As a landlord in the DC area you get to meet all types of families from around the world. Providing housing to people can at times be entertaining, and reminds me of an old joke we have been telling for years.
I was showing a unit to prospective tenants and asking the usual questions:
“Professionally employed?” “We’re a military family,” the wife answered.
“Children?” “Yes, nine and twelve,” she told me proudly.
“Animals?” “Oh, no,” she said earnestly. “They’re very well behaved.”
The great thing about being a landlord in the DC area is the strong rental market. On the flip side, DC seems to be a very transient market with people moving in or out of the area on a regular basis.
Interviewing new tenants can be nerve-wracking when you are first getting started. Join us on March 18th and learn about the various things DC area landlords are doing to make the application process easier, and creating more profitable tenant relationships.
Are you worried someone is going to find out how much success you are having and “steal” your secrets?
I’m certainly not.
Or maybe you are NOT having success, and you are wondering what “secrets” people are keeping from you that is stopping you from moving forward in your business.
Stealing trade secrets have become such a big part of business that China is devoting entire divisions of their armed forces to corporate espionage. Corporate espionage and all the harm that it is causing US companies made the front page of the Wall Street Journal today.
But, do you want to hear the truth about success? This is going to be a shocker to some of you.
“Success rewards those who are most prepared to meet it.”
Your competition and even those secret divisions of the Chinese army cannot steal their way to success. It takes hard work to succeed today. No one will convince me otherwise.
If you are sitting at home, watching Facebook for the next great real estate deal let me take you by the shoulders, shake you and let you in on a little secret. Get away from your computer for a bit, and go out and actually SEE some neighborhoods. Drive by a few houses, and see if you can find someone who could use your help.
The odds are pretty good that within just a few miles of where you are sitting right now, someone is DESPERATE to find someone like you to help them get out of the huge problem that is keeping them awake at night.
No one is keeping secrets from you. Geez, on Monday night you are going to hear a few things that keep our business profitable year after year when it comes to dealing with contractors. For that matter, you are going to hear directly FROM a successful licensed contractor about what they are doing to keep their clients happy and keep their business operating at a profit.
No one is keeping secrets from you – you have to go find your success. Get up, get moving and go find yours. Claim it.
I hope I see you on Monday night – I will be happy to SHARE as many of my secrets as possible.
This Monday at WREIA we are going to be talking about and talking to contractors. Come out and learn when to hire them, and when you absolutely MUST fire them. Learn first hand what it takes to get a General Contractors (GC) license, and why continuing education is such a big part of holding a professional GC license.
Did you catch the news yesterday? Eight thieves made off with $50 Million worth of diamonds as they were being loaded onto a plane.
Theft is awful when it happens – and $50 Million is certainly a headline making event. But theft can be even more devastating when it happens to a small business person.
I just finished reading another article about a contractor who had 20 thousand dollars worth of equipment stolen from his job site – overnight.
Sometimes the tools and equipment that a thief walks away with are crucial to the work day. Without some of those tools – nothing gets done. It can be demoralizing to your crew to have everyone there, and no one is working because materials were stolen.
It’s part of business. Things will get stolen. When it’s a missing ladder, it can be easily replaced at the nearest hardware store. But when it’s custom cabinets or tile, it can sometimes set your schedule back weeks at a time.
Very often physical theft comes as a shock to new renovators. Other times, theft can be much more subtle and involve the theft of time. Sometimes our employees are taking long, out of the way personal trips while they are “on the clock”. I once had an employee who went home for a three hour lunch – because he needed a “nap”.
As a small business owner, theft can be extremely frustrating. Believe me – I know. I have been in the same situation.
It’s a nice sunny morning, when you pull up to a home you are working on and immediately notice that the front door is cracked open. Unless you are the second person to the house that day, this is definitely a sign that you are off to a rough start to the day. Through the years and after 800 renovations, we have had this happen too many times.
