Category: DC Real Estate Investing

So this second week in January is when we get back up and running here in the DC area after the holidays.

This week was no exception.

The traffic picked up this week, which is a sure sign that things are ramping back up -and we had plenty of beltway gridlock this week.

The new year also means we had plenty of people with new years resolutions. Every time I looked at comments over the last few days I saw a few people who want to get “refocused” and get going again in real estate.

Which is exactly what you should be doing if you have gone off track and lost focus.

But FOCUS will only help when you do it right. You need to focus on the right areas.

In the world of real estate, 2019 is going to be very different from 2018.

Interest rates are different, builders sentiment is different, and most importantly our Congressional representatives who “write the rules” are different.

None of this should scare you though.

I’ve seen it all before.

Interest rates go up and come down. Right now, they are going up.

Builders get happy and sad based on their past months’ sales. Right now, they are starting to get upset because they aren’t selling as fast as they did in 2015 or 2016.

Times like this – it’s important to just step back, take a breath and take a look around.

When we step back and look at where we are today, I think one of the areas you need to focus on in 2019 is CASHFLOW.

Regular rental income can help your business or your personal financial situation tremendously.

Imagine a year from now….

When the holidays are over, January 2020 will be cold and gray as usual – but the difference could be that you are now receiving checks in your mailbox every month that will allow you to build wealth and freedom.

This quest for cashflow is a big reason we have a guest speaker joining us at our January WREIA meeting.

For those of you who have been around WREIA for any length of time – you know that we very seldom have people from outside our area come and share with our WREIA members.

I’m making an exception this month for one big reason – I think you need to hear the speakers perspective on the market from a national level and you need to learn from his experience working in different areas of the country.

Belief is one of the main pillars of WREIA. When you see other people having success in our business it creates an inner belief in yourself that you could accomplish the same things.

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: A Perfect Last Day of Skiing

I wonder if you are like me….

I really enjoy the end of the year. The hustle and bustle of the Holidays gives me energy and I enjoy the time spent with family and friends.

The challenge is that the season is over so fast!! I have been told it is a sign of getting older but I have had this feeling for most of my life.

So here we are… Holidays are done for another year, our gifts have been returned and now we have to get back in our routines and begin the whole process over again.

BACK TO WORK…. I am fortunate that I really enjoy my work – but January in Washington is cold and gray and the days can seem rather long.

The life of a real estate investor can be exciting but there is one issue I know we all want to solve.

Wholesaling, generating real estate commissions, buying, renovating and selling homes can be lucrative but the one thing missing is that we have to keep producing. In other words, we are only as good as our last deal. January 2019 is upon us and we start at ZERO.

We can change that narrative.

FOCUS ON CASH FLOW!!

My hope is for everyone reading this email and watching this video that you will be able to achieve this one goal in 2019.

HOW?
WRITE DOWN THIS ONE GOAL FOR 2019

My goal is to purchase one investment in 2019 that will consistently create monthly, spendable cash flow.

This investment can be a four-unit building, ten-unit building, seventy five-unit building, or a performing secured note, a residential rental or a commercial building.

I CAN HELP!!

I want to invite you to attend our January Washington REIA meeting. I have invited a fascinating speaker that is going to focus on this very subject. He has built in a very short time a CASH FLOW that will blow you away.

No fluff – just solid information that you can begin to implement to accomplish this very important goal.

Imagine a year from now….

Holidays are over, January 2020 will be cold and gray as usual but the difference will be that you will be receiving checks in your mailbox that will allow you to build wealth and freedom.

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

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.

Hope you had a great Holiday!

Some of my favorite days are between Christmas and New Year’s day.
The phone is quiet which allows all of us a minute to relax, reflect and gear up for 2019.

I let my relatives know that instead of a sweater or a gift card to Best Buy, I really enjoy business books. I’ve read two books so far that are worth sharing.

Here is a quick video (less than two minutes) with a few details and some of my the broader highlights are posted below.  Both books are excellent and talk about important subjects this time of year.

GRIT by Angela Duckworth
I am not going to bore you with all the details. Ms. Duckworth is a professor of psychology at the University of Pennsylvania (not my alma mater Furman University, but I have heard it is a very good school) and through her studies and experience has extolled the notion that SUCCESS has more to do with passion and perseverance or GRIT than pure intellect.

That is really GOOD NEWS for all of us that were C students in school. The theme of the book centers on overcoming obstacles and finishing what we begin.

Real Estate Investing can require Grit sometimes. Investing in real estate can provide a high income and generate considerable wealth. My experiences have been mostly positive but it does require perseverance and an attitude of going forward and a strong desire to keep striving for success.

I enjoyed the book and I think as we enter in 2019 we all need to acquire more GRIT in our lives.

Here is a short TEDTalk by the author on the same topic:

The second book I received was ATOMIC HABITS by James Clear

I think by now most of you have heard it is wise and profitable to take some time to write down your goals for 2019. This book shakes up the notion that all that we need to achieve our goals in the New Year is WILL POWER. He breaks it down to a few very attainable exercises to help us create better habits which in turn will help us achieve our goals.

