Category: DC Real Estate Investing

So I had this conversation a few days ago at my office.

Quite frankly, I hadn’t thought about this particular “deal” in a long time.

“Unusual lead sources. That’s an interesting topic. Have any good stories to share with me before Monday?”

“Sure,” I replied. “The deal I got from a drug dealer in DC was pretty interesting. And, it turned out to be a good deal.”

The story is pretty good, and it was a referral from a drug dealer in DC – who I never met.

When we finished I was told “You have to share that on Monday.”

People are always watching and listening – whether you are paying attention or not.

This is even more true in tough parts of any city.

People from these “tough” areas grow up knowing they have to look over their shoulders for any trouble.

Parents in DC were constantly telling their kids to “stay out of trouble” back when DC was the drug and crime capital of the country.

Back then, it seemed like drug dealers ran the city. You had to be careful in some parts of the city 24 hours a day.

I was younger and some of my friends would quickly add “dumber as well” when this story took place.

The lead on this property happened because I was never afraid to connect with people – no matter their station in life.

If you have left over biases from your childhood, or were raised with hints of racism I would guess you are going to have limited success in our business.

Moving forward, as our county becomes even more diverse – as it always has – you are going to have even more trouble.

Here is a hard truth for some people – DC is already a very diverse city.

Our unique metro area has people from every country in the world. You just never know who you might bump into. Language barriers still exist in some parts of our area.

If we all looked, talked, dressed and acted the same – how boring would that be?

In any group having people that have a weird sense of humor, or are a bit eccentric make any community feel like it’s more alive.

Do you know how to connect with people who are different from you? Can you connect with people who speak different, dress different or have different customs than you are used to? And if they are different, are you still willing to help them?

I hope so.

I see this situation a lot-

I happens to so-called “white-collar” people who say they will never go into some parts of the DC metro area.

On the flip side some people won’t go into “snooty” neighborhoods because “rich people” don’t need help.

Both of these people are crossing out millions of people – because they want to feel comfortable and only deal with people from their neighborhood.

Back to this story at my office.

Had I looked down on people in this particular neighborhood I never would have made a nice profit. Had I looked down on people because they were “drug dealers” or came from “bad” neighborhoods I would have missed out on 100’s of thousands of dollars.

The entire process got started with one simple act.

I’m going to tell you the whole story Monday night at our March WREIA meeting.

At WREIA this month we will talk about unusual lead sources. Most of these sources require you to have the ability to connect with people.

Come out on Monday, March 18th, and hear what is working (and not working) across the DC area.

What’s not working – looking down your nose at someone because they are different from you.

What is working is connecting with and genuinely trying to help people.

Join us at WREIA this month and you can learn from REAL PEOPLE having REAL SUCCESS in Real Estate.

Happy March and see you soon!

John Peterson
Founder, Washington Real Estate Investors Association

Oh, and Wholesalers – bring your deals to share with the members!

We have had regular WREIA meetings since 2001. So, for 18 years we have put ourselves “out there” in the DC area and tried to share with our community what we see working (and not working) in our area.

A lot has changed in 18 years.

But one thing has never changed.

You need to connect with people to be successful in this business. For that matter, in any business.

I think we are getting smarter. It’s getting easier to spot the “fakes.” Technology is helping us in some ways, and hurting us in other ways.

Sure, we have the ability to “connect” with friends on Facebook at any hour of the day. But, sometimes that “always on” ability can hurt as well.

Here is an article recently posted on CNBC about connecting with people. It’s all about deeply connecting and not just making “small talk”.

The opening paragraph gets your attention:

“”How are you?” These are the three most useless words in the world of communication. The person asking doesn’t really want to know, and the person responding doesn’t tell the truth. What follows is a lost opportunity and meaningless exchange with zero connection.”

If you are guilty of this bland opening line (like I have been) it’s important to find alternatives to this awkward conversation starter.

Having better and deeper conversations is just a small part of what we will be talking about at WREIA this month.

Learning how to get better at connecting with people is crucial to your success in this business. It’s why we have to address it right up front.

At WREIA this month we will talk about unusual lead sources. Most of these sources require you to have the ability to connect with people.

Come out on Monday, March 18th, and hear what is working (and not working) across the DC area.

What’s not working – opening a conversation by asking “How are you?”

What is working is connecting with and genuinely trying to help people.

Join us at WREIA this month and you can learn from REAL PEOPLE having REAL SUCCESS in Real Estate.

Happy March and see you soon!

