How Do We Deal With Artificial Intelligence In Real Estate?

Hey, it’s Joe Crump. I’ve got another question here. This is from John Canada. He says, “How can we cope with AI in the
real estate business?” I’m not really worried about coping with
it, I’m excited about using it. Because AI is how we built the Automarketer. It’s a pretty smart system, and it goes
out there and finds the properties that you want. You have to put a little bit of input in there. It analyzes the responses that come in, let’s
you know whether they’re a yes or a no, it puts them into the appropriate follow up
system once they know that. It notifies you that somebody is interested
in the property so that you can call them and put the deal together. So that AI does a lot of the work for you. If I look at all the work that I had to do
before I had the Automarketer versus the amount of work that I have to do after it, 90% of
my work has disappeared. The other 10% still has to be done and I have
most of that done by outsource workers. So, I have somebody working for me as an admin
person, somebody working as a buyer finder, someone working as boots on the ground and
sometimes working as a seller finder as well. So, those different tasks, that’s about
10% of the work and then the other 90% of organizing and keeping track of all this stuff,
making sure everything goes out as it should, doing the marketing, which is the main purpose
of any business. If a business isn’t marketing it’s not
in business. So marketing is the main function of a business. Nothing happens in business, as Peter Drucker
said, until a sale is made. So, and marketing is what drives those sales. Everything else besides marketing and innovation
is an expense. So, marketing is the only real profit center
you have in your business and as long as you’re doing that, you’re in good shape. That’s why you want good AI, you want good
automation, you want a good system to do that work for you and that’ll keep you moving
forward. All right. Hope that answers the question.

Real Estate Investing Business Plan Example

Interested in real estate investing and looking
for a plan? Well today, I’m going to give you one. It’s an example of a real estate
investing business plan or maybe even a game plan, if you will, that helped me build Epic
Real Estate. It’s a really simple example, easy to follow that you can just rip off and
use in your market to achieve your financial freedom. Go ahead and click the subscribe
button. Ring the bell. I post cool stuff like this each and every week. Alrighty, let’s
do this. This is Theriault Media.
Hi, my name is Matt Theriault. I’m CEO of Epic Real Estate and if you’re looking for
a practical example of a real estate investing business plan, then I’m going to share with
you the very one that set Mercedes and I free, as well as many of my Epic clients, and when
we’re done, if you’d like some help, some extra help with yours and putting it into
action, I’ll show you how to get that type of one-on-one support.
Now, a real estate investing business plan, it’s important because if you don’t have one,
I mean who knows where you’re going to end up. But when you have a proven one in place,
your destination, it becomes very predictable. I was thinking the other day about when Mercedes
and I when we got started, we had a very simple basic game plan and it worked out wonderfully
for us, and this is the game plan that I’m going to give you right now.
We started by just flipping properties to generate some cash and then we started doing
really well for ourselves, and once we had a comfortable amount of reserves in the bank,
we were like, okay, we’re making this money, but we’re working every day to do it. We’ve
got to shift our focus to creating some residual money.
Our initial plan for creating cash flow was this. We would flip five houses, then we’d
hold the sixth and we did that a few times. Then we were like, okay, I think we can now
flip four and hold the fifth. So, that was our plan for awhile. Then, we’d flip three
and hold the fourth and then we’d flip two and then hold the third and ultimately, we
would just flip one, hold one, flip one, hold one, and eventually it created enough residual
income where we didn’t have to flip properties at all anymore to pay our bills and survive.
Once we got that residual income to exceed our monthly expenses that paid for our lifestyle,
we then redirected that excess cash flow to create more cashflow. Our assets were buying
assets. We were working less and less for money and our money was working more and more
for it. So, our money was creating our wealth. Does that make sense? I’ll show you how we
did that, but if that makes sense to you, just type in the comments below, “That makes
sense.” All right, let me show you how we did that.
I’m going to call this business plan, the Epic Game Plan, and it comes in three phases.
Phase one, this is the milestone of financial independence. That’s first. We’re going to
go after financial independence. This is where you are in control of your income. You are
in control of your profit and you don’t need a job to support yourself financially. You
are in total control of your own finances. This is where you become your own boss. If
you’re going to be financially independent, you can’t be dependent on somebody else, right?
So, you have to become your own boss, you have to be dependent on you. That’s where
the independence comes from. So, step one is to become your own boss.
Step two is to decrease your expenses. To make this happen in the beginning, you’re
going to have to cut back on the excess, most likely, depending on your situation. Perhaps
you might even have to make some sacrifices, but it won’t be for long, so exercise a little
bit of patience, hang in there. Then, step three is you go to work. You’ve
got to work like hell because you’ve just become your own boss, right? But what so many
people forget is that in the beginning you’ve also become your own employee, as well. Business
just doesn’t run without employees, so you’ve got to wear both hats for a minute. Become
your own boss, you become your own employee, and then you work, work, work until you get
your active income to pay for your lifestyle. Got it? That’s phase one.
Phase two, financial freedom. So, you’ve got your financial independence through your active
income. Your freedom is going to come as a result of your residual income. Well, that’s
now the big focus. To do that, you start by developing systems, systems around your income
generating activities. The mission here is to get your income generating activities to
happen with or without your direct participation, and then once those are in place, it’s time
to start acquiring cash flowing income properties, and as fast as and as many as you can responsibly,
of course. Then the third thing in the freedom phase
is what I call a poor man’s version of asset protection. You want to start diversifying
the locations of your properties. You want to diversify income properties geographically.
You want to diversify your teams, as well. That kind of happens as a result just by default
of you diversifying your locations and so you stay focused on these three things until
your residual income pays for your lifestyle. Do that, and the second phase of financial
freedom, it’s going to be yours. All right. Phase three, wealth creation. You
see, once your residual income is paying for your lifestyle, you’re going to keep going
with this plan, but redirecting the excess residual income that you create towards creating
your wealth. This is where your money starts to make your money and this is the big differentiator
between the common person and the wealthy person, meaning
most people go about creating wealth the slow and more difficult way, they just work, work,
work to save this giant pile of money so that somewhere down the road someday they’ll eventually
be able to create a residual income from that big pile and then they can go ahead and live
life then. They never effectively make this shift from
they working for their money to their money working for them. You see, most people, they
just don’t earn enough to save enough to create their wealth before the most active years
of their lives are over. But, when you have residual income coming in at excess, you’re
able to live and enjoy life right now and your wealth, it just gets created automatically.
This is where Robert Kiyosaki got a lot of backlash when he said, the rich don’t work
for money. Do you remember that? I think it’s lesson one of the Rich Dad Poor Dad book.
People were like, what are you talking about, the rich don’t work for money? A lot of people
had a really, I don’t know, a twisted idea of what that actually meant, but what he really
meant was they don’t work for money, their money works for their money.
This is the real estate investing game plan that I’m giving you right now on how you actually
make this happen for yourself. In this third phase, wealth creation, you’re going to be
making a big shift from working in your business to working on your business. You’re going
to be managing your assets to create more assets. Your cashflow is going to be creating
more cashflow. The second thing here in this phase is you’re
going to become a manager of managers. You’re going to manage the property managers that
manage your properties. This is where you start to become a true business owner. Then
third, the next level of preserving and protecting your freedom, and and above and beyond the
legal structures that you’ll obviously put in place, you’re going to want to start looking
at diversifying your assets. See, Mercedes and I, we got started just flipping
single family houses and then we started holding single family houses. We then moved to some
duplexes and fourplexes. Then, we got ourselves a 14 unit building, a 16 unit building, an
18 unit building, and then we got a 44 unit building, and then a 50 unit building. We
diversified into multifamily. Then, we started looking at our books, and what we did is we
crafted a nice little balance between all of the tax advantages that real estate gives
you and then also all of the potential active income that we could make. So, we structured
our portfolio to maximize our income by minimizing our tax liability.
We did that by investing in and creating seller financed notes. This is what this did for
us. It increased our cashflow, the notes increased our cashflow, and then the property that we
held onto, it offset the extra tax burden that that extra cashflow from those notes
created. We started with single family, we added multifamily, and then notes, and now
we’re adding vacant land to the mix. But take note, we’re doing all of that after we achieved
our freedom, right? This is part of our wealth creation mode.
Most people start diversifying all of these assets way too early. They go too wide too
soon when they should be going deep right at the beginning and sticking there for awhile.
If you’d like to start finding the deeply discounted off-market deals that make all
of this possible, I’ll show you in just a second. But first, if you’d like some help
creating your own Epic business plan, and even more importantly, executing the plan,
check out this video, I’ll put it right here on how you can get some one-on-one help doing
just that, okay? I’ll also put a link down below for your convenience.
Now, how do we find these deeply discounted off-market deals? Well, I made this video
on that very thing just last week and you can click right here to check it out. Don’t
forget to like this video, subscribe to the channel, and feel free to share it with someone
you know who also might find it useful. Alrighty, see you next time. Take care.

