Flipping America

FAR 043 Topics: The exciting conclusion of the interview with Stacy Rosetti Shout out to Ramon Tookes and Flipology 101 News:

• Economic times of India, article on real estate investing.
• Penthouse in San Fran - 7000 sf, list price, 42 million
• Dailybreeze.com: Where does the So Cal market go from here? Up 25% over the past 2 years. Expected to be up 8% over the next two years.
• No bubble in sight
• The Single most important rule for real estate investing -- according to Peter Churchouse of stansburychurchouse.com: LOCATION.
  • His five guidelines.

Emails:

• Allie from Atlanta: Help me understand what I should offer on a property. Where do repairs fit into the equation?
• David from Detroit: How do you decide between two properties if you can only do one?
• Lorraine from Long Beach: The price points in So Cal are so high? It makes me really nervous. How would you suggest I get started?
  • Mentor
  • Lower Price
  • Consider remote flipping

FAR 044 Live from Sip and Flip Emails: Lorraine from Long Beach: The price points in So Cal are so high? It makes me really nervous. How would you suggest I get started? Mentor Lower Price Consider remote flipping Interview Guests:

• Jenni Marie, Realtor "The difference between a Realtor's opinion of value and an investor."
• Jonell: "Solar Tyme"

FAR 044 Live from Sip and Flip Emails: Lorraine from Long Beach: The price points in So Cal are so high? It makes me really nervous. How would you suggest I get started? Mentor Lower Price Consider remote flipping Interview Guests:

• Jenni Marie, Realtor “The difference between a Realtor’s opinion of value and an investor.”
• Jonell: “Solar Tyme”

FAR 045 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News:

• A $1B Technology center? (how about spending less and re-tasking Malls?)
• The Connection between LED lighting and property values.
• Data Proves REITS are better than buying real estate (Forbes)

Motivational Thoughts for the day Value Investing:

1. Make Profit
2. Make a Difference
   1. Improve a neighborhood, reduce blight, increase values
   2. Charitable giving
   3. Affordable housing
3. Leave a Legacy

Emails:

• Lorraine from Long Beach: The price points in So Cal are so high? It makes me really nervous. How would you suggest I get started?
• Mentor
• Lower Price
• Consider remote flipping

What's that Smell?

• Craig from Denver, CO: I bought a house that had belonged to a heavy smoker. I've repainted it but there is still a faint smoke smell in the house. What do I do?
• Evie from Pittsburgh: My flip house had cats -- and a TERRIBLE smell. I pulled out the carpets but there are urine stains on the subfloor. The smell is still there. What are your suggestions?

FAR 045 Hey if you are looking to get your deal funded I’ve got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it’s hard to find money any cheaper than this. I know because I’ve looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click “apply now” and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News:

• A $1B Technology center? (how about spending less and re-tasking Malls?)
• The Connection between LED lighting and property values.
• Data Proves REITS are better than buying real estate (Forbes)

Motivational Thoughts for the day Value Investing:

1. Make Profit
2. Make a Difference
   1. Improve a neighborhood, reduce blight, increase values
   2. Charitable giving
   3. Affordable housing
3. Leave a Legacy

Emails:

• Lorraine from Long Beach: The price points in So Cal are so high? It makes me really nervous. How would you suggest I get started?
• Mentor
• Lower Price
• Consider remote flipping

What’s that Smell?

• Craig from Denver, CO: I bought a house that had belonged to a heavy smoker. I’ve repainted it but there is still a faint smoke smell in the house. What do I do?
• Evie from Pittsburgh: My flip house had cats -- and a TERRIBLE smell. I pulled out the carpets but there are urine stains on the subfloor. The smell is still there. What are your suggestions?

FAR 046 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News:

• One place RE prices are flat: Anchorage, AK! Available inventory is down (like everywhere else) but prices are not going up (unlike everywhere else). Why? Because the population is declining. Shell closed a refinery in the area and many people are leaving.
• Lesson: Avoid long-term strategies in areas with one large employer.
• RE Investing in a Trump Economy - It's the same as investing in any economy.
• The economy is driven largely by consumer confidence, not governmental policy. The only thing government can do by its policy implementation is to encourage or stifle economic activity.
• Foreign Buyers 153 Billion last year. Up 49% from last year. About 5% of home sales
• China 31B
• Canada 19B
• UK 9.5
• Mexico 9.3
• India 7.8
• $3 trillion in home sales last year.
• For the 4th year in a row, the largest group of homebuyers in the US are millenials, defined as 35 or younger.
• The 5th hottest housing market in the US -- Columbus, OH. It's hot EVERYWHERE folks.

