Category Archives: DC Real Estate Investing

Why Does Mickey Mouse Only Have Three Fingers and A Thumb?

DC Real Estate Investing

So, why does Mickey only have three fingers and a thumb?

Disney said that this was both an artistic and financial decision, explaining “Artistically five digits are too many for a mouse. His hand would look like a bunch of bananas. Financially, not having an extra finger in each of 45,000 drawings that make up a six and one-half minute short has saved the Studio millions.”

Little things, done over and over, add up.  True in every industry, including animation.

And including our business.

Great video right?  It was raining, it was cold and it was windy.  None of which was going to stop us from getting it done.

We all know that if we wait for the sun to come out, things might not get done.  Ideal conditions for this video?  Certainly not.  Just do it. No excuses.

Let me tell you, when you end the day with a long list of things you accomplished, it’s a good thing.   It’s a much better feeling than procrastinating and putting things off until tomorrow.  Right?

At WREIA this month we are going to talk about the Three Things you can focus on to make an additional 75k (or more) by the end of the year.

It doesn’t matter where you are in your career.  Making 75k over the next 7 months is very, very doable.

But – you have to FOCUS.

Don’t get distracted by too many vacations.  You can let months slip away and the year will be gone before you know it.

The sun might not come out for a few days. Don’t get discouraged.  Focus and get your next step done today.  Just keep moving.

Don’t let your lack of knowledge get in the way.  Sometimes the best way forward is just blindly taking the first step.  If you hit a wall, start looking for a door, or a window, or do whatever you have to do to keep going.   (Lack of knowledge is the silliest excuse possible in 2017.)

If there is anything I’ve learned in this business it’s this – Nature rewards action.  If you have questions.  Ask.  I’m right here.

Don’t make excuses for why you can’t make it to WREIA this month.  We are all busy.  Unless you protect your time, and block off two hours to be with other successful investors each month, you will find something else to do.  Someone or some thing will come in and steal your “You” time from you.

Block off Monday evening – May 8th – right now.  Plan to be with us.  Reserve your seat at this link. 

Get focused and get moving.

Let’s make 2017 a great year for you and your business!

John

P.S.  So what does WREIA have to do with Mickey Mouse hands?  Did you miss it?  Little things, like procrastinating, making excuses or missing WREIA once or twice, start to add up.

Discipline yourself to invest in time for yourself.  How many other places can you go in the DC area where you will surround yourself with other investors who will genuinely want you to succeed and applaud you for your success?

Ravens Legend Ray Lewis Selling 28-Acre Maryland Estate for $2.95M – Realtor.com News

DC Real Estate Investing

Realtor.com News

Ravens Legend Ray Lewis Selling 28-Acre Maryland Estate for $2.95M
Realtor.com News
NFL great Ray Lewis, who starred on defense for the Baltimore Ravens over 17 seasons en route to a pair of Super Bowl titles, has put his estate in Reisterstown, MD, up for sale. The property, which the legendary linebacker bought in 2003 for $1,950 …

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Know Your Enemy – Sun Tzu

DC Real Estate Investing
Re: Know Your Enemy

Wondering why most investors are having trouble finding properties to fix and flip?

Competition?  Sure.

But look a little closer.

It’s not just you and me competing against each other.

Look a little closer still.

 

We are both competing against the banks/hedge funds and private companies.

But the banks are selling properties.  How are we competing against them?

Because they are not leaving anything on the table for us as rehabbers to make money when we renovate and flip a property.

Let me explain.   It might help to take a quick peek at the foreclosure page we have posted on our WREIA site.

The numbers don’t lie – but they will creep up on you.

The abundance of distressed properties in some form of foreclosure are in the low to middle price range.  100-200k is common across the country.  In our area it skews slightly higher.

But here is something interesting. Retail home prices across the country are dropping – slightly.  But the prices the banks are getting from distressed sales are steady.


So – who is getting squeezed here?  You the investor!

When you have a tighter margin to deal with, combined with falling prices – watch out – someone is about to get burned.  Don’t let it be you.

History tells me the banks will make out fine.  Especially if we let them get away with this nonsense of pricing the distressed homes too high, especially with their marginal renovations.

It’s especially tempting for us here in the DC area.  MD is near the top of the nationwide leader-board when it comes to foreclosures.

So what can you do to protect yourself?

