Sales of existing U.S. homes fell in March after a huge gain the previous month, held back partly by a sharp slowdown among the most expensive properties.
Category Archives: DC Real Estate Investing
Return On Investment – Of Time
Return on Investment is a common term that we come across in our industry.
Most people think of ROI in terms of dollars and cents.
However, there is another way we can apply ROI.
Time.
That’s right. Time can be a crucial factor in performing a renovation.
If we are trying to flip a property – there can be a huge additional cost if we take 6 months or more to perform a full renovation.
Taxes, mortgage expenses, insurance and the list goes on.
If you are doing an extensive renovation, most of your permits are going to have an expiration. If you pass that time limit, you will need to refile your permit.
So when we talk about various projects during our WREIA meeting Monday night, keep in mind just how much TIME each project will take.
If we make decisions on a project so that we REDUCE the amount of time we will INCREASE the total profit.
And that is the goal this month.
Let’s answer the question we all need to ask when starting a renovation –
Is this the right investment and will it be profitable for this project?
All the while, you need to keep in mind – renovating for a home that you live in is very different than a property that you are trying to fix and flip.
You may be willing to spend a little more for a project if you plan on living in a home.
But try not to get too carried away – and this month – let’s show you some of the places you can invest in your home and actually get a profitable positive return.
- Should I spend money on the kitchen or the bath?
- I hear solar panels increase the value of my home. Is it worth it?
- Where is the best place to spend money outside?
- How do I know I’m doing the right thing when it comes to adding a floor?
- Should I stage the property?
- Should I add a home office or a spare bedroom?
- And much, much more…
Join us Monday night for our April WREIA meeting.
The topic for WREIA this month is:
“Profitable Renovations”
Bring some questions Monday night.
We have a great group of investors who tune in to watch, interact and help other local DC area investors each month.
Come join us!
My sole focus for the April 2022 WREIA meeting is:
Helping you understand where to spend when renovating a property that maximizes your return.
Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.
See you Monday!
Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the April 2022 meeting Monday at 7PM.
Go ahead – grab a ticket. (And yes, there is still no charge to attend.)
March WREIA Starts at 7PM Tonight!
| There is an old expression – Time is Money. It’s never been more true than in our business today. Every day that goes by this year we are at the risk of rising interest rates. When the Fed announced they would be raising rates this year it can be hard to wrap your head around exactly what that means. The average rate you’ll pay for a 30-year fixed mortgage is 4.54 percent, an increase of 6 basis points since the same time last week. Last month on the 25th, the average rate on a 30-year fixed mortgage was lower, at 4.25 percent. Every 1/4 point, or 25 basis points – a $400k mortgage increases by $58. By this time next year the difference in buying a house now and a year from now could be $500 a month – maybe more. So what will happen? Some people will just buy less of a house – maybe not have as many features or total living space. Some people will move their search to a different location – perhaps where it’s more affordable. What about if you’re selling? Some sellers may get scared and start to lower their price. Some other people will get frustrated because they don’t have people lining up on day 1 to make a crazy over listing price offer. The one thing I don’t want to happen to you – please don’t be skeptical and start to think that this business just doesn’t work any more. So – this month let’s get rid of the skepticism and jump in and comb through the details of what it takes to do a successful deal – IN OUR AREA. I hope you join us tonight for our March WREIA meeting at 7PM. My goal this month is to keep you OUT of trouble on your first flip. Let’s give you some good expectations of what it’s like to flip a home in the DC area, and even a little taste of what it’s like outside of our hometown. We are going to cover some good stuff tonight. The renovation process, hidden spots to find some extra profit, and even some easy pitfalls that most new investors could easily avoid with a little planning. Join us in just a few hours for our March WREIA meeting. The topic for WREIA this month is: “The Ultimate Guide to Your First Flip” Bring some questions. We have a great group of investors who tune in to watch, interact and help other local DC area investors each month. Come join us! My sole focus for the March 2022 WREIA meeting is: Helping you understand the process, the hidden profits, and the pitfalls of your first flip. Spend a few moments with us at our WREIA meeting tonight– it could save you a fortune down the road. See you in a few hours! Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the March 2022 meeting Monday at 7PM. Go ahead – grab a ticket. (And yes, there is still no charge to attend.) |
| Taking Action Is A Key To Success. |
24 Hours to Feb. WREIA Meeting
In 24 hours we are going to kick off the Feb. WREIA meeting.
