 1. Active purchase and re-sell, 2. Buy and hold for cash flow.  And 3. Passive strategies including lending, partnerships and REITs. We can help you tailor an investment strategy around your personal goals, needs, and life situation. And we do this for free. All you need to do is go to the website, flippingamericanetwork.com and click on the big blue button that says “Click here for a strategy session”. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

• Lunch with me every Wednesday. Yesterday was the last day at Baraonda for awhile. We have opened up offices in Sandy Springs and moved our studio. So we will be doing our lunch networking at a place closer to the new offices and studio. Stay tuned for the exact location.
• Flipping America App is in the app store. You can listen to the show, read the show notes, and soon the entire catalog of shows will be 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!

• http://www.cbc.ca/news/canada/british-columbia/greater-vancouver-s-luxury-real-estate-market-is-softening-report-shows-1.4656221
• https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/10/how-do-you-find-money-for-real-estate-investing/&refURL=https://news.google.com/&referrer=https://news.google.com/
• http://www.heraldtribune.com/news/20180509/florida-real-estate-market-healthy-but-challenged
• https://www.cnbc.com/video/2018/05/10/tax-reform-effects-beginning-to-positively-affect-real-estate-investors-says-ceo.html
• https://www.forbes.com/sites/elyrazin/2018/05/09/good-jobs-numbers-signal-extended-economic-recovery-and-these-real-estate-segments-could-benefit/#52b6a9a86ee8
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/09/is-your-401k-jeopardizing-your-future-invest-in-real-estate-to-quadruple-your-returns/#5b561f8974cd
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/14/identify-your-niche-to-usher-in-real-estate-investing-success/#1e08e1ce3b89
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/15/seven-steps-to-protect-yourself-from-private-real-estate-investing-mistakes/#625c50ea14cd
• https://www.forbes.com/sites/panosmourdoukoutas/2018/05/14/bitcoin-gold-stocks-bonds-or-real-estate-which-is-the-best-investment-to-build-wealth/#2b6dbf9f51ae

