Imagine if you could team up with someone who would share the responsibility of checking in on your rental property or renovation project?
How much time do you think you could save if someone else did that for you 2 or 3 times each week?
Now, amplify that simple task by 20 or 30 other daily responsibilities……..
How much time do you think that would save each week?
Is hiring someone the right move? Maybe an office manager or intern?
Or would it make more sense to set up a joint venture agreement with a candidate an make them a vested “partner” in the project?
Where do you draw the line on responsibilities and who is assigned certain tasks?
Do you see how this gets into sticky territory very quickly? When you set up a joint venture – nearly EVERYTHING needs to be spelled out very clearly, or you could wind up in very uncomomfortable situations very quickly.
What would happen if you had multiple projects with multiple locations around town – is it possible to scale joint ventures?
What if projects are small – without much profit potential in the near term, but a larger payoff down the road, months or even years from now? How should you structure those agreements?
In 20 plus years, sure, I’ve made a few mistakes, and gained a lot of insight into what makes a great joint venture. I want to share those lessons with you Monday night.
The topic for WREIA this month is: “Joint Ventures – Tips, Tricks, Do’s and Don’ts”
How about a few real life examples of joint ventures that we use today? Yeah, we can do that Monday night.
Need some help on a project? Of course, let’s find you some help.
My sole focus for the June 2021 WREIA meeting is: Helping you understand how to use Joint Ventures to Grow!
Spend a few moments with us at our next WREIA meeting Monday night– it could save you a fortune down the road.
If you tuned in to our February WREIA meeting, I mentioned trying to bond with your sellers and using common interests to seal the deal. This morning we came to a fair deal on the 1956 Chevrolet Bel Air. I talked about in the meeting Not bad… a house to renovate and a classic car to sell.
If you know anyone interested in making an offer on the car, be sure to reach out to me.
I have compiled a number of questions we talked about at our monthly meeting. Be sure to see the replay of the meeting below.
Do you have good books on marketing? Marketing is the activity and processes for creating, communicating, delivering, and exchanging offerings that have value for customers and clients
Read Read, Read. Everything and anything on marketing. I would read articles, blogs, videos, books of people in your industry. Try to weed thru the hyperbole and pick-up solid action steps you can employ.
Reciprocation: The internal pull to repay what another person has provided us.
Commitment & Consistency: Once we make a choice or take a stand, we work to behave consistently with that commitment in order to justify our decisions.
Social Proof: When we are unsure, we look to similar others to provide us with the correct actions to take. And the more people undertaking that action, the more we consider that action correct.
Liking: The propensity to agree with people we like and the propensity for others to agree with us (if we like them).
Authority: We are more likely to say “yes” to others who are authorities, who carry greater knowledge, experience, or expertise.
Scarcity: We want more of what is less available or dwindling in availability. In marketing, understanding human behavior and psychology are critical.
Book- 2 This is Marketing by Seth Godin Marketing is figuring out exactly who your product is for and what need it fulfills and then crafting your messaging specifically for them. He also wrote a very good book called Permission Marketing.
Online Magazines: I am a subscriber to a number of publications but I like both of the following for good articles on general business and real estate. Business Insider Market Watch
Bigger Pockets – This a good source for articles written by current and active investors.
Go outside of industry and see what other entrepreneurs are doing to generate business.
How do I find lists of people in forbearance? I have not found a list source yet of people in forbearance. I would check in with list sources to see if they can come up with one.
Price of a chimney /flue inspection A chimney inspection should run you about $275. A company I use is called ACD Chimney Service 202-321-5075
I recently had a cracked sewer pipe at a rental house. Ho much does this cost and is there a way to protect us from this expense? Cost of replacement of broken sewer pipe. This can run from 2500.00 to $15,000 Insurance on broken or cracked pipes. $12.00 per month
What is the best way to market for deals for non-tech savvy people? Networking and database marketing. Hiring people to perform tasks you are not comfortable doing.
