The email went something like this:

“John, what do you think about this article?

http://www.fool.com/investing/general/2014/08/23/fixing-and-flipping-houses-is-harder-to-pull-off-t.aspx

It makes it sound like flipping houses is really hard and risky.  What do you think?“

My reply was “If I was grading the article, I would give it an F.  Obviously whoever wrote the article has never flipped a home and is pasting together a few snippets from the internet to create this article.”

The article gets off on the wrong foot by saying you need cash.  Totally wrong.  I went on to give a recent example of people who didn’t use any of their own money to flip a house.  Not a dime.  If you were with us at our WREIA meeting in Sept. you heard Justin talk about a recent project – using none of his own money.

Articles like this on the internet are dangerous.  They have just enough stuff in them to sound good, but obviously the authors have no practical experience.

At the time, the writer of this article had written dozens of articles on the fool.com site.  It’s pretty obvious the he knows very little about real estate investing, but maybe has some experience trading stocks.  (And he thinks my business is risky?)

Risky is reading these “expert” opinions from people who have no experience.  In my humble opinion – you need experience before you can be called an expert.

Is this business risky – absolutely.  But so is driving on the DC Beltway.  That doesn’t mean you don’t leave your house!  If the Beltway is too scary for you, choose another road!  You need to get to work, or get to the store, and you need to find a way.

If renovating houses sounds scary to you, it’s because you don’t know enough people that are doing it.  Or, maybe you don’t have all the tools to successfully complete a project.  We can certainly help. It’s why I started WREIA well over a decade ago – to help people find the missing pieces they need to be successful.

Every month at WREIA you have an opportunity to meet people who are making money in real estate.  Some are making a fortune, some are barely getting by, but some are making a nice extra income “on the side” only working part time.

That last group, part timers,  is who we are going to talk about this month at WREIA.  You part-timers are an encouragement (and sometimes role models) to people who are just starting.  Some of you are semi-retired, but some of you are working full time jobs and flipping homes or renting homes part-time.

This month at WREIA I want to show you a few ways to make 75K part time in our business – in 2015.  To do it, you need to start in this last quarter of 2014.  Trust me, the next few months will go fast.  I hope you are getting ready for 2015….. it starts now.

Have a great weekend,

John Peterson

In a recent email we talked about getting advice.
Let me share with you a question I had about my own business and the answer was “No Question.  You Want Pinterest.”

Successful Real Estate Marketing

First off, let me just say :  I am not endorsing Pinterest for 99% of investors, especially if you are just getting started in this business. After my extended conversation a few days ago, it’s easy to see how people are getting caught up in a ton of hype, and simply wasting time on Pinterest.

That said – I totally get it.  I understand how people get addicted to “pinning”. And, I can also see why and how business people easily cross the line into spamming on Pinterest.

It’s so easy.

On Monday night we are going to be talking about marketing for your business, but specifically about the crossroads of two things that are crucial to your business today :

CREATIVITY and RELATIONSHIPS.

That said, doesn’t it seem that these two topics collide every second when you are using Pinterest?  Say “Yes.”  Of course they do.

However, most people are not actually “creating” anything of value on their Pinterest boards.  Think about it.  When was the last time you saw one of your friends post one of their own pieces of original work – something that they created?  Sure it happens, but rarely.  Cousin Suzie knits a sweater, posts a photo of it and pins it seconds later.  But this is probably about 1% of the time – or less.

For those of you who have never used Pinterest – It’s a nice little site that lets you quickly link and share interesting videos, photos, and graphics that you find on while you are surfing the web.  You can “Pin” the stuff you find interesting on your own boards and then share your boards with other people.  It’s all very viral, and very fun to see what other people find “Pinteresting.”

If you like homemade soup recipes, there is a board for that.  In fact, the largest boards are posting photos of food and recipes.  There are also lots of boards for cars, boats, planes, houses, architecture, clothes, jewelry and your favorite quotes.

Most of what you see on Pinterest is people posting other bits of creativity from other people.  Their boards are not really their original art or content at all – it’s free advertising for other people.   THE KEYWORD HERE IS F-R-E-E.

Now, what if you learned how some people are effectively using a combination of just two sites – Pinterest and Facebook and creating real businesses.  Business that make 5-7k or more every month.   Do you think you could learn something to help you in your business?  Say “Yes.”

Remember – two main points we are going to be talking about Monday night at WREIA.

CREATIVITY and RELATIONSHIPS.

