Three Tips on HOW to share a success story. Without “bragging” or feeling awkward.

Do you have a success story to tell?

At our monthly WREIA meeting on July 18th we are going to focus on our WREIA members.

This is a great chance to share your success story.

This is an opportunity for you to share the spotlight with other WREIA members.

But….. How?

A few days ago I had Melinda Gates (yes, the billionaire foundation founder) help explain WHY it’s good to share success stories.

Today – let’s take care of the HOW.

THREE SIMPLE TECHNIQUES
TO CREATE YOUR SUCCESS STORY

How do you create a story that isn’t bragging, or if you tell it will be a turn-off to even your closest friends?

twofriends

This can be a scary one for some people. Talking about “winning” isn’t always popular. Let’s break it down into three simple techniques you can use to create stories that people will enjoy.

#1 Don’t make it about you.
Example: Share a story about how one of your Mastermind groups members shared a technique or gave you advice that proved helpful to your business. Explain how once you used that advice it turned out to be a great move that helped push a project forward. It’s a great way to tell a story about someone else that showcases your ability to follow through and execute on the advice.

#2 Explain how you noticed a trend, and got on board.
Example: I noticed in one particular neighborhood where we renovated a home, nearly every house had a wine refrigerator. The partner I was working with pointed it out. We decided to install a wine refrigerator in that home and it ended up being a popular selling point for the home. (See how I combined tip #1 with tip #2?)

#3 Make a list.
Example: Make a list of the three, seven or ten steps you followed to a completed renovation. Or share your steps to a successful but complicated closing. Maybe a list on how you got private money on your last flip? I love lists. I think most of us do. We like them because we know they will end soon.

So there you have it. Three simple tips to get you going today.
Feel free to turn on the creativity bulb. Think about it for a few moments. Do you have a story you could share with your friends that will expose your success using one of these techniques?

Now – do YOU have a success story to share with our WREIA members on Monday night?

If you already have something to share – just let me know.

If you want to participate – this is going to be pretty simple.

Email me at profitableproperty@gmail.com or
call the office at 301-881-5541.

It’s that easy.

Join us for the food, the network, the learning and expand your belief that other people are out here in the DC area making money in Real Estate.

Save a few dollars and reserve your seat early. Then, come join us at WREIA on July 18th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.

*********
Reserve your seat for the July 2016 WREIA meeting here.

*********

Make this year a great year for your business!

Let me know how I can help you,

John Peterson
301-881-5541 Washington REIA Network, President Profitable Property, Founder

P.S. Rehab Immersion Course – Summer 2016 Class
The Rehab Immersion Course – Summer 2016 is now starting at the end of July and is limited to 12 students or partners. If you are
looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you. Don’t miss this chance to get some real-world experience. (This summer project has already taught me a few new lessons and we haven’t even purchased it yet!) The summer class has just a few seats left. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.

You can also grab some more Immersion Class details posted on our site – here.

Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended. If you regret missing the spring class join us for the summer project!

Melinda Gates On Why They Share Success Stories – Video Link

bannershare
Do you have a success story to tell?
At our monthly WREIA meeting on July 18th we are going to focus on our WREIA members.
This is your chance to share your success story.
This is an opportunity for you to share the spotlight with other WREIA members.

But….. Why?

You have likely heard of Bill Gates. One of the wealthiest people on the planet.  He has pledged the bulk of his net worth to the Bill and Melinda Gates Foundation.