We have lost complete appliance sets from the kitchen. The refrigerator, the microwave, even the stove. Gone. And get this – in one situation, we even lost all the counter tops – AFTER they had been installed!
Luckily things have changed a bit. Thanks to GPS tracking, we can keep track of some of those higher ticket items now. But theft doesn’t always show up where you expect to find it and sometimes even the best workers will surprise you.
Some GPS tracking programs now cost less than $20 a month. This is a great tool for the small business who has a small fleet of trucks doing business across the area.
In 2011 a friend of mine installed a GPS system on the dashboard of each of his business vans. His contractors drive these vans all around town. His first month – the fuel charges went down 20%, and he had more jobs completed than any previous month.
He was stunned. He thought he could trust his employees to work as hard as he did, only to find out very differently. His initial outrage has now led to him having the most profitable year he has ever had.
Rest assured – theft doesn’t occur on every job, and certainly not every employee is skimming the clock. Most of the time, our work day goes by without a hiccup – but every once in a while something unexpected will pop up. You should be prepared for those instances and not let them get the best of you. Realize that it is part of the renovation process, and learn from it.
Better yet – learn those lessons from others who have been through it already. It’s much cheaper that way.
Next Monday at WREIA we are going to be talking about contractors. Come out and learn when to hire them, and when you absolutely MUST fire them. Learn first hand what it takes to get a General Contractors (GC) license, and why continuing education is such a big part of holding a professional GC license.
Come join us Monday, Feb. 25th and listen in as we discuss contractors. You will be glad you did.
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S. We are going to continue to introduce you to local professionals in our area – so you get a sense of how this business really operates. There is no better way to learn about this business, and stay on top of the current local trends than from the DC “insiders”.
P.S We are doing projects all over the Metro DC area! If you need an active finance partner in the Washington DC area, we have been expanding our capital base and now have all the funds you could ever need to help you with your deals. You can request a funding letter or share details on your property at http://dchardmoneylender.com/quick-property-submit/
The colors we choose in the renovation process can have a huge impact on the first impression of a potential home buyer.
I have been in some homes where the homeowner obviously wanted to “make a statement” about their individuality. It’s one of the joys of owning a home – you get to make the choices of how you decorate, including the colors you choose. But let’s be honest – some people go to extremes and then wonder why “everyone” doesn’t just love their artistic splashes of color. A few extreme examples are posted here.
One of the major trends we see going on right now in the renovation process is the move back to white and more neutral colors. It seems that people have grown tired of the exciting and bold “make a statement” color choices and instead just want a warm and inviting place to rest in the evenings.
Appliances play a major part in this color cycle.
I stopped in one of the big box stores a few days ago and talked for a few minutes with one of the kitchen designers about what she is experiencing lately. I walked away with three points to share with you.
1 – People love Chrome, but hate the finger-prints that come with this option.
2 – Renovations are trending to white and off white color patterns in the kitchens, but the white appliances are just too white next to the neutral paint tones, so people are choosing black. Again – fingerprints are the major complaint with Chrome.
3 – Companies have been trying to get a good fingerprint free Chrome, but so far they have fallen drastically short.
Above is a photo of a recent project we completed in NW DC a few months ago. These colors are much more muted than what we were using just a few years ago.
Our goal at WREIA is to keep you updated on the most current trends that affect us nationally, regionally, and most important – locally. In 2013 we will continue down the path we started last year of introducing you to local professionals who are active in our local DC/Baltimore area markets.
On Monday, Feb. 25th we will talk about Contracting, including painting and color choices and how it factors into the success of your business. For most of us, having the right team – at the right price – will make a huge difference when it comes to putting together a good profitable deal.
One thing makes our WREIA group great – and it starts with the leaders in our group. ALL of our most successful members want to help you succeed. They have realized that if you have success, they in turn will find success too. Let us help you set up your business for success in 2013.
