Video, Links, and WREIA Tonight – Doors Open at 6:30

Snow__ice_cause_traffic_gridlock_in_DC_

Re:  Let’s recap the last few weeks:

Snow, Ice, School and Government Closings, Massive Traffic Jams, and A Hint Of Spring. Oh, and we had a Super Bowl in the middle somewhere.

Since we had our last WREIA meeting it seems like we have been running non-stop to keep up with all the stuff going on.

Sometimes I wonder…“Am I the only one having a hard time keeping up with everything?”

It’s pretty easy to get knocked off your game. Life happens and if you don’t guard your time and use it wisely it’s easy to get caught up in the occasional madness of everyday life.

For instance:  We recently had a car crash through the front door of my office building.  I am going to talk about it at our WREIA meeting tonight. That day reminded me of the everyday life of a renovator.  Renovators know that unexpected things happen on a regular basis.  We still have the article with a video posted at http://washingtonreianetwork.com/

One of our recent emails also included links to HGTV and how to apply to be on any of their long list of home improvement shows. For most people the 15 minutes of fame of being on a TV show could be a very exciting experience.

I suppose you can dream of the long shot of fame and fortune and eventually your own cable show. You can learn from every personal experience, but it’s even better advice to learn from the experience of others.  When other people make mistakes and are willing to share them with you, it can be a valuable experience for everyone.

There is a big difference between a produced 30 minute show on HGTV and our local WREIA meetings.  Every month we do our best to connect you with the people who are working in the DC area so you can learn from their LOCAL and professional experience.

Tonight at our Feb. WREIA meeting we will have a special panel of renovators who have been working “in the real world” for years.  They have had a huge number of successful projects, and have made a few mistakes along the way as well.

This group is simply not the type that usually gets in front of groups to talk about renovations. They simply get busy and finish projects.

It’s a great opportunity for you to learn from some real successful business owners. Tonight you will also have a chance to ask some questions like:

  • Where would you suggest finding good deals if you were getting started today?
  • How much time do you plan to flip a property in our area?
  • How much money, at a minimum, do you want to make on a deal?
  • Where do you get your materials for your jobs?
  • Do you have partners and if so, how do you structure the contracts and split profits?
Save a few dollars and reserve your seat early.  Come join us at WREIA tonight. It will be a great way to start the year, get you motivated, and get a jump start on the rest of 2016.
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Reserve your seat for the second 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.  Attention Wholesalers – Bring in your best wholesale deals!  Every month at our WREIA meetings deals are presented to our members and guests.  It’s a great chance to present your deals to a room full of active business people from across the DC area.

Car Crashed Into My Building – Video

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Re: “….and then the whole building started to shake.”

Unlike our last update, when we sent you the links on how to get on any HGTV show, this post is a little more unusual.

I spent a few minutes in front of the office yesterday finishing a telephone call and thought to myself, “I need to invite everyone out to WREIA this month, and you all might enjoy seeing what happened just a couple yards below my office at the same time.  So let’s make a video and get it up on Youtube.”

Click Here for the Car Crash video we just posted on our Youtube channel.

The thought that went through my head was “This is a good example of what it’s like to be in real estate today.  You just never know what is going to happen, and being prepared for the unexpected is great advice, especially for someone getting started or who is still early in their career.”

My building manager had an exciting day finding a company to board up the front door, and had a heck of a time getting a structural engineer to quickly inspect the building and make sure it was still structurally intact. Since my office is literally a few feet above the front door, I was happy to hear everything was safe.

Renovators know what it’s like to have something unexpected happen in the middle of a project.  Additional inspections can ruin the best construction schedule, and unexpected “Harry Homeowner” wiring jobs can mess with the best electrical bid estimates once they open up and see whats behind a wall.

This month at our Feb. WREIA meeting we will have a special panel of renovators who have been working “in the real world” for years.

The collective experience of this group would take you years to find out there in the real world.  This group is simply not the type that usually gets in front of groups to talk about renovations. They simply get busy and finish projects.

It’s a great opportunity for you to learn from some real go-getters and you will also have a chance to ask some questions like:

  • Where would you suggest finding good deals if you were getting started today?
  • How much time do you plan to flip a property in our area?
  • How much money, at a minimum, do you want to make on a deal?
  • Where do you get your materials for your jobs?
  • Do you have partners and if so, how do you structure the contracts and split profits?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on Feb. 22nd. It will be a great way to start the year, get you motivated, and get a jump start on the rest of 2016.
*********
Reserve your seat for the second 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.  The Rehab Immersion Class we announced at WREIA last month will start soon.  We have found our subject property and are about to start the renovation process.  There are now only two (2) open spots for you and a partner.  Space is limited to 12 students.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process – this is perfect for you.  Don’t miss this chance to get some real-world experience.  If you are interested in joining us and claiming the last open spots, simply call the office and let us know.

Learning From A Pro & Why It Helps You Grow

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When you are first getting started in any business you have two choices:  You can do everything alone, or you can ask for help when you need it.