 Here is a link to their foundation page, where you will find a short 1 minute video by Melinda Gates, his wife and the co-chair of the foundation. She tells you why their foundation shares success stories.
GatesStories
The Bill and Melinda Gates Foundation tackles enormous problems. For them, sharing stories is a great way to communicate the progress being made by their efforts.
For us, it works the same way. 
Your story could help motivate another new investor to keep going. The person sitting a few rows behind you at the next WREIA meeting may find some insight or encouragement in your story and eventually get a property under contract –  and wholesale the contract for a few thousand dollars.
I realize for some people a simple wholesale contract is no big deal.  The rest of us understand that with a few thousand dollars someone can pay off a debt, or take a trip with a loved one.  Maybe they will choose to reinvest it in themselves or give back to a favorite church, temple or charity.
In short – we share our stories because it helps everyone in our community learn what it takes to be successful in real estate.
Ok, so that takes care of the why.  In a few days I want to share with you a few more details and give you some ideas on how you can come up with a story to share.
If you already have something to share – just let me know.
If you want to participate – this is going to be pretty simple.
Email me at profitableproperty@gmail.com  or
call the office at 301-881-5541.
It’s that easy.
Join us for the food, the network, the learning and expand your belief that other people are out here in the DC area making money in Real Estate.
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on July 18th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the July 2016 WREIA meeting here.
*********
Make this year a great year for your business!
Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S. Rehab Immersion Course – Summer 2016 Class
The Rehab Immersion Course – Summer 2016 is now starting at the end of July and is limited to 12 students or partners.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you.  Don’t miss this chance to get some real-world experience. (This summer project has already taught me a few new lessons and we haven’t even purchased it yet!) The summer class has just a few seats left. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.
More Details are posted at:
Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended.  If you regret missing the spring class join us for the summer project!

Do You Have A Success Story To Share?

Do you have a success story to share?
yourstory
At our monthly WREIA meeting on July 18th we are going to focus on our WREIA members.
This is your chance to share your success story.
This is an opportunity for you to share the spotlight with other WREIA members.
Your stories will help the person sitting next to you.  For new guests, it helps them understand that we operate a real business, with real profits and losses, and real decisions to make on every property.
For you “experienced” members – let me know if you have a complicated deal that you recently worked through.
If you want to participate – this is going to be pretty simple.
If you have a story you want to share – just let me know.
Email me at profitableproperty@gmail.com  or
call the office at 301-881-5541.
It’s that easy.
Join us for the food, the network, the learning and expand your belief that other people are out here in the DC area making money in Real Estate.
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on July 18th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the July 2016 WREIA meeting here.
*********
Make this year a great year for your business!
Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S. Rehab Immersion Course – Summer 2016 Class
The Rehab Immersion Course – Summer 2016 is now starting at the end of July and is limited to 12 students or partners.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you.  Don’t miss this chance to get some real-world experience. (This summer project has already taught me a few new lessons and we haven’t even purchased it yet!) The summer class has just a few seats left. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.
Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended.  If you regret missing the spring class join us for the summer project!

Why The Cleveland Cavaliers Won The NBA Finals

trophy
There is no one thing when it comes to winning a national championship.  It takes years of practice, dedication and hard work. Sometimes an entire career is spent in pursuit of that dream.
Last night, after 52 years without a championship trophy to hang on the Cleveland mantle, the Cleveland Cavaliers made history when they came from behind and won the final game of the 7 game series NBA Finals.
They won because of a lot of things, but now that I think about it, something does stick out to me.
 
They won because they decided they were not going to lose.  
In a word – Determination.
We all love to see that come from behind spirit, especially in a playoff game.  But out here in real life, on a day to day basis, I appreciate determination even more.
The single father who decides he is going to make a fantastic life for his kids.  The drug addict that turns his life around and dedicates his life to helping others.
Or how about Steve Harvey?  He was on a recent cover of People Magazine.  He went from broke and living in his car to having a net worth of over $100 Million.
None of these people did it on their own.  They all had a network of people that helped them get off the streets, or get into programs to help themselves first. Even Lebron James had a group of teammates that all drove the team to their final win last night.
Once they got themselves straightened out – then they turned around and started helping other people.
We do the same thing with our monthly WREIA meetings.
If you have determination to make it in our business, our WREIA membership provides a terrific network of people whom you can start to build your business. Every month we network over some food and drinks while we provide resources to each other.
I work hard every month at WREIA to make sure you also get educated on what is working TODAY in our business. No one will sell their properties for top dollar it if they still install orange shag carpet in an otherwise perfect renovation.  You know you need to stay on top of trends in the business and understand the business processes that are working today.
Our WREIA meetings are a great way to take a breather, meet some other great people in our business.  Feel free to trade some ideas, refer some contractors and ask some questions on what is working (or not working) here in the DC area.
Below is  the video I made last last week with a few more details about the June WREIA meeting tonight.