How to Invest in Real Estate with Your Retirement IRA or 401K (Roll Over 401k to IRA?)

(upbeat music) – [Toby Mathis] Can I roll over my 401k to a self-directed IRA to
invest in real estate? The answer is, absolutely. However, do you really want to? Because, depending on the
401k, again there’s two types. There’s multi-employee plans, where’s it’s an employer and they have lots of employees in it
and there’s restrictions on what kinds of investments you do, and then there’s the Solo
401k that you control. And honestly, you’re
better off using that 401k for the investment in real
estate if that’s what you’re doing because you don’t need a custodian. You can sign your own closing docs. You don’t have unrelated
debt finance income issues, that way you can borrow money. Whereas, in an IRA, you
have to pay the tax on it. IRAs are also single owners, so if spouses are buying
a property in their IRAs, well there’s actually two
owners on that property or you’re setting up an LLC, which is actually my preferred method. You’re setting up an
LLC inside of the IRA, it’s called a checkbook IRA
or an LLC inside of the 401k to make sure that you don’t
have unlimited exposure due to liabilities that could
come from that real estate. So if you own real estate, in a self-directed IRA, you’re ultimately, as the individual
retirement account holder, you’re personally liable
for the activities. So if you have a rental
property on an IRA, and there’s a slip and fall,
you’re ultimately responsible. So, we always want to make sure that we’re cognizant of asset protection when we’re setting this up. But yes, you can absolutely roll it and use a self-directed IRA or you can just use a Solo 401k. Or if this is with an employer, a past employer, they
allow you to roll the plan, I mean if it’s a past employer you can absolutely roll the plan. If it’s a current employer they could say ‘no you can’t until you leave service’. But if you have an old 401k
and you want to roll it in, one of the best things you
can do is set up a business and have a sponsor 401k. You just remove the issues. Nothing against IRA custodians but they don’t work on weekends. So if you’re buying property
and you’re there on a Saturday and it’s a bidding situation, you’re not closing and
you’re not able to even bid ’cause you can’t get a signed
offer from the custodian until they get back in the office. So if you want to avoid
that, you use a Solo 401k. Alright, we have lots of questions. I don’t see any of ’em
pertaining to that one so I’m going to skip
through to the next one. You want to add anything onto- – [Jeff] No I’m good, I’m just watchin’. – [Toby] All right. Some of this stuff is more
lawyer than accountant, so, in that particular case, as long as you’re going plan to plan, you don’t have to worry. And I’ll say, I can twist words, we can play the Roth game and say oh it has to be a traditional
IRA 401k to a traditional or a Roth 401k would have
to go through a Roth IRA. You cannot go back from a
Roth IRA into a Roth 401k. A lot of people don’t know that. So we can twist it. – [Jeff] Right. – But we don’t.
– No. – [Toby] We’re not going to do that. Even though we just- (upbeat music)

Structuring Deals #1:”Subject To” Deals

Hey, it’s Joe Crump. In this series I’m going to do, I’m going
to explain the different zero down structures. There’s five of them that I’m going to focus
on that encompass just about every different type of structure that you can use. And there’s a hierarchy based on the type
of offer that you’re making, whether you’re buying or whether you’re selling. I’m going to try to explain some of those
things in these videos. The first five videos in this series are going
to be explaining each of those different structures. So you’ll probably want to listen to them
all eventually, one after the other. But right now we’re going to trickle them
out, you know, once a week or whatever, and you’re going to be able to listen to them
that way. After that, I’m going to do some example deals
and I’m going to show you here is a situation, here’s how much they want for the property,
here’s how much it’s worth, what kind of offer can you make on it that would work as a zero
down structure that would make you money. So that’s how I’m going to go through this
next series of about 15 videos or so. So let’s start, first of all, with subject
to. What is buying property subject to the existing
loan? Essentially, what you’re doing is asking the
seller who already has a property and has a mortgage on that property to transfer the
title to you. Transfer the deed to you. And so they sign over the deed to you, you
take over the property, and you start making payments on their existing loan. You’re not going to qualify for that loan,
you’re going to take over that loan payments. You’re also going to transfer the insurance
into your name and you’re going to start making the tax payments as well. So you’re going to be paying principal, interest,
taxes and insurance on that property. And you’re going to go out and find someone,
probably, to lease option that property. And they’re going to make payments to you. So you’ll, let’s say you have a property and
it’s got $150K mortgage on it and it’s worth $160K. You turn around and sell it for $165K,
$170K maybe. You get $5,000 as a down payment and you’re
going to get let’s say $1,200 a month for the income for it. But the payments on it are $1,000 so you put
$1,000 towards the payment, the PITI, plus you take $200 for yourself as cash flow for
that property. So that would be one scenario where you could
keep this property and pay it off over time, using the existing loan on it, getting, having
no money into it, making $5,000 pretty much when you close that deal because you’re not
going to close it until you find a lease option buyer to move in. So you’re making money immediately on it. But the way you’re taking control of that
property is having the title. This is the strongest way to buy a property,
having control of the title and not having your name on a loan. Now you don’t have to qualify for the loan,
you don’t have to have good credit, you don’t have to have any down payment and you have
full control over this property. The seller has no control over that property. You now have control over it. If you don’t make the payments on that property,
you trash their credit. So you’re obligation, your ethical obligation
is to make sure you make those payments. If you take that property, start collecting
rent on it, don’t make the payments, that’s considered fraud and they can put you in jail
for that. So don’t do that. It’s also not the right thing to do. I’ve seen people do it before. I’ve also seen a guy go to jail for it. So make sure that you do this properly and
you watch out for the people who you’re buying the properties from. If you get into a position ever where you
can’t make the payments, my promise to our sellers whenever I take a property from them
is that they won’t ever have to worry about this again. But, I tell them if I ever get into a situation
where I can’t sustain this property for whatever reason, I will give it back to them in as
at least as good a condition as I what I took it over at. And I won’t have, you’ll also get it back
without the payments being late. So even if it’s a few days before the next
payment is due, I’m going to do that. And if the next payment comes do, then I make
that payment so that they, so it’s never comes late on them. So you have to take responsibility. So by learning these things it gives you a
great power and with great power comes great responsibility. I feel like Spiderman’s dad, or grandpa. Anyway. So, use this stuff wisely. It is the best way to buy property and you
can build a whole portfolio. The likelihood that you could put together
ten of these $150K properties in one year, one a month even, is very high. That means that you just built $1.8 million
worth of property and it’s probably worth more than that. So, you can probably get close to $2 million
worth of property in a year doing it this way. I’ve had lots of students that have done it
that way. And a lot of these things you can get with
some equity in them. A lot of times you’re buying them without
any equity where you, like I said, you get $150K mortgage, and it’s got $10,000 of equity. Okay, $10,000 of equity isn’t real equity. You can’t turn around and sell it and pay
a realtor and get out of the deal. You’re going to have your expenses to sell
that are going to be higher than that. But if you keep the property, you’re going
to get some benefits from it. You’re going to, every month, you’re going
to get a buy down on that note, you know, ,maybe it’s a couple of hundred dollars down
on that note. You’re going to get tax depreciation which
is over 27.5 years on the tax basis of that property so it’s about 3.64% of the improvement
value of that property. So, on a property like that you’re probably
talking about, I don’t know, $4,000 or $5,000 a year and, which is you had, you’re in a
30% tax bracket, that means you’re making about $1,500 per year in you know, your tax
benefits. You’re also going to get appreciation on that
property. The properties typically go up over time so,
if it goes up just 1% in a year, it’s gone up another $1,500 in value. So you get the buy down on the note, you get
appreciation, you get depreciation and of course you get the rental income on the property
as well. And eventually, and you’re also going to get
the lease option fee. So anytime somebody buys it on a lease option,
they’re going to give you a down payment. So, let’s say they give you $5,000 and you
can get anywhere from $5,000 to $15,000 on a deal like this, on a lease option. Let’s say you get $5,000 so you get that cash. You probably want to put that in an escrow
account and hold that as a reserve because you’re probably going to get that property
back. The likelihood that they’re going to exercise
that option when they buy it is very low. Less than 30%. And if they do, then, and you sold it for
$165K, that means they still owe you $160K on it, you owe $150K, they give you $160K,
you get $10,000, you make a profit if they buy it. If they don’t, you get the other benefits
of owning that property as a rental property for as long as you own it. And you’ll pay it off eventually. If it’s 20 years left on the mortgage, in
20 years it’ll be paid off. If you’re making more cash flow on it and
as time goes by, you’re rents go up typically, and as your rents go up, you could start paying
more down on your principal and pay it off instead of 30 years you could pay it at 20
or instead of 20 years you could pay it off in 10. And you can get to that place where those
things are paid off a whole lot quicker. Or, you can just keep the cash flow for yourself
and use that to live on. Just make sure you keep a reserve on these
properties. I’ve seen too many people buy a bunch of subject
to properties and then they’d have vacancies and they wouldn’t be able to make their
payments because they spent all of the money that they got in lease options to live on. And that’s a mistake. So, don’t get into that situation because
you don’t want to default on these properties if there’s any way that you can avoid it. And you don’t want to have to give it back
to that seller later if you can avoid it. One thing, though, when you do have to give
it back, if that ever happens, it won’t damage your credit. It won’t cost you anything other than what
you promised them that you would do which is keep it current. So, that’s how you do a subject to. That’s the basic structure of this and all
it takes is them deeding you the property. Now, we have a whole package of documents
that we ask them to sign, you know, disclosures, and you know, giving us the right to have
control over the insurance policy, you know, those types of things that we have on every
subject to property that comes through. We also have the right to talk to a lender,
which we get in writing, we ask them to give us the password to their online account, their
bank account that shows the mortgage account so we have access to the mortgage. We can pay it online if we want to and do
it that way. One of the things I’ve talked about in previous
videos is the due on sale clause. A lot of people are concerned with subject
to because of the due on sale clause. Every lender has, or every mortgage has a
due on sale clause that says if you transfer that property they have the right to foreclose
on that property. There’s some ways around it by using a land
trust or doing things like that or hiding the fact that it got transferred from the
bank by not recording the deed, you know,. We’ve done those things as well, but I’ve,
we’ve done so many of these subject to’s, hundreds, and with my students, thousands,
and when I look at over all the years that we’ve done this for, I’ve never seen one bank
every foreclose using the due on sale clause as its reason. So, I wouldn’t worry too much about that happening. Of course I can’t give legal advice. I’m not an attorney, so, take my advice as
from my experience, not because I legally have the right to give you legal advice. I don’t. I don’t even play one on TV. So, anyway, hope that helps. That’s subject to. Next time when we come back, I will talk to
you about multi-mortgage as the second in the hierarchy. All right. Hope that helps.

