Category: DC Real Estate Investing

Zillow CEO on flipping: We’re ready to be an investor in our own marketplace from CNBC.

Lots of “investors” in the DC area are spending money on flipping properties. At the end of the day – they aren’t making a profit.

Let’s stop the madness!

As we wrapped up our spring break “bucket list” trip to Italy, we had a few moments before we boarded the plane.

I went over a very short list of expenses you need to keep in mind when you buy, renovate and sell a property.

One of the big hidden costs (many people forget these when they are getting started) are the transaction fees and taxes on these properties.

Join us at WREIA this coming Monday as we talk about financing properties in our area.

Washington REIA Network April Meeting

April 16th,

You can reserve your seat at this link.

Don’t worry, John will be back in time to host our April meeting.

Now onto a thought for today –

We talked about Disney and Jeff Bezos in our last posts. That’s great. But our topic this month really comes down to this – the source of funding for your deals matters.

Whether you are going to wholesale the property you get under contract or do the deal yourself, EVERYONE involved in the deal wants to be sure it’s going to close.

From what I see going on these days, very few people are using their own cash to fund their deals. By that, I mean that they are writing checks from equity lines, or commercial lines of credit.

“But isn’t that their own cash?” you might ask.

Sort of.

You see, those people now have a LIMIT to their funding.

At some point they will run out of funds. It’s sad when those people shut down their business until they can “catch up” to do more deals.

Most of us understand that when you get really hungry and get everything up and running smoothly, the deals are either few and far between, or they are coming fast and furious.

There never seems to be anything in between.

For some people those times of feast or famine may be separated by a few weeks, and for others it may take months to find the next deal.

When I don’t hear from some people for a while because they are “too busy”, I always ask why they are so quiet. Most of the time they are limited in some way.

Sometimes it’s capital. Financial capital.

Other times though – it’s HUMAN capital.

Neither of these problems – lack of money or lack of people – should ever limit you from growing your business.

When the deals are coming in – don’t stop! Keep going and keep growing.

Most of the leaders in the real estate investing world here in the DC area have grown because they didn’t limit themselves when it was time to grow. They found partners or added people to their payroll.

This month at our WREIA meeting we are going to talk about finding capital from different sources and structuring deals so they make sense for everyone involved.

My hope is that at this April meeting we help open the eyes of a few people and help them see a path to expanding their business.

We don’t have anything to sell at WREIA.

Relax. There is nothing like a “6 week path to financial freedom” course that will be sold at the end of the evening. You don’t have to try to escape past the money desk at the back of the room.

In fact, many people stick around and network long after the meeting is done.

If you haven’t attended our WREIA meeting – our members agree that this lack of high pressure selling is refreshing. WREIA has become a safe place to come and network with other area investors and share tips on what’s working and where the trouble spots are in our local area.

At our WREIA meetings you can relax because no one is trying to get their hand in your wallet and get you all worked up and excited about buying a course.

Sit back, enjoy the evening and ask questions when you have them. New or experienced in this business – there will be a few sections for everyone.

Are you the type of person who is at least a little curious what is possible in this business? Don’t you want to know HOW people are getting deals done every day – right here in DC?

I hope to see you on Monday evening. Come on out and surround yourself with people who have a passion for real estate here in the DC area.

And bring your wholesale deals too. One of the wholesale deals announced at a recent WREIA meeting went on to sell for 18k OVER what the wholesaler was asking at our meeting.

Join me on April 16th as we talk about the entire process that goes on behind the scenes when financing properties. It’s a fun topic that I am going to break down into easy steps. By better understanding these steps you will have an edge over your competition and might be a little happier with your 2018 results.

April 16th is a great opportunity for you to ask a few questions like:

• How do I know I have the best finance partner for my project?
• When is the right time to use hard money or private money?
• What the heck is hard money or private money?
• What is a reasonable rate for my flip projects and my rentals?
• My credit history looks like a garbage pail of drama. What are my options?
• Is it possible to finance deals with little money out of my pocket?
• What mistakes do you see people making with their financing?
• What can a Realtor do to help investors close more deals?

Save a few dollars and reserve your seat early. Then, come join us at WREIA – Monday, April 16th. It will be a great meeting to start the spring season, get you motivated, and get some momentum for the rest of 2018.

Join us as we talk about Financing Real Estate in the DC area.