1.  Don’t think it’s a deal just because it’s a foreclosure.  Most of the margin has been squeezed out for investors.  (Your mileage may vary.)

2. Be careful if you are investing in these heavy foreclosure areas.  Know the inventory.  When banks dump these properties on the retail market, prices drop.  Economics 101.

3. Be smart and don’t over-renovate.  I see new investors putting tons of upgrades into homes in neighborhoods where the bank inventory is their competition.   For the first time home buyer if they can save 50k and buy a bank renovated property with new paint and carpet only – they will be happy.

Lastly – put a good team together.  People that know the local markets.  Odds are pretty good that a “mentor” from a high priced coaching system sitting at a desk in Ohio or Utah doesn’t know the difference between Capitol Heights and Capitol Hill.  They certainly are going to have a hard time helping you on a street level basis.

Our guest speaker at WREIA this Monday night knows the local market.  She is a mortgage pro at a local bank and has been an investor as well for a number of years.

Some of us think of business as going into war.  Every day you face an enemy.  As Sun Tzu points out – you need to know your enemy and know yourself.

If you need help understanding the money end of this business, and how specific mortgages can help sell your properties faster – join us Monday at WREIA.  Your going to learn or be reminded of a few things.

It’s not 2007 any more and some of us need a refresher to fully understand the 2017 market.  Knowledge is power in this business.  Sun Tzu would agree. 

It helps tremendously to have a local mortgage pro on your team who understands mortgages but also knows what it’s like to be an investor in the DC area.

Are you just getting started?  Or maybe you need financing for your 4th rental property?  Either way, April 10th will be a good night for you to come out and get an insiders perspective on lending in DC and the surrounding areas.
Bring your financing questions, bring your wholesale deals and bring a friend.
See you on Monday!

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Let me know how I can help you make it happen,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S.  Interested in a lender or construction partner for your project?  Yes, we do partnerships.  We lend to and partner with people all over the DC area.  Call the office and lets set up a time to talk through or walk through your project.

All Of A Sudden – Sales Started Failing In 2016 – Why?

DC Real Estate Investing

Failed Sales On The Rise
In 2016

Re: Fail to Sale

In 2016 we saw an increase in “Sale Fails” here in the DC area.

In other words, “Back on the market we go!” And nobody likes that.

It’s hard to explain, but it feels like you are quietly telling that world “The last buyer thought my baby was ugly.”

It wasn’t too bad here locally.  Be glad you don’t live in Ventura, CA.  They led the country with close to 12% of their sales failing.

Imagine, 12% of the market in Ventura is suffering from “Ugly Baby” drama.

Here in DC we had about 4% of our properties go back on the market.

The next logical question – Why do they fail?

Mortgages, Appraisals and Inspections are responsible for the vast majority.

So this month at WREIA we are going to focus on Mortgages.

Specifically, lets bring in a mortgage pro who understands the DC area.  She works for a local bank.

When you are dealing with banks local and regional banks are the best – in my opinion.  They are big enough to have a team of people that are able to close, but still small enough that your contacts are local. Their knowledge of the area runs deep.

How do you know they buyer who just signed off to buy your property is qualified?  What steps have you taken that will help you sleep better at night?

96 out of the top 100 metro areas across the country had an increase in failed sales.  Nationally, we nearly doubled the rate of 2015.  Locally, we just had a slight uptick.


Unlike the problems of 2007-2008 our mortgage market is actually performing pretty well.  This is good news.  No one wants to live through that drama again.

Don’t panic.  An uptick in relistings is just a sign of a balancing market.  If you renovate a home correctly,  price the home well and have a well qualified buyer under contract – it should be smooth “sailing” to the close.

Putting a good team together – so that everyone gets to the closing table – should be a high priority as an investor.  Maybe the highest.

It helps tremendously to have a local mortgage pro on your team who understands what it’s like to be an investor in the DC area.

Are you just getting started?  Or maybe you need financing for your 4th rental property?  Either way, April 10th will be a good night for you to come out and get an insiders perspective on lending in DC and the surrounding areas.
Bring your financing questions, bring your wholesale deals and bring a friend.
See you next Monday!

*********

Let me know how I can help you make it happen,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S.  Interested in a lender or construction partner for your pending project?  Yes, we do that.  We lend to and partner with people all over the DC area.  Call the office and lets set up a time to talk through or walk through your project.