Are You Ready To Start Wholesaling Real Estate? 1st Deal Challenge

Hello’s Kevin Gibbs and if you’re interested in starting real estate wholesaling business Then you’re in luck because today I’m gonna give you my seven step system. My seventh step 30-day first deal Blueprint. Alright, let’s get straight to it first and foremost. What is real estate wholesaling? we defined as the art and science of Finding deeply discounted properties and locking them down under contract and assignment for a lucrative Assignment fee write that in a nutshell If you want to know more about real estate wholesaling, you can watch any of my videos I have a lot of videos on my channel Also, let’s get to this on 30-day. It’s a 30 day challenge. All right, 30 day challenge to help accelerate. How booth Help explore you real estate wholesaling business so that all you can hit the ground running, right? Because we know this is a game of momentum All right, and I’m consistency So the first thing you need is the script alright and you can get the script on we have everything that you need and um If you download if you look cooking on the description below and you could download two free books real estate money on real estate money secrets and smart real estate wholesaling And um, he watched a video it will show you how to become part of our mastermind. We have a real estate investing mastermind wholesaling mastermind and digital market mastermind We’re on UK own network with a what a lot of people have been in the game for a long time Right, and I experienced people and you also could get a mentor if you need a mentor, right? so, um first thing you need is a script right we have scripts and um, Especially if he’s just starting out. We always recommend using the first thing is on Cold calling, right? Well, we got coca-cola in a certain way and um There’s a we use a power dialer, which is number two, right? But the first thing you do is you need a neat you need a script You need to know what you call them for and what’s your goal? What’s your objectives and how to dig and try to find motivation? That’s the key thing that you’re looking for You’re looking for motivation, right? You’re looking for a motivated sell it. So you’re looking for motivate motivation You need to know ask questions to find the motivation that you’re looking for right in There’s seven different outcomes that could all happen when you call someone right? They could say yes and They could say no they could say maybe maybe there’s no right. Like I said, how’d you get my number, right? And you could just tell them that it’s public records Its public right was when someone owned a home right that people always wondering how you got that number most times and pre-foreclosure That’s a lot Alyssa Nicole and I said, I’ll tell them I said well you you know You do know you’re in pre-foreclosure and then you know, we could start developing a conversation I had many conversations just developed just by, you know, just, you know being honest with people and you know leading with value right If you if you’re going through any of these on courses that we’re offering then you will know that Value, right. If you’re watching my videos you continuously hear me talk about leading with value. Right? So, um, you also could have Maybe later, right which is usually know but you never know right? Um, also, um if the offer is right, All right, and then you know, like I said, these are just little points where you could develop More of a conversation to engage and really try to find that motivation Right and a lot of times someone else a su right get on my face and they will come on phone again But it’s just part of the game and you gotta have thick skin All right So you gotta have your script, you know, whatever script there’s no one perfect script But you gotta no one. Would what you looking for when we looking for motivation in this case, right? Second thing you knew you need is a dollar, right? I use the Mojo power dialer we could call eighty people in an hour right on they also have a three line data But for this case, you could just use the single dial especially just starting out All right, um and just use that dollar it loads up eighty I mean it calls eighty numbers right and on in one hour, which is great um So number three is that’s number two number three is you got to download 1000 download and skip trace 1000 records per month minimum right minimum 1000 per month And that’d be a good place to start in the first month. Um, we also have skip-tracing services like I said Just click on the description below you can basically get all of our services and On all of our products that really help you in your business and really help with celebration and put you ahead of the game Right. That’s what we’re here for is to help you stay ahead of the game right, and I’m gonna create good partnerships and create good education platform for People to learn this game won’t really say wholesaling, right? I mean that 1,000 records are really gonna you know help you out on and give you some skill development cuz you’re certain skills that you get that that you need to develop if you want to be a real estate wholesaler and Question-asking is one of the biggest skills that you can you can own obtain You just want you want to get quick right? You want to get straight to the plan? Um Get what you’re looking for cause you want to be speaking to a hundred people in One minute and not spend 100 minutes on one person. All right, um, Number four is if you have a team, right? Over your individual you could dial one hour per day five hours per week, right? but if you have a team you can maximize that that’s a good thing about the way that I’m teaching how to set up your Business you could always scale this business up But you can always leverage and on these tools if you know, you can leverage the tools different tools You know sometimes you know new tools come out, so I don’t want to get so You know stuck on the tools but I’m just talking about the system the business system that I’m giving you the seven step system that I’m giving you to close a Deal in 30 days, right? And it’s not no guaranteed You gonna close you’re dealing 30 days but if you go out this like this for 30 days you’ll be ahead of the game and I Guarantee you’d be another 30 days or another 30 days that if you keep it going at it You’ll be ahead of the game You have a lot of skill development where you know You’ll be a lot closer to closing your first deal the second day or third day But you’ll have a business set up right where you’ll be able to scale it and you’ll have sustainability Okay, so on that’s not goal for you Um number number five is on track your progress with a CRM Right on I said the Mojo is also used as a CRM. That’s like such a great tool You can get you get a lot of bang for your buck. You get a power dialer you get it on My CRM also like I said You can add different dollars like when you want employees and you want people to own as you start scaling your business You can get on Agents on there that could work under you for a very small, right? So you keep your same system and just keep teaching your system over and over and over and this is what I’m trying to show You right how to keep your system going over and over and over so it could work like a machine That’s the digital age. So this is this is this is the first step for you opening up those doors Alright, this is just you getting in the game You wanting to learn how to be a real estate wholesale the most people get Um getting a game and they don’t learn the right way to set up their business and operate their business They get out there freestyling wasting a lot of energy wasting a lot of time That’s why I said seven step system save yourself time energy and money. That’s what I’m trying to do, right? You’re gonna spend more money not listening Than just listening, right? Okay, so I’m number seven is Number six is share. Your results are number six is share your results, right Facebook Instagram. Share your results. Tell people what’s going on Even if you didn’t close the deal like right let people know what you experience You know that it’s a it’s a journey that you want. It’s a challenge It’s a 30-day challenge where you could get that deal in the thirty days you’d be real happy You know, that’s what I’m trying to help you do but you know, that’s that’s that’s up to you But um, if you follow this blueprint, I guarantee you be successful and number seven is on finding Network right Your network is your network? But you want to be around people that some more experienced than you right? You want to be mingling iron sharpens iron? So get around somebody that’s Sharper iron so you could sharpen your skills and then you know you sharpen somebody else’s skills but if you’re not sharp, you can’t shop in no one else so There you go. That’s your seven step System that I’m giving you that I gave you seven step blueprint Actually, I’m gonna put this in a download you could click in the description and you’ll be able to UM see the seven step system And I also want to tell you about the three C’s right you want to stay focused on the seven step daily? Um the seven step system for the 30 day challenge to get your first deal is you’re gonna take commitment consistency and confidence this will do the three C’s that this Training so to sort of speak training why are you going through bootcamp is that it’s going to develop inside it’s going to value the confidence to speak to people that know what you’re talking about and know all the how to handle all the Objections that may come your way It’s going to teach you to be consistent because you’re gonna show every day for a certain period of time and and you’re gonna know your numbers and I was also gonna um, See if you really commit it right commitment lasts way longer than after you start something Commitment is is you show up to work every day no matter um, if you feel like it or not, right? So there you go. Um, if you like anything I send this video, please like share subscribe You can click on an almond Bell to receive Notification of more videos also, please click on the description below If you want to free books smart real estate wholesaling, and on real estate money secrets. Thank you