Topic: Choices In life there are laws and then there are implicit rules. For example, gravity is a law - and it will happen whether you believe it or not. Retaliation is an implicit rule. We naturally think that it is the only option we have. On the basketball court one player pushes another. The other pushes back harder. The first player throws a punch. Other players jump in, punches thrown, benches clear and the brawl is on. But retaliation is NOT a law. Not one of the participants HAD to jump in. Those that did, made a conscious decision to do so. Wait, what? We often respond so quickly it just seems automatic. You lash out at me, I lash back. You cut me off in traffic, I’m obliged to show you the results of your last IQ test. We respond without thinking, so how are we supposed to control that? I submit that you react that way because you’ve already done your thinking. And somewhere along the way you’ve concluded that retaliation is your only choice. Not only are you wrong, you are living your life under the control of anyone who might press your pre-determined trigger. Has anyone ever deeply wronged you? They made you angry right? You were angry and there was nothing you could do - the decision was completely out of your hands. So you had no choice but to be angry for like - a day or two - or a week - or five minutes. How long were you angry? Well that depended on the severity of the injustice right? Or whether something else distracted you? Or something nice happened that changed your mood? So what will it be? Angry for 5 minutes, a week, or the rest of your life? The extent of your anger is the full extent of that person’s power over you. Okay okay, what about something like sadness? Have you ever lost someone you love to death due to unexpected circumstances? There can be a sadness that grips your life and profoundly impacts the way you live the rest of your days. Unavoidable right? No one plans on bad things happening in their lives, but we somehow instinctively accept that when these things happen, our lives are controlled by them. This may come as a surprise to you but this is not true. You are not a victim of your circumstances or even other people’s choices. You always have a choice about how to respond to whatever life hands you. Now I’m not saying it’s easy, especially if you are not used to living this way, but you DO have a choice and what you choose matters. What you choose to think, to act, or to react, is the sole determiner of the outcomes of your life. Life is 100% choices. In today’s world, your mother even had a choice about whether to bring you into this world. Here’s a challenging thought for you. From about age 15 onward, your life is increasingly the direct result of the choices you have made and are making. Someone right now is saying, “but Roger you don’t understand my circumstances.” That’s probably true but it doesn’t matter. Your current circumstances exist largely because of your choices and your way out, around, over of through those circumstances will come from the choices you make going forward. Yes you have circumstances, I have circumstances. We ALL have circumstances. But whether you remain “under the circumstances” is a personal decision. You can choose not to be under them. You can choose something else. If your life is filled with drama, it’s because you choose and even embrace drama. If your life is a struggle, it’s because you choose and embrace struggle. If your life is peace, it’s because you have chosen peace. If life for you is filled with complexity, it is due to the fact that you have added complexity to the simple process of breathing. Can it really be that simple? Nah - unless you think it can be. If you think it has to be tough, it will be. If you think you need to be sad, you will be. If you think you are content with wherever you are and whatever you have, you will be. This is true whether your choices are positive or negative. This fundamental reality doesn’t rise to the level of self-fulfilling prophecy. Deciding you will respond to injustice with rational thought rather than out-of-control anger is a choice that is manifested immediately by rational thought. If you choose to focus on the things that anger you, you will be angry. If you choose to focus on the things for which you are grateful, you will be grateful. Should you somehow try to condition your brain to ignore everything negative in your life? Quite the opposite. You can’t do that and you really shouldn’t. Some of the negative things coming your way are warnings. Don’t ignore the negatives, don’t ignore injustice, don’t ignore your feelings. Embrace these inputs into your life with a determination to respond to them with intentionality. Occasionally anger is the proper response. But this is best delivered through the filter of reason and self-control. Sadness and loss are givens in this life. Embrace this as a part of life. Feel the feelings deeply within you. Recognize the inevitability of loss and focus on the sadness as a teacher, allowing catharsis, and showing the contrasting value of the moments of joy. Choices have consequences. Small or large, every decision has consequences. They aren’t always easy to predict, but most are much easier than we think. Choose to live beyond your means and you’ll always be broke and financially stressed. Choose to spend your time with others who wreck their own lives with bad decisions and you will find yourself entangled in the wreckage. Spend time with people you admire and you’ll be more like them. Seek out people who are smarter, or who have the type of life you seek and you’ll find yourself on that path. It’s up to you. Don’t tell me “but I love him/her.” This too is a choice. Love is not some cosmic force that overpowers you. You tend to love based on previous choices you’ve made about your ideal companion. I do believe in love at first sight, but even that love is determined by standards, conditions, and desires that both parties had established beforehand. I tell my wife frequently that I’ve been in love with her since my teen years although I didn’t meet here until after I was 50 years old. I can say this because I had an image of my ideal life partner. It took awhile to find her. Your current circumstances are the direct result of the choices you have made up to today. Your future will be the direct result of the choices you are about to make. So choose wisely. Motivational Thoughts for the day

• If your ship doesn’t come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: [email protected] Tell us where you’re from!

• Candace from Kennesaw, GA, from lunch yesterday, “We are looking to get started, should we focus on wholesaling or fixing and flipping?”
• Hector, Topeka, KS “Please tell us when you’ll be holding your next FlipStarter. Are you coming to middle America anytime soon?”
• Emma from Austin, TX “I’m about to buy my first rental. I’m following the exact process suggested by a local guru here in Austin. I’m buying the property for $149,000. I’m prepared to make a $30,000 down payment. The loan amount would be $120,000. My principle and interest payment is $638. The rent on the house is $1000/month. This seems like it works to me but (mega-bank) won’t approve the loan. I have a 750 credit score, and good income. But they cited two reasons:
  • Debt to income ratio: insufficient income.
  • Debt service coverage ratio is insufficient. What the heck is debt service coverage ratio? I looked it up but don’t understand what I’m reading and why didn’t the guru talk about this? When I asked the banker she told me she just processed the loan and didn’t make the decision, but it has something to do with a 30% expense factor. None of this makes sense to me.
  • DSCR = NOI / debt costs. 8400 / 7656 = 1.09
• Francine, Long Beach CA, “If you were buying rental properties anywhere in the US, it probably wouldn’t be CA. Where would it be?”

