The profits made from flipping homes continues to shrink from CNBC.

Join us at our last WREIA meeting of 2017.

Monday, Nov. 13th, 2017

Bethesda, MD

Doors opening at 6:30 for refreshments and networking.

Re: One Advanced, One “Newbie”

Over the last month, our WREIA Members met at a local restaurant for our last “Members Only” meeting of the year.

Before that, we also had a meeting for our continued “Wholesale” discussion. That meeting was packed with people at the beginning of their real estate journey.

We had about 18-20 people at both meetings. What these people didn’t know is that I was really listening for “issues”.

Where are they struggling?

What problems are they facing?

Is getting started the problem, or is the struggle found in growing and getting bigger?

When I got back from both meetings I digested the conversations and started taking a few notes.

You can hear my advice for those people and some of their specific problems if you join us at our final WREIA meeting of 2017.

At WREIA next Monday we will “wrap up” 2017. (We take off December to spend time with family, friends and “sharpen the sword” for ourselves.)

In fact, I just got off the phone a few minutes ago after I got the question “Why are you sharing these details? Are you sure you want to do this?”

In short, the answer is this. “If I share my experiences – good and bad – from the last 20 years, it might make your journey in this business a little easier.”

No matter where you are in your career there will be something for you. Getting started to getting bigger – you are going to take something away from Monday night that will help you as you enter into 2018.

I hope you can join us on Monday at our WREIA meeting as we then continue to discuss our favorite topics of the year and go over some of the common characteristics the successful people in our field share and how it helps them achieve their goals.

The easiest way I know to achieve your own success is to emulate those people who are already successful.

Come out and spend some time networking with other investors in the DC area. Enjoy a bite to eat and share your goals for 2018.

2018 is right around the corner. I still can’t believe it.

Are you ready for 2018?

What are you going to do to have even more success next year?

Reserve your seat at this link.

See you Monday!

John Peterson
Founder, Washington Real Estate Investors Association

Re: Debt-free at 53?

I had a really interesting meeting this week.

The kind of conversation that challenges the brain and really got me thinking.

I asked the person I met with if they would mind if I shared some of the conversation details with our WREIA members.

Lucky you – the answer was “Sure”.

We sat down to talk and rather quickly I got hit with this question:

“I want to be debt free at 53. Can you help me do that?”

We went on to have a good conversation about income and debt levels, future expectations, etc.

But it was the answer to my immediate response really hit me. Their answer told me more than anything else about how successful this person was going to be in their quest to be “Debt-Free By 53”.

My response was simply – “Why?”

The motivation or purpose you bring to the quest is more important than the how.

I’ve noticed over the last 20 years that people who have a big reason to accomplish their task or goal will often accomplish it.

Maybe you’ve heard the expression “Come Hell Or High Water”?

It’s used to explain an undertaking that, no matter how bad it gets, or what conditions we face – it’s going to happen.

That level of intense and focused energy when undertaking a project turns any roadblocks into mere speed-bumps along your journey.

That was the fire I saw when we were talking.

At the very basic levels using real estate in the 3 step process to become debt free is very easy.

Step 1. Spend Less.
Step 2. Save More.
Step 3. Earn More.

That third step is where people often mess up.

That was also why we were having our conversation. This person wanted to earn more along the way. Spending less and saving more wasn’t going to let them get ahead fast enough to reach the goal of being debt free on their timeline.

So many people think that they have to live like a poor person so they can “enjoy” their retirement years.

I wonder if depriving yourself your entire life is really a great “plan”?

Putting off all of your enjoyment now, just so you can continue to play it safe in retirement seems silly.

Life is meant to be lived.

There are so many wonderful places to see and people to meet all over the world – why would you put that off and starve yourself of those adventures and pleasures until you are “retired”?

Maybe world travel isn’t your ultimate goal, that’s fine.

But what is your ultimate goal?

Why not start enjoying it sooner, rather than waiting for some artificial age when it’s “more appropriate”.

The one thing I can tell you – real estate has allowed me to enjoy life along the way, as well as plan for the future.

I’ve also seen people go from near bankruptcy to multi-millionaires in as little as 3 years. Another in just over 5 years.

We are talking regular people – not Harvard educated MBA’s with a crazy network of high-earners who strike it rich when their company goes “public”.

That rapid rise in wealth came down to this – the luck of living in a country where it’s possible, coupled with hard work and determination.

They determined they would do it – and they did.

At WREIA next Monday we will wrap up 2017. (We take off December to spend time with family, friends and “sharpen the sword” for ourselves.)