How to Analyze a Multi-Family Rental Property | Deal of the Day | Lewiston, Maine

Hey, Everyone, I’m Dave Meyer with and today we are analyzing a 4 unit multi-family to see if it makes a good investment on this episode of Deal of the Day. Thank you, everyone for joining us. Today’s Deal of the Day was submitted by BiggerPockets user Al Smith, who lives in Indianapolis, but is looking at a deal in Lewiston, Maine. Before we jump into the numbers and the specifics, how to analyze this, I’m going to talk a little bit just about the details of the house that Al gave us and some of the questions he asked us specifically to address. So, the house was built in 1881, definitely
a house on the older side. It was converted into a fourplex at some point after its original construction, so we know it wasn’t designed this way, but that’s not
necessarily a bad thing. It’s listed at $110,000 and has an estimated monthly rental income of $2,250 per month. Taxes are only $2300/year for 2017. So, I’m already liking the numbers on this
deal before we really get into any of the details The location is in an older part of town which isn’t really a bad thing, but something to think about. And as for Al, our BiggerPockets member, he’s a first time investor. He has $40,000 saved up, so great job Al,
but he prefers not to put that $40,000 all towards the down payment and is looking to use a conventional 30 year loan with 20% down… which definitely would be possible with
these numbers… (Volume Up)

Investing In Real Estate With A Full Time Job?