Market Update & The WREIA Weather Reset – Meeting Monday, March 20th

DC Real Estate Investing

Re: Market Update & The WREIA Weather Reset – Meeting Monday, March 20th

Shorts and t-shirts just a couple weeks ago, now we are back to the heavy winter coats.

Welcome to spring weather in Washington DC!

I just checked out the live cameras at the Roundtop ski resort about 90 minutes north of us.   Two weeks ago they thought they were closing for the season.  Today they have 30+ inches of snow pack.   Amazing!

What does this crazy weather mean for our real estate market here in DC?

We definitely took a pause for a couple of days, but here is the thing: When you trap people inside for a few days, we all know they turn to the internet and start catching up on their web browsing.

There was a major uptick in home searches over the last week.

On our “day off” we dug into a few reports.  A January research report posted on Zillow showed the DC area appreciating slower than Indianapolis!

“Annual growth was slowest in January in Virginia Beach (+3.2 percent); Washington, D.C. (+3.6 percent); and Indianapolis (+3.7 percent).”

3.6% is great – but of the top 40 cities nationwide, it make you wonder what is going on that our back yard market can’t keep pace with Indianapolis?

You will get a chance to ask our WREIA member panel on Monday what they think is going on here in our local DC markets.

The panel lineup has not changed. Each of our guests has agreed to stick with us even though we had to reschedule from this past Monday.

We will be talking about the THREE PHASES OF RENOVATION. Each of our guests will bring their area of expertise to the panel and share their DECADES of experience.

Remember to update your calendar and be with us this Monday the 20th for our March WREIA meeting.

Also, keep an eye out for an email next week with details about our quarterly “WREIA Members Only” event. We will announce the details for you on Monday evening as well.

Do you have recent experience with Metro DC renovations? If you want to share your story about your business – can you get in touch with me? I would like to hear your story and perhaps we can share your lessons learned with our WREIA members at the March WREIA meeting.

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Interested in a seat or a WREIA Membership?

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Join us on the new meeting date – March 20th – and expand your belief that other people are out in the DC area making money in Real Estate.

FOCUS and make 2017 a great year for your business!

Let me know how I can help you make it happen,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S.  Interested in a lender or construction partner for your pending project?  Yes, we do that.  We lend to and partner with people all over the DC area.  Call the office and lets set up a time to talk through or walk through your project.

ATTN: March WREIA Meeting Rescheduled – New Meeting on 3/20

DC Real Estate Investing

Hello WREIA MEMBERS!

Despite the chilly but sunny Sunday we are having here in DC we are in for a potential record setting storm starting tomorrow evening on through Tuesday.

That said – we just checked with the talented people at the WREIA Weather Headquarters and after a lengthy discussion  they have advised us to

RESCHEDULE THE MARCH MEETING TO MARCH 20TH. 

So, if it’s ok with you, lets get bundled up at home tomorrow evening and stay off the roads.  We all know what happens to DC traffic during this type of weather event.

Stay home and stay safe!

We will see you NEXT Monday – March 20th!

John Peterson

Founder, Washington REIA Network
Profitable Property
Rockville, MD
301-881-5541
ProfitableProperty@gmail.com

P.S. All pre-purchased tickets have already been credited to the new date.  If your schedule will not allow you to attend, we would be happy to work with you to credit for the April Meeting or refund your purchase.   Just let us know.

March WREIA Meeting Details (Video)

DC Real Estate Investing

http://www.washingtonreianetwork.com/ John Peterson, the founder of Washington REIA, will be the moderator at the March 13, 2017 WREIA meeting.  Our topic will be “Panel of Professionals” where we will have DC area investors talk about the THREE PHASES OF RENOVATION.  We encourage you to attend WREIA this month at The Bethesda Womans Club – March 13th. Doors will open and registration will begin at 6:30.

“I hope to see you Monday Night!”

John Peterson

Founder, Washington REIA Network
Profitable Property
Rockville, MD
301-881-5541
ProfitableProperty@gmail.com

With over 800 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

Key to Selling Fast – (LINK)

DC Real Estate Investing

deed

Re: The Key To Selling Fast

I was thinking about what to share with you today and a text came in a few moments ago from a friend.

“Have you seen The Deed on CNBC?”

“No. I saw a few ads for it. How is it?”

“You’ll like it. It’s good.”

I’m going to be honest. Another flipping show? If you’ve seen the show, let me know how it is?