I hope you can join us on Monday at our WREIA meeting as we discuss our favorite topics of the year and go over some of the common characteristics the successful people in our field share and how it helps them achieve their goals.

The easiest way I know to achieve your own success is to emulate those people who are already successful.

Come out and spend some time networking with other investors in the DC area. Enjoy a bite to eat and share your goals for 2018.

2018 is right around the corner. I still can’t believe it.

Are you ready for 2018?

What are you going to do to have even more success next year?

Join us on Monday and hear what other people are doing to expand and grow their business in the months ahead.

Reserve your seat at this link.

See you Monday!

John Peterson
Founder, Washington Real Estate Investors Association

Reserve your seat here at this link.

WREIA 2017 Oct. Meeting
Monday, October 16th
Doors Open @ 6:30PM

“How To Flip A House In Any Market”

Re: 100K Wholesale Deal

Some people don’t want to, in fact, they refuse to go the traditional route and use a realtor to sell their property.

There can be a whole range of reasons why people might make this decision.

At the end of the day, many of those people try to sell the property themselves. For Sale By Owner signs are the easiest way to find them. FSBO is the industry term we use when we refer to them.

“Fizzbo’s” are usually not the easiest people to deal with. They have a reputation for wanting top dollar or beyond. Or, you might find them to be a bit eccentric. But don’t let that deter you from trying to work with them.

In fact, I’ve grown to really enjoy some eccentric people. They can remind us of just how great of a country we live in that people can be so different, come from so many backgrounds and really just enjoy life.

When I drove by this property in DC I saw a tiny little “For Sale” sign in the window.

It was impossible to read details from the road. So I pulled back around the block and got out of the car.

By being out in the city and pulling back around to get the details on the sign, I probably separated myself from 99.99% of my competition. You know them. They are the “cash buyers” that do all their work from behind a computer screen with little to no experience on the street.

Side note – I’ve grown a bit skeptical about the out of town seminar companies that want you to join their “team” after attending their free seminar? They make promises that they can teach you how to hop in front of the computer a few times and week and suddenly you’re a “cash buyer”.

The seminar companies are churning out daisy-chain wholesalers that are doing nothing more than promoting other peoples deals. They do little to no work themselves but they are creating quite the image for themselves on “Fakebook.”

Some of these real estate “promoters” are going to end up with heavy fines or even jail time for dealing real estate without a license.

Ugh.

Back to happier times…..

So here I was, downtown DC, on the side of the street talking on my cell phone to the owner.

Long story short – the owner was a reluctant landlord that really wanted to go to grad school. If he could sell the property he could pay for school.

So, we agreed to a price and got the property under contract. I thought it was going to be a great project to fix and flip.

But, once I got the property under contract I dug a little deeper and did some further research on comps in the area. I found another investor/agent friend of mine that was doing condo conversions in the area. For him, there was a higher and better use for this property.

He agreed to pay me 100k for the rights to my contract.

When I assigned my rights to that contract to him – which is done every day across all industries – he paid me 100k.

Three weeks later, closing went off without any problems. But three more things happened:

• 28 year old reluctant landlord went on to grad school – debt free.
• I collected a very nice fee for about three weeks of work. (Results not typical, even for me. These deals come along every so often and you have to have a lot of things in place to pull them off properly.)
• The buyer also converted the property to legal separate condos while he renovated the property and made a very nice profit himself.

That’s an example of “wholesaling” a property. It’s also one of the options you have when you are thinking about your first deal in real estate.

Wholesaling is relatively low risk. You don’t have to deal with any renovation issues, tenants, or permits. You won’t stay awake a night when a hurricane blows into town or we get three feet of snow from one of those famous winter storms worried that your renovation is stalled until we can safely leave the house again.

Wholesaling can be exciting, fun, and low cost. For most people, it’s a great way to stick your toe in the water to see what you think of real estate investing as a career.

Wholesaling, when you are the person with your name on the contract, is not illegal and you won’t get in trouble. When you start promoting other peoples property or contracts – for a fee and without a license – you better watch out. You’re gonna find yourself in trouble. I don’t care what those guys from YouTube or the “As seen on TV” seminar companies are telling you.

If you are looking for a little more insight into doing your first or maybe your next flip – legally – here in the DC area, you should join us at our Oct. WREIA meeting Monday, Oct. 16th in Bethesda.

Reserve your seat here.

Dozens of active and aspiring investors get together each month at our WREIA meetings to network, share resources and educate each other on tactics and practices that are working right now in the DC area.

We’ve been doing this every month since 2001.