All right, what’s going on everybody? In today’s video we’re going to be talking
about, can you have a full-time job and still invest in real estate? I would say absolutely you can and, not only
that, but you should have a full-time job. If you’re looking to become a full-time real
estate investor, I would actually recommend that you have a full-time job and then do
real estate investing on the side before you gain some consistency to the point where eventually
you could quit your job if you wanted to. There’s a couple of reasons for that. Number one, just like any business when you’re
getting started, it’s going to be hard to be consistent and do consistent deals when
you’re first getting started. Now, some people, they might start doing two
or three deals per month but other people, it might take them a little while to get started. From a pure cash flow perspective, you might
save up some money but if you’re not making consistent income, like you would from a normal
job, that money can dry up pretty quickly, ask me how I know. I would definitely recommend having a full-time
job. Ideally, a full-time job in the real estate
industry so you can gain even more experience before you even think about quitting your
job. The next thing I would keep in mind is, when
you’re getting started as a real estate investor sometimes you can do extremely well in your
first couple deals, and it might even just be dumb luck. If you’re doing marketing sometimes you can
just … I know some investors that have made 100,000 on their first couple deals, which
is definitely doable but it’s, I’d say that’s, I’d probably consider that pretty rare in
the real estate industry. You want to be able to have done at least
a minimum of three deals but ideally more like five or six deals before you think about
quitting your full-time job. The reason for that is, yeah, some deals might
be amazing, other deals might take a little bit longer and you might not make as much
so you want to have a wide spectrum of deals under your belt before you decide to quit
your job. Sometimes you get cocky too after you maybe
do two or three good deals but then your fourth deal, because you’ve done so well in those
first couple, you think, “Oh, I’m going to hit another home run,” and then that deal
doesn’t go so well. You really want to see a wide spectrum of
deals before you think about quitting your job. Another great reason to invest in real estate
on the side, while you have a full-time job, is to build up assets. By that I mean you want to build up … You
can even buy rental properties. It’s going to be significantly easier to purchase
rental properties if you have a full-time job rather than if you’re just self-employed
doing the whole full-time real estate investor thing, so that’s one reason. You can buy two, three, four, five rental
properties with your full-time job income before you take the leap to being a full-time
real estate investor. Then, in that case you have cashflow coming
in that would help to stabilize some of the months when you’re first getting started. Not only that but you also want to extend
your credit lines and potentially get new credit lines as much as possible when you
have the security of a job. Myself personally, I have over 100,000 in
credit and I’m trying to get over a million dollars in personal credit and possibly business
credit as well. When you have a job that’s going to be 10
times easier because they just look at the income, they might look at your taxes, and
they’ll give you sometimes a pretty quick approval. You should have, I’m talking about credit
lines with the bank. Sometimes you can just get a personal credit
line with your bank and you can apply for 50,000. Now, they might not give you 50,000 and they
might say, “Hey, what are you spending that for? You say, “Hey, I might be making some large
purchases soon.” You don’t really need to get too specific. I don’t want you to lie or anything like that
but, generally speaking, if you have good credit and a steady job you can ask for a
personal line of credit, which is essentially like cash. It’ll just be in your account and you can
use it whenever you need to. You should do the same with credit cards. You should have three or four credit cards
and try to extend the credit lines on those as much as possible. Most people are not even aware that you can
probably just call your credit card company today and ask, if you’ve been paying on time
and you have a steady job, probably ask them to double your credit limit. That could give you a lot more financial security
when it does come time to quit your job. What will happen is when you’re self-employed,
especially when you’re getting started, you’re going to have amazing months where you’re
like, “I’m a genius, I’m going to be a millionaire next month.” Then you have months where you’re like, “Crap,
I need to get a new job. I need to get a subsidized apartment. I need to make some serious life changes.” Having all that built in, credit lines that
you can rely on if you need to. I’m not saying get a credit line just to go
buy a boat, which theoretically you could, but use those credit lines as security or,
potentially, if a buying opportunity comes around sometimes you might … Maybe there’s $100,000, you need to bring
$100,000 to the table and you might be able to finance that in creative ways with credit,
your credit line, and savings, for that matter. Okay. The next reason why I recommend investing
in real estate part-time, while you have a full-time job, is you can get good at outsourcing. Being a real estate investor, being a full-time
real estate investor, you actually don’t spend as much time as you might think. A lot of my business is outsource. You should outsource these three things when
you get started as a real estate investor. Number one. Your leads. Some investors purchase leads, you can purchase
different motivated seller lists. You can also pay a researcher. I have a virtual assistant that I’ve trained
to basically pull different motivated seller lists for me. You want to have somebody get the list for
you, the list of motivated sellers, the list of people that you’re going to be marketing
to. That’s just for my business, some people have
other ways of getting deals. The way I get deals is I basically have a
long list of people and I send them a lot of direct mail. Now, there’s other ways of getting deals. You can do a ton of networking, you can just
search the MLS, but in my experience I think direct mail is definitely the best way to
go. You would outsource getting the list, and
I have different videos on how I get lists and different things like that. If you have questions about getting lists,
just drop them in the comments and I’ll respond. The next thing you should outsource is having
somebody answer the phone. You should have a business phone line with
your business. You don’t want to just put your cell phone
on different marketing pieces and things like that, it doesn’t look very professional. If you’re working a full-time job you’re not
going to be able to just answer every single phone call. There’s plenty of, there’s countless services
where you can have to get a business phone number. Then, I use a call service called Dedicated
Office Systems. They just basically screen all my calls and
send me leads, essentially. They notify me via text message as well as
email and it just says, just has the lead info sheet which basically has the property
address, the name of the seller, how soon they’re looking to sell, the address, and
the amount they’re looking for. I know pretty much within 30 seconds whether
it’s a good deal or not because they’ll say, “Look, I want to sell fast, the house needs
a lot of work, and I’m looking to sell it for 200,000,” which might be an amazing deal. You should outsource the calls as well so
Dedicated Office Systems is good. There’s Pat Live, P-A-T Live. There’s also Answer First, and then there’s
also you can hire a virtual assistant. There’s plenty of other services but those
