Flipping America

How do you overcome fear and have the courage to do your first deal? This is a question I get quite often and today I'm going to answer it. This episode is for everyone who has hesitated and missed deals - and for those who have hesitated and NEVER done a deal. I'm going to help you say yes to the right opportunity. I understand the concern. I've been there - looking at a deal that looks ok, but nervous about the things that can go wrong. They call it the paralysis of analysis, but like most clever little slogans, there is often more to the story.

The real estate market is starting to slow down. Are the alarm bells ringing in your head? If not, should they be? You won't know until you know the facts. And if you want the facts, I'm going to give them to you in this Market Report for the Third Quarter, 2022. I really am tired of hearing people claim a crash like 2008 is coming. I've been hearing it since 2018. I didn't believe it then because of the data. Turns out I was right. Same for 2019, 2020, 2021, and now also 2022. Anyone who tells you the real estate market is going to crash again like 2008 is just trying to scare you and definitely not looking at the data. I'm going to do my best not to bore you with it, but in the minutes ahead I'm going to share with you the data we watch and where that data is. We are definitely seeing the first signs of the slow down that I have been predicting. Remember when we are talking about averages across the nation, this is going to be an average of a lot of local real estate markets. Although the national data is true, it may not be reflective of your local experience. This doesn't mean the data is flawed, it just means that somewhere some other market is trending the other direction and the data is averaging them out. To give you a simple example let's imagine a classroom where the average score from the last test was an 80. Now imagine the class has just 3 people in it. As the teacher hands the tests back and announces the class average score of 80, Johnny looks at his paper and thinks, "well that's not MY experience. I got a 60. But Suzanne thinks, Hmmm, that's about right, because I got an 80. Franklin is thinking there must be something wrong with the data modeling because he got a 100. So your market might be contracting faster than the national average. And some other market might still be booming. And it's likely that within individual markets the trends are different at different price points. It's no easy task to gather this data, and disseminating it in a meaningful way is equally challenging. But I am up to the task because that's my appointed duty for today.

business, we often love the idea of the income but don't always bring risk analysis into our consciousness.

Last week the national average for a mortgage topped 6.7% for the first time in many years. What does this mean for real estate investors and what does it mean for YOU? Find out today on Flipping America. Rates are expected to inch further up over the next few months as the Feds seem to be the only parties in Washington genuinely interested in countering inflation. In case you hadn't noticed, the so-called "Inflation Reduction Act" does absolutely nothing to even address inflation, much less reduce it. So, interest rates. How does raising them slow down inflation? Of course like most answers involving monetary policy, the answer is a bit complicated. But I, your humble host, excel at making the complicated understandable, so bear with me and in a few moments I shall explain.

Congress just gave the IRS 80 Billion dollars. What does this mean for entrepreneurs and real estate investors? Some say we are facing enhance enforcement and in the minds of the IRS, real estate investors are easy pickings. I've got CPA Matt Lents on the line and we are going to talk about the implications. It's so important we are doing this NOW.

I've been doing this since 2002. I've done over 2000 single family homes, including more than 1700 fix and flip projects, hundreds of rentals and hundreds of wholesale deals. I don't want to sound like I'm bragging here, because that's not my intent. I just want you to know I have data and some personal experience to back up what I'm about to say. If I were starting all over again today, what would I do? I'm going to share it with you in just a couple of minutes. I won't keep you in suspense - if I were starting all over today, I'd dive into the BRRRR Method and acquire as many single family rental properties as I could. Today I'm going to be joined by one of the emerging champions of the BRRRR method, David Dodge. David is a St. Louis Real Estate Investor with over 18 years of experience. He first started investing in Real Estate when he was in college, at the age of 20 while attending the University of Missouri-Columbia. David specializes in Wholesaling Real Estate as well as using The BRRRR Method to acquire Rental Properties with NONE of his own money! David is the Author of 3 books: "The Ultimate Guide to Wholesale Real Estate", "The BRRRR Method" & "The 3 Pillarsof Wholesaling Real Estate". His podcast "Discount Property Investor" teaches people all about wholesaling real estate as well as tons of tips and tricks about marketing, land-lording, rehabbing, and utilizing The BRRRR Method.

I gotta be honest with you. I didn't think this topic would make it to the show. I was skeptical about the concept and the structure of what you are about to hear about didn't sit well with me. But Derrick Barker won me over, as I'm sure he will for you also. So today on Flipping America we are going to learn how you can sell your cash flow. Derrick Barker from Nectar is joining us in a few minutes to talk about an interesting way of raising money that doesn't involve debt. Nectar is an online financing and data platform built to provide fast, flexible capital to short term rental owners and operators. They provide experienced real estate entrepreneurs access to cash flow based financing and sell diversified, fully passive cash flow backed investments to accredited investors. Derrick is the co-founder and CEO of Nectar, the first-ever cash flow marketplace for real estate entrepreneurs. He has 12 years of experience in real estate development, operations, and finance. Prior to starting Nectar, Derrick began his career as a trader at Goldman Sachs. He eventually left that position to focus on real estate, growing his portfolio to more than 4,700 units and $400 million in asset value. Since then, Derrick has helped build multiple successful real estate businesses. He and his Nectar co-founder, Brittany Mosely, are members of ScaleUp ATL and graduates of the TechStars Atlanta accelerator.

There are a lot of big words and complicated ideas that make up the world of real estate investing. My job is not only to help you understand them, but to also entertain you in the process. How's this for entertainment? If you master today's topic, you could save or defer tens of thousands of dollars in tax liability. Today on Flipping America! Cost segregation sounds like a topic you might cover in finance or accounting courses and although not as complicated as "internal rate of return" or as obtuse as the "weighted average cost of capital", it definitely needs a sexier name. How about "Save a pile of money on Taxes"? Well, there are several ways to do that, so we need something more descriptive. After thinking long and hard about all the possibilities, I've decided that "cost segregation" is as good as we are going to get. Our guest today, David Wiener, is known as "Mr. Cash Flow" has been involved in the business of business for over 30 years. His experience includes 10 years as a medical practice administrator, COO of a medical billing company, and years of business and tax consulting, speaking, and educating. The CEO of Cash Flow Strategies, Inc., David has worked to assist practices, businesses, and individual real estate investors across the US to maximize their cash flow and become more efficient. David is a recognized expert in A/R management and engineering-based cost segregation. David has spoken across the US and internationally for over 25 years to medical and dental groups and societies, CPA groups, business associations, Chambers of Commerce, and commercial real estate groups. He leads CPE training for CPA groups annually as well as workshops on tax strategies for owners of commercial and investment property. His engaging style and quick wit have made him a favorite of large and small audiences coast to coast, and has attracted many return engagements.

It's been a crazy few years in this business. I get hundreds of leads from dozens of wholesalers every day. Maybe 1 out of 20 is a deal worth giving a second look. And maybe 1 out of 100 is something I would do. But they apparently sell these properties because they keep coming around with more of the same. Today, I'm going to talk about what makes a deal a deal. And it's more than just the numbers. When sellers (or my TV) says "Let's Make a Deal" I say "What Makes a Deal?" We will find out today on this episode of Flipping America. You've heard the phrase, "There's a sucker born every minute." PT Barnum of Barnum and Bailey circus fame supposedly said that, although there is no evidence he ever did. I want to add to that: A lot of those suckers bought $50,000 real estate training from a hotel room and now are justifying that expense by paying too much for investment properties.