Let me say this again –

If you don’t put this combination together in the right way – you are going to be lost and alone in the business world for the next 25 years.

You are going to learn a lot more about Pinterest on Monday night.  You are going to learn who is already there, and who you can find to help market your own business.  Females will especially want to hear how they can attract more business – easily.

But we have plenty for the guys too….. plenty.

If you like marketing, but have been more than a little disappointed in your results lately, this is the night for you.

In the first 10 minutes we are going to talk about Nikki Minaj, Shakira and even…. well you will just have to see.

I hope to see you on Monday for the rest of the story on Pinterest and we will tell you what the final decision we made for my business.

Join us at WREIA Monday night September 15th, and let me know if there is anything I can do to help you and your business.

John Peterson

Julie Chen has been the host of the TV show Big Brother since back in 2000 when it started.  Quite frankly, it’s a show I don’t really understand, but none-the-less.  It’s a job for Julie and apparently helps pay the bills.

Julie and her husband, the Chairman and CEO of CBS Les Moonves,  sold their beach house in California back in July for about 14% less than they originally listed it for – discounting their home by about 1.8 Million.

They originally listed their home for 12.995 million before they dropped the price to $11.995.  Ultimately, the sales price was $11.125 million.

The home was sold to someone who must really like the look and feel of teak wood.  You can find more details and photos of the property at http://www.latimes.com/business/realestate/hot-property/la-fi-hotprop-les-moonves-20140909-story.html

They originally bought the home in 2008 for $10 million.  We all know they had some closing expenses and paid a sizable commission – so they probably walked away at about break-even.

Let’s not feel bad for Julie and Les though.  A little earlier this summer they bought another beach house up the road from Microsoft co-founder Paul Allen for $28.8 Million.

We talk about it at WREIA all the time.  Everyone has their motives when they decide to sell a property, but it makes me wonder if Paul saw the property before he bought it.  It is another Malibu oceanfront property, making it a little hard to get away from the sound of the crashing surf.

Paul Allen reportedly didn’t spend much time there.  A source says “He hated the sound of the ocean.”

Join us at WREIA Monday night September 15th, and let me know if there is anything I can do to help you and your business.

John Peterson

I just finished reading an article about a few faculty members at Harvard Business School who completed a study on people who ask questions.

Let me sum up this 31 page by simply saying:

“People who ask more questions appear more competent – in some instances.”

What was interesting about the report was this:  WHO you asked questions to was just as important as WHEN you asked questions. If the task is hard and complicated and you ask an expert, you actually appear more credible to the people you work with, AND the person you asked the question to begin with.  Interesting isn’t it?

However, the opposite is also true – If the task is pretty simple, and you ask a non-expert for advice – well, it actually works against you.  People begin to think that you don’t have the skills necessary to complete the task and you lose credibility.  Paraphrased – You will appear incompetent and people will actually form a bad impression of you.

Now, that doesn’t mean you need to spend all your time caring about what other people think about you. Ask questions if you are having trouble.  But what it does mean is that you need to spend your time talking with the right people, and asking the right questions.

Which brings me to two of the main points we are going to be talking about next Monday night at WREIA.

CREATIVITY and RELATIONSHIPS.

If you don’t put this combination together in the right way – you are going to be lost and alone in the business world for the next 25 years.

You have to agree – Lost and alone is not where you want to be.

Some of you are taking free advice about the world of real estate investing from “investors” who position themselves as “experts” because they flipped two little condos in a rising market.  Trust me, experience matters and to rise to the expert level takes years of practice and in my opinion you need to survive at least one economic downturn before you can rise to the level of “expert.”

Professional investors are entrepreneurs – and they follow a similar career path as professional doctors.  When doctors are getting started, they go through a training period by getting advice and learning from mentors.  Doctors learn on the job by “interning” for a few years, then many go off on their own and open their own office. They work in big cities and small towns.

How many of you would consider having open heart surgery from a “doctor” who just started in 2013 and had performed two surgeries so far?  Not me……  I want the doctor who is two decades into his career and has performed hundreds, if not, thousands of the same procedures.

Just as dangerous is the doctor who sits alone in his office and never improves.  We have all seen or heard about that type of doctor haven’t we?  The 83 year old doctor who can’t let go of his career, and starts making dangerous mistakes, perhaps makes a bad diagnosis and causes further unnecessary harm to his patient.

Wherever you are in your career, the questions you ask matter.  And those questions need to be asked to the right people.  It matters to other people when they are forming their impression of you, and for that reason it should matter to you.