are really good for real estate investors. Then, the third thing you should outsource
is your direct mail. I do a lot of direct mail. If you’re doing cold calling, you can do that. If you’re doing networking, that’s obviously
more in person. If you’re searching the MLS, maybe you can
just pay someone to search the MLS for specific types of properties like TLC, Handyman Special,
Investor Special, things like that. Then, maybe they could send it to you every
single day. For outsourcing my direct mail, I use a service
called where the person sends me my list that I’ve already outsourced. I basically upload that list to Click to Mail
and it sends out postcards for me. I basically just do that once a week and I
send out a lot of postcards. I get about a 1% response rate but out of
that 1% response rate you’re going to get some very motivated sellers, especially if
you get 10 phone calls. If you can just make your phone ring 10 times
in a month, you’re going to get two or three pretty motivated off market sellers, that’s
also going to help you. Once you go full-time, you’re going to have
a good idea of building a team and things like that. Once you go full-time, you’re going to want
to have a steady source of leads coming in, a steady source of deals that you can evaluate. You can practice with that, with outsourcing
those three things. Then lastly, before you become a full-time
real estate investor, it’s good to have a job in terms of the cashflow. You can also say, “Look, a year from now I’m
going to be a full-time real estate investor and I’m still going to have a job, I’m still
going to have the cashflow coming in. Maybe within that year you say, “Look, I’m
going to network. I’m going to meet 100 different people in
the real estate industry.” You can say, “I’m going to try three different
strategies for finding deals.” Maybe one would be direct mail, maybe one
would be cold calling, maybe you set up a YouTube channel, but you should try three
different marketing strategies during the time just so you can test and tweak and see
what works because once you go full-time you’re pretty much going full-time. It’s kind of hard to go back to work in a
full-time job. You need to be sure that your marketing strategy
is scalable, and that it works for you, and that you can get predictable results. That’s what I like about direct mail, it’s
very predictable. I know if I send out, let’s say, 500 letters,
I pretty much know how many phone calls I’m going to get. If I send out 1,000, it’s going to pretty
much be the same percentage. Obviously, if I send out 100,000 there might
be some, eventually it’s not going to have the same percentage but, generally speaking,
you can predict how many leads you’re going to get. Use your full-time job as security. Maybe you start buying some rental properties,
maybe you start flipping, maybe do at least five deals before you really jump in. Use that time to network as much as possible,
go to RIAs, meet up groups, anything like that. Try to meet at least 100 different people
in the industry and then try different marketing strategies while you’re working a full-time
job. Maybe you just wake up an hour earlier and
you send out some direct mail. Maybe you wake up an hour earlier, you make
a YouTube video, you do different networking, you reach out to different people. You really want to have tested some market
strategies before you jump full-time into the business. There you have it. Hope I answered your question on can you have
a job, a full-time job, and also invest in real estate. I would highly recommend that you do get a
full-time job before you think about becoming a full-time real estate investor. Especially, if you can get a job in real estate,
it’s even better because there’s going to be a lot of things that will carry over to
your own business. Thanks for watching. Please like, please share, please subscribe,
and I will see you in the next one. All right, bye.

My First Deal Earned Me $13,500

My name is Adam Campbell from Windber, Pennsylvania. I was doing some research on the internet
and couple other mentors online, looking through different scenarios. Joe seemed to share everything that he knew. He shared it very well and he portrayed himself
as a genuine person. The first deal I’m going to be making $275
cash flow a month and that ended up being a subject to deal. So, I’ll be, whenever that’s cashed out
I’ll be making no less than $13,500. So, it being my first deal, that one probably
took me in the neighborhood of thirty hours of work, I would say. I was all hands on deck when I started the
program and you know, didn’t limit myself to just the Automarketer. I would reach out to various you know, wherever
I could find houses for sale. So, I did, like, let go apps on the phone,
I did craigslist and basically a bunch of cold calling. So, that’s where I found my first deal,
on one of the cold calls. Went and saw the property because it was about
a forty-five minute drive for me. And so, yeah, I checked it out. There was an investor, another investor that
I learned that they were talking to at the time and they couldn’t get it, apparently
they were working with this investor for a couple months prior to meeting me and I explained
what – how we did it, and how I could help them sell their property. And they decided to give me a shot and within
the first day of marketing it, it was sold. So, yeah. For sure it was the first deal. It was originally going to be a lease option
deal and like I say, there was another party interested and I could sense that nervousness
with the sellers. So I went ahead instead of keeping it zero
down, I know that they, from conversations that I had the seller, they were willing to,
you know, they kind of gave me a figure because they wanted a boiler for their new house which
he said cost about nine thousand. So I just offered subject to existing mortgage,
plus the nine thousand. They called me an hour later and said let’s
do that deal. So, I was only going to make four thousand
dollars as a lease option. Now I’m making no less than $13,500 plus
the $275 a month. My goals moving forward are to acquire one
unit per month. So, having the tools in my tool belt that
Joe has taught me and you know, along the way he’s helped me, even, through emails
from, you know, within one day he’ll get back to me if I have a question. That’s what I like about being a mentor
– him being, mentoring me. He’s always at my disposal. Be it, it’s not just going after lease option
deals. It’s whatever I can help the seller get
out of their situation with. So, whatever structure best fits their needs,
now I can, I have a broader range of tools to use. So, the impact on my life that it has, it
definitely, it will help out financially. My goal is to eventually have this be the
primary source of income for me. I want to be a full time investor, eventually,
but you know, as of now I, like I said, I’d like to acquire one unit per month and eventually
build up to the point where it can exceed my expenses and become financially free. The most appealing aspect of doing this full
time is that it gives me the freedom, the freedom to do what I want, when I want. I can make the calls whenever I want, you
know, you know, I can spend more time with my family and just the freedom all around. I do plan to automate more. I started with the Automarketer when I began
this and that helps some, but still a lot of my time is spent talking with the buyers
and I realize the moneymaker is talking to sellers. So, I would like to definitely automate the
buyer side of it. The advice I would give to a real estate investor
starting out is just do it. Whatever you’re thinking about, just get
started. Doesn’t matter what it is, just do it. Additional information would be, you know,
it doesn’t have to be just the zero down structure. I still work with a real estate agent and
I still buy properties off the MLS. But this just helps add to that repertoire
of tools, like I said, to be able to help the seller one-on-one structure the best deal