Emails: Matthew from Louisville, KY: "Just caught your show by accident and dude I'm hooked. You gotta tell me how I can get some training and do this in Kentucky." Tuesdays at 2 FlipStarter Course Coming in September Ashley from Denver, CO: "What would be the signs that the real estate market is beginning to cool off?" Watch Days on Market avg. (less than 30 is sellers' market) OR Watch absorption rate (above 20% is sellers' market) OR How many months of supply? (less than 3 months is sellers' market). You can ask a realtor in your area any one of these questions and you'll get a pretty good idea. The key is to ask the same realtor the same question 3 months in a row so you can track a trend. Interview Guests: Roger Herring, Investors' Accounting LLC

FAR 046 Hey if you are looking to get your deal funded I’ve got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it’s hard to find money any cheaper than this. I know because I’ve looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click “apply now” and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News:

• One place RE prices are flat: Anchorage, AK! Available inventory is down (like everywhere else) but prices are not going up (unlike everywhere else). Why? Because the population is declining. Shell closed a refinery in the area and many people are leaving.
• Lesson: Avoid long-term strategies in areas with one large employer.
• RE Investing in a Trump Economy - It’s the same as investing in any economy.
• The economy is driven largely by consumer confidence, not governmental policy. The only thing government can do by its policy implementation is to encourage or stifle economic activity.
• Foreign Buyers 153 Billion last year. Up 49% from last year. About 5% of home sales
• China 31B
• Canada 19B
• UK 9.5
• Mexico 9.3
• India 7.8
• $3 trillion in home sales last year.
• For the 4th year in a row, the largest group of homebuyers in the US are millenials, defined as 35 or younger.
• The 5th hottest housing market in the US -- Columbus, OH. It’s hot EVERYWHERE folks.

  Emails: Matthew from Louisville, KY: “Just caught your show by accident and dude I’m hooked. You gotta tell me how I can get some training and do this in Kentucky.” Tuesdays at 2 FlipStarter Course Coming in September   Ashley from Denver, CO: “What would be the signs that the real estate market is beginning to cool off?” Watch Days on Market avg. (less than 30 is sellers’ market) OR Watch absorption rate (above 20% is sellers’ market) OR How many months of supply? (less than 3 months is sellers’ market). You can ask a realtor in your area any one of these questions and you’ll get a pretty good idea. The key is to ask the same realtor the same question 3 months in a row so you can track a trend. Interview Guests: Roger Herring, Investors’ Accounting LLC

FAR 047 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News: For months I've been predicting a slow down in rising prices. Specifically I targeted first or secong quarter of 2018 before we would notice things cooling off. Today I have the first evidence. From Seattle, the HOTTEST market in America and the fastest rising prices. http://www.seattletimes.com/business/real-estate/foreign-buyers-drop-off-as-seattle-housing-market-hits-hottest-tempo-since-2006-bubble/ So foreign buyers are already beginning to taper off a bit in Seattle. Articles on the "hot market" Plano Texas Austin Texas Seattle Columbus OH St. Louis San Francisco / Bay area Denver Raleigh Durham, NC Nashville New Haven and all of Connecticut Park Rapids, MN Exception: Flint MI. Sales are down, prices are down. Why? People have been told they cannot sell their home with known lead and pipe issues. It may not be true, but the other problem is no one wants to move there before they get their water issues resolved. Meanwhile in Toronto: Prices are down, median price fell from 919k to 793k last month. Why? Because of a new 15% tax on foreign buyers. Tax any behavior and it will decrease. Politicians tax where they see dollar signs, without regard to the above statement. Prices elsewhere in Canada are like those in the US. Markets are hot. It won't be long before you start seeing "sky is falling" articles about the markets being overheated. What will happen? People will listen. The euphoria will pass, builders will catch up with inventory and the market will settle in at normal rates of appreciation, roughly tied to inflation. High prices are squeezing out lower income buyers. So what will happen? Where there is a market, enterprising builders and investors will move to lower prices. They want to make money and have to sell in order to do it. Scams: Rental Scam: Advertised on Craigslist - price VERY reasonable. Credit card required for viewing. "Landlord" promised to meet them at property. Then didn't show, claiming son was ill at hospital. But now he has the credit card #. Others have actually rented out the house, taken the money, signed and lease, and let the people move in. Except the house belonged to someone else. Investor Uh-OHs: Let's call him Bill: I bought a house that needed quite a bit of work, but had everything worked out and a plan. Unfortunately both my contractor and I missed a significant foundation issue. The integrity of the structure was compromised and the cost to repair was more than it would cost to tear the house down and build new. I ended up selling at a significant loss. Lesson: When buying an older house, hire a home inspector, $400 well spent. Emails: Leonardo from Sandy Springs, GA "I need something to help me completely figure out my costs and the possibilities with a property. I started trying to put something into a spreadsheet but I can't seem to get it all in there. I heard your show and decided to ask if you knew of anything out there." Frannie from Rockford, IL, "Tell me about using Land Trusts to hold title to your investment properties. Why do that and how does it work?" Interview Guests: Beyond Wynn

