This week, Brian and John provide answers to the questions that they get asked most often. As the guys network, they come across people who are learning about real estate and ask for advice. Brian and John decided to record all their answers so that they can help even more people who are seeking guidance in their real estate journey. Some questions addressed today get asked a lot, while some are unique questions that the guys were intrigued by.
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Covered Topics:
- Advice for finding new customers and negotiating deals.
- The market outlook and if it’s a good time to start investing in real estate.
- Finding and managing contractors.
Show Notes:
- 01:29 – Things that have been happening this week.
- A staff outing at a shooting center.
- Filling up one of six new apartment buildings and dealing with vandalism.
- Purchasing a new house this morning and some recent sales.
- 07:05 – A prelude to frequently asked questions.
- 07:55 – “What is the best list?”
- The reasons that John started with absentee lists.
- Results that John has seen from absentee and owner-occupied lists.
- 10:16 – “Do you think the market is oversaturated with wholesalers? Do you think it’s a good time to get in?”
- The money, time, and effort required to get involved.
- Learning curves that John experienced as an introvert when he began investing.
- Reasons why any time is a good time to get started in business.
- 13:40 – “Where do you get your private money from and how much interest do you pay?”
- Brian’s thoughts on the easiest place to find funding for your first deal.
- Creating leverage by investing some of your own money.
- High interest rates that Brian and John used to be subject to.
- 19:42 – Negotiating tactics.
- How the guys use wholesalers against themselves to win deals.
- Emphasizing the problem-solving aspect.
- The importance of follow up and how the guys have been improving their process for this.
- A discussion about what can be learned from Michael Quarles.
- 23:53 – “What don’t you buy?”
- Not being against certain properties, but not buying any up to this point.
- 25:42 – Creative financing.
- Figuring out how to encourage the owner to overcome their perceived risk.
- Situations that the guys have experienced in seller financing.
- An explanation of transactional funding and potential issues.
- 32:11 – “Is transactional funding a good, passive way to invest?”
- Ways that John protects himself in these types of deals.
- The large amount of knowledge required in such a deal.
- 34:09 – “Where do you find contractors?”
- Networking with other investors.
- Researching online and seeing reviews.
- Speaking with vendors about potential contractors.
- 36:44 – “How do you manage contractors?”
- Establishing a scope of work by writing it down.
- Contractor’s agreements.
- Doing check-ups and having the contractor send photos of their progress.
- Accounting considerations when paying contractors.
- Processes that the guys have in place to provide materials.
- 42:50 – Reflecting on last week’s episode that featured Peter Lohmann.
- For more information, check out our website and reach out to us at TakeActionRealEstate.com or follow us on Facebook
Topic Takeaways
- The best time to get started in real estate investing is now.
- Don’t buy houses with “weird” features.
- Finding and managing contractors is one of the toughest parts of the job. Don’t get discouraged. Everybody struggles with it.
Tweetable Quotes
- “A lot of people want to get started in wholesaling because they think there’s zero investment to get in, you’re going to flip a project for twenty grand right off the bat, and then you’re set. It doesn’t quite work that way.”
- “There’s never going to be a convenient time to start a business. You have to take risk, jump in, and be vulnerable… If you take action, eventually it’s going to lead to success.”
- “We try to emphasize the problem solving… Keep your logo, your offer, and your solution to their problem in front of them.”
- “I like the thought of going to your vendors and asking them who they recommend… The people that are there early in the morning are the ones that you want to hire.”