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: Financing Investment Real Estate

“Around here, we don’t look backwards for very long. We keep moving forward, opening up new doors and doing new things, because we’re curious… and curiosity keeps leading us down new paths.” -Walt Disney

Mr. Disney had it right. You can learn a little by looking back at what was already done, but if you stop looking forward – disasters can happen.

But I also agree that along with awareness needs to be curiosity.

If I wasn’t curious I would never have answered an ad that started me down this path in real estate.

To this day, I love to explore new things. The video I posted about our April WREIA meeting was from a mountainside in the Alps.

The Italian Alps!

In Europe!

Where I was skiing – and checking off a bucket list item. It’s something I’ve wanted to do for a loooong time.

The opportunity came along and we jumped at the chance.

Of course – opportunities come along when you are looking for them.

A lot like real estate – right?

If you’re out there looking for deals – you will find them. Sometimes they aren’t always in the first spot you are looking – but you will find them.

If you are just getting frustrated you might need to do something just a little different, instead of throwing in the towel and walking away.

That said – some people have trouble believing they can even get started because they don’t have the money. Let me tell you – you don’t need a huge pile of cash to get started as a real estate investor. I can introduce you to plenty of people who started with $100 – sometimes less!

Financing a property can be a huge stumbling block for many people. It shouldn’t be.

Instead of wholesaling or bird-dogging your next property – why not try to do the project yourself?

Better questions lead to better answers.

Better answers lead to better lives.

“They” say never to talk about politics, religion or money.

Let’s break the rules next Monday and embrace the proper use of money, investing in real estate, and how to have a better life in the process.

Let me help you check off a bucket list item of your own. That dream vacation, supersized gift for a relative or maybe your dream weekend with long distance friends – all of them are within reach.

Aren’t you the type of person who is at least a little curious what is possible in this business? Don’t you want to know HOW people are getting deals done every day – right here in DC?

I hope to see you on Monday evening. Come on out and surround yourself with people who have a passion for real estate here in the DC area.

And bring your wholesale deals too. One of the wholesale deals announced at a recent WREIA meeting went on to sell for 18k OVER what the wholesaler was asking at our meeting.

Join me on April 16th as we talk about the entire process that goes on behind the scenes when financing properties. It’s a fun topic that I am going to break down into easy steps. By better understanding these steps you will have an edge over your competition and might be a little happier with your 2018 results.

April 16th is a great opportunity for you to ask a few questions like:

• How do I know I have the best finance partner for my project?
• When is the right time to use hard money or private money?
• What the heck is hard money or private money?
• What is a reasonable rate for my flip projects and my rentals?
• My credit history looks like a garbage pail of drama. What are my options?
• Is it possible to finance deals with little money out of my pocket?
• What mistakes do you see people making with their financing?
• What can a Realtor do to help investors close more deals?

Save a few dollars and reserve your seat early. Then, come join us at WREIA – Monday, April 16th. It will be a great meeting to start the spring season, get you motivated, and get some momentum for the rest of 2018.

Join us as we talk about Financing Real Estate in the DC area.

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

Here’s how artificial intelligence is replacing real estate agents from CNBC.

Existing home sales up 3.0% in February from CNBC.

Re: Bidding Too High At Auctions

“Why do they do it?” I asked myself again after the auction. I was walking away frustrated – again.

Why do people bid so high on properties at auctions? For a long time I would ask myself this question. Finally, I got smart and started asking the people who bid.

Then I discovered something interesting.

Up to that point I only looked at an auction from the point of view of an investor who wants to flip or rent the property. What I realized was – sometimes – other people with different circumstances show up and ruin our “investor” plans.

Sometimes they know something you don’t. That’s the most common answer.

Maybe that high bidder is someone lives next door and wants to control the property (and the tenants) and keep it as a rental. That was the answer when I asked why a guy bid so high – clearly more than an investor should have bid on the property.

Maybe someone wants to live in the property. If someone really wants to live in a neighborhood, but is getting bid out of properties via the traditional MLS/Realtor/Retail market – they clearly will pay more than we would as an investor. That retail buyer is a little more rare.

If someone wants to control who their next door neighbor is, or really wants to live in a neighborhood – both have “inside” knowledge of the area.

Maybe they even know the condition of the inside of the property – one of the biggest risks of buying properties at auctions. I have one of those right now. It’s a competitive edge on other drive-by bidders. I hope it turns out well.

The March WREIA meeting is tomorrow
Monday, March 19th, in Bethesda.