But here is a warning:
This meeting may give you a sense of calm.
You may walk away from the meeting tomorrow night with a plan that you actually understand – because you are writing it based on your own situation.
You will be disappointed if you enjoy the endless loop of drama and bad news broadcast daily across nearly every news platform available today.
I think it’s important to step away from the daily dose of emotional drama broadcast to us all and just look at some simple cold hard facts.
For instance:
- We have been through this part of the real estate cycle before – even as modern day investors.
- If you know where we are headed – both locally and nationally – the next few years will be easy on your wallet, and well as your mind.
- If you have ever been to the beach – you know there is a high tide and a low tide that occurs 2 times each day. The real estate business has the same reliable cycle.
Armed with just that information – where we are and where we are going – it allows me to sleep well at night.
But it wasn’t always that way for me.
In my early years, I felt like I had just made a discovery that no one else knew about.
For me – real estate was life changing almost from day one.
Early in my career, I didn’t understand that real estate prices sometimes run counter to the broader economy.
And because of that I fought the reality of the part of the cycle we were already well trenched.
For instance – I tried to grow my business when I should have been trimming the fat.
In my early years in business I messed up and got caught off guard. It cost me time and money to fix those mistakes.
Do you want to join me Monday night and see where we are right now and how you can protect your business going forward?
You need a plan to protect what you have already earned, as well as grow your business.
If you get caught off guard – it can be devastating to your bottom line.
I think the next couple years could be challenging for people without a plan.
I’m pulling out everything I’ve learned this year to help anyone who is confused by the current state of the real estate market.
The old saying rings true –
” The more things change, the more they stay the same. “
We just need to find the patterns, and make adjustments.
The topic for WREIA this month is:
“Understanding the Four Stages of the Real Estate Market”
Bring some questions Monday night.
We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over 18 months ago.
Come join us!
My sole focus for the Feb. 2022 WREIA meeting is:
Helping you understand where we are in todays real estate market. And how to PROFIT from it.
Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.
See you Monday!
Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the Feb. 2022 meeting Monday at 7PM.
Go ahead – grab a ticket. (And yes, there is still no charge to attend.)
Understanding Four Stages of Real Estate Markets
| I often have early morning meetings with people around the DC area. One meeting in particular, I could tell the “early morning” did not agree with my breakfast partner. “I had a terrible night of sleep. Too many things on my mind.” This person had been having trouble getting their business off the ground after a very successful first “flip.” We talked through a few of the issues – and sure enough – sleep was a massive problem. Early morning had never been a favorite time of day for this person. This person was trying to transition from being a part time Realtor to a full time Flipper. To make it work, all the extra responsibilities were being pushed into the early morning and the wheels were starting to come off the bus. Early morning was not where this person excelled – to put it mildly. All the coffee in the world was not going to make the day easier – that was plain to see that morning. All the activities this person was trying to do were very poorly timed. Not just because of where we were in the real estate cycle, but because the timing of those activities in the day were also terribly planned. Networking from 6-8AM? Whether it’s online or in person – I would not recommend it – for the most part. Texting, calling, DM’ing or whatever else you want to do to connect to someone – that early in the day will not make you too many friends. This business attracts a various types of people – from a lot of different backgrounds. And here in the DC area – those different backgrounds are magnified. For instance, a person with a military background may be accustomed to an early start – while a young recent college grad may start to get up to speed late in the morning or even early afternoon. We all have cycles of the day that work best for us and to think everyone is the same is just silly. Similar to the real estate market – in the macro sense. Just because a person is just getting started in their career does not mean it’s a great time to flip houses, or buy rentals, or wholesale property. A good seasoned investor can do any of those things at any time of course – but they will be the first to tell you – it’s naïve to think there are not some times when it is harder to accomplish than other easier times. Well more than a couple decades into this business it’s worth me sharing a few easy things for you to do to realize: 1. where we are in the real estate cycle and 2. some easy places to focus your energy no matter where you are in your own phase of business. In my early years in business I messed up and got caught off guard. It cost me time and money to fix those mistakes. Do you want to join me Monday night and see where we are right now and how you can protect your business going forward? You need a plan to protect what you have already earned, as well as grow your business. If you get caught off guard – it can be devastating to your bottom line. I think the next couple years could be challenging for people without a plan. I’m pulling out everything I’ve learned this year to help anyone who is confused by the current state of the real estate market. The old saying rings true – ” The more things change, the more they stay the same. “ We just need to find the patterns, and make adjustments. The topic for WREIA this month is: “Understanding the Four Stages of the Real Estate Market” Bring some questions Monday night. We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over 18 months ago. Come join us! My sole focus for the Feb. 2022 WREIA meeting is: Helping you understand where we are in todays real estate market.And how to PROFIT from it. Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road. See you Monday! Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the Feb. 2022 meeting Monday at 7PM. Go ahead – grab a ticket. (And yes, there is still no charge to attend.)Taking Action Is A Key To Success. |
| We are open for business and will be having our next virtual WREIA meeting on Monday, Feb. 28th. If you would like to join us grab a reservation at this link. The reservation is free and we use your email to send you a link prior to the meeting. Grab your seat for the next WREIA meeting this Monday and be ready to grow your business. Stay safe and stay healthy, John Peterson |
Washington WREIA – January 2022 – Replay
Are We In A Housing Bubble?