10 Things You Can Do TODAY As an Airbnb Host In 2019

I’m giving you ten things that you can do
right now as an airbnb host in 2019, let’s jump right in.
so i hope that 2019 is your best year ever if you haven’t started your Airbnb journey
i hope this is the year that you do so, and if you are hosting already i hope that in 2019 you
take it to next level and the ten things you can do today to be a better airbnb host im
going to give you in order to help facilitate that now let me say that these things are
all free and easy things that you literally can start doing today im not going to tell
you to go buy a website or to pay someone to make your logo or to buy stationary and
put that logo on a pencil and i’m not telling you go hire
a branding consultant and pick out a color palette and pay for some software to choose
a color palatte for you because there is a free app for that too, all the stuff and giving
you is from my personal experience in some of these things should not be free. before
these ten things i’m giving away something else for free, im giving away free consultation
now im not going to put the link below because a lot of you seen it already but a lot of
you know that i charge real estate investors four hundred dollars an hour to talk on the
phone well i’m going to give one of you a free thirty minute phone call to talk about
your current Airbnb business or for future business and heres what you have to do to
win. first if youre not already a subscriber to this channel i need you to subscribe and
like this video then with this video please share to any avenues of your social media,
copy the link for that social media share and post in the comments below i will choose
one of these comments as winner in two weeks announce the winner in a couple weeks, easy
yes? so without further ado let’s get into the ten things that you can do today as an
airbnb host in 2019. number one up your customer service game by studying Disey’s business
customer service experience I had a talk with my leadership team about messages that somebody
on my team sending guest what they would take a check in early, then the team member on
my side said unfortunately we are extremely busy we have to stick to our current checkin
time. thats not good enough but what you can do is you can do what disney does and you
don’t have time to read all disneys rhetoric let me dive you the skinny. you want to highlight
the positives of any situation you really want go for magic at all possible, for of
whenever possible and to the way you would do this for example with this message when
somebody wants an early check in and you can’t really accommodate you’ss say: though IT may
take up until three pm (which is a normal check in time) though it may take up until
three pm, to ensure that your place is marvelous when you arrive if our cleaners are done ahead
of schedule i will certainly let you know as soon as i know, this is something i can
do for you this is a positive if it’s possible i’m going to let you know, and then somebody
might ask when so what should i would say well, feel free to book and let’s communicate
the day of your arrival and I’ll let you know how early you can come in. If the person is
checking in that day anjd theyre already booked you don’t have to sell it, you’ll say thank
you once again for booking, keep in touch with me some time afternoon and i will let
you know how soon we can let you in. something like that but focus on the positives even
though IT may be a long shot you still want to let the guest know the constantly trying
to do something for them , that’s the disney experience number 2 up your leadership game
by reading the books multiplier which I already told you about, and download this free book
alright i am going to link a free book at the bottom is called enchantment by guy kawasaki
he used to work for apple and this is a wonderful book because the things that it will teach
you will trickle down to your team It’ simportant that you lead by example and that you create
the right culture as a leader in your organization which will encourage your team to do a good
job with your guests you take care of your team they take care of your guests, you know,
it passes through. If you haven’t read Multipliers yet do sootherwise also down below is a link
and that way you can download this ebook and have that one continue your growth as leader
three: progressive here if you’re not yet a super host i want you to make a new account
and want to take your best few accounts, your best listings i want you to move them into
that separate account, some of your listings may not be getting super host like ratings
because the checkin process is just not is not possible to be super super streamlined
like maybe somebody has to pick up the keys at a different place, or maybe the building
is a little bit old and maybe you do a five star job. somebody is like ahh its a three
star building ok so keep those in your old accounting move your best listings to a new
account so that accounting is super host status that we some of your listing can get on airbnb
plus ok? compartmentalize your listings based on quality, easy right do it. , 4: hire a
dedicated housekeeper and if you can not afford the to pay fulltime by the hour because they
will get enough work for you to go on a facebook forums find other air bnb hosts and ask them
if they would like to collectively hire housekeeper or two together ok and you will collectively
manage as a group of hosts a full time employee or 2 okay? youre going to contract them in
this case. this way you can be more competitive because a large part of our business model
is being price competitive and then staying solvent at lower cost because there will come
times when you have to drop your price to get a booking, if you are afraid to drop the
price below lets say seventy dollars because your cleaning fee sixty or eighty or something
crazy then you will get zero dollars for that night because your costs are too high if you
could pay somebody by the hour say 12 or 13 dollars an our or 10, depending on your market,
whatever the competitive rate is for a cleaner you can get the cleaning done for fifteen
to thirty dollars instead right? that allows you to drop your rate when you have too. you’ll
also be more profitable in instantly every single reservation you have will have thirty
to fifty dollars more probability hypothetically because this type of price drop this allows
you to do more things that other hosts cannot so if you cannot afford one on your own find
other hosts together and do it, okay? five, raise your nightly rates above the market
average. so a couple reasons why you want to do this first off you want to be able raise
rates to prevent single night booking to do custom night discounts to do three to four
nights seven nights that way your booking are more than one day long. you will fill
up your calendar with less reservations this way you still get your same nightly rates
but you won’t have somebody book the fourteenth of the month and then screw up your whole
month you want to prioritize that 10 day booking, because that way so you need less overall
demand in order to fill up your supply. or eat up your supply, your supply is your thirty
or thirty one day calendar. If you could get that booked with one reservation thats way
easier for your business so try to get that book in four or five or six reservations instead
of having to have twenty, right? sp that’s why you raise your nightly rate up and try
to do custom nightly discounts initially, or, additionally you can raise rates is a
little bit to incorporate a incentives like youre marking it up to marking it down a lot
of department stores do this so you can actually mark rates up a little bit,
and you can leave in your description “just ask for a ten percent discount” or a we give
a ten percent military discount or some other form of specialized discount that makes subsection
of people, feel like their special or you do a limited time offer for february march
only we’re going to do this discount. a couple years ago i did this winter rate in houston
and the properties that i did this winter discount rate on performed better even though
i raised the rates a little bit to optimize cost effective i did specialize rate discounts,
or the special seasonal discount cused my properties to be more profitable. so mark
it up so you can mark down. 6: watch all of my pricing strategy videos i will be doing
another video which i recorded on christmas , but I sit here and talk to you just like
this and it was forty minutes long of pricing advice so its coming soon and there are some
new things but still plenty in my old pricing videos that you do not need to pay for a service
to give you dynamic pricing ,yes there are services that do this and will automate your
stuff like wheelhouse will give you pricing advice for free they just wont automate it
for you know i pay for staff to do all of our pricing adjustments because we have staff
already why not just bundle it all together right, instead of paying a percentage for
bookings we have this human labor do it ok? now we don’t also rely on wheelhouse though
and the 50 properties we have for the last four years we’ve built our business doing
it by eye. So we take a look at our portfolio how its performing we take a look at our market
, learn about our market and price nuances of our market and we took a look at the market
trends on Airbnb and it says ” you should price at point or this point” will be above
those market trends are done via market watch indicators what we feel like we should be
and sometimes will even be below IT where we feel like we should be so we’re doing this
based on how we are doing as a business compared to the market in airbnbs data is helping a
kind of guide our path but long story short we’ve never used a dynamic pricing model to
run a business and, i think i’m one of the most successful airbnb hosts you know, right?
because you don’t need to pay somebody for this is my point 7: write a communication
flow chart for your team so if you watched a previous video which you should absolutely
watch “4 messages you should be sending every guest” this essentially is a flow of how your
conversation should go with guests. every single guest that books will get a welcome
message from you of course right for every single guest after their check-out will get
lessons or think you request message before you send them review writes the case falls
messages in the middle will be based on how long the stay is so what i want you to do
is i want you to map out a flow of the person staying for one day, you have messages go
if that the person is staying for a week heres how the messages go if the person is booking
last minute heres a flow chart for that put into a global document and share with your
teams that we’ve seen when the communicating with guests and train them on this consistency
your new businesses running like clockwork its operations ok still less mistakes sweet
and sticky cost money,we all know that rice state speaking of double drive i want to make
a document and want you to make a bio page for a,IT is you can have all the building
is right and have all the addresses for the building into the part numbers many heavy
the file number for me is that building a file number for the property manager useful
number for local emergency line,who who the electric provider is akin to use spectrum
or contact with your skin to provide a watery account numbers for those where the file number
to call those people, was checking instructions for the safe what are the photos that are
in checking die system is on the document they can work with somebodywho’son airlie
beach platform and can walk them through you put this all on double dry document,even put
the frequently asked questions for rebuilding right and the answers to those questions are
also cautionary notes if the feeling is super strict about a couple things that valley trash
or something like that with those in the notes right thumb you cannot keep what brand of
TV is in there so sadly does lose a remote,you say what you have said before bronte is ityou’reno
friend indeed is any tell the cleaner hey we in a new video remote or renewed new sense
of remoteness apartment number you should have is remote in inventory,so when this last
guru told you that you need that making mistakes absolutely the hardy submitting states welcomes
a lost remote city after most inhibitory you should keep records CD in inventory by the
white people feel of this self keeps all the different notes in the angle drive for each
separate unit that you have indeed have the lease term is that with its own becomes a
new organization a need to train there,your business is all right there for nine take
better photos of your property hands down mega important six out of every ten guests
that are booking properties the first thing that they do,they sweat through your camera
roll or other year you follow real and self this type of behavior is exactly the thingthat’simportant
to respond to your photos or sixty percent,at the time the only thing that matters to do
a potential person soi’mgoing to do another video that hath had take quality photos with
smart phone anddoesn’thave to be a good smart phone is can require little software adams
if i can find free software for you to do IT and foster,the photos now go back to older
listings with a clean right hopefully set up these photos like this listens while go,
take a look at them go to a really like this photo right after pressed he like his photos
when you thinkit’smodel feedback on in and change this up so you space,don’thave to be
hyper unique is good to be novel but at the end of the day people are really looking for
qualitythat’sreally whatthey’relooking for you can do event marketing of this place is
unique but quality is the cornerstone and something you can do today is take better
photos clean the floor,fritch take better photos get after, ten, make some friends make
friends with air being the health i want you to sit down inviting the coffee i want to
get on peaceful find other in the house i want to learn from him how to teach this the
same as what you build a local community health,also help you if you have a reservation need to
get moving change they can help you re accommodate the guests field cancellation and finally
got to be something bad happens but for everybody has a strength so you will have different
strengths and other air b b health and you can finally connect somebody other than just
myself somebody at you in your city at your local level who talked to over lunch about
what just happened in yesterday with a guest in some crazy situation that happens, that’sso
valuable i really cherish those of you that is the top view on regular basis because some
of you reach out to me on face book set in the automated every seven conversations and
sometimes in response action after the magazine you guys understand but am i really do feel
like i learn a lot from a lot of you out there for exam not the boss,if the guy swiss proper
self sticky sending to him right now i wish you all the success that analyzing they keep
watching reviewed automated much love andi’llsee you in two thousand nineteen,on the other