FAR 152 Expected Air Date: 05/14/18 Opening Guest EMCEE Mike Smith "Live from Atlanta, Georgia, it's Flipping America!" Hey everybody, how's it going? We are happy to be back with a live group for Flipping Atlanta, the local meetup chapter for Flipping America. We have a great show lined up for you today. As you know we try to bring you the most up-to-date news and information, demographics and trends, methods and investment ideas to help you make the best possible decision in your real estate investments. We don't encourage everyone to drop what you're doing and start flipping houses like you see on TV, but we do encourage everyone to have real estate as a part of a balanced investment portfolio. Part of what we do here at Flipping America is feature top investors from around the country, talk about what they are doing, learn from their approaches, their lessons, be entertained by their stories, and benefit from their experience. Tonight we have one of my good friends Malhar Bhagat. Malhar has been running a successful real estate company for over 10 years and has completed over 200 deals in that time. Living in NY, investing locally and out of state, Malhar has integrated various systems learned over the years to develop properties in multiple US markets. Success in real estate has allowed him to accomplish many life goals, both professionally and personally. He has learned that as in life, real estate presents daily challenges; how one moves through them is what the game's all about: mindset. Following his business and passion, Malhar and his wife/partner moved to Atlanta to continue to rapidly expand their operation, M2REST. Currently, Malhar and his team simultaneously run multiple renovations and new construction projects. He's going to join us right after the first break. How to Reach us www.flippingamericanetwork.com Facebook.com/flippingamericamedia Twitter and Instagram @FlippingAmerica YouTube: bit.ly/FlippingAmericaOnYouTube Linkedin: bit.ly/FlippingAmericaOnLinkedIn Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question. Announcements:

• My upcoming speaking engagements:
  • Savannah REIA, May 14, 7-9, savannahreia.com.
  • Lunch with me every Wednesday at Baraonda.
• Monday - the Flipping America App debuts in the Apple Store. Already in the Android Store.

News!

• http://www.cbc.ca/news/canada/british-columbia/greater-vancouver-s-luxury-real-estate-market-is-softening-report-shows-1.4656221
• http://www.cbc.ca/news/canada/british-columbia/greater-vancouver-s-luxury-real-estate-market-is-softening-report-shows-1.4656221
• https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/10/how-do-you-find-money-for-real-estate-investing/&refURL=https://news.google.com/&referrer=https://news.google.com/
• http://www.heraldtribune.com/news/20180509/florida-real-estate-market-healthy-but-challenged
• http://www.heraldtribune.com/news/20180509/florida-real-estate-market-healthy-but-challenged
• https://www.cnbc.com/video/2018/05/10/tax-reform-effects-beginning-to-positively-affect-real-estate-investors-says-ceo.html
• https://www.forbes.com/sites/elyrazin/2018/05/09/good-jobs-numbers-signal-extended-economic-recovery-and-these-real-estate-segments-could-benefit/#52b6a9a86ee8
• https://www.forbes.com/sites/forbesrealestatecouncil/2018/05/09/is-your-401k-jeopardizing-your-future-invest-in-real-estate-to-quadruple-your-returns/#5b561f8974cd
• https://www.kiplinger.com/article/investing/T044-C000-S002-5-ways-to-earn-4-to-9-from-real-estate-investment.html

Guest: Malhar Bhagat Motivational Thoughts for the day

• If your ship doesn't come in, swim out to meet it. Jonathan Winters

Comment Line calls and Questions Call 404-369-1018, press 1 and leave your message! Emails: [email protected] Tell us where you're from!

• Francine, Waukesha, WI, "How can you tell the condition of a roof while standing on the ground? Can you give me any other guidance about pricing out a roof?"
• Patty, Buffalo, NY, "Thanks for the show. We don't get you on the radio here, but love the podcast on iHeart. Question: Would you start with fixing and flipping or rentals? Oh, and how do you know where the people are from when they send in emails?"
• Marcus, Colorado Springs, CO "I have questions about the AirBnB strategy. I didn't really know there was a strategy. Can you talk about this?"
• Allen, Lancaster, PA, "I'm brand new, just found your youtube channel and website and then saw you are on the air here in Lancaster. So cool! I'm really new, but fired up. What should I do to get started?"
• Corey, San Bernadino, CA "I'm having a hard time getting started. The properties I want to buy are all 400-500k and although the numbers look fine, the costs of the hard money loans are enormous. One lender told me I would need to bring 78 thousand to closing. How do I overcome this? I have about $50k available for this.
• Alex, Jacksonville, FL. "I hear all the talk about no money down deals. Is that a real thing or just a come on for some program or course. Can I really buy a house with no money down and none of my own money?"