Join John Peterson and a group of DC area investors as we kick off the new year with a hot topic – “Are we in a housing bubble?”
Listen in as John helps you craft a two year plan on what do do to take advantage of the coming months.
Stay safe and stay healthy,
John Peterson
Are we in a housing bubble? – Let’s ask Google! – PICS
Like all good people these days, when we don’t know the answer to something – Let’s ask Google!
So – first of all, a warning.
Not all writers are investors. Not all investors are writers or content providers.
Translation – none of the following should be considered on any level – due diligence on real estate investing.
This was a fun little exercise – nothing more.
Second – take these answers for what they are – answers from a snapshot of the great Google answer machine.
Let’s get The Google Brain going!
Someone spin the wheel……
Off to a great start.
Let’s zoom in a bit and take a look at an answer or two.
Just for fun.
When did Home and Garden get into forecasting real estate growth?
14% seems very aggressive. But let’s move on.
Big scary questions always make for a great headline.
Yahoo Finance quoting Fannie Mae? Maybe we can put that in the “read later” bookmark.
Let’s find a good one so we can wrap this up and get back to work.
Com’on Google….
BINGO!!!!
Maybe this is a good time to mention our January WREIA topic?
| Do you want to join me Monday night and look at my Business Blueprint for the next 2 years? I think the next couple years could be very challenging for people without a plan. But if you know what to expect – you may glide through the next couple of years and come out stronger and in a better position than you are in today. Little confused on where we are headed or how you can profit over the next couple of years? Come join us Monday night. The topic for WREIA this month is: “Creating a 2022 Two-Year Blueprint” Bring some questions Monday night! We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over a year ago. |
My sole focus for the Jan. 2022 WREIA meeting is:
Helping you customize a two year plan that works for you and your business.
Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.
See you Monday!
Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the Jan. 2022 meeting Monday at 7PM.
Go ahead – grab a ticket. (And yes, there is still no charge to attend.)
| Taking Action Is A Key To Success. |
| We are open for business and will be having our next virtual WREIA meeting on Monday, Jan. 24th. If you would like to join us grab a reservation at this link. The reservation is free and we use your email to send you a link prior to the meeting. Grab your seat for the next WREIA meeting this Monday and be ready to grow your business. Stay safe and stay healthy, John Peterson |
Are we in a housing bubble?
| Should you make a plan if you think we are in a housing bubble? I did. Do you want to join me Monday night and look at my business blueprint for the next 2 years? You should never go into a renovation or try to build a new home without a plan. From the foundation to the paint color in the kitchen – you need to know what you are doing and where everyone on the team is headed with the project. And if you dont?…… Well, you run the risk of budget over-runs, change orders, or worse – offending a building inspector. Somebody along the way is going to miss something if you don’t have a plan. I think the next couple years could be challenging for people without a plan. But if you know what to expect – you may glide through the next couple of years and come out stronger and in a better position than you are in today. Little confused on where we are headed or how you can profit over the next couple of year – join us Monday night. The topic for WREIA this month is: “Creating a 2022 Two-Year Blueprint” Bring some questions Monday night. We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over a year ago. Come join us! My sole focus for the Jan. 2022 WREIA meeting is: Helping you customize a plan that works for you and your business. Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road. See you Monday! Remember to grab a virtual reservation here and we will send you a reminder a few moments before we kick off the Jan. 2022 meeting Monday at 7PM. Go ahead – grab a ticket. (And yes, there is still no charge to attend.) |
| Taking Action Is A Key To Success. |
If you would like to join us grab a reservation at this link. The reservation is free and we use your email to send you a link prior to the meeting.