We had a good meeting last month at Washington REIA Network. For over an hour we discussed some of the advantages and disadvantages of getting a Realtor license.
Earlier this week, one of our members sent me some research she found doing some follow-up homework after the January meeting.
Let me give you some background. After our January meeting she called me and was complaining about how much competition there is in the DC area. So after a few questions, I gave her a little homework.
In that process, she found that the site she was using to find her “deals” was being updated 7-9 days after properties hit the market. She also found that the same website was also listing 30% or more properties that were actually off the market. Between discovering the deals late, and spending time researching properties that were no longer for sale, she was getting very frustrated. She discovered, it wasn’t really the competition, it was her investor “toolbox” that needed some help.
It got me to thinking – How much time and money are most people wasting by trying to use free tools? Most new investors are using “free” sources of information for their research – but they are ultimately paying for it. When you first get started in this business, free may be all you can afford – and that’s fine. But if you have some initial success, I have always suggested putting money back into your business, either through good solid education, or through new tools you can use in your business.
We have moved to an information based economy, whether we like it or not. Nearly everyone has access to all the information you need to be successful. The trick is how you gather that information and how quickly you put it to use.
It’s true that in today’s economy, the people who are being rewarded with good deals are the people who made their decisions quickly. BUT – they also gathered the information quickly as well.
You see, a lot of people when they get started as a “real estate investor” can only choose free tools – and that’s fine. They also have to rely on contractors to come and give them a bid on their project.
This month at WREIA we will talk to a couple of General Contractors who work in the DC area. They are going to give you some insight into their work, and how they use their contracting tools and knowledge as an advantage when it comes to their investing business.
Let’s use our WREIA member above as an example. She is getting data on properties 7 days after most people because she loves the tools that come with her “free” account at Zillow.com. Then she takes another week to get a bid from a contractor. FINALLY, she calls her agent (who is also her cousin) to submit an offer. The next day, everyone is excited when they meet at the office to write up the offer – and guess what happens? Her agent/cousin calls to submit the offer – only to find out it went under contract 10 days ago.
Do you know who has the property under contract? Me.
Actually, it’s under contract through one of my general contractor partners.
I get calls all the time from a few of my contractors. We joint venture a lot on properties together. They know that I have a lot of experience funding and solving problems with properties and – together – we can move through these properties a lot faster than just one of us doing it alone. I hope you are on track to make 2013 the best year you have ever had. This month and every month we plan to keep sharing with our WREIA members what we learn out “on the street” in the Washington DC and Baltimore area.
Don’t let yourself get frustrated.
Even on a snowy Friday in February – I’m here. Let me know if you need some help,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
I wanted to write an article that would shed light on the renovation side of the business. Understanding the renovation process enables you to tap the full profit potential of this business.
The quicker you get up to speed on this process, the sooner you can make the lucrative
leap from the wholesale to retail side of real estate investing. You don’t have to know
how to swing a hammer but you do have to know where to find contractors, what types
of materials to use, and how to estimate costs.
FIVE FAST TIPS
Five Fast Tips are practical suggestions covering topics related to real estate investment. * If you have a topic you would like us to cover in the future, please let us know. *
Five Fast Tips: Finding Renovation Contractors
Real Estate Investors
Some of the most affordable and reliable contractors are referred to me by other real estate investors. Often, we do not have enough work to keep all of them busy 40 hours a week. Sharing contacts allows everyone to win. The contractors keep busy and the investor has a reliable source of workers.
Investment Club Meetings
There are investment club meetings scheduled regularly around the Beltway. Although the clubs are structured differently and have different agendas, they offer the opportunity to meet contractors. Attend a meeting with the intent of meeting new contractors. Networking at club meetings can help you find a contractor or subcontractor to meet your particular project needs.
Supply Houses
Visit local electrical, plumbing and paint stores in the area. Ask the people behind the
counter which contractors they would recommend. Explain the project and generally they will have a list of suitable tradesman to tackle your job.