Should I buy a property with a tenant already in place? Purchasing a property with a tenant in place can be good and bad. You do not want o inherit problem tenants that can crush your deal. If you price the risk into the offer price can be an opportunity to create value. If tenant is vetted and has a good track record of paying rent on time can be a technique to save you time and money on locating a good tenant. Be careful and take your time to verify
Is now a good time to buy a property or should I wait for market to fall? My belief is to get educated on value real estate and always be in the market to buy well located property at value-add prices that you feel will grow in value over time. If market adjust downward, be ready to deploy capital to pick up solid real estate still employing t=your knowledge of value. Understand the word and definition of FORCED APPRECIATION
How do I find a good tenant? (Have been hearing stories about non-paying tenants) Use tenant software to generate credit report, application and criminal background. Take your time to verify income and take a close look at employment and state of economy. Can they replace income if they are fired or let go of their current position.
What avenues would you recommend for approaching landlords primarily in PG and Mont county for making offers on these assets that are near there balloons?
I would use multiple strategies to engage with owner. Letter Phone Call E- Mail Text Possible visit to business or property Give them options You might want to team up with local commercial lender and offer a refinance of mortgage and then also explore possibility of selling. Offer them information of rents, state of market etc. Use Permission marketing – Create a compelling report and offer to them. Try to trade something of value for right to speak with them.
How would you structure the LOI? Super informal or more legalistic? Depends on where you are in process. I think a more informal approach as you begin conversation and then move to a more formal as you seal deal. Some of this depends on the owner and his/her personality.
What is a good weasel clause? My favorite one is tried and true. Contract is contingent on a structural inspection, paid by purchaser within five business days. If inspection is not satisfactory to purchaser at their sole discretion, contract is null/void. You can also use HOA documents as a legal way to void contract.
Will Mom and Pop landlords survive in area? How many are deciding to sell their properties? Great question but hard to answer. Survival depends on ability to get to other side of this mess. If landlord has sufficient savings and can get tenant back on track or evict, they can survive. If dependent on rent to make payments and other expenses, they could be in trouble. Hard to track their decisions but my guess is that a percentage will try to sell to protect equity and credit.
“How does one decide when it is time to sell a Real Estate Asset?” I do not mean within the context of other pressures (such as Covid now or similar) when there potentially is pressure for cash & liquidity. I mean in isolation, specific to a single property – what’s the shelf life? I am looking to learn the kind of analysis you and peers in our group apply to a building to figure out “It is time to take the gain on value cause it won’t get any better or cause the income stream has hit a plateau or cause __ .” I am not versed or wise on this topic, and would appreciate hearing experiences and/or evaluation techniques. Watch replay of video to hear my answer to this question.
Is there a formula you rely upon to determine the frequency of raising rents?
Most landlords have an increase in rents in their original lease. After lease expires, you can raise rents or it a good solid paying tenant, you can hold steady. Rent increase can be a function of current market, ability of tenant to pay, your goals of holding property, etc, Most commercial lease have a built-in rent accelerator that is tied to CPI. I usually use 3.5 per year but that can change too. I have found that the most important aspect of owning property is to keep it occupied and rent flowing in verse having turnover be rampant.
What would be a realistic monthly off-market property marketing campaign budget that would include mailers, ringless voice mail, text messaging, cold calling. What would be the best mix of these marketing avenues?
Watch replay of meeting to hear my answer.
To Possibilities in 2021!! John
Target-Mentoring Sessions Available:
I am offering targeted-mentoring sessions on many subjects in Real Estate
Investment:
Just Text “Target” to 301-943-5535 and we can set up time to talk
Marketing for Deals
Buying your First Rental Property
Using your Self- Directed IRA to Retire Early
How to Raise Capital with a Private Bank
Buying Performing and Non-Performing Debt
Executing a Renovation Project
If you need help in a specific area, reach out and we can talk to see if we can get you started in reaching your goals today.
Data Driven Deals this month at our WREIA January meeting.
John Peterson invites you to WREIA this Jan. 25th as we talk about Data Driven Deals. We encourage you to attend virtual WREIA again this month online.
Sign up for this months WREIA meeting here, and we will send you a link a few minutes before the meeting begins. You can join us live and interact with questions and comments as we go along.
The New Year is upon us and I am hopeful you have BIG big goals for 2021. Last year was tough for obvious reasons and we still have major obstacles to overcome but hope is eternal and the NEW YEAR is a great place to start.
First Question….DO YOU NEED DEALS? I know how you feel. I spend the majority of my time marketing for properties that fit our investment criteria. I have found the best way to get results is to determine your strategy to generate profits decide on your ideal customer, collect data and market, market, market your services to them.
Next Question…DO YOU OWN A PHONE? According to PEW research, 96% of Americans own a cell phone and 81% own a smart phone. An increase of 50% in last 7 years.