FAR 047 Hey if you are looking to get your deal funded I’ve got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it’s hard to find money any cheaper than this. I know because I’ve looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click “apply now” and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News: For months I’ve been predicting a slow down in rising prices. Specifically I targeted first or secong quarter of 2018 before we would notice things cooling off. Today I have the first evidence. From Seattle, the HOTTEST market in America and the fastest rising prices. http://www.seattletimes.com/business/real-estate/foreign-buyers-drop-off-as-seattle-housing-market-hits-hottest-tempo-since-2006-bubble/ So foreign buyers are already beginning to taper off a bit in Seattle. Articles on the “hot market” Plano Texas Austin Texas Seattle Columbus OH St. Louis San Francisco / Bay area Denver Raleigh Durham, NC Nashville New Haven and all of Connecticut Park Rapids, MN   Exception: Flint MI. Sales are down, prices are down. Why? People have been told they cannot sell their home with known lead and pipe issues. It may not be true, but the other problem is no one wants to move there before they get their water issues resolved.   Meanwhile in Toronto: Prices are down, median price fell from 919k to 793k last month. Why? Because of a new 15% tax on foreign buyers. Tax any behavior and it will decrease. Politicians tax where they see dollar signs, without regard to the above statement.   Prices elsewhere in Canada are like those in the US. Markets are hot.   It won’t be long before you start seeing “sky is falling” articles about the markets being overheated. What will happen? People will listen. The euphoria will pass, builders will catch up with inventory and the market will settle in at normal rates of appreciation, roughly tied to inflation.   High prices are squeezing out lower income buyers. So what will happen? Where there is a market, enterprising builders and investors will move to lower prices. They want to make money and have to sell in order to do it.   Scams: Rental Scam: Advertised on Craigslist - price VERY reasonable. Credit card required for viewing. “Landlord” promised to meet them at property. Then didn’t show, claiming son was ill at hospital. But now he has the credit card #.   Others have actually rented out the house, taken the money, signed and lease, and let the people move in. Except the house belonged to someone else.   Investor Uh-OHs:   Let’s call him Bill: I bought a house that needed quite a bit of work, but had everything worked out and a plan. Unfortunately both my contractor and I missed a significant foundation issue. The integrity of the structure was compromised and the cost to repair was more than it would cost to tear the house down and build new. I ended up selling at a significant loss. Lesson: When buying an older house, hire a home inspector, $400 well spent.   Emails: Leonardo from Sandy Springs, GA “I need something to help me completely figure out my costs and the possibilities with a property. I started trying to put something into a spreadsheet but I can’t seem to get it all in there. I heard your show and decided to ask if you knew of anything out there.” Frannie from Rockford, IL, “Tell me about using Land Trusts to hold title to your investment properties. Why do that and how does it work?” Interview Guests: Beyond Wynn

FAR 048 Hey if you are looking to get your deal funded I've got great news. Whitestone Capital Solutions is offering loans as low as 4 points and 8%. Friends, if you are in the real estate investment business it's hard to find money any cheaper than this. I know because I've looked around. All you have to do is go to www.whitestonecapitalsolutions.com, click "apply now" and fill out the quick and easy form. One of our team members will be in touch with you quickly and get you headed toward closing on that deal. We are loaning in all 50 states. Apply today. News: New Report: the Top 20 Zip Codes in the US for Real Estate Investing 16 Cities where income can't keep up with housing costs: meaning - don't invest there. Santa Ana, CA Newark, NJ Bloomington, IN Los Angeles, CA Lynnwood, CA Garden Grove, CA Hialeah, FL Westminster, CA Inglewood, CA El Monte, CA Paterson, NJ Baldwin Park, CA Davis, CA west of Sacramento Hawthorne, CA Miami, FL Passaic, NJ Commercial real estate has been placed on the Feds official "worry list" according to Business Insider online. Investor Uh-OHs: "Sue" bought a house from a wholesaler. The price was 140k. The wholesaler had told her the rehab would be 60k and the ARV is 300k. Sounds great and by our formula she could be all in at 210 and still be doing well. She proceeded to put the property under contract. AFTER closing, the best estimate she could get for the work was 78k. Well, that's a little over budget, but we will still make money. She got the work done for 81k (found a few extra problems) and listed the property. Her realtor said that the best she would get is 280k. She wanted / needed more so they tried a listing at 285k. They ended up reducing over a month to 275 and eventually accepted 270k. If you've been doing the math, she was all in at 221 and selling for 270 so she's ok right? Let's see… Commission: $16,200 Taxes: $1,548 Insurance: $750 Cost of funds: $24,375 Total additional costs: $42,873 Selling price: $270,000 Less purchase and rehab: $221,000 $49,000 - additional costs: $42,873 = 6,127 Annualized ROI is 5% - You would be better off putting your cash into an indexed fund. What you just got for your money was a $40,000 course in the Real Estate Investing school of hard knocks. Lessons:

1. DON'T trust a wholesaler's numbers.
2. DO get a real contractor bid during DD.
3. DO NOT compromise on your 30% margin.
4. DO get your realtors' opinion of ARV before entering into agreement to purchase
5. DO find a way to contain costs without treating your buyers poorly.

Emails: Questions from College Reunion: "How can I tell if my town is a good place to invest in real estate?" -Are people moving there? Population growing? -Employment opportunities (preferably from more than one major employer) -Are there areas of revitalization/renewal? -Look for the rare below market gems in the best parts of town. Bennie from Boston: "I'm thinking about coming to Atlanta for your one day course. What are you going to cover?" Find Fund Fix Flip Create a Plan for your Business Show you the path to a full-time career (if you want that).