He recommends the following to begin to change our behavior and form better habits:

Small Bite Sized Behavior Changes
Create a new desired habit by starting off small and then building over time. This can apply to your real estate business in so many different aspects. Find one new contractor this week. Start mailing 100 postcards to sellers. Start having coffee with one new private money lender every month. The list is endless and can be attained if we take the process slower with more focus and smaller bites. In the long run you will accomplish much more than trying to do everything in January and quitting in February.

Tweaking our Environment
Change your routine, so instead of going to the TV room after dinner you head to your office or another location to increase education, market for houses or make offers. With technology, we can work from anywhere so find a place that inspires you to get more done.

Habit Stacking
Create a new habit by initiating right after a current habit. I enjoy reading the news early in the morning so adding another habit directly after I finish will give the new habit specific time and place in my day.

Temptation Bundling
The idea is to combine something that you want to do with something that you should do. For example, if I enjoy listening to music, I bundle that activity with marketing for new opportunities or writing an article for Washington REIA.

I hope you get to spend some time to reflect on your year and write attainable, bold goals for 2019. We are here to help you, so reach out to me and let me know how I can play a role in your success going forward.

John

Remember: We have a fantastic speaker for our Washington REIA meeting in January. He is going to show all of us to how to build CASH FLOW with Multi-Unit Buildings.  Sign up early and get ready for a great night of Networking and Education.

Look forward to seeing you there!

Without revealing any personal information, this is my report back to you:

The subjects ranged from investing in out of town rentals, property management, wholesaling, creating more deals, finding reliable contractors and Maryland basketball.

Out of Town Rentals
Many of you know that purchasing local real estate and expecting immediate cash flow can be challenging. The price of the property versus rent received is difficult to cash flow due to our expensive market. It is not impossible, and you can find pockets of opportunity, but more investors are looking to other markets for cash flow.

My suggestion is to look at mid-tier cities with job growth to find possible rentals. Cities that are focused on the health care, technology and banking industries are good markets. You will find opportunities to buy single family homes and small multi-unit buildings that cash flow. Job growth is the main driver for consistent cash flow.

Property Management
Property Management is a subject that is common with investors who own a number of rentals. The question is whether to manage the portfolio yourself or find a third party management company. You will find that a majority of smaller investors will manage themselves, but they will rely on third party companies to assist with out of town properties, larger multi-unit, or commercial properties. Additionally, in cases where they own a large number of residential properties and their time is better spent doing other money making tasks, they will outsource the property management.

Wholesaling
The most common way for new investors to cash a check. A new wholesaler should focus on finding good deals, analyzing properties, writing contracts, and creating a buyer list. There are a number of companies that have gone to this model as their sole income source and have created systems to wholesale 4-10 properties a month.

Creating More Deals
I had a great conversation with an experienced investor who completed over two dozen deals this past year. He would like to increase his volume next year. He can increase his marketing budget, add more support staff, add another strategy to find deals, and expand his geographical area. This is the best time of year to look back and see what worked and focus on those strategies to increase volume.

Reliable Contractors
Reliable contractors are another common area of conversation among renovators and landlords. The best source of affordable and reliable contractors is from other experienced investors. Create a database and continue to add to your list as you hear about other contractors who perform well. You can use Angie’s List and other sources of contractors as you need trades people. Start with a small job and see if they perform to your standards.

Maryland Basketball
One of my favorite subjects this time of year! The team has started off 9-2. They have a number of freshman in their rotation but still rely on upper classman Anthony Cowan and Bruno Fernando. My hope is that they can do well in the big ten conference this year and have a high seed in March Madness. If you get a chance to attend a game at Xfinity Center this season, I am always available for an extra ticket.

The appointments were very enjoyable for me. It was nice to have time to meet and talk about real estate and get to know each other on a more personal level.

Lastly, I thought you might like this article on action plans by David Finkel. I have said many times at our meeting, it is important to take some time to reflect and decide what you are going after in the New Year.

My hope is for everyone to have very Happy Holidays and take some time to enjoy yourself during this time. I look forward to an exciting and profitable 2019.

John Peterson
Founder, Washington Real Estate Investors Association

At our Nov. WREIA meeting, we announced details and registration info for our WREIA Members Only Quarterly Networking Event in Rockville.

Where: Hollman Flynn Law
15245 Shady Grove Road | Suite 430 | Rockville, MD 20850

When: Thursday, December 6, 2018, from 6:30 PM to 8:00 PM

All active WREIA members are welcome to attend. You can also grab a new six month or annual membership at this link.

2018 was a busy year in our area!

but……

The Market Is Changing – We Need To Be Prepared

WREIA Members can attend this WREIA members-only event and see how our city is changing.

For instance – Amazon HQ2, coming soon to Crystal City in Northern VA.

Join us Thursday evening for a time to network with WREIA members and discuss our local real estate activities.

We will have an in-depth discussion on the current real estate market in our area.

Our main topic will be – “How do we position ourselves for profit in the new year?”

This lively discussion will be led by real estate agents, investors, landlords, flippers, renovators and lenders.

Let’s talk about how to make 2019 our Best Year Yet!

Access will be granted to active WREIA Members and those who register for either a six month or one-year membership.