John Peterson
Founder, Washington Real Estate Investors Association

Oh, and Wholesalers – bring your deals to share with the members!

This happens too often.

A new renovator gets all excited to finally have their first or second home.

They have watched HGTV for 10 years and their time is finally here!

But it’s not long before……..

They over-renovate the property.  

They tear down everything in the home and try to rebuild “from the ground up.”

Those are the big mistakes.  A renovation budget that could have cost 25-30k ends up costing well over 50k, 60k maybe even 80k or more.  

The harder-to-spot “over-renovators” are the projects with little items that add up over the cost of the entire project.  

For instance, too many change-orders long after the project has started. 

Or maybe too many “extra” details.  This includes things like deluxe crown moldings when standard molding will do.  $500-800 extra.

Or how about the bidet I saw in a first time home buyer home?  Easily 2k “down the drain.”  The new renovator thought it would give them an edge in selling because “Their house was the ONLY ONE with a bidet in the entire neighborhood.”

One of the fatal mistakes first time renovators make is hiring the cheapest bid.  It’s almost always the worst decision.  

Here is a Pro-Tip:  Use the lowest “sensible” bid to get the mid-price contractor to negotiate.  When people hire the lowest bid, it often results in having to do the work a second time, or worse. 

Until you find your “team” of people, this can be one of the most time consuming parts of renovating homes.  Hiring the right people is hard.  

And it’s gotten much worse as the economy has improved.  The good contractors are always booked well in advance.  The Craigslist Contractor that can “start next week” should probably be avoided on your first project.  

Of course, that’s just my two cents……..  

…..After 20+ years of renovating homes in the DC area and beyond. 

If you enjoy this renovation stuff – you ought to be with us tomorrow night at our Feb. WREIA meeting in Bethesda.  

We have invited a panel of experts to have a little fun and join us at the February WREIA meeting to help answer your questions about trends on the design side and the other “meat & potato” aspects of renovation. 

Whether you are looking to do your first property, or your 50th, you are going to learn something from this talented panel of people we have assembled for tomorrow evening.  

Come out on Monday, Feb. 25th,  and hear what is working (and not working) across the DC area. 

Join us and learn:

    How they got started & where their rehabbing business is today
    How they find their deals & quickly analyze a deal and make a buying decision
    How they fund their deals
    Kinds of houses they like to buy and those they try to avoid
    Where to buy and where not to buy
    How to set your business up for the best chance of success
    Learn answers to your questions and much more!

Join us at WREIA this month and you can learn from REAL PEOPLE having REAL SUCCESS in Real Estate.  

Happy February and see you soon!

John Peterson

Founder, Washington Real Estate Investors Association

Oh, and Wholesalers – bring your deals to share with WREIA Members!

DC is a very transient area.

The military, the government, the lobbyists and the colleges. They all add up to a rental market that lives and works in the DC area for a few months or years and then moves on to other areas of the country and even the world.

But this headline on WTOP got my attention.

DC-area renters paid landlords $14.8B this year

Near the top of the article you will find this:

“D.C.-area renters spent $14.8 billion on housing in 2018, according to apartment listing site HotPads. That’s $502 million, or 3.5 percent, more than in 2017.

Of the region’s 2.2 million households, about 807,000 of them are renters – 15,000 more than a year ago. The median rent in the region rose 1.8 percent this year to $2,180, according to HotPads.”

807 THOUSAND households rent in the DC area.

That is a big, big market.

You can purchase one house at a time, or you can purchase multiple units.

A few of you have come across some of these multi-family properties in the last few months and wondered what you should do with them.

Some people called me wondering if the property was a good “deal’.

I have spent 20 years in this business. Most of that time I have spent as a renovator on single-family and townhomes in the DC area. I do own some commercial property and multi-unit properties.

Owning a few commercial properties doesn’t make me an “expert” on the topic. But I can speak about my limited experience because I have been through the process.

My answer when someone finds a true “good deal” is simple:

Make an offer!

Commercial property, like most multi-family housing, is actually classified at banks, has a number of built-in “escape” clauses that will allow you to take time to more closely analyze the deal. If you find something you don’t like – you can get out of the deal – no problem.

Now, you can throw money, effort and time away if you don’t have a clue what you are doing.

On the other hand, you can make legitimate offers based on your careful analysis and consideration.

If you are even a little curious about this multi-family investing slice of our market you need to come out to WREIA tonight.

Our speaker is a valid expert on the topic. He owns a ton of property all around the country and will be speaking from personal experience.

