Hope you had a great Holiday!

Some of my favorite days are between Christmas and New Year’s day.
The phone is quiet which allows all of us a minute to relax, reflect and gear up for 2019.

I let my relatives know that instead of a sweater or a gift card to Best Buy, I really enjoy business books. I’ve read two books so far that are worth sharing.

Here is a quick video (less than two minutes) with a few details and some of my the broader highlights are posted below.  Both books are excellent and talk about important subjects this time of year.

GRIT by Angela Duckworth
I am not going to bore you with all the details. Ms. Duckworth is a professor of psychology at the University of Pennsylvania (not my alma mater Furman University, but I have heard it is a very good school) and through her studies and experience has extolled the notion that SUCCESS has more to do with passion and perseverance or GRIT than pure intellect.

That is really GOOD NEWS for all of us that were C students in school. The theme of the book centers on overcoming obstacles and finishing what we begin.

Real Estate Investing can require Grit sometimes. Investing in real estate can provide a high income and generate considerable wealth. My experiences have been mostly positive but it does require perseverance and an attitude of going forward and a strong desire to keep striving for success.

I enjoyed the book and I think as we enter in 2019 we all need to acquire more GRIT in our lives.

Here is a short TEDTalk by the author on the same topic:

The second book I received was ATOMIC HABITS by James Clear

I think by now most of you have heard it is wise and profitable to take some time to write down your goals for 2019. This book shakes up the notion that all that we need to achieve our goals in the New Year is WILL POWER. He breaks it down to a few very attainable exercises to help us create better habits which in turn will help us achieve our goals.

He recommends the following to begin to change our behavior and form better habits:

Small Bite Sized Behavior Changes
Create a new desired habit by starting off small and then building over time. This can apply to your real estate business in so many different aspects. Find one new contractor this week. Start mailing 100 postcards to sellers. Start having coffee with one new private money lender every month. The list is endless and can be attained if we take the process slower with more focus and smaller bites. In the long run you will accomplish much more than trying to do everything in January and quitting in February.

Tweaking our Environment
Change your routine, so instead of going to the TV room after dinner you head to your office or another location to increase education, market for houses or make offers. With technology, we can work from anywhere so find a place that inspires you to get more done.

Habit Stacking
Create a new habit by initiating right after a current habit. I enjoy reading the news early in the morning so adding another habit directly after I finish will give the new habit specific time and place in my day.

Temptation Bundling
The idea is to combine something that you want to do with something that you should do. For example, if I enjoy listening to music, I bundle that activity with marketing for new opportunities or writing an article for Washington REIA.

I hope you get to spend some time to reflect on your year and write attainable, bold goals for 2019. We are here to help you, so reach out to me and let me know how I can play a role in your success going forward.

John

Remember: We have a fantastic speaker for our Washington REIA meeting in January. He is going to show all of us to how to build CASH FLOW with Multi-Unit Buildings.  Sign up early and get ready for a great night of Networking and Education.

Look forward to seeing you there!

Without revealing any personal information, this is my report back to you:

The subjects ranged from investing in out of town rentals, property management, wholesaling, creating more deals, finding reliable contractors and Maryland basketball.

Out of Town Rentals
Many of you know that purchasing local real estate and expecting immediate cash flow can be challenging. The price of the property versus rent received is difficult to cash flow due to our expensive market. It is not impossible, and you can find pockets of opportunity, but more investors are looking to other markets for cash flow.

My suggestion is to look at mid-tier cities with job growth to find possible rentals. Cities that are focused on the health care, technology and banking industries are good markets. You will find opportunities to buy single family homes and small multi-unit buildings that cash flow. Job growth is the main driver for consistent cash flow.

Property Management
Property Management is a subject that is common with investors who own a number of rentals. The question is whether to manage the portfolio yourself or find a third party management company. You will find that a majority of smaller investors will manage themselves, but they will rely on third party companies to assist with out of town properties, larger multi-unit, or commercial properties. Additionally, in cases where they own a large number of residential properties and their time is better spent doing other money making tasks, they will outsource the property management.

Wholesaling
The most common way for new investors to cash a check. A new wholesaler should focus on finding good deals, analyzing properties, writing contracts, and creating a buyer list. There are a number of companies that have gone to this model as their sole income source and have created systems to wholesale 4-10 properties a month.

Creating More Deals
I had a great conversation with an experienced investor who completed over two dozen deals this past year. He would like to increase his volume next year. He can increase his marketing budget, add more support staff, add another strategy to find deals, and expand his geographical area. This is the best time of year to look back and see what worked and focus on those strategies to increase volume.

Reliable Contractors
Reliable contractors are another common area of conversation among renovators and landlords. The best source of affordable and reliable contractors is from other experienced investors. Create a database and continue to add to your list as you hear about other contractors who perform well. You can use Angie’s List and other sources of contractors as you need trades people. Start with a small job and see if they perform to your standards.