Early in my career the best help I ever received was when I went to someone who had already been through what I was having trouble with – preferably for years.You see, in my early 20’s when I asked my friends and other inexperienced people my age what I should do, they gave me one answer.   But when I asked a seasoned professional – usually the answer was completely different.   They knew short-cuts and could tell me what to avoid and how not to waste my time.  They cut through all the hype for me – and directed me exactly where I needed to go or what I needed to do.

They had experience in the real world. They had been there already.  They could point me in a better direction than where my friends were pointing me.

“It might seem like hard work now, but it will get easier.”

Sometimes the answer didn’t involve short-cuts.  The answer instead was something like “Just keep practicing and doing what you are doing.  There is no short-cut.  It might seem like hard work now, but it will get easier.”

The reality was – it didn’t get easier.  I just got better as I gained more experience, and my business grew because of it. 

I got better at estimating what a renovation would cost.   I got better at negotiating good deals on my materials.  My time management got better.

They all seemed like small things at the time, but when I added them all together, the cumulative effect on my business and my income was incredible.

As the years went on and my business grew, the problems changed but I continued to get help when and where I needed it.

As a follow-up from our meeting last month, my point is this: Get out there and look for opportunity.  When you find it, don’t be afraid to ask for help.  The odds are pretty good, especially early in your career, that you don’t know it all.

Be ready for that opportunity when it comes to you.

By the way – This month at our WREIA meeting we will have a special panel of renovators who have been working “in the real world” for years.

The collective experience of this group would take you years to find out there in the real world.  This group is simply not the type that usually gets in front of groups of people to talk about what they do.  They simply get busy and finish jobs.

It’s a great opportunity to learn from some real go-getters and you will have a chance to ask some questions like:

  • Where would you suggest finding good deals if you were getting started today?
  • How much time do you plan to flip a property in our area?
  • How much money, at a minimum, do you want to make on a deal?
  • Where do you get your materials for your jobs?
  • Do you have partners and if so, how do you structure the contracts and split profits?
Save a few dollars and reserve your seat early.  Then, come join us at WREIA on Feb. 22nd. It will be a great way to start the year, get you motivated, and get a jump start on the rest of 2016.
*********
Reserve your seat for the second 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.  The Rehab Immersion Class we announced at WREIA last month will start soon.  We have found our subject property and are about to start the renovation process.  There are now only two (2) open spots for you and a partner.  Space is limited to 12 students.  If you are looking for an intimate and hands-on setting to learn the details of the renovation process – this is perfect for you.  Don’t miss this chance to get some real-world experience.  If you are interested in joining us and claiming the last open spots, simply call the office and let us know.

Why Now is the Time to Sell your Real Estate

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Having spent the past 22 years working in the Washington residential real estate industry I’ve been through quite a number of house price scenarios such as appreciation, contraction and stagnant growth. And the past six months has got me thinking – are we about to enter another phase – Deflation?

Why I believe deflation is likely

Put simply, economists define deflation as a reduction of prices in all sectors of the economy.  There has certainly been a falling off in commodity prices over the past six months, as well as a huge drop in oil prices and the contraction of the Chinese economy.

But isn’t falling prices a good thing?

On the surface, deflation seems to be a good thing since more people have more money to spend.  But actually, in times of deflation our economy starts to shrink.

Take the example of gas prices. I did not believe I would ever see gas prices at the pump for less than $2.00 a gallon in my lifetime again and, like most people, I’m delighted to see how little it costs to fill up the auto. It gives me more money to spend on other products and services.

But give it a few months and as deflation starts to take hold companies will stop hiring, employees get laid off, credit becomes more difficult to obtain and consumers understandably start saving their cash for a rainy day. In effect, low prices can cascade into a full-blown economic nightmare.

But the dollar is going up in value

Sure, as the dollar rises it gives consumers more purchasing power. But it also creates an incentive to save cash rather than spend or invest it in goods and services.  If the consumer stops spending money, businesses stop investing, banks stop lending, and our economy shrinks.  This is the exactly the situation Japan has been in for the past two decades – and it still doesn’t look like their difficulties are going to be solved anytime soon.

Real Estate indicators of deflation

In recent weeks I’ve been receiving lots of e-mails with headings in the subject line such as:

  •  New Lower Price on Colonial in Rockville!
  • Agent Bonus if Contract by Valentine’s Day!
  • Price Reduction on Luxury Condo in Northwest!

This sounds like desperation to sell. Certainly when I renovate a home I can’t afford to offer huge reductions. Instead I choose to work with the first buyer that expresses interest in the home and I have to be prepared to be flexible on price adjustments and offer terms. My analysis has to be precise every time and based on conservative estimates of value and future growth of the asset.

How does this affect you?

If you’re considering selling a piece of real estate then now is the time to do so. Even if we don’t actually enter a time of deflation, prices may remain stagnant for at least the next five years.

History – and experience – has taught me not to be ostrich-like and stick my head in the sand when the evidence is all around me. Because of this I have put measures in place to protect my business and my assets if deflation rears its ugly head in the very near future. You should certainly think about doing this too.

Cash is King in deflationary times as the dollar increases in value.  This makes NOW the best time for selling real estate.

Make this year a great year for your business!

John Peterson

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