Join us tonight at our Monthly WREIA meeting.

Join us for the food, the network, the learning and expand your belief that other people are out here in the DC area making money in Real Estate.

I see it every month.  People are making money, good money, at auctions again. But you have to have patience and play smart.
The auction atmosphere is exciting – but it is only the beginning of a larger process.  There are a lot of things that happen at an auction that will give you clues as to what to do next if you are interested in the property.   I have bought some great properties from banks and lenders after I lost the bid at the auction.
Come on out this Monday and discover a few things about auctions and REO’s it took me years to learn.  In the last few decades I have attended hundreds of auctions that resulted in the purchase of many dozens of properties.  I am happy to share the lessons I’ve learned with you on Monday.
Join me tonight, June 20th, as we will be talking about the entire process that goes on behind the scenes between the Auction and a listed REO property. It’s a fun topic that I am going to break down into easy steps. If you implement just a few of these steps you may see a giant leap forward in your 2016 results.
June 20th is a great opportunity for you to ask a few questions like:
  • What areas have the best auctions in 2016?
  • How, and where do I find partners for my successful bids?
  • How often do you win a bid?
  • What mistakes do you see people making with Auctions?
  • How and when does a real estate agent get paid in the Auction and REO properties?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on June 20th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the sixth 2016 WREIA meeting here.
*********
Make this year a great year for your business!
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S. Rehab Immersion Course – Summer 2016 Class – Starts just after the 4th of July!
The Rehab Immersion Course – Summer 2016 is starting at the end of June and is limited to 12 students or partners.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you.  Don’t miss this chance to get some real-world experience.  The summer class is starting to fill up. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.
Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended.  If you regret missing the spring class join us for the summer project!

June WREIA Meeting Invitation and Information – VIDEO

Yesterday I tried to get a little golf in before we have a few more days of rain here in the DC area.  But first, I stopped by a recent property we purchased at auction and posted a video with a little more information on our WREIA meeting this Monday night.

Join us Monday night June 20th at our Monthly WREIA meeting.

Join us for the food, the network, the learning and expand your belief that other people are out here in the DC area making money in Real Estate.

I see it every month. People are making money, good money, at auctions again. But you have to have patience and play smart.

The auction atmosphere is exciting – but it is only the beginning of a larger process. There are a lot of things that happen at an auction that will give you clues as to what to do next if you are interested in the property. I have bought some great properties from banks and lenders after I lost the bid at the auction.

Come on out this Monday and discover a few things about auctions and REO’s it took me years to learn. In the last few decades I have attended hundreds of auctions that resulted in the purchase of many dozens of properties. I am happy to share the lessons I’ve learned with you on Monday.

Join me on June 20th, we will be talking about the entire process that goes on behind the scenes between the Auction and a listed REO property. It’s a fun topic that I am going to break down into easy steps. If you implement just a few of these steps you may see a giant leap forward in your 2016 results.

June 20th is a great opportunity for you to ask a few questions like:

  • What areas have the best auctions in 2016?
  • How, and where do I find partners for my successful bids?
  • How often do you win a bid?
  • What mistakes do you see people making with Auctions?
  • How and when does a real estate agent get paid in the Auction and REO properties?

Save a few dollars and reserve your seat early. Then, come join us at WREIA on June 20th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.

*********

Reserve your seat for the sixth 2016 WREIA meeting here.

*********

Make this year a great year for your business!

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Rehab Immersion Course – Summer 2016 Class – Starts just after the 4th of July!

The Rehab Immersion Course – Summer 2016 is starting at the end of June and is limited to 12 students or partners. If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you. Don’t miss this chance to get some real-world experience. The summer class is starting to fill up. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.

Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended. If you regret missing the spring class join us for the summer project!

Auction Tip – How to Find Better Deals

Re: Auction Tip – Thurs. 10:30 AM

There are a few questions I always get when we bring up the topic of Auctions.

At the top of the list – “Where do I find the best auctions?”

First – let me tell you my definition of the “best” auction.

It’s quite simply – An auction with the fewest interested bidders.

Many new investors show up at a courthouse auction and are intimidated by the number of people. What you quickly realize though – not many of these rather “colorful” people are bidding on the properties.

courthouse-auction

In fact, very few people are there to bid on every property. Most of us show up and and have an interest in just one property. We may have to stand around while the auctioneer goes through 3-5 other properties before they get to ours. At that point I pay close attention and hope the person standing next to me isn’t interested.

There are a few tips I learned from other auction pro’s through the years. The best tip I ever got was this: Go to the auctions that are advertised in smaller newspapers.

If you only attend the auctions that are advertised by the big auctions houses you are missing the best deals. Those big auction companies work with the big banks. They do massive volume with big advertising budgets, and by my rough estimate 1 out of 100 listed properties work out in the end to be a good deal for us as investors.

On the flip side you have small companies or single party auctioneers that handle much smaller volume and often work with smaller lenders. Often, they don’t advertise in the larger papers and many people skip right past them.

One of the investors I have “partnered” with on many properties finds terrific deals at auctions I don’t even hear about. Many times through the year this investor is the only person attending the auction. One of his tips he told me to pass on to you was “Get a subscription to all the smaller papers in your area. It will pay off.”

I think he just wants someone to talk to at those lonely auctions.

Join me on June 20th, we will be talking about the entire process that goes on behind the scenes between the Auction and a listed REO property. It’s a fun topic that I am going to break down into easy steps. If you implement just a few of these steps you may see a giant leap forward in your 2016 results.

June 20th is a great opportunity for you to ask a few questions like:

  • What areas have the best auctions in 2016?
  • How, and where do I find partners for my successful bids?
  • How often do you win a bid?
  • What mistakes do you see people making with Auctions?
  • How and when does a real estate agent get paid in the Auction and REO properties?

Save a few dollars and reserve your seat early.  Then, come join us at WREIA on June 20th. It will be a great way to start the summer season, get you motivated, and get some momentum for the rest of 2016.

*********

Reserve your seat for the sixth 2016 WREIA meeting here.

*********

Make this year a great year for your business!

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Rehab Immersion Course – Summer 2016 Class – Starting soon!

The Rehab Immersion Course – Summer 2016 is starting at the end of June and is limited to 12 students or partners. If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you. Don’t miss this chance to get some real-world experience. The summer class is starting to fill up. If you are interested in joining us, simply call the office at 301-881-5541 and let us know to reserve you a remaining spot.

Our Spring Rehab Immersion Class is already wrapping up and was a wild success for the students who attended. If you regret missing the spring class join us for the summer project!

Albert Einstein Said THIS One Thing Is More Important Than Knowledge

OneThingAlbert Einstein, one of the brightest minds of the 20th century, said that this one thing was more important than knowledge:
Imagination.
I would take it a step further in 2016 and say that Imagination is closely tied to modern Creativity.
einstein1
I have spent 20 years embedded in the field of real estate investing.  Nearly all of that time I have been working hundreds of deals here in the DC area.

In that time I have met plenty of people who understand the mechanics of rehabbing a house.  Where many of them fall short is with their ability to orchestrate a purchase or sale that makes everyone happy.
einstein2
Especially if it gets a little complicated.  For many people, if they have to do more than paint some walls and mow the lawn to make the property look better it may be too much for them.Often what makes a deal work for everyone is WAAAAYYYY more than nuts, bolts, drywall and counter-tops.

You need to learn to go behind the walls and counter-tops and exercise the creative side of your mind to get those deals done.

These days, anyone can put together a budget to rehab a house.

You need more than that skill to be successful in 2016.