Maryland Basketball
One of my favorite subjects this time of year! The team has started off 9-2. They have a number of freshman in their rotation but still rely on upper classman Anthony Cowan and Bruno Fernando. My hope is that they can do well in the big ten conference this year and have a high seed in March Madness. If you get a chance to attend a game at Xfinity Center this season, I am always available for an extra ticket.

The appointments were very enjoyable for me. It was nice to have time to meet and talk about real estate and get to know each other on a more personal level.

Lastly, I thought you might like this article on action plans by David Finkel. I have said many times at our meeting, it is important to take some time to reflect and decide what you are going after in the New Year.

My hope is for everyone to have very Happy Holidays and take some time to enjoy yourself during this time. I look forward to an exciting and profitable 2019.

John Peterson
Founder, Washington Real Estate Investors Association

At our Nov. WREIA meeting, we announced details and registration info for our WREIA Members Only Quarterly Networking Event in Rockville.

Where: Hollman Flynn Law
15245 Shady Grove Road | Suite 430 | Rockville, MD 20850

When: Thursday, December 6, 2018, from 6:30 PM to 8:00 PM

All active WREIA members are welcome to attend. You can also grab a new six month or annual membership at this link.

2018 was a busy year in our area!

but……

The Market Is Changing – We Need To Be Prepared

WREIA Members can attend this WREIA members-only event and see how our city is changing.

For instance – Amazon HQ2, coming soon to Crystal City in Northern VA.

Join us Thursday evening for a time to network with WREIA members and discuss our local real estate activities.

We will have an in-depth discussion on the current real estate market in our area.

Our main topic will be – “How do we position ourselves for profit in the new year?”

This lively discussion will be led by real estate agents, investors, landlords, flippers, renovators and lenders.

Let’s talk about how to make 2019 our Best Year Yet!

Access will be granted to active WREIA Members and those who register for either a six month or one-year membership.

Join us on Dec. 6th to see where some of the action is taking place in DC area.

John Peterson
Founder, Washington Real Estate Investors Association

Real estate in Queens has been booming over the past decade, but startups have increasingly taken up residence in Long Island City (LIC) over the last few years. Conveniently located directly across the East River from Manhattan, LIC has become a home for people who’ve been priced out of Brooklyn and Manhattan.

As a result, it’s also been deemed one of the hottest spots for young people to live in — and that’s helping to drive up residential prices. The area’s “extensive development” has propped rental prices well above Queens’ median, according to StreetEasy.

Silvette Julian, an agent with Compass Real Estate, characterized a recent open house event in LIC as “a madhouse,” with requests for showings and offers surging in the last 2-3 weeks.

Full story at – https://www.cnbc.com/2018/11/25/amazons-nyc-hq-seen-boosting-long-island-citys-housing-market.html

Here is a great article in Forbes about being a landlord.

5 Ways To Tell If You Would Cut It As A Landlord.

Check it out if you are even considering renting property as part of your wealth building profile.

Quite frankly, being a landlord is not for everyone. The thought of evicting a family is too much for some people.

Check out the article – it’s going to give you even more ammunition when you join us at our last WREIA meeting of 2018 this Monday in Bethesda.

A few more things we will be talking about tomorrow night at WREIA:

Have you noticed a slowdown in DC area sales?

Has your traffic at open houses been slow?

Where are we headed going into 2019?

I hope you join us at WREIA tomorrow!

We are going to talk about THREE KEYS I think are going to be invaluable to your success in real estate in 2019.

Whether you are getting started, beginning to grow, or slowly building your real estate holdings, there will be something for everyone this month at WREIA.

If you’re interested in GROWING your business and adding skills that will help your investing career join us at WREIA on Nov. 12th in Bethesda.

Monday, Nov. 12th at Washington REIA.

Will I see you there?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Nov. 12th. It will be a great meeting to get you motivated, and get some momentum for the final weeks of 2018.

Join us as we enjoy “Three Keys To A Successful ’19 In Real Estate”

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: BRRRR

Buy, Rehab, Rent, Refinance, Repeat – How many times can you do that in your career?

The answer?

As many as you want.

It’s not often I come across an article online that I really enjoy.

Here is an article filled with common sense, realistic expectations and my favorite acronym – BRRRR.

You can also find it here at this link –   https://www.forbes.com/sites/davidgreene/2018/10/30/how-to-prepare-for-the-next-real-estate-downturn/

In one of the best paragraphs of the article we find this gem:

“In today’s market, we see a much different scenario. I work as a real estate agent in the San Francisco Bay area, and I’ve yet to see any funky, clearly foolish loans from any of the buyers I’ve worked with. Rates are generally fixed over 30 years, do not adjust, and are absolutely reasonable based on the buyer’s income. It’s obvious that home prices are up, but what’s not often talked about is how wages are up, too. Let’s not forget that there have been 13 years of wage increases since 2006. That’s a pretty healthy number. Prices may be higher, but they’ve increased in proportion to wages as well. The danger of a massive wave of loan defaults hitting the market all at once isn’t all that high.”