And this Monday on Oct. 16th, we will cover so much more than wholesaling or FSBO’s.

If you want to learn how to make money flipping houses in the DC area – in 2017, ’18 and beyond – join us at WREIA on Oct. 16th.

I’ll give you a roadmap with action items you can take and put to use as soon as you leave the room. In fact, on your drive home, you might just find another one of these condo-conversion-diamonds-in-the-rough.

Enjoy yet another meeting with no sales pitch. Just tactics and info for members of our WREIA community.

If you are ready to get to work – Join me on Oct. 16th.

Reserve your seat here.

John Peterson
Founder, Washington Real Estate Investors Association

Re: R.E. Agents

“How do I find the right agent?”

If you are in the middle of searching for your first property to flip, finding the right agent can sometimes be a discouraging process.

More than likely, the “right” agent is busy with existing clients. Most of the time, working with investors with no experience or track record is left to the new agents in the office.

Welcome to reality. Your first flip isn’t going to be easy. Fast and easy is only on TV.

Which is OK. We all have to start somewhere.

Let me share with you a few things that I look for when I hire an agent to sell a property. You might be surprised to know – it has very little to do with the number of transactions.

1. Time in DC Area.
Did this agent grow up in the area, or did they just arrive from Dallas or Milwaukee due to a spouses job transfer? The DC area is very transient. I like building relationships in our business and someone who just moved into town is also likely to be moving out of town in a few years as well.

If you are serious about this business, play the long game. It will pay off down the road.

Sometimes people leave a profession and enter into real estate sales. I tend to prefer a person who has been an agent for at least 5 years and 10 is even better. But they must have been in the DC area far longer, and have a great grasp on the local “scene” when it comes to our market. Which areas are hot, which are consistent, and what part of town has gone soft – all great questions for an initial conversation. Their answers will tell you a lot about their experience.

2. Let’s talk marketing.
“Can you give me an address of one of your current listings?” This question usually cuts right to the bottom line of our discussion. While we are talking, I immediately pull up the listing on my computer or phone, like 99% of our buyers. If the photos are all hacked up, disjointed, blurry and/or the property description is boring – the conversation is over.

3. Reputation.
This is a big one for me. Referrals are a big part of my business. When I try to buy or sell a property that is out of town, I do everything I can to quickly find another investor who does a lot of business in the area and use their judgment on the best fit for an agent. Sometimes, it works in reverse. I find an agent, and ask if they have any investors who can recommend them professionally. Either way, talk to both people.

People are surprised when they first hear – even though I have a license – I hire or partner with other agents to sell property for me.

Why would that be a surprise? Every month at WREIA we talk about how important it is to spend time on what you do best. Higher-end, luxury DC condos are not my specialty when it comes to sales. So, when we have those projects, I hire agents who specialize in luxury condo sales.

When we purchase homes in other niches outside of my normal “bread and butter” DMV single family or townhouse flip, I immediately start looking for the pro in that out-of-town or niche market. It’s worth every penny to pay for professionals in those tight niches.

I use my license as a default. If no one is clamoring for my business, it’s easy enough to put together a listing for the property. However, sometimes an agent is hungry, wants the listing, and meets the three criteria above. In those instances, we usually pass off the listing to that agent so I can focus on what I really enjoy doing – finding the next project.

You should do the same.

Focus.

Don’t go into this process thinking you are going to do everything. It will take too long and you can kiss your profits goodbye.

For instance, should you paint the house? Is that what you do best? Or did you overpay for the property and now you HAVE TO paint the house yourself because you don’t have the budget to pay professional painters?

Plumbing, electrical, windows, roof repairs….. The list is endless. It doesn’t start or stop with the agent. The agent is simply one more person that you should hire to specialize in their craft.

If you are looking for a little more insight into doing your first or maybe your next flip here in the DC area, you should join us at our Oct. WREIA meeting Monday, Oct. 16th in Bethesda.

Reserve your seat here.

Dozens of active and aspiring investors get together each month at our WREIA meetings to network, share resources and educate each other on tactics and practices that are working right now in the DC area.

We’ve been doing this every month since 2001.

And on Oct. 16th, we will cover so much more…..

If you want to learn how to make money flipping houses in the DC area – in 2017, ’18 and beyond – join us at WREIA on Oct. 16th.

I’ll give you a roadmap with action items you can take and put to use as soon as you leave the room.

Enjoy yet another meeting with no sales pitch. Just tactics and info for members of our WREIA community.

If you are ready to get to work – Join me on Oct. 16th.

Reserve your seat here.

John Peterson
Founder, Washington Real Estate Investors Association