Tomorrow night at our May WREIA meeting, myself and a few guests are going to walk through a few CREATIVE deals that never would have happened if we hadn’t gone “out of the box” with our process.

Like any skill – Creativity is something that can be learned.  It comes easier to some people, and for others it may take some practice.

Let me tell you – once you let the Creativity genie out of the bottle – you might really start to light the world on fire.

You might be trying to write contracts like it’s 2003, before everyone had access to the all the information we have today.

Today is very different from 15 or 20 years ago.  You need more than just one trick up your sleeve to get deals done.  People don’t respond to gimmicks and slick sales processes.

Buyers and Sellers today are very, very skeptical.  They have seen so much and been ripped off one too many times to let you “trick” them too. You need options to turn to when they start to tune you out and move on to the next solution.

Tomorrow night, May 16th, we will be talking about how to put together Creative Deals. It’s a fun topic that I am going to break down into easy steps. If you implement just a few of these changes you may see a giant leap forward in your 2016 results.

May 16th is a great opportunity for you to ask a few questions like:
  • What do I do when the seller rejects my cash offer?
  • How, and where do I find partners that are open to creative deals?
  • Why would anyone not take a full price cash offer?
  • What mistakes do you see people making with creative offers?
  • How and when does a real estate agent get paid on “no money down” creative deals?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on May 16th. It will be a great way to start the spring season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the fifth 2016 WREIA meeting here.
*********
Make this year a great year for your business!
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Video – May 2016 WREIA Topic – Creativity

I hear this a lot these days:

“I can’t seem to find any deals.”

For many of you it means that you are not opening your mind and using the creative side of your brain to put deals together.   Maybe you only know one or two ways to buy a property.  There are dozens of ways to structure a purchase. The odds are one of them is good fit IF you are targeting the right people.

If you knew more  – the odds are pretty good you could do more and get more done.

I just posted a video on Youtube with some more details about the WREIA meeting this Monday night.    It has a few more details about the topic of Creativity in Real Estate.

As I mention in the video, our meeting on Monday will go a lot further than just how to structure a purchase.

You might even be surprised at how much you are leaving on the table each and every month.

One last thing – Have you done any creative deals lately? Would you like to share your creativity with our members?

In fact – let’s open this up a bit and get the juices flowing…..

It doesn’t even have to be lately.  If you are experienced and want to share one of the things you did earlier in your career that might help someone today – LET’S HEAR ABOUT IT!

Did you get stuck on a deal and find a creative way to break through and get it accomplished?

Did you need more money, or time to finish a project and come up with a creative idea on how to fund it or speed up the process?

If you would like to share your creative side with our members on Monday – Just let me know.

Let’s talk about it before Monday night by phone or email?  You can reach me at profitableproperty@gmail.com or 301-881-5541

We try to make this a big part of our meetings.  In fact -  Sharing resources and Networking are two of the pillars of our WREIA group.

Come on out and join us.

Save a few dollars and reserve your seat early.  Then, come join us at WREIA on May 18th. It will be a great way to continue the spring season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the fifth 2016 WREIA meeting here.
*********
Make this year a great year for your business!
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Creative Deal Making