Realtors
Every local real estate office maintains a list of contractors used for punch out, painting and other renovation projects. Network with realtors in your area and you soon will have a reliable list of contractors for all your projects.
Trade Shows
Attend trade shows in the area and begin to network with the vendors. Ask for reliable contractors in your area. You can also network at local business meetings ( Chamber of Commerce) with the intent of meeting contractors.
If you are interested in digging a little deeper into the mind of a local General Contractor, or just want to learn more about the contracting business, join us on Feb. 18th at the next WREIA meeting. You can find out more at http://wreia-feb2013-wreia.eventbrite.com
Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
Finding a great Real Estate Agent can pay huge dividends in 2013. And if you can’t find one, you might choose to become a Realtor yourself.
I started in this business nearly two decades ago. In some professions, I would be getting ready to “retire.” Recently, some of the guys I went to college with are starting to talk about retirement. When they start talking about what they are going to “do” once they retire – I kinda feel bad. You see, after two decades….
It feels like I am just getting started! I’m just starting to get good at this – why do I want to retire?
Through the years, I went through various stages of learning and education, which was followed by an increase in business – and success. Maybe you shared this same experience?
The process went something like this:
You found a new strategy and were excited to get started. Maybe you even felt like you were learning some new secret. You are thinking to yourself – “This is great! How can everyone not be doing this?!!”
This was followed by a period of frustration because after you implemented this new strategy in your business nothing seemed to work – at first.
Then, you get excited again – because something “clicks.” You started having some success using your “new” strategy.
When I look back on my career I can see a few points where my income grew, not just a little, but exponentially.
One of those times was when I decided to become a licensed Real Estate Agent. At first I was excited, but then quickly became frustrated when I discovered some of the restrictions that came with my new license. It took me a few months before I learned how to use the new “power” I had just given my business. For me, getting my license was the right move, at the right time, and I have never looked back.
The second time my income took a big jump, was when I decided to work with, and partner on projects with other investors – and agents. I found that if I could find an agent who understood what I was doing, they could quickly become invaluable to my business.
Let me be clear here – When I got my license, I didn’t quit all my other activities that had helped build my business to that point. I simply added a license to my business. Looking back, getting my license magnified the effect of the work I was already doing.
I invite you to come join me and a hundred or so other investors and agents from around the DC area tomorrow night. Come meet some of our members who – years ago – wanted to make a change in their work, and in their life. They found our community of WREIA members, shared their goal of wanting to double their income – and then made it happen.
It’s not complicated – and unlike some groups you may have seen in the past,
next month will not bring a new special “one time only” membership deal.
At WREIA, you can get a discount in January – and that’s it.
(That “this month only” malarkey drives me crazy.)
***
Our goal at WREIA is to keep you updated on the most current trends that affect us nationally, regionally, and most important – locally. In 2013 we will continue down the path we started last year of introducing you to local professionals who are active in our local DC/Baltimore area markets.
Tomorrow we will kick off 2013 by introducing you to local investor/agents who are active and in some cases – knocking the ball out of the park – here in the DC area. You will also have an opportunity to ask them a few questions that pertains to your situation.
One thing makes our WREIA group great – and it starts with the leaders in our group. ALL of our most successful members want to help you succeed. They have realized that if you have success, they in turn will find success too. Let us help you set up your business for success in 2013.
Come join us tomorrow night. You will be glad you did.
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder
P.S. I am excited to see you tomorrow (Jan. 21st) as we kick off another year at Washington REIA Network. We are going to continue to introduce you to local professionals in our area – so you get a sense of how this business really operates. There is no better way to learn about this business, and stay on top of the current local trends than from the DC “insiders”.