Did you catch that? “13 years of wage increases” is something we aren’t hearing too much about tucked inside the doom and gloom slowdown headlines.

Check out the article at the link above – it’s going to give you some ammunition when you join us at our last WREIA meeting of 2018 next Monday in Bethesda.

Have you noticed a slowdown in DC area sales?

Has your traffic at open houses been slow?

Where are we headed going into 2019?

I hope you join us at WREIA next Monday.

We are going to talk about THREE KEYS I think are going to be invaluable to your success in real estate in 2019.

Whether you are getting started, beginning to grow, or slowly building your real estate holdings, there will be something for everyone this month at WREIA.

If you’re interested in GROWING your business and adding skills that will help your investing career join us at WREIA on Nov. 12th in Bethesda.

Monday, Nov. 12th at Washington REIA.

Will I see you there?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Nov. 12th. It will be a great meeting to get you motivated, and get some momentum for the final weeks of 2018.

Join us as we enjoy “Three Keys To A Successful ’19 In Real Estate”

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

“With interest rates sitting near record lows a few years ago, millions of borrowers refinanced their home mortgages, saving billions of dollars in aggregate. But millions of borrowers didn’t, and now they can’t see those same savings.

Since 2016, when rates were at rock bottom, 5.9 million borrowers who could have benefited from a refinance did not apply for one. This year alone, 2.2 million who could have saved money with a refinance no longer can. The report only counted those who would likely have qualified, having high FICO scores and at least 20 percent equity in their homes.”

Find the complete article posted at https://www.cnbc.com/2018/11/05/more-than-2-million-homeowners-just-missed-their-chance-to-save-money-by-refinancing.html

The Fed could take a pause after December hike: Investor from CNBC.

Have you noticed a slowdown in DC area sales?

Has your traffic at open houses been slow?

Where are we headed going into 2019?

I hope you join us at WREIA next Monday.

We are going to talk about THREE KEYS I think are going to be invaluable to your success in real estate in 2019.

Whether you are getting started, beginning to grow, or slowly building your real estate holdings, there will be something for everyone this month at WREIA.

If you’re interested in GROWING your business and adding skills that will help your investing career join us at WREIA on Nov. 12th in Bethesda.

Monday, Nov. 12th at Washington REIA.

Will I see you there?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Nov. 12th. It will be a great meeting to get you motivated, and get some momentum for the final weeks of 2018.

Join us as we enjoy “Three Keys To A Successful ’19 In Real Estate”

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: Less is more

It’s true – Less can be more – if done properly.

If you keep doing the same thing but do less of it, you will likely have even less of the same results.

However –

When you change the “stuff” you are doing – things will change.

For instance:

If you are looking for houses in our area but you are only combing through the MLS have you been getting more frustrated over the last few years? The answer is probably “yes”. That’s because very few people find good DC area “deals” via the MLS list of properties.

Now, instead of looking at only residential properties, why not add – just one day a month – where you look at small commercial properties?

Of course, you will have additional results that you did not have before.

Now, what if you started to look for multi-unit properties outside of your normal area? Even more results!

Would you be doing less of your normal activities, but actually doing more – simply by contacting more people?

This way of thinking can be a difficult concept for some people to understand.

Some of my best deals through the years have come from places and people that were not in my normal course of business. They happened because I was doing LESS of my NORMAL activities, and MORE of something different.

I ventured into places unknown, but I was still armed with the knowledge I had from places I had already been.

I hope you join us at our October WREIA meeting tonight.

If you understand the basics of property investing I will show you how you can easily add multi-unit opportunities to your list of daily, weekly or monthly activities.

If you’re interested in “GOING BIG” and adding some commercial multi-units to your portfolio at some point in your investing career join us at WREIA tonight – Oct. 15th in Bethesda.

Monday, Oct. 15th at Washington REIA.

Will you be with us?

Bring your questions for the Q&A section.

Save a few dollars and reserve your seat early. Then join us at WREIA – Monday, Oct. 15th. It will be a great meeting to get you motivated and get some momentum for the final months of 2018.

Join us as we enjoy “Multi-Unit Property Investing”

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

I was at the airport about to take off and had a few thoughts about townhouses, Montana and my old dreams of becoming a millionaire.

I hope you join us at WREIA this month.

If you understand the basics of property investing I will show you how you can easily add multi-unit opportunities to your list of daily activities.

If you’re interested in “GOING BIG” and adding some commercial multi-units to your portfolio at some point in your investing career join us at WREIA on Oct. 15th in Bethesda.

Join us as we enjoy “Multi-Unit Property Investing”

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

Reserve your seat at this link.