The auction atmosphere is exciting – but it is only the beginning of a larger process. Many times the properties don’t sell at the auction and go back to the bank. 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 tomorrow at WREIA.

Join me on March 19th as we talk about the entire process that goes on behind the scenes at Auctions. It’s a fun topic that I am going to break down into easy steps. By better understanding these steps you will have an edge over your competition and might be a little happier with your 2018 results.

March 19th is a great opportunity for you to ask a few questions like:

• What areas have the best auctions in 2018?
• 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 properties?

Save a few dollars and reserve your seat early. Then, come join us at WREIA – TOMORROW – Monday, March 19th. It will be a great way to start the spring season, get you motivated, and get some momentum for the rest of 2018.

Join us as we talk about Auctions in the DC area.

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

Reserve your seat at this link.

Have a great weekend!

John Peterson
Founder, Washington Real Estate Investors Association

I was up early Tuesday morning and dropped a short little video into the phone at a property here in the DC area.

If you want to learn from professionals who make a living in the Auction process, IN THE DC AREA, join us at our WREIA meeting this month.

The March WREIA meeting is
Monday, March 19th, in Bethesda.

Here are some quick details –

The March WREIA topic is obviously ” Auctions ”

Join us and learn:

• Why auctions work so well in real estate
• Main places to “view” auctions in 2018 – live and online
• Can you really do this in your PJ’s?
• Beware of these “speed bumps”
• When auctions go bad – a few stories you can learn from and avoid
• and more.

Join us as we talk about Auctions in the DC area.

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

Reserve your seat at this link.

Have a great weekend!

John Peterson
Founder, Washington Real Estate Investors Association

Re: Auctions can be thrilling.

Last week I told you about the 465 properties that were going to auction around the state of Maryland.

That is 465 opportunities for you to “steal” a property – right?

Not so fast. There may be 2 types of issues that you can’t see from that online auction listing.

The first problem that most people anticipate – is that there may be defects in the property. There may be frozen pipes, mold, or more likely you will find an aged home in need of some basic TLC.

The second problem – title defects – are the type that can clean out an amateur and send them running back to their day job.

What are “Title Defects”?

My definition of a title defect is “anything you didn’t know” about the title prior to purchasing.

Was there an easement on the property that wasn’t obvious when you drove by quickly to take a look?

Does the property have likely issues with relatives or heirs that may come out of nowhere claiming a fraudulent sale of the estate property?

Or more than likely – will you find regular liens from contractors or builders that have never been cleared? These are particularly nasty because they can pop up even after a sale takes place.

Most of the real horror stories when it comes to auctions are rare. BUT – they can and do wipe out new investors every day. It can get much worse than just losing a deposit, some of these problems can persist long after a title transfer takes place.

Rare? Yes, – but these risks are part of the business and you should be aware of some of the issues.

More importantly – there are things you can do to GREATLY reduce the risk of problems after you win the auction bid.

And THAT is what we will be discussing at the WREIA meeting this month.

It can be thrilling to win a property at a good price at an auction. What we want you to avoid is that nightmare’ish situation that pops up after you hear the auctioneer say “Sold!”

If you are prepared for the worst case scenario, when you walk into the property and find out there are no issues and the property can be turned into a rental or be ready for sale within a week – it’s like hitting a home run! At the very least, everyone at WREIA will give you a round of applause!

If you want to learn from professionals who make a living in the Auction process, IN THE DC AREA, join us at our WREIA meeting this month.

The March WREIA meeting is
Monday, March 19th, in Bethesda.

Here are some quick details –

The March WREIA topic is obviously ” Auctions ”

Join us and learn:
Why auctions work so well in real estate
Main places to “view” auctions in 2018 – live and online
Can you really do this in your PJ’s?
Beware of these “speed bumps”
When auctions go bad – a few stories you can learn from and avoid
and more.

Join us as we talk about Auctions in the DC area.

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

Reserve your seat at this link.

Have a great weekend!

John Peterson
Founder, Washington Real Estate Investors Association

What you need to know before you flip a house from CNBC.
More and more people are flipping houses — the most in 10 years – but they are reaping smaller rewards. High home prices, hot competition and very, very few available homes to buy are combining to make this popular trade ever more risky.

Just more than 207,000 homes were flipped in 2017, according to a new report from Attom Data Solutions, which defines a flip as a property bought and sold in the same 12-month period. That is the highest number of flips in a decade. The number of people or companies flipping homes, 138,410, also jumped to a decade high.