P.S We are doing projects all over the Metro DC area! If you need an active finance partner in the Washington DC area, we have been expanding our capital base and now have all the funds you could ever need to help you with your deals. You can request a funding letter or share details on your property at http://dchardmoneylender.com/quick-property-submit/
This time of year, I am often reminded of my mentor, and how excited he would be as we all moved onto the new year. His advice has propelled me forward in my career. He was also very down to earth, and would constantly remind me that the training and experience would never benefit me, unless I took responsibility for the results.
I share a little more of his beginning of the year advice in this video below:
I hope this month at Washington REIA Network you can come out and meet some of our members who are great and experienced people to know in this business. If you are involved in investing in real estate in the DC area – there is simply no better group of people to surround yourself.
Let me know if there is anything I can do to help you in your business here in the DC area.
Interesting Conference today! The place was packed to hear guest speakers talk about the local economy and predictions for the housing market in the coming years. The talks were focused on how the regional economy can change gears as the federal government begins to slow spending.
Some of my key take-a-ways:
Most agreed that the housing market is improving and should begin to normalize in the coming years.
Demographics seem to favor smaller housing units close to jobs and transportation.
Builders are beginning to request more permits and ….
This all leads me to believe if you are wise in your investment choices you should be able to have a very profitable business over the next few years.
If you want to view the slides from the presentation, you can find lots more at the George Mason web site at http://cra.gmu.edu/data/ .
One year – and Apple loses almost half of their worldwide market share. That is a huge loss. So large in fact, that the company is finally considering a lower cost alternative to their $600 or more current model.
I am pretty careful where I spend money, and certainly subscribe to the “penny saved, penny earned” theory. When I was shopping for a phone a few months ago, I chose an Android phone – because it was cheaper. Most people that know me, know that I am not too technical – but – for me and my needs, (and contrary to the trendy kid at the Verizon store who tried desperately to sell the IPhone) my phone seems to do most of what the IPhone could do, and at a substantially discounted price.
Before you go taking my advice about phones – please don’t. I’m just telling you a story about what works for me, and apparently, quite a few other people around the world. You do what works best for you.
Justin and I were in the office yesterday, and he reminded me of the article about Facebook suggesting their employees switch to Android based phones. I think the whole smartphone market is pretty interesting and I continue to be amazed at what I can do with my phone. Even Facebook realized that markets change – and they want to their employes to stay within the herd to get the same experience that their users have when using mobile devises. You can find that Facebook article at http://news.cnet.com/8301-1023_3-57553967-93/facebook-uses-posters-to-push-employees-to-switch-to-android/
Why is this interesting? Because markets change. People start to want different things. If your business doesn’t change, you will lose market share – just like Apple.
In the 30’s and 40’s the family gathered around the radio. By the time the 50’s and 60’s rolled around, the TV was a gathering point. Today, everyone in my house has their own mobile wireless computer, (one of which is an IPad) and on many nights we may be all in the same room, but each person is “doing their own thing”.
Our business has changed slightly in the last 12 months – we are starting to focus on different markets than we did in 2010 and 2011. Every month this year, we plan to keep you updated about what is going on in our world of real estate, and how the DC-Baltimore market (and it’s many sub-markets) is changing.
This story about Apple also reminded me about a property we are trying to sell right now – sometimes, it is about the price. Listen to the feedback you get from your customers. Listen to your market. Never be afraid to make changes quickly when you need to.
I am excited to see you in a couple weeks (Jan. 21st) as we kick off another year at Washington REIA Network. We are going to continue to introduce you to local professionals in our area – so you get a sense of how this business really operates. There is no better way to learn about this business, and stay on top of the current local trends than from the DC “insiders”.
Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, FounderP.S. The first Washington REIA Network meeting is on Jan. 21st. Come join us!
P.S We are doing projects all over the Metro DC area! If you need an active finance partner in the Washington DC area, we have been expanding our capital base and now have all the funds you could ever need to help you with your deals. You can request a funding letter or share details on your property at http://dchardmoneylender.com/quick-property-submit/