Join us on Dec. 6th to see where some of the action is taking place in DC area.

John Peterson
Founder, Washington Real Estate Investors Association

Real estate in Queens has been booming over the past decade, but startups have increasingly taken up residence in Long Island City (LIC) over the last few years. Conveniently located directly across the East River from Manhattan, LIC has become a home for people who’ve been priced out of Brooklyn and Manhattan.

As a result, it’s also been deemed one of the hottest spots for young people to live in — and that’s helping to drive up residential prices. The area’s “extensive development” has propped rental prices well above Queens’ median, according to StreetEasy.

Silvette Julian, an agent with Compass Real Estate, characterized a recent open house event in LIC as “a madhouse,” with requests for showings and offers surging in the last 2-3 weeks.

Full story at – https://www.cnbc.com/2018/11/25/amazons-nyc-hq-seen-boosting-long-island-citys-housing-market.html

Here is a great article in Forbes about being a landlord.

5 Ways To Tell If You Would Cut It As A Landlord.

Check it out if you are even considering renting property as part of your wealth building profile.

Quite frankly, being a landlord is not for everyone. The thought of evicting a family is too much for some people.

Check out the article – it’s going to give you even more ammunition when you join us at our last WREIA meeting of 2018 this Monday in Bethesda.

A few more things we will be talking about tomorrow night at WREIA:

Have you noticed a slowdown in DC area sales?

Has your traffic at open houses been slow?

Where are we headed going into 2019?

I hope you join us at WREIA tomorrow!

We are going to talk about THREE KEYS I think are going to be invaluable to your success in real estate in 2019.

Whether you are getting started, beginning to grow, or slowly building your real estate holdings, there will be something for everyone this month at WREIA.

If you’re interested in GROWING your business and adding skills that will help your investing career join us at WREIA on Nov. 12th in Bethesda.

Monday, Nov. 12th at Washington REIA.

Will I see you there?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Nov. 12th. It will be a great meeting to get you motivated, and get some momentum for the final weeks of 2018.

Join us as we enjoy “Three Keys To A Successful ’19 In Real Estate”

Meet real people doing real deals in real estate – right here in the DC/Baltimore area.

Reserve your seat at this link.

John Peterson
Founder, Washington Real Estate Investors Association

Re: BRRRR

Buy, Rehab, Rent, Refinance, Repeat – How many times can you do that in your career?

The answer?

As many as you want.

It’s not often I come across an article online that I really enjoy.

Here is an article filled with common sense, realistic expectations and my favorite acronym – BRRRR.

You can also find it here at this link –   https://www.forbes.com/sites/davidgreene/2018/10/30/how-to-prepare-for-the-next-real-estate-downturn/

In one of the best paragraphs of the article we find this gem:

“In today’s market, we see a much different scenario. I work as a real estate agent in the San Francisco Bay area, and I’ve yet to see any funky, clearly foolish loans from any of the buyers I’ve worked with. Rates are generally fixed over 30 years, do not adjust, and are absolutely reasonable based on the buyer’s income. It’s obvious that home prices are up, but what’s not often talked about is how wages are up, too. Let’s not forget that there have been 13 years of wage increases since 2006. That’s a pretty healthy number. Prices may be higher, but they’ve increased in proportion to wages as well. The danger of a massive wave of loan defaults hitting the market all at once isn’t all that high.”

Did you catch that? “13 years of wage increases” is something we aren’t hearing too much about tucked inside the doom and gloom slowdown headlines.

Check out the article at the link above – it’s going to give you some ammunition when you join us at our last WREIA meeting of 2018 next Monday in Bethesda.

Have you noticed a slowdown in DC area sales?

Has your traffic at open houses been slow?

Where are we headed going into 2019?

I hope you join us at WREIA next Monday.

We are going to talk about THREE KEYS I think are going to be invaluable to your success in real estate in 2019.

Whether you are getting started, beginning to grow, or slowly building your real estate holdings, there will be something for everyone this month at WREIA.

If you’re interested in GROWING your business and adding skills that will help your investing career join us at WREIA on Nov. 12th in Bethesda.

Monday, Nov. 12th at Washington REIA.

Will I see you there?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Nov. 12th. It will be a great meeting to get you motivated, and get some momentum for the final weeks of 2018.

Join us as we enjoy “Three Keys To A Successful ’19 In Real Estate”

Meet real people doing real deals in real estate – right here in the DC/Baltimore area.

Reserve your seat at this link.

John Peterson
Founder, Washington Real Estate Investors Association

“With interest rates sitting near record lows a few years ago, millions of borrowers refinanced their home mortgages, saving billions of dollars in aggregate. But millions of borrowers didn’t, and now they can’t see those same savings.

Since 2016, when rates were at rock bottom, 5.9 million borrowers who could have benefited from a refinance did not apply for one. This year alone, 2.2 million who could have saved money with a refinance no longer can. The report only counted those who would likely have qualified, having high FICO scores and at least 20 percent equity in their homes.”

Find the complete article posted at https://www.cnbc.com/2018/11/05/more-than-2-million-homeowners-just-missed-their-chance-to-save-money-by-refinancing.html