If you are still spending time online in “beginner” areas of our industry like “Bigger Pockets” or other forums where “newbies” hang out, are you still growing?

Next Monday at WREIA we will have content for beginners, certainly.  But it will packed with higher level information for the more advanced real estate entrepreneurs too.  Especially if you are struggling finding new projects – you will want to be with us on Monday night.

Stay tuned… the next email is going to be a question I asked about my business, and the answer was – Pinterest.

Join us at WREIA Monday night September 15th, and let me know if there is anything I can do to help you and your business.

John Peterson

When I first started my Self Directed IRA the IRS said the most I could contribute to my IRA was just $2,000.   So I got started with $2,000 – and I am glad I did.

As my account grew, it didn’t take long for someone to point out the benefits of the ROTH IRA. The Roth IRA is different from a regular IRA in that when I decide to make withdrawals, the proceeds will be TAX FREE!

Join us at WREIA Monday night July 21st, and let me know if there is anything I can do to help you and your business.

John Peterson

Next WREIA Meeting
Mon. July 21st –  Doors Open @ 6:30PM

Topic: Self Directed IRA’s w/ Jack Kiley
Updates: What You Need To Know In 2014

Warren Buffet said he would buy up “a couple hundred thousand” single family homes if it were practical to do so.

Mr. Buffet made these comments back in 2012 – and I’m sure he still believes it.  “If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.” You can still find the article posted at  http://www.cnbc.com/id/46538421

Join us at WREIA Monday night July 21st, and let me know if there is anything I can do to help you and your business.

John Peterson

John filmed a short video invitation to the upcoming WREIA meeting on June 16th in Bethesda.

You can reserve your seat at http://bit.ly/June2014WREIA

Come on out and join us on Monday evening!

For the past two months we have talked about Wholesaling real estate.  Now, we need to take the next step.

This month, let’s talk about Renovations.

You can find more info and reserve your seat at http://bit.ly/June2014WREIA

Traffic in the DC area yesterday was horrible.  Luckily, we spent most of the day in the office filming and spending time with a live class that we are running via webinars.

Just as we were wrapping up, one of the guys in the office said “Man, it has to be a full moon out.  Traffic was crazy everywhere this morning.”

Sure enough, I looked on my calendar last night – it was a full moon yesterday.  Was it me, or did you notice people being a little more “on edge” yesterday?

Regardless, it did lead to an interesting point.

The same person then said “What amazes me is how many people just sat there in traffic.  I paid $3 to get across the whole county and saved 30 minutes, or more.  No traffic at all.”

You see, near my office they recently completed a toll road that goes nearly the whole way across the county, and it costs a little over $3 if you drive from one end to the other.

People are stubborn, and willing to spend hours more of their time – in order to save a couple bucks and not pay a toll.

The same thing happens in our business.  People try to “save” a few dollars and do everything online – “for free”.  In the end, it causes frustration, loss of time and a tremendous loss of energy.

We have one of the longest running investor groups in the country – 13 years and counting.  Many groups in our area and beyond have come and gone, stopped and started, or renamed themselves through the years, trying to put a fresh face on their groups.  Which is fine, right?

However……

Most of those groups have tried to do the same thing – month after month.  They invite a national speaker to speak in front of their group who of course has something to sell and is “guaranteed” to make you more money.  You buy the speakers stuff – and away he or she goes, back to the city where they come from, and very seldom will you hear from him or her again.

You are on your own.

Alone.

Trying to figure it out.

You get frustrated and think to yourself – “this doesn’t work”.  “Not here in my area.”

And next month, here comes another trained salesperson to sell you something again.  But this time, you don’t buy it.

Why?

Because you learned your lesson last month – right?

At WREIA we deliberately changed a few years ago.  And our members have noticed.

Listen, we have a strong group of ACTIVE Washington area investors.  People who are doing things, and getting stuff done. And, we know when to slow down so our group doesn’t miss important details.

Last month, we ran short on time and decided to slow down and expand the topic, Wholesaling Houses, to this month.

While we had the cameras out, we filmed a short video inviting you back to WREIA this month for Part 2 of Wholesaling.

Many of our members that were with us last month signed up for a class we are teaching, mostly online.  By the way, it was the first time we have offered a class in a long, long time.  Nearly all of our meetings we just deliver great content – with nothing to purchase at the end of the meeting.  We focus and the only thing we talk about is what is working in our area – right now.