Re: Creative Deal Making
Creative ideas in real estate are a little like Art.  You know it when you see it.
Sometimes you love it, and sometimes you hate it.
And EVERYONE has an opinion.
idea
Some of my favorite deals over the last 20 years have been join ventures with other investors.  The easy part is getting everyone to agree on how to split the profits.  The harder part is agreeing to who will do the actual work.
Renovation is a longer process than most people think.  A LOT of work goes into renovation if it’s done the right way.  We certainly don’t flip houses in 30 minutes like they do on TV.
Everyone has different skills that they bring to the table.  More importantly though is the KNOWLEDGE you bring to the deal.
You certainly don’t want me working on your heat pump.  However, a heat pump technician may find themselves in homes every week that have obvious and major deferred maintenance at every turn.  That same tech may give the owner the bad news that they whole system needs to be replaced.  Maybe the owner says something like “You can’t do anything to put a band-aid on it? I just want to sell it.
 ”I know somebody who might buy the house like this – even if the heat pump doesn’t work.”  If the owner shows any interest, the technician will pass on my name.
He found the deal, sure, but he also has something else to contribute.  Knowledge and connections when it comes to HVAC systems.
I love doing joint venture deals with professional tradespeople. They come across a lot of deals, and when they put me in front of a possible seller they know I have knowledge on how to put a deal together.   They also know I will use them to make the repairs or upgrades if I buy the house – bonus!
There is an old joke that has been around for years about a furnace repair person, or some of you may have heard it with an auto mechanic.  It goes something like this:
There’s a hotel owner in Baltimore, MD whose furnace went out in the middle of the winter.  His guests are starting to complain about the cold rooms.  He called the repairman who came over and went down into the basement. He carefully measured a certain distance down the duct work, then he opened his toolbox, pulled out a HUGE hammer and lightly tapped smacked the side of the duct until he liked the sound.
He marks it with an X.
Then he leaned back and WALLOPED the duct work.
Dust goes everywhere and white material falls to the ground. The repairman takes out a little broom and dustpan and cleans up the mess.
“Try it now.”
To the hotel owner’s amazement, the furnace came on.
The joke goes on to say that later that day the furnace repairman sent a bill for $10,000. The hotel operator who had watched the entire thing was naturally upset.
“I want an itemized bill!”
The bill came back the next day:

 

Hitting with the hammer………..$5

KNOWING where to hit with the hammer…..$9,995
——————-   $10,000
Many people across our area are essentially “one trick ponies”.   They can make cash offers, but don’t know where to go when the deal is rejected.  For many people they simply move onto the next cash offer.
Eventually they find someone.  Maybe it was the 159th cash offer.
What they don’t realize is that they passed up dozens of other opportunities to get a deal done if they would have asked more questions or dove deeper into the situation.
Knowledge.  It’s the difference between cold hotel guests and those warmly snuggled in bed.
Knowledge is also the difference between a successful investor and those left scratching their heads wondering why they keep facing so much daily rejection.
At our May 16th WREIA meeting we will be talking about how to put together Creative Deals. It’s a great topic that I am going to break down into easy steps. If you implement just a few of these changes you may see a giant leap forward in your 2016 results.
May 16th is a great opportunity for you to ask a few questions like:
  • What do I do when the seller rejects my cash offer?
  • How, and where do I find partners that are open to creative deals?
  • Why would anyone not take a full price cash offer?
  • What mistakes do you see people making with creative offers?
  • How and when does a real estate agent get paid on “no money down” creative deals?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on May 18th. It will be a great way to start the spring season, get you motivated, and get some momentum for the rest of 2016.
*********
Reserve your seat for the fifth 2016 WREIA meeting here.
*********
Make this year a great year for your business!
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

Burned-out Barry vs. Successful Sally – A Tale of Two Real Estate Investors

Re: Barry and Sally
It amazes just how much people will jump around looking for “solutions” when they get into a new business. 

My advice for anyone getting into any new business is to focus on a target market.

Your market is NEVER everyone.

In our business of real estate investing, here are two examples of the first few months for many first time “investors”.

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Let’s call our first guy Burned Out Barry.  He is happily married and makes a good income. He works a sales job that gives him a crazy travel schedule every month. He realizes he needs to find another source of income or he will have to work until “he is 90 years old”.  Since he has a flexible schedule he will “give real estate a try”.

Month 1. I’m going to be an investor like these people on TV. It’s easy!
Month 2. I need a better agent to help me find deals.
Month 3. This is hard. I need to take a class. Online. While I’m traveling.
Month 4. Wholesaling! Quick money sounds great! I need cashflow.  That’s the ticket!

Month 5. People hate me. I’m a bottom feeder with no friends. Even my third agent won’t call me back.

Month 6. I’m no quitter!  I should focus on Commercial Deals instead. If I am only going to do a few deals, they might as well be BIG!……and on, and on, and on it goes. All year.