Join us at WREIA TONIGHT and you can learn from a REAL PERSON having REAL SUCCESS in Real Estate.

See you tonight!

John Peterson
Founder, Washington Real Estate Investors Association

P.S. If you missed the post this morning about making excuses you can still find it posted online here. If you have found yourself making excuses for not accomplishing what you want too – it’s worth a few moments of reading.

I have a friend who is constantly making excuses.

Quite frankly, it makes me a little sad to see what years of accumulated excuses has done to his personal and professional life.

I was thinking about him again this morning wondering if there was anything I could do for him to try to help him “get out of his own head”.

After the “Great Recession” he just couldn’t figure out a way to bounce back.

Let me offer you the same advice I gave him:

He is too focused on what he lost and doesn’t realize everything that he still has – right at his fingertips.

If you are getting a little frustrated with this business, maybe it’s just an accumulation of excuses, and you need to make a change in focus.

For instance – You have access to WREIA tonight. It’s Monday morning, a little before 11 AM and we still have a few seats left.

Lucky for you.

Tonight at our January WREIA meeting we are going to have a speaker come and talk to us about Multi-family investments. He has a unique perspective based on his years of experience working across the country.

He is somebody you can learn from.

When you come out tonight, look for what I call “the little nuggets” of information. The things that will light a spark in your own business.

Every time I listen to a new speaker or someone with a different point of view, I look for the nuggets.

Maybe it’s a website.

Maybe it’s a tactic.

Maybe the “little nugget” actually causes a major shift in perspective.

Like my friend, maybe it gets you refocused on all that you do have access too living in the DC area.

Where you FOCUS will have a huge impact on how frustrated you are in 2019. Too many people keep trying to learn our business from free YouTube videos done by people who may or may not have actual success.

Join us at WREIA TONIGHT and you can learn from a REAL PERSON having REAL SUCCESS in Real Estate.

Happy New Year and see you tonight!

John Peterson
Founder, Washington Real Estate Investors Association

Oh, and Wholesalers – bring your deals to share with the members.

Remember – If you do nothing or continue to do the same tactics as last year, nothing will change. You need to add CASH FLOW to your mix to really make a difference in your financial life.

I have not seen some of you for a long time.

January is a great time to kick off the New Year with energy and networking. Come join us for this special speaker and reconnect with our community. We would love to have you and see what you have been doing this past year.

John Peterson invites you to WREIA this January 21st as we have a guest speaker talk about Multi-Family Property Investing. We encourage you to attend WREIA this month at The Womans Club Of Bethesda – Monday, Jan. 21st.

Doors will open and registration will begin at 6:30. Sign up for the newsletter and find the early registration link on the calendar posted at http://www.washingtonreianetwork.com/
With over 1000 renovations, John Peterson understands how to navigate the complex world of real estate investing. Submit a funding request or joint venture proposal on your project at http://www.DCHardMoneyLender.com

If you have been driving around the DC area lately you have probably seen the signs, balloons, flags, or even those tall squiggly characters that flap all over the place. They are out in front of nearly every apartment building trying to get your attention and advertising the phone number or website you can visit for more details about the location.

But did you ever stop to think just how many rental units there are in our area?

I went to Apartments.com early this morning and found this –

It’s important to understand the rental market when you are in our business. Apartments.com is one of the easiest ways to gauge the price points of the market in the area where you do business.

Downtown near Metro Center is full of luxury apartments. They can generate up to 5k a month, sometimes more, in rental income.

When I got started over 20 years ago, someone paying $5,000 a month to RENT an apartment was unheard of. Today it’s pretty common.

Our area has changed. Not just in 20 years, but in the last 5 years.

Luxury has crept into our market and is here to stay.

Maybe that’s your market? Downtown, luxury, high end.

Maybe it’s not.

Maybe you’re like me and stick to the bread and butter entry and mid-level homes and townhomes that the vast majority of BUYERS are looking to buy.

Which one is better?

The answer is – whichever market you focus on and that you best understand.

If you currently rent an apartment downtown for 3,4 or 5k a month and are interested in the same market as an INVESTOR you can certainly make it work.

That luxury market is much smaller than the rest of the market, but you can be profitable in that segment of the market.

I like to focus where 80% of the people in our area can afford to live. That market in our area – the 200-500k townhome and single family homes – makes up the bulk of our broader DC area market.

If you are doing your job right as a renovator, fix-and-flipper, landlord or even as an agent for other investors, you probably come across apartment buildings a few times a year that are poorly managed. The units are run-down, the neighborhood might even be a little scary to be around as night approaches.