Think about that for a minute. Most of us are walking around with a powerful computer on our hip and our data is being collected and used by companies to market us products and services.
This is not an email about privacy or big tech but the simple fact that data is becoming a powerful tool in the marketplace.
Data is being collected every day and we need to understand how to use data in our business of real estate investing.
Using date can help us identify and evaluate properties, identify tenants, rental rates, price growth, and neighborhood statistics.
Do not try to fight it – use it!
Data and application of data to market our services is the key to a successful 2021. Join me for in depth conversation on the tools we can use to beat our competition.
My sole focus at the January 2021 WASHINGTON REIA meeting is: How to use DATA to generate deals in the New Year.
We need to target our ideal customer and begin to market to them as they get ready to sell their property.
Here is to the Possibilities in 2021!!
John
P.S. Target-Mentoring Sessions Available: I am offering targeted-mentoring sessions on many subjects in Real Estate Investment:
Just Text “Mentoring” to 301-943-5535 and we can set up time to talk about any of the following:
Marketing for Deals
Buying your First Rental Property
Using your Self- Directed IRA to Retire Early
How to Raise Capital with a Private Bank
Buying Performing and Non-Performing Debt
Executing a Renovation Project
If you need help in a specific area, reach out and we can talk to see if we can get you started in reaching your goals today.
You can catch a few more details about this months WREIA meeting at the video below.
Nearly all of my career has been spent investing here in the DC area.
I have learned a lot about the area, the people and of course made a few mistakes along the way. I hope to share some of those experiences at our WREIA meeting this Monday.
Most of our topic this month will be steered toward someone who is new to the business. For that matter, maybe you are not new, but you will get something out of this meeting if you are simply struggling with all the changes over the last 10+ years.
Because the reality is – the DC area has changed a LOT over the last 10 years.
I hope you join us on Monday at our still virtual October 2020 WREIA meeting.
The family and I simply got in the car and took off for the Carolinas.
It didn’t take long to brush off the stress of getting back to school and getting back to work and the traffic here in DC.
It started with a simple question – “If the kids are going to school online – why do we have to stay here every day?”
So – off we went.
It turned out to be a good experiment.
The focus was still school – online – in the morning for my son. I would catch up on work and phone calls and we would catch a few holes of golf in the afternoon.
I have to tell you, just getting outside for a few days was worth the trip.
One of the side benefits of the trip was the inspiration I took from a single phone call with a relatively new investor who was struggling with the money side of the real estate business.
Her struggle over the last 6 months or so will become your gain next Monday evening. You will get a peek into our conversation with our WREIA meeting this month.
I hope she made some progress on the call. I think above all – she probably struggled with the “Belief” that she could do it.
After we hung up I started to take a few notes and within the hour had developed the outline for our October 2020 WREIA meeting.
“Five Things I’ve Learned After 20+ Years In Real Estate”
Most of our topic this month will be steered toward someone who is new to the business.
For that matter, maybe you are not new, but you will get something out of this meeting if you are simply struggling with all the changes over the last 10+ years.
I hope you join us on Monday at our still virtual October 2020 WREIA meeting.
Our July WREIA Meeting was Monday Night. Here is the replay. (and a few notes.)
Hello Everyone,
Thank you for joining us Monday night on for our July 2020 Washington REIA meeting.
You can find the July replay pinned on Youtube or Facebook and we also have it posted here:
We shared some great information on Getting Started in Real Estate Investment and I appreciate all the great questions during the prestation and the emails I received after the presentation was completed.
In the meeting I talked about the importance of overcoming fear, building a strongbelief in the business and your firm commitment to success. The business has transformed my life and I am grateful to my introduction many years ago now.
Here is a brief outline of our discussion:
Belief in Business
Overcoming Fear
Traits of Unsuccessful Investors
Traits of Successful Investors
Your Role in Real Estate Investment
Building Your Network
Road Map to Generate Leads
Financial Resources (Notes from June Meeting On-line)
Five Common Mistakes of New Investors
Power of Negotiation
Following a few simple steps, it will allow you to become successful in the business and place you on the path to financial independence.
Feel free to download the notes from Monday’s Virtual WREIA meeting we mentioned near the end. You can find them at this link. Good Investing,John
Let me know if I can help.
If you are ready…… might be the best decision you have made in months.