I was just talking about our members being “doers”.  Well, as a result of that class, some of the members have raised just shy of $1 Million dollars for their deals, and found dozens of potential properties.   That happened for them just since our last meeting on April 28th.  With just a little bit of instruction and follow through, massive changes can happen for you in our business too.

If you are tired of getting “pitched” day after day, and month after month – come on out and visit with the members at WREIA.  It’s a good time, with good people, and we also give you a little bit to eat (as long as you get there early).

We open the doors at 6:30 and usually start around 7:15 or so.  Depends on traffic, topic and if we are having some small group discussions that month.  You don’t want to be late, because we have started every meeting for 13 years with our Wholesale deals.  It gives you a chance to either offer your deals, or listen for other deals that you might have an interest in.

In 13 years, we have never missed a meeting where one of our members didn’t have at least one property to present to our group.   13 years and every month there has been at least one opportunity for our members to make some money. There have literally been hundreds of chances for you to hear about a property and act on it.

Oh, and the price to attend WREIA is only $25 at the door, or $20 if you reserve your spot online. You can save a few dollars more if you want to purchase a 6 month, or year membership.

Are you one of those people who likes to stubbornly sit in traffic just to save a couple dollars, then have to call ahead and apologize for being stuck in traffic, and then show up late for your meeting?  Or would you rather spend a couple bucks and get where you are going on time, or even early and stay fresh, ready and on point?

Back to our business.  You can find a ton of information online – for free.  However, most of it is horribly dated material.

Some of what you find online is good, and there is a little advice, very little, that is something you can act on and actually turn a profit in your business.

Start asking yourself – “What’s in this for me?” and “Am I just trying to be sold something?”

If you start getting that feeling that you are just being sold something – walk away.

We have new people at WREIA all the time.  I see how they walk in the door, with their guard up, waiting to push away this months speaker/salesperson from Ohio, New York, or Utah.  I get it.

That same person usually comes up to me at the end of the meeting and says “That was some great information, and it was nice to not have to buy something.  You just delivered good content.  Thanks.”

I usually see them again the next month. As time goes on, they either slip away because they realize this isn’t as easy as the late night infomercials make it out to be.  Or – they keep coming out and become a member of our community – and they start having and sharing their success.

And that Ladies and Gentlemen is why I founded and still love leading WREIA every month.  Helping other people gather information, take action and have success is one of the things I feel called to do, and it gives me a great deal of pleasure to see other people do the same.

We will have our May 2014 WREIA meeting this Monday, May 19th.

Join us at WREIA Monday night May 19th, and let me know if there is anything I can do to help you and your business.

John Peterson

Remember this couple from our article last month?  The two people sitting on their front porch, with boxes packed, and obviously getting ready to move?

Imgagine it’s now a month later and they moved.  New owners are all ready to renovate the house and move in themselves.

But, did you know that the new owners never even met the old owners?  The new owners discovered the property through a “wholesaler”.  The wholesaler put the property under contract and then took that contract to the prospective buyer to see if they were interested.  They were excited.

The new owners paid cash for their house, and plan to refinance after they renovate the property.

This type of transaction takes place all the time.  People just don’t know about them.

As renovators, we buy property that is “off market” all the time. It’s totally legal.  We pay the county transfer taxes, file a deed, get insurance and all the other stuff that takes place in a “normal” realtor assisted transaction.

In fact, about 9 out of 10 people use a Realtor when they buy a home.  But that leaves 10% that don’t use a Realtor.  When you think about it, that is a lot of transactions that do not go through the agency system.

It’s a huge market and one most people don’t know much about.  Lucky for you, we are continuing to talk about the wholesale process at WREIA this month.  Last month, we just had too much to cover, and halfway through I decided that we would be extending the topic over into our May meeting.  Nearly everyone at WREIA last month agreed, “Let’s slow down and go into more detail.”

I have been buying homes at wholesale rates for nearly two decades.  I have a lot of experience both buying the homes directly, as well as working with other wholesalers who have originated the deals themselves.  In fact, I do a lot of deal with other wholesalers in the DC area.  They bring the deals, I bring the transactional experience along with some capital,  and we mix up our contractors.  We complete the project, and finally we both are happy when a retail sale is made.

I get excited talking about wholesale real estate.  And that is exactly what we are going to continue talking about next Monday night at our next Washington REIA meeting.

Join us at WREIA Monday night May 19th, and let me know if there is anything I can do to help you and your business.

John Peterson

 301-881-5541