What do you do with that knowledge?

Maybe when you are researching probate properties or divorce records you come across a small apartment building that is listed as part of the assets.

Do you know how to properly analyze and make an offer on those properties?

Think about this as you are driving into Bethesda for our WREIA meeting this coming Monday:

As of this morning – here are the number of apartments for rent in Bethesda –

Over 1,000 different apartments are available in the Bethesda area alone!

Could you use what you are already doing to find a few deals a year? Shoot, I think you could use this knowledge to find a few properties over the next 5 years that could be life-changing for your financial future.

Take what you already know about our business and use it to find 10, 20, or even 50 unit buildings.

Take action and register for the upcoming January WREIA meeting. It very well might change your life.

Rental income from just one property can change your life. Rental income from multiple properties has an even bigger effect on your financial well being.

Our speaker this month went from zero rental properties to over 4,000 units using a method that you can duplicate.

There are over 320 Million people living in the United States. They all need somewhere to live and you can help provide that housing. More importantly, you can get paid to provide that housing. If you do it well, you will be paid well for doing it.

Set aside the evening of Monday, January 21st and plan to be with us at WREIA.

I have a feeling it’s going to be a good crowd of people but I know the speaker is someone you need to hear from. What he has to share with you could make a huge difference in your financial life over the next few years.

Where you FOCUS will have a huge impact on how frustrated you are in 2019. Too many people keep trying to learn our business from free YouTube videos done by people who may or may not have actual success.

Join us at WREIA this month and you can learn from a REAL PERSON having REAL SUCCESS in Real Estate.

Happy New Year and see you soon!

John Peterson
Founder, Washington Real Estate Investors Association

Remember – If you do nothing or continue to do the same tactics as last year, nothing will change. You need to add CASH FLOW to your mix to really make a difference in your financial life.

I have not seen some of you for a long time.

January is a great time to kick off the New Year with energy and networking. Come join us for this special speaker and reconnect with our community. We would love to have you and see what you have been doing this past year.

Re: Ten Most In-Demand Skills

An eye-opening article on CNBC starts with a bang –

“The United States is currently experiencing one of the tightest labor markets in history and many say that the country is currently facing a skills gap. According to the Bureau of Labor Statistics, the U.S. currently has over 7 million unfilled jobs.

This tight labor market has led many companies to become more open-minded when considering candidates. Companies including Google, Apple, IBM and Bank of America no longer require applicants to have a college degree.”

Jumping straight to the heart of the article – here are the 5 most in-demand soft skills in 2019:

• Time Management
• Adaptability
• Collaboration
• Persuasion
• Creativity

Here is what immediately struck me after reading the list –

EVERY ONE OF THESE SKILLS ARE REQUIRED

AS A REAL ESTATE INVESTOR.

You might have noticed – This month we are focused on increasing cash-flow. Rental income is a terrific way of adding consistent revenue to your bottom line.

When done right, multi-family rentals are even better. If you are familiar with flipping properties, there is a tremendous amount of leverage in multi-family investing.

Take what you already know about our business and use it to find 10, 20, or even 50 unit buildings.

Take action and register for the upcoming January WREIA meeting. It very well might change your life.

Rental income from just one property can change your life. Rental income from multiple properties has an even bigger effect on your financial well being.

Our speaker this month went from zero rental properties to over 4,000 units using a method that you can duplicate.

There are over 320 Million people living in the United States. They all need somewhere to live and you can help provide that housing. More importantly, you can get paid to provide that housing. If you do it well, you will be paid well for doing it.

Set aside the evening of Monday, January 21st and plan to be with us at WREIA.

I have a feeling it’s going to be a good crowd of people but I know the speaker is someone you need to hear from. What he has to share with you could make a huge difference in your financial life over the next few years.

Where you FOCUS will have a huge impact on how frustrated you are in 2019. Too many people keep trying to learn our business from free YouTube videos done by people who may or may not have actual success.

Join us at WREIA this month and you can learn from a REAL PERSON having REAL SUCCESS in Real Estate.

Happy New Year and see you soon!

John Peterson
Founder, Washington Real Estate Investors Association

Remember – If you do nothing or continue to do the same tactics as last year, nothing will change. You need to add CASH FLOW to your mix to really make a difference in your financial life.

I have not seen some of you for a long time.

January is a great time to kick off the New Year with energy and networking. Come join us for this special speaker and reconnect with our community. We would love to have you and see what you have been doing this past year.