Time is precious and nobody I know wants to give an hour to another drama filled flipping show where the “characters” freak out at the first sign of a dead mouse.

That said, I did find a quick article from one of the episodes where a person that looks like the “coach” or “advisor” talks about the list price being so important. You can catch the CNBC article with some video clips posted at http://www.cnbc.com/2017/03/08/sidney-torres-says-this-factor-makes-a-property-sell-the-fastest.html

True. If you make a mistake on the listing price, it can be a disaster.

If you price it too low – you may be leaving money on the table.

Too high – the property could get stale while you wait for traffic to even preview the property.

I’ve made errors on both sides of that coin. Everyone has.

If you want some tips or have some questions about how to come up with the right listing price join us at WREIA on Monday night.

We are going to have a “Panel of Pro’s” joining us to give their perspective on the three phases of renovating in the DC market. Our panel will share their experiences and it’s a chance for you to ask some questions and get some live “real world” feedback.

Plan to join us on Monday.

Learn to make small corrections in your renovation process. That my WREIA friends is what our panel is going to be focused on at WREIA – Monday the 13th.

Come out and join us. Network with real people operating in this business in our DC back yard.

It’s going to be a great night. No promises, but one tip could be so good, it might make you want to get up and dance.

dance

Do you have recent experience with Metro DC renovations? If you want to share your story about your business – can you get in touch with me? I would like to hear your story and perhaps we can share your lessons learned with our WREIA members at the March WREIA meeting.

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Interested in a seat or a WREIA Membership?

Save a few dollars and reserve your seat early.

Tremendous Savings and Additional
“Members Only” Perks for WREIA Members

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Join us on March 13th and expand your belief that other people are out with me right here in the DC area making money in Real Estate.

Let’s FOCUS and make 2017 a great year for your business!

Let me know how I can help you,

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

Drones and Real Estate Imaging – (VIDEO)

DC Real Estate Investing

aerial_video_by_Douglas_Thron

Re: Drone Imaging For Real Estate

Like many parts of the renovation process, staging and getting the property to market is full of places some people make BIG mistakes.

Imaging can play a huge part in the success of your project. And today, there are more options than ever.

Drones, those little toys that everyone was asking about over the holidays are actually being put to use by some cutting edge agents. Of course, the professionals are using $2,000 versions of these flying video and photo machines.

We will have a panel of professional renovators with us on Monday night at our WREIA meeting talking about the three phases of renovation.

Of the three phases, staging and prepping the property to go to market is probably the least expensive. Unfortunately, by the time most renovators reach this phase, they have run over their budgets so bad that they try to “save” money right at the finish line.

There was an interesting article on CBS a few days ago that talked about how drones are changing real estate sales and marketing.

You can find the article and some nice overhead images posted at http://www.cbsnews.com/media/9-ways-drones-are-changing-real-estate/

I can save you the 9 frustrating clicks from one page to another (Why do they do that?) and point out a key take-a-way:

“People buy on emotion, and these videos really pull them in.”

Aerial photos and videos work great on the right property. If you have a small estate in Montgomery County or over in Falls Church, or a farm on the Eastern Shore it could be very appropriate to hire an aerial videographer to amp up your marketing.

The image at the top of the article is by a professional in the real estate photography business and can be viewed below.

It’s not too expensive, and can sometimes increase the number of views of your listings online. People like to share pretty things online and beautiful homes are no exception.

On a recent project we had a number of quotes in the $250-$300 range. Most companies will do internal photos as well as part of a package deal.

So there you have it. Spend a few extra dollars on your marketing expenses and perhaps you will sell a property a little faster.

Learn to make small corrections in your renovation process. That my WREIA friends is what I am going to be talking about at WREIA on Monday the 13th.

Come out and join us.  It’s going to be a great night.  Listen to a panel of professionals share their experience.  Ask some questions and get some live “real world” feedback.
It’s going to be a great night.
Do you have recent experience with “Aerial Photography”?  If you want to share your story about your business – can you get in touch with me?  I would like to hear your story and perhaps we can share your lessons learned with our WREIA members at the March WREIA meeting.

 

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Join us on March 13th and expand your belief that other people are out with me right here in the DC area making money in Real Estate.
Let’s FOCUS and make 2017 a great year for your business!
Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S.  Interested in a lender or construction partner for your pending project?  Yes, we do that.  We lend to and partner with people all over the DC area.  Call the office and lets set up a time to talk through or walk through your project.