Until Barry burns out. He never really does anything and eventually moves on because houses were too expensive and that stuff on TV “doesn’t work in my city.”

ON THE FLIP SIDE - let’s take a look at Successful Sally.

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Sally went through a divorce three years ago. Even after a few hiccups to her credit score she is financially and emotionally back on track. She is looking to retire in her mid-50s and wants a few rentals to help supplement her retirement income. She really wants to travel as well.

Month 1. Sally decides she wants to help other women who are going through a divorce. She is going to make offers to buy their homes, but as a backup plan, will also offer to list their homes if they want to go the retail route.

Month 2. Sally completes her Realtor class and is hired by a local company that is “investor friendly” to their agents.

Month 3. Sally buys a list of local people whose name appears in the local courthouse for divorce. She starts her first mailing.

Months 4-12 Sally buys updated lists and continues her mailing. Each month her pitch to potential clients gets better.

The first six months, Sally doesn’t make a dime.

BUT SHE IS HAPPY.

Sally gets to talk to other women are going through the same process she went through a few years earlier.  In an odd way, it’s a little therapeutic for her to be helping these new friends.

Sally isn’t making money, but she is helping people.

Suddenly, in month 9 she gets a listing.

In Month 10 – another listing. And A single mom with a big alimony check pops up as a referral from what she thought was a “failed” listing presentation.

Month 11 her offer to purchase a property is accepted. Rental income for her retirement!

By the end of the first year Successful Sally has made a little over 20k in commissions, and now owns a rental property that cashflows $300 each month after all her expenses.

To celebrate her one year anniversary at her brokerage she schedules her first trip to Paris.  In Paris, despite the language barrier and age difference, she has a torrid love affair with…..
Ok, let’s not get carried away with Successful Sally.
Sally did all this PART TIME. Now she is even thinking of retiring a few years earlier and focusing on this new career. (And another trip to Paris.)

 

Why was Barry burned out and Sally so successful?

Focus is the obvious answer.

The not so obvious answer is a little more complex.

But let’s break it down to just 2 parts.

Sally set herself up to succeed because she was uniquely qualified to serve her target market.

And….

Sally focused on a market that was – in certain situations - very motivated to sell property. As we mentioned in our last post, divorce sometimes creates a situation where people are motivated to sell their property for a variety of reasons.

If I talked with both of these “investors” at the end of the year, Sally would be happier and feel more fulfilled with her choice to be a real estate investor. Barry on the other hand would tell me he has a long list of people he has “offended”, wasted their time, or who just flat out rejected his offers to “help”.

One final thought::

Barry focused on making more money for himself.

Sally focused on serving her target market.

And that change in focus made all the difference.

At our April 18th WREIA meeting we will be talking about how to find motivated sellers. It’s a great topic that I am going to break down into easy steps. If you implement just a few of these changes you may see a giant leap forward in your 2016 results.
April 18th is a great opportunity for you to ask a few questions like:
  • Where are people making the most money in DC?
  • How much time does it take to flip a property in our area?
  • How much money, at a minimum, should we want to make on a deal?
  • Where do you think prices are headed?
  • What mistakes do you see people making?
  • What should we do to get started?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on April 18th. It will be a great way to start the spring season, get you motivated, and get some momentum for the rest of 2016.
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Reserve your seat for the fourth 2016 WREIA meeting here.
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Make this year a great year for your business!
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S.  The Rehab Immersion Course –  Spring 2016 Class we announced at WREIA is off to a blazing start.  We found our subject property, did a deep-dive property tour, two days at my office pouring through details and a second tour back at the property halfway through the renovation.  And it’s not over yet.

Announcing – Rehab Immersion Course – Summer 2016 Class is limited to 12 students.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process here in the DC area – this is perfect for you.  Don’t miss this chance to get some real-world experience.  The summer class is starting to fill up. If you are interested in joining us, simply call the office and let us know to reserve you a remaining spot.