How to start the BEST House Flipping Business!

how to start your own house flipping
business what’s going on friends it’s Sam Kwak your real estate investor
coach and mentor and in this video I want to share with you guys how to start
your own house flipping business now you might be brand new you’re just getting
started you’re interested I mean you’re excited and you might have watched HGTV
and you’re feeling really inspired about starting your own house flipping
business as well so I will tell you that this business is very very lucrative and
very profitable but at the same time you gotta understand that there’s a lot of
risk to it financially and also legalize you know there are things that you can
do that can actually get you in trouble in terms of law so I want you guys to be
prepared educated and you guys understand the different things in the
real estate investing world so that you guys don’t go out there and just hog
while and get in trouble and lose ton of money because that could really really
happen and I’ve seen many many people who’ve gone into real estate doesn’t try
to do their first flip and ended up a bit you know losing ton of money and
never went back to finish their projects and never really went back to the
industry in the first place so I want you guys to get educated to get prepared
because a lot of what I’m going to say is is real you know I wish a lot of
things that that it happened to a lot of people’s on you or just you know
practice but guys take the time and learning right take the time and getting
yourself educated because making that one mistake is going to cost you more
than the time and the price that you pay to get educated okay so that’s really
really important and I can’t I can’t stress that enough because there’s a lot
of people who in my life have suffered a loss from not getting prepared in this
real estate investing world so in real investable there are different
strategies you know fix and flip is definitely one of them buy and hold you
know being a landlord notes you can get into wholesaling which is a strategy to
fix and flipping so I want to talk about that a little bit but those are the main
strategies that you can use and you might be interested in and who knows
doing your first flip you might not even like it you might be more inclined to
doing landlording you might be more inclined to doing notes and and I hope
that my youtube channel is going to help you figure out really and get to know
yourself a little more who you are as an investor you know what
type of investing does appeal to me what what works for you right you know some
of the things that in in the real estate investing world doesn’t work for me
right I definitely do not like short sales you know they’re not short I don’t
know who named it but you know short sales are definitely up for me but fix
and flips buy and hold and tax liens are definitely something that I can do all
day long and make ton of money at so I’m gonna go and talk to you guys about
basic overviews of starting your own fixing foot business today and I’m not
going to get too much into details which by the way I will spiral this video into
whole another series where I’m going to go and talk about each of the things
that I talked about today right now so things like ARV how to calculate market
price what’s fair market value on a property how to do coms how to raise
money right that’s a huge huge topic and some of you guys might be interested in
taking that training because no money might equal to no deals but sometimes I
could prove that wrong I can actually show you how to find real estate deals
get into and get out without any money being involved so I will show you how to
do real estate deals without your own credit or money but at the same time
I’ll show you how to raise money so that it’s Bor there’s an easy of at ease of
access getting into deals and rather than trying to figure it out in your in
a creative way but in fact I feel I feel like creative real estate investing is
far more superior because you know you can go in without any money and come out
with ton of our eyes and ton of profit that you can generate definitely
possible but i’ma show you guys how so I’ll go and spiral into a whole nother
video series do do and cover the details of some of these moving parts to the
investment strategy right so in my one point here today I’m going to show you
guys a hypothetical real estate deal that I may find and in fact I’ll go
create a whole nother video where I’ll go and walk in through an actual real
estate deal that I’m working on so an actual fix and flip deal that I will
show you and show you guys what’s going into it what tips what types of repair
what to look for and how much you should do how much of repair should you be
doing in comparison to your local market which by the way before before I go on
make sure your understand your market number by what I
mean by that is I work off of Chicago numbers right shakaal numbers is going
to be different from Florida numbers it’s going to be different from Michigan
numbers it’s going to be different from California numbers so do your due
diligence as far as what is typical in your market and that’s something that
most of the gurus aren’t going to talk about it you know a lot of the
infomercials out there they’re not going to say do your due diligence in your
local market some will but some will not right so I’m gonna be the I’m gonna be
one of the first few people to tell you do your due diligence as far as where
you are in your market and if you live in Chicago great you can work if I offer
my own numbers but but again still it depends on where you are in Chicago
right if you’re in 6061 Englewood side yeah the numbers going to look really
really different right versus 606 25 and into towards the Chicago so be be
mindful of where you are and understand that different markets play with
different numbers okay so let’s go ahead and put together a hypothetical
situation here so I’m going to use blue to get started now calculating ARV I’ll
go ahead and put together another video on that but in a RV stands for after
repair value so R after repair value is basically the number the price that we
were going to be able to sell it for after we finish doing the repair and
Rehab so make sure you understand our number that’s going to be your key term
so let’s say our ARV for this given property is about $200,000
okay so we have $200,000 property ARV so after we you know painted we make it
look really nice we got new cabinet in there and you toilet you backed up with
all that being done we know we’re going to be close to two hundred two hundred
thousand dollars now if you’re in a range if you’re calculating this within
range always always always take the lower
numbers so if your let’s say you’re working with a real estate agent
competent real estate agent that says yeah the ARV is going to be anywhere
between 180 to 240 right don’t go with the middle go with the lowest number
because you know even even on the downside red even on the very low side
if you know you can make money you know you can make money on a $220,000 that’s
an for 40 grand profit that you can take
away but if you decide to take the 220 and also BAM you sell your house for 200
then you lost two hundred twenty thousand dollars of calculated profit so
always take the lower money always be fiscally conservative when it cut when
you’re calculating the deals don’t don’t you know try to budget the numbers and
make your air if you all look nice and pretty
no no be real call it like it is don’t fudge with the ARV because if the deal
doesn’t work don’t force it right do not force the deal to make it work so we got
we got to two thousand dollars ARV that’s that’s what we know we can sell
for that’s the lowest number we can take that’s being conservative right be super
conservative about your numbers now let’s say our repair estimate came to be
about thirty thousand dollars so repairs okay and with repairs it’s all going to
depend on if we the contractor is going to be when your relationship to that
contract is going to be as well and also understanding what types of repair do
you need in your given market because if you’re in a low income side low income
housing you don’t want to necessarily put put in the nicest granite countertop
you don’t want to put in brushed nickel everything right you want to you want to
go light with the rehab when it comes to the when it comes to that kind of
housing right if you talk about you know a little bit more affluent areas you
know we got higher income median income be in the town neighborhood then yeah
you want to you know upgrade to granite countertops you want to go with
travertine tiles you know you want to go all how almost all out to the point
where the buyers in that neighborhood are going to be interested in your
property and they’re going to buy it so keep in mind
don’t overdo your property don’t put the shiniest thing on the property always go
with what’s acceptable to your local market so we put in $30,000 repairs in
and one of the things that I see that a lot of the Guru’s out there don’t talk
about is holding costs holding cost is your utilities right you got to turn the
lights while you’re doing the rehab right especially there in the inner
corner time right water right you got to make sure
your contractors are getting water in there you want to make sure you got your
taxes right that’s another thing that you should be looking at I didn’t make a
video called five things that you should always know
before doing any real estate deal do check it out
and that that’s a huge saying on how to find the taxes right to your given
County and your and your given property so we got to put it we got a factor in
holding costs let’s let’s say we’re holding this about six months because I
always go to six months number because you never know the market my shift and I
all of a sudden I’m holding this property for four more months when I
only anticipated two so I put in six months worth of a holding cost just be
just be more safe so let’s say that we’re putting about twelve thousand
dollars of holding cost right and holding so that’s your that’s your taxes
utility that could be I mean little little things like hey you need to buy a
new air filter right little things like that is all going to only hold into that
now let’s let’s let’s now calculate the price of purchase or or the goal what
our goal is going to be for a purchase right so we feel if we want to make a
least thirty forty thousand thirty thousand dollar profit into that right
so let’s say you’re gonna put in twenty let’s see yeah let’s let’s be let’s be
more profitable here so thirty thousand dollars worth of profit we want to be
able to create that number right so that’s our profit now also on top of
profit I like to put in what’s called a an oops cost right so this is this is
something that I put in there just in case let’s say we tore up a drywall and
awesome Wham there’s a whole patch of molding we need to be able to fix it or
let’s say we tear up the roof and also we’re missing sheathing or something all
right I’m going to put in five grand in there
just as our our oops cost okay that’s so that if there is something that I
discover that is going to be little more costly that I think’s
anticipated I can always take take the money out of the cost budget and bam we
got our we got our challenge taking care of so if we want this if we want $30,000
profit on this on this deal then we gotta work that we gotta work the
numbers backwards so 35 we got 35 year 47 right 47 and 77 so we got 77 thousand
worth of expenses or 77,000 expenses minded 30,000 Papa so we got $47,000
with expenses out of you know out of the entire calculations that we did here so
with the $200,000 AR be subtracting the seventy seven thousand dollars we get
about 120 three thousand dollars right so that is our target purchase price so
if you want $30,000 profit out of this deal we gotta have it within no more
than hundred twenty three thousand dollars right so is it possible to go
lower than 123 thousand dollars with good negotiation skills yeah sure so if
we go lower than hundred let’s say we were able to buy this property for a
hundred and ten thousand dollars alright so we actually made thirteen thousand
dollars extra on our profit right if all these numbers been consistent so if we
know that repairs are going to be stay are just going to stay at thirty
thousand dollars and that’s the conservative side meaning if even if
it’s going to cost heaven and earth it’s going to cost you thirty thousand
dollars to repair and yeah that’s that’s a good number to stay with so so with
the purchase price how you negotiate is going to matter if you have a good
negotiation skills one thing remember is that you make money when you purchase
the real estate deal not when you sell it when you walk into the deal you
should have already have this number all laid out right there on the spot right
so today I never go into a single real estate deal especially a fix and flip
without having these numbers in my head somewhere uh and then
actually walking in from there so I need to know what the end is going to look
like right never walk into a real estate deal without knowing your answer
strategy and what is your outcome going to be so no no that number in your head
right no that outcome and if you so if you don’t know these numbers you’re
going to be led by the numbers right the real estate deal is going to be owning
you not you owning the real estate deal does that make sense so you want to have
a number in your head calculate it go through this analysis and understand if
this is a good deal or not a good deal and remember this is something that I
see a lot of beginners and new real estate investors run into is they try to
fudge with the ARV to make the real estate deal work right do not do that
because you’re losing money if you’re trying to if you’re trying to fantasize
the ARV into something that’s not okay if the ARV doesn’t work with the given
calculations and if you know that if you know for a fact that the purchase price
is not going to come out to be that way then yeah don’t don’t do the real estate
deal right don’t do it because you can lose money and if the market and the
numbers are telling you one thing but your heart is telling another let’s
listen to the numbers first and then listen to the heart okay so I just
showed you guys the basic fundamental analysis on a fix and flip deal right so
for those who are brand new you might not understand each of the numbers and
the details of it all so like I said I’ll go ahead and start a whole nother
video series to show you guys how to talk the ARVs how to estimate the
repairs how to estimate the holding cost and how to raise money right how to also
build business credit that’s that’s a whole nother topic that we can get into
that’s going to help you a lot getting into real estate deals right so I’ll
cover those videos in the coming weeks and you’ll see it so those are the video
series I’m going to go and create and you’ll see them if you’re subscribed to
my channel for those who are not subscribed to my channel do you
subscribe to them because I’ll go and share ton of information how to raise
money right that’s the biggest challenge that I’m seeing with new investors how
to negotiate how to run these numbers so all those videos are going to be coming
out very soon so do you subscribe to my channel and I’ll show you guys the
details of calculating all these numbers and doing other things like raising
money and you go that’s going to help you start your
fixing foot business now I’m also looking for qualified trainees to work
with me on a side-by-side level so if you’re interested in getting qualified
to work with me as a trainee and a partner go to investor coaching that
info I am looking for qualified candidates to go into the process and
work with me and I can personally mentor and coach you along the way so go to
investor coaching that info I’ll throw the video down in the link on the video
right here you’ll be able to see it and always if you have any questions go
ahead and drop them down below and I’ll answer them for you guys as soon as
possible alright thanks for watching guys