Grab your seat for the next WREIA meeting this Monday and be ready to grow your business.
Stay safe and stay healthy,
John Peterson
Re: Tom Brady
If you missed it – there was an article in the Washington Post a few days ago about Tom Brady – arguably one of the greatest quarterbacks to play professional football.
In this article there is a trailing comment that really jumped out at me – reminding me of the why the basics are so important.
- “Maybe the hardest thing about it is that the daily reward is so small — it’s about incremental improvements over time. Brady’s throwing coach Tom House has observed, “What separates these elite athletes, the Hall of Famers, is that they try to get better every day not by 20 percent but just 1 or 2 percent.”
Trying to improve by just 1 or 2 percent.
Every day.
For decades.
How many of you can commit to this level of self-discipline?
I haven’t met that level of discipline – that’s for sure.
But that doesn’t mean any of us should stop trying.
In fact – let’s wrap up the year by focusing on a few habit any of can work on over the coming weeks.
At this time of the year I like to look back at what worked, and didn’t work, and try to use the experience to expand and improve heading into 2022.
Through my own business I can see the habits that have helped over the years, and yes, even a few that I can still improve on.
The topic for WREIA this month is:
“Tiny Changes – Remarkable Results”
Bring some questions Monday night.
We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over a year ago.
Come join us!
My sole focus for the Nov. 2021 WREIA meeting is:
Making small changes that will have huge impact on your business.
Back to the Basics
It’s too beautiful outside. So I made another quick update. One more video about our WREIA meeting tomorrow night – Monday at 7PM has been posted here.
As you know, the market this year all across the country has seen impressive price growth.
One of the greatest attributes of REAL ESTATE INVESTMENT is the multiple methods or strategies that you can employ to make profits.
A few discussed at Washington REIA meetings include;
- Buy-Renovate-Sell
- Wholesale
- Buy Long Term Cash Flow Properties
- Buy Performing or non-performing Notes
- Invest in Multi-Unit Buildings
- Invest in Commercial Property
The list can continue but you get the idea.
In my experience, the most successful investors have been nimble and although can point to ne of two strategies that have built the majority of their wealth, they have implemented multiple strategies based on current market conditions.
Do ever take time to just THINK?
Some people think in the shower, at the gym while running or schedule an hour at work to just sit and think. I do my best thinking while driving.
Driving one day, I suddenly realized that the majority of my deals (Past 20 houses) were generated from one source. They all had one or two common denominators that I could look back on and begin to alter my marketing to take advantage of this trend.
I want to share this with you Monday night.
Secondly, as I thought about my phone ringing the past 18 months, I changed my strategy to profit once I had a solid deal.
I do believe this trend will continue into next year and will be viable to cash large checks on our properties.
I want to share this strategy with you on Monday night.
The copy of the check on this email was realized last week. I am selling another house this week using same strategy and will be closing on a new project this week that I plan on doing the same strategy.
And if you missed it from the last email – details below.
On Monday, we will head back to the basics – and re-focus on the fundamentals of real estate investing.
First – lets talk about the two best ways to find deals.
Because – I keep hearing about people being frustrated about “no deals in our area” – and that’s not the case.
Then – we will go over the two best ways to finance those deals.
Because – believe me – financing is still an issue for some people when it comes to investment real estate.
Lastly – A super simple method to analyze the deal.
Because – how do you know it’s a good deal?
And as an extra bonus – would you like to get in on the method I used to generate over 500k in revenue for the company? (Say Yes!)
The topic for WREIA this month is:
“Back to the Basics”
Bring some questions Monday night.
We have a great group of investors who tune in to watch, interact and help other local DC area investors each month – even though we went virtual over a year ago.
Come join us!
My sole focus for the October 2021 WREIA meeting is:
Helping you